MARBIDCO

MATTERS

Winter Issue Vol. IIII

Maryland Agricultural and Resource-Based Industry Development Corporation's (MARBIDCO) quarterly newsletter offers Ag/RBI economic development news you can use. Discover our financing opportunities, programmatic updates, news, upcoming events, and more.

WHAT'S NEW @ MARBIDCO

Certified Local Farm and Fish Food Aggregation Grant Fund Programs Open January 21st!

MARBIDCO's latest round of the Certified Local Farm and Fish Food Aggregation Grant opens on January 21, 2025. Since opening the program in 2022, MARBIDCO has approved more than $740,000 in grants awarded to 18 projects. The grant funds projects that help small farmers aggregate their products to sell to an institutional or wholesale buyer. The deadline for submitting applications is February 28, 2025.

The Certified Local Farm and Fish Food Aggregation Grant Program aims to demonstrate how the investment of funds can help grow and strengthen Maryland’s local food system and create opportunities for small farmers to sell products to wholesale and institutional markets. MARBIDCO offers two levels of grant funding for food aggregation projects.

Small-Scale Farmer Entity Aggregation Project

A grant of between $25,000 and $100,000 is available.
Applicants for the small-scale farmer-led aggregation grant must include at least four Certified Local Farm Enterprises or consist of one Certified Chesapeake Invasive Species Provider and applicants must provide at least a 20% match of private funds in the project.
An example of a small-scale aggregation entity could include an Agricultural Product Aggregation and Distribution Entity, an entity (including a farming operation aggregator) working with at least 4 farms (or 3 if the applicant is a farm) that can expand to meet institutional/wholesale demand. Another example of a small-scale farmer aggregation entity could be a legally organized farm cooperative.
The applicant must provide evidence that it will be selling a certain quantity of product to a wholesale or institutional buyer. This evidence could be in the form of a contract or letter of commitment specifying that it will purchase a certain amount of product.

Public Sector Aggregation Project

A grant of between $150,000 and $300,000 is available.
Applicants for the larger-scale aggregation grant will be a public entity such as a county government, municipality, community college, university, county school system, or rural regional council.
The grant is for public projects that plan to be primarily aggregation centers for wholesale and institutional distribution.
If the applicant is the buyer, it would need to provide a commitment to purchase from at least four Certified Local Farm Enterprises or three Certified Local Farm Enterprises and one Certified Chesapeake Invasive Species Provider and include what it plans to purchase and the amount of each product.
If the applicant is facilitating the aggregation, it would also need to provide evidence that it will aggregate produce from at least four Certified Local Farm and Certified Chesapeake Invasive Species Providers and provide a commitment from a wholesaler or institutional buyer to purchase from the aggregation center.
The grant requires at least a 20% match of funds in the project. A project of this size might also require a partnership of multiple entities and funding sources

For more information about the Aggregation grants contact Sierra Criste at scriste@marbidco.org.

Aggregation Programs

How do I become Certified in the Maryland Department of Agriculture (MDA) Certified Local Farm and Fish Program?

MARBIDCO requires Certified Local Farm Enterprises (and Certified Chesapeake Invasive Species Providers) to participate in the Certified Local Farm and Fish Food Aggregation Grant Programs. To apply to the MDA Certified Local Farm and Fish program click here.

Get connected to institutions across the State, participate in programs such as Maryland Food and Agricultural Resiliency Mechanism Grant Program (MFARM), and grow your business through the Certified Local Farm and Fish Program. The Maryland Department of Agriculture also provides a list of some institutional buyers in its publication, Maryland’s Best Expo Directory. Information can be found here.

Visit MDA Website

MARBIDCO Loan Programs

Low-Interest 3.00% Maryland Watermen's Microloan Program

Apply Today!

The Maryland Watermen's Microloan Program offers low-interest loans for watermen to purchase commercial fishing boats, boat motors, and harvesting gear.

MARBIDCO recently increased the maximum loan amount available under the program from $15,000 to $20,000 for equipment purchases, up to $30,000 for the purchase of a workboat, and up to $40,000 for a combination boat and equipment purchases.

These loans are available to certain commercial watermen who earn at least 50% of their income from fishing. Partial loan forgiveness may be available. The program also includes watermen holding commercial fishing licenses from the Potomac River Fisheries Commission in addition to watermen who hold a TFL license from the Department of Natural Resources. The minimum loan amount remains at $7,000.

Contact brawlings@marbidco.org for more information. Please send completed applications to MARBIDCO Watermen’s Microloan Program, Attn: Brittany Rawlings, 1410 Forest Drive, Suite 21, Annapolis, MD 21403, or to brawlings@marbidco.org.

Microloan Program

MARBIDCO Offers Two Maryland Resource-Based Industry Financing Fund (MRBIFF) Options

The MARBIDCO MRBIFF Loan Program now offers a Participation Loan option in addition to its traditional Direct Loan program. Under the Participation Loan option, the lender holds and services the loan.

Both options offer low-interest loans to Ag/RBI businesses for the purchase of land and capital equipment for commercial food, feed, and fiber production and processing projects.

MARBIDCO typically finances between 30-49% of the debt. MARBIDCO will be in the subordinate lien position under both options. The participation loan option is currently only offered through Horizon Farm Credit at this time. If other lenders are interested in adopting this lending approach, please contact MARBIDCO.

Direct Loan Maximum Loan Amounts

Real Estate and renewable energy projects- $600,000
Equipment/fixed assets- $300,000
Large-scale food/fiber processing projects-$1,000,000 (but not more than 25% of the project cost)

Participation Loan Maximum Loan Amounts

Real Estate and renewable energy projects - $700,000
Equipment/fixed assets- $350,000
Large-scale food/fiber processing projects-$1,000,000 (but not more than 25% of the project cost)

Interest Rates

Direct loan - 4.75% for the first 3 years, 5.25% for the next 3 years, and 5.75% for the remaining term of the loan.

Participation loan - 4.25% and the primary lender may require a loan servicing fee of up to 0.75% (maximum 5.00% for the full term of the loan)

Contact Brian Cadden at bcadden@marbidco.org or 410-267-6807 for more information.

MRBIFF Program

Please contact brawlings@marbidco.org for more information.

Veterinarian Program

Maryland Large Animal Veterinarian Assistance Loan Program

Attention licensed large animal veterinarians!

MARBIDCO has a program to help you start or expand your business. Applicants can apply for loans between $25,000 and $100,000, with an interest rate of 4.00%, to purchase a truck or other specialized equipment necessary for providing large animal veterinary care services in Maryland.

To be eligible for a loan under this program, a veterinarian must:

Have a license to practice veterinary medicine in Maryland issued on or after January 1, 2004;
Have clinical experience providing veterinarian care to large animals (e.g., cattle, horses, hogs, sheep, or goats);
Reside in Maryland on the date that the loan is settled; and
Agree to have a majority of their large animal practice in Maryland during the term of their loan.
Agree to provide at least 10% down payment for items being purchased with MARBIDCO loan proceeds.

Loan Terms:

For loans between $25,000 and $39,999 – 3.5 years
For loans between $40,000 and $59,999 – 4 years
For loans between $60,000 and $79.999 – 4.5 years
For loans between $$80,000 and $100,000 – 5 years

Where in Maryland is MARBIDCO?

MARBIDCO's staff and its Board members attend nearly a hundred events and meetings each year supporting our partners in the agricultural, seafood, and forestry industries. Here are some of the conferences we recently sponsored and attended this winter.

Cambridge: Financial Programs Specialist, Sierra Criste, and Financial Programs Officer/ Program Coordinator, Allison Roe of MARBIDCO, led a breakout session "Funding Programs for the Next Generation," during the Next Generation Farmers Day at the 109th Maryland Farm Bureau Conference in December. Other staff members joined them on Sunday to attend the three-day conference. (Above)

Cockeysville: Communications Specialist Jill Zarend attended the first Baltimore County Farmers Fair featuring Federal, State and County representatives introducing attendees to their programs. (Below)

Princess Anne: UMES Small Farms Conference in November. MARBIDCO Board Member Berran L. Rogers, Jr., (left) Project Director/Small Farm Coordinator at the University of Maryland Eastern Shore gives keynote speaker Shamilla Roberts, CEO and founder of Green Raven Organics in Charlotte, N.C. a certificate of appreciation. Assistant Director of MARBIDCO, Stacy Kubofcik, and Communications Specialist, Jill Zarend, attended the conference.

Cambridge: Executive Director of MARBIDCO, Steve McHenry, attended the annual Winter MACo conference in December. This conference had discussions about how counties can leverage changing times, shifting budgets, and evolving technologies to achieve fiscally responsible and effective results for the people of Maryland.

More MARBIDCO Programs

Ready to Begin Farming?

Small Acreage Next Generation Program

The Small Acreage Next Generation Program (SANG) is available to help qualified young or beginning farmers who have trouble entering the agricultural profession because of relatively high farmland costs and lack of access to adequate financial capital to purchase smaller farmland properties between 10 and 49 acres.

The SANG Program is essentially a farmland conservation easement option purchase program designed to help facilitate the transfer of farmland to a new generation of farmers and help preserve small acreage of agricultural land from future development.

The SANG Program addresses two key challenges:

Helping young or beginning farmers obtain financing for the purchase of farmland between 10 to 49 acres and
Helping to secure a viable future for Maryland's agricultural industry by preserving working farmland for future generations.

