DOVER, DE — In a concerted effort to bolster Delaware’s agricultural landscape, the Delaware Department of Agriculture (DDA), in collaboration with the Division of Small Business, has officially introduced the Delaware Agricultural Financing Program (DAFP). This initiative is poised to invigorate the state’s number one industry by expanding financial avenues for farmers, producers, and food processors.
“Attracting new farmers and producers into our number one industry is a critical need for Delaware,” expressed Secretary of Agriculture Michael T. Scuse. “We are excited to offer this new loan program, in cooperation with the Division of Small Business, as a way to help farm and aquaculture producers purchase the equipment they need to get started or expand their operations.”
The DAFP is designed to provide low-interest equipment loans to entities engaged in Delaware’s agricultural sector, including crop cultivation, livestock management, aquaculture, and food production. Eligible applicants can secure loans ranging from $25,000 to $250,000, covering up to 50% of a project’s total cost. The program requires applicants to secure additional funding from private lenders to cover the remaining costs. Loan terms extend up to seven years, with the first year dedicated to interest-only payments. Interest rates are fixed at 3.35% for first-time farmers and aquaculture projects, while other projects will incur a rate of 4.25%.
Regina Mitchell, the Division of Small Business Director, emphasized the importance of this collaboration, stating, “Agriculture is such an important industry in our state, and we are proud to partner with the Delaware Department of Agriculture to ensure it continues to thrive and grow. DSB prides itself on being a good steward of state funding and is honored to lend its financial expertise to help Delaware farmers, producers, and food processors meet their needs to sustain their livelihood and contributions to Delaware’s economy.”
The program has earmarked $1.5 million in available funding, aiming to alleviate the financial burdens that often accompany agricultural ventures. As explained by Jimmy Kroon, DDA Administrator, “Agriculture and aquaculture financing tends to be more difficult to obtain through traditional banks. Producers may not have formal business training, the industry has thin margins and higher risks, and specialized equipment sometimes doesn’t provide good collateral. Yet, according to nearby state agriculture financing programs, farm loans tend to be safer investments than non-farm business loans.”
To qualify, applicants must provide proof of their farm or food business operations or submit an IRS Schedule F tax form from the prior year. Additionally, all work financed by the loans must be executed by experienced contractors licensed within Delaware.
This program is a significant stride towards sustaining and enhancing Delaware’s agricultural economy, offering new farmers and existing producers the financial tools necessary to thrive in a competitive environment. Interested parties can seek further information and access application materials online.
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