Third of four posts on Mission Related Investments (MRIs).
Yankee is presently working on joining FarmStart, LLP, which will be its second equity MRI. FarmStart is an initiative of First Pioneer Farm Credit to make investments in startup farming operations (starter farmers). CoBank is also a partner in this initiative. Yankee has committed $500,000 to this initiative.
FarmStart investments are structured as subordinated non-recourse debt. The maximum investment in a farming operation is $50,000. Repayment of principal is due in 5 years. The interest rate is usually the prime rate, and interest payments are typically due quarterly.
FarmStart applicants must submit a formal application, including financial statements, a business plan and references. Successful applicants will be assigned a FarmStart Advisor who will work with them. FarmStart Advisors are loan officers who receive specialized training. Initially, Morgan Greenwood and Tom St. Pierre will be trained as Yankee's FarmStart Advisors.
UPDATE: Morgan, Tom and Bill Heath attended FarmStart training on June 17 at First Pioneer's Claverack, NY office.