People interested in applying to the SANG Program should contact the agricultural preservation program office in the county in which the farmland is located, no later than a month before submission to discuss the suitability of a subject farm being permanently preserved.

Additionally, required paperwork prepared by the farm property sellers must be received in the county office no later than a month in advance.

Using the SANG Program, MARBIDCO can provide 30% to 60% of the Fair Market Value (FMV) (land only) in exchange for a permanent agricultural conservation easement, and that money is used as a down payment to purchase the farmland. A commercial lender is also required to be involved in the transaction. Most approved SANG Program farm purchases can be completed in 6 to 8 months.

While there is no age restriction to participate in the program, persons who are “beginner farmers” have a greater likelihood of being selected to participate. A “beginner farmer” is defined as not owning a farm or ranch (or owning less than 9 acres), not operating a farm or ranch as a principal operator for more than 10 years, having at least one year of farming experience, and expecting to substantially participate in the farming operation on the subject property.

SANG Program

Maryland Urban Agriculture Commercial Lending Incentive Grant

Urban grant now supports land purchases

MARBIDCO's Maryland Urban Agriculture Commercial Lending Incentive Grant offers an incentive for beginning urban farmers to seek commercial lender financing for the development of their urban agricultural enterprises, including the purchase of property in eligible urban areas by providing grant funding that can be held as equity in qualifying for the loan. MARBIDCO has partnered with Horizon Farm Credit for this program.

Maximum Grant Amount: $15,000 for equipment and working capital and $35,000 for real property, but no more than 25% of the project’s total cost. In addition, the grant amount can be no more than 33% of the approved commercial loan for this project.

Minimum Grant Amount: $1,000. (This means there must be an approved commercial loan of at least $3,000.)

Eligibility:

Applicants must be Beginning Urban Farmers, which are defined as being farmers (either individuals or incorporated businesses) with the principal operator(s) having:

10 or fewer years of commercial farming experience – either in a for-profit or not-for-profit setting or having limited personal or business financial resources (net worth less than $300,000);
A commercial food/fiber growing operation located in an urban area as defined by the United States Census Bureau and any incorporated municipality recognized by the State of Maryland.

Eligible business activities include the purchase of:

Real estate
Agricultural inputs and supplies such as seeds, fertilizer, compost, and baskets.
Farm tools and equipment.
Greenhouses, high tunnels, refrigeration, and irrigation systems; and
Hired labor (at no more than 20% of the total eligible project cost).

Commercial Lender Participation: A commercial lender must have approved a loan to fund the proposed urban farming project before a grant will be awarded.

Urban Ag Grant

FY 2024 Annual Report Available

The MARBIDCO FY 2024 Annual Report is available on our website!

Read about our success stories from across the state including, "Alliance Uses MARBIDCO Grant Funds to Expand Business Opportunities for Many" and "Family is Key to Raising Poultry: MRBIFF Loans Facilitates Time Together and Thriving Businesses," plus more articles about our programs.

Annual Report Link

MARBIDCO WEBSITE https://www.marbidco.org/

We hope you will visit our website frequently to discover our many programs and financing opportunities.

Upcoming Agricultural Events

Women in Agriculture Regional Conference

The annual conference's goals are to provide women involved in agriculture an opportunity to come together to learn about current issues and topics so they can make informed decisions concerning their agribusinesses and family lives.

DATE: February 12, 2025

LOCATION: Chesapeake Bay Beach Club, 500 Marina Club Road, Stevensville, MD

TIME: 9:00AM to 3:30PM

REGISTRATION Link

SPONSORSHIP OPPORTUNITY Link

Maryland Farmers Market Conference

Save the date for the annual Maryland Farmers Market Conference *on March 11, 2025 at the Maryland Department of Agriculture in Annapolis.

Stay tuned for more information as we get closer to the date and in the meantime, check out the agenda from this past year and keep a look out for more information for next year.

Click here to get more information.

MARBIDCO is a nimble, quasi-governmental financial intermediary organization that has a mission to serve exclusively the commercial farming, forestry, and seafood industries of Maryland. Young and beginning farmers are a special focus for MARBIDCO, as is farm operation diversification. Since 2007, MARBIDCO has approved some 1,410 financings totaling more than $111.9 million for food and fiber business projects located in all of Maryland’s counties – and in the process has leveraged more than $231 million in commercial lender financing.

For more information call us at 410-267-6807 or by email at info@marbidco.org or visit our website www.marbidco.org

MARBIDCO offers funding programs for assisting with purchasing farms and real estate, programs for forestry businesses, commercial watermen, shellfish aquaculture, and seafood, plus grant incentive programs, local and regional sponsored programs, and additional loan programs.

For more information about all 22 MARBIDCO financial programs, please click below for our MARBIDCO Program Summary PDF.

Program Summary