The Carrot Project is a not-for-profit organization dedicated to making loans and guarantees available and exploring equity options for small- and midsized farmers, limited-resource farmers, and those using ecologically friendly practices.

The Carrot Project envisions a U.S. farm sector that is diversified by size and type of farm enterprise. Thriving small and midsized farms are critical for regional food security, and have significant positive impacts on local economies, the social fabric of rural communities, and the natural environment.

For today’s small- and mid-scale, limited-resource farmers, finding sufficient capital to finance their businesses can be a challenge. Tightening regulations, limited USDA-Farm Service Agency budgets, and consolidation of lending institutions have resulted in fewer lenders with agricultural expertise or mandates. Community development finance institutions (CDFI) finance many small businesses, but were pioneered to address urban issues and typically have little or no agricultural expertise. The dominant agricultural lenders in the Northeast, Farm Credit and the USDA Farm Services Agency do offer credit, but neither adequately serves farm operators because they are start-ups, have unique business models, or have inadequate collateral. 

Our model pulls together and takes advantage of the intersection of farmers’ needs for financing, their limited access to lenders, and sources of appropriate capital. We also draw on the expertise of existing farm support organizations and information gleaned from economic development activities already underway. Our goal is to increase the amount of financing available for small-scale farmers and increase the number of lenders working with smaller farms.

The Carrot Project is grateful for the donations and investments of the Farm Credit Northeast AgEnhancement, Lawson Valentine Foundation, a component fund of the Maine Community Foundation, NESARE Sustainable Community Grants Program, The Sandy River Charitable Foundation, Strolling of the Heifers, Trillium Asset Mangement, and generous individuals.