Source: CALIFORNIA FARMLINK submitted to NRP
EXPANDING THE INDIVIDUAL DEVELOPMENT ACCOUNT MODEL TO DIVERSE REGIONS OF THE U.S.
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0206287
Grant No.
2006-38640-16712
Cumulative Award Amt.
(N/A)
Proposal No.
2006-02744
Multistate No.
(N/A)
Project Start Date
Mar 15, 2006
Project End Date
Mar 14, 2008
Grant Year
2006
Program Code
[MA.1]- (N/A)
Recipient Organization
CALIFORNIA FARMLINK
7207 BADEGA HWY
SEBASTOPOL,CA 95472-3725
Performing Department
(N/A)
Non Technical Summary
A majority of programs designed to advance sustainable food systems emphasize production techniques. Relatively few have focused on financial management for family farmers. This is the purpose of training and technical assistance associated with the farm IDA programs. This project will advance a comprehensive approach to asset building and financial management that helps farmers own assets that become the long-term foundation for sustainable farms. Nationwide community bankers, foundations and governmental program leaders and policy makers are asking: How can we bring IDAs to scale to assist low-income individuals enter the ownership society? This project provides key answers related to working with rural communities in general and small, sustainable farmers in specific. By presenting best practices in program design, the project will impact this larger debate as well as discussions regarding direction of the 2007 Farm Bill. The purpose of this project is two-fold: to expand the nations first agricultural Individual Development Account (IDA) pilot program to 5 states in order to assist beginning farmers to build an asset base for land purchases and capital expenditures; and to analyze design of the new state IDA programs in terms of implications for public policy options.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
9036030302050%
9036030303050%
Goals / Objectives
In 2002, California FarmLink launched the nations first Individual Development Accounts (IDA) program focusing exclusively on agriculture and small, low-income, farmers. This equity building program provides gap-financing to committed entrepreneurs as a crucial component of FarmLinks comprehensive linking, training and technical assistance services. The Individual Development Accounts (IDA) program creates an asset base to help beginning sustainable farmers purchase land and make capital expenditures for equipment and infrastructure necessary for the long-term growth of a small farm. IDAs have been utilized by a variety of programs to promote micro-enterprise development, homeownership, and higher education over the last eight years. IDA programs typically include: match savings accounts; technical assistance; and business planning and financial literacy training. Demand for IDAs is high in the agricultural community as evidenced by CFL receiving 82 participant applications. California FarmLinks IDA program is the first in the country designed to serve farmers exclusively. FarmLinks program was developed based on researching CFED information and successful IDA programs serving small businesses. This project will expand the IDA program pioneered by California FarmLink by assisting other organizations committed to establishing IDA programs for sustainable farmers to acquire knowledge, skills and capital to develop successes around the nation. The project will expand the farming IDA concept through development and evaluation of variations on the IDA program model in the North Central, Northeast, Southern, and Western Regions. The key goals are to: 1. provide programs tools and training needed to establish new IDA programs and; 2. analyze design of new state IDA programs in terms of implications for public policy.. The target group for the project is program staff of organizations committed to developing new Individual Development Accounts. Non-profit organizations will receive mentoring, electronic copies of documents needed to establish programs, and a supportive learning community to establish new IDA programs. California FarmLinks program will serve as the model from which other states will design new IDAs serving the agricultural community based on regional needs. Variations along the lines of this model may include: the match rate; the total amount of matched savings that will be contributed for a single farm; the types of training and support to be provided; requirements for applications; supporting apprenticeship and/or mentorship expenses; and evaluation criteria. Elements of the model that will not be adjusted include: emphasis on small scale farmers with limited assets; evaluations committees for IDA applications will include representatives with significant agricultural financing experience; demographic data will be collected along with evaluations in order to monitor progress and improve the model. This will provide sufficient time to: develop new programs in at least 5 states and pursue ongoing funding to continue the program. States launching new IDA programs are expected to complete their initial program design within six months.
Project Methods
Activities include training program staff to develop new programs in at least 5 states and evaluating implications of design of the new programs in terms of public policy related to IDAs for small farmers. The program will provide training, mentoring and a learning community for new programs establishing IDA programs. While four have committed to develop IDA programs through the grant, another three interested programs have agreed to assist with the policy development. Partners will hold quarterly phone conference calls to discuss progress and share challenges as well as ideas regarding evolving best practices. The targeted new state programs each run FarmLink programs. In addition several of these non-profit partners will work with grassroots incubator programs serving small-scale immigrant farmers. After establishing the new state programs, partners will analyze potential policy options for governmental support of IDAs through research and phone meetings. The policy evaluation and analysis will reflect input from representatives from 10 agricultural non-profit organizations based in 8 states, CFED, and key USDA personnel including the national directors of the USDA RMA Outreach Program. These activities will lead to the development of a report covering best practices in the Agricultural IDA programs and options for public policy. The paper will include options for a program for federally funded IDA accounts for small, beginning and other underserved farmers.

Progress 03/15/06 to 03/14/08

Outputs
OUTPUTS: California FarmLink organized and hosted a 3-day training for non-profit professionals: "Advancing the Agricultural IDA Program Model" from February 8-10, 2006. Attendees represented Michigan State University - Center for Urban Affairs, North Carolina Farm Transition Network, Land Stewardship Project, New England Small Farm Institute, and Center for Rural Affairs. Four states: are working on developing IDA programs. This means that the project impacted all SARE regions. In addition, on July 11-12, 2006, Steve Schwartz presented the IDA Expansion Project to USDA Farm Service Agency's Advisory Council on Beginning Farmer and Rancher Development Program on July 12-13, 2006. Beginning farmers and groups representing them from around the nation were present including Farm Bureau, the Farm Credit System and bankers. PARTICIPANTS: California FarmLink Staff involved in the training included: Steve Schwartz, PI and California FarmLink Executive Director Linda Petersen Emily Martin, Americorps*VISTA Attendees at the training that participated in the project included: Susan Cociarelli, Michigan State University - Center for Urban Affairs Andrew Branan, North Carolina Farm Transition Network Laura Borgendale, Land Stewardship Project Judy Gillan, New England Small Farm Institute Michael Holton, Center for Rural Affairs Mary Embleton, Cascade Harvest Coalition/Washington FarmLink TARGET AUDIENCES: The primary audience was groups serving beginning farmers and planning to implement or expand agricultural IDA programs. These groups were located throughout the nation and project resources are available to additional groups upon request. In addition the project sought to help policy decision-makers that would be considering how to advance agricultural IDA's at a policy level. Input from the first audience was used to impacdt the second. PROJECT MODIFICATIONS: The primary modification was that participating groups, in general did not begin implementation of new IDA programs in terms of offering matched savings to new farmers. This was due to limited ability to secure funding apart from the $5,000 training grant from CSREES. As a result work on best practices was limited to bringing concepts that would expand on the IDA model to reflect regional goals and objectives described by the participants. This was coupled with California FarmLink's ongoing experience in offering IDA's.

Impacts
The project served to expand its IDA program by assisting other organizations committed to establishing IDA programs for small scale farmers