Locally Grown – A Fad Or A Trend? Dead Or Alive?
Was there ever a real need for locally grown fresh produce? If the answer is yes, is that need still there? And can controlled environment ag facilities fill those needs?
By Chris Higgins
UrbanAg News
March 4, 2024
Excerpt:
Where locally grown produce really shines is in delivering fresh products, especially when consumers want seasonally and geographically appropriate options. This may also be where farmers ultimately produce the most sustainable options, as seasonally appropriate crops require the least amount of manipulation to the growing climate as well as the lowest capital investment. The only question(s) remaining with this locally grown option is whether the farmer has access to the land needed to produce enough of these crops to support their farming business and the mortgage on the land, while still providing their family with a reasonable lifestyle.
The desire to produce more locally, while investing in technology, is also where we have seen the biggest changes in how and where farms get financing. Historically, farmers used traditional lending sources such as banks, state-sponsored programs or owner financing to purchase land and needed equipment. These investments were considered safe and conservative based on using the farmland and a farmer’s home as collateral.
But new and innovative farming concepts seldom qualify for traditional financing. They are considered more risky due few unproven profit models and much greater need for capital per acre of farmable land. Due to this risk, farms that use greenhouses or indoor farm designs have had to look to new financing options. This includes angel, private equity and venture capital financing options where risk and opportunity are measured differently than traditional outlets.
Read the complete article here.
Source: https://cityfarmer.info/locally-grown-a-fad-or-a-trend-dead-or-alive/
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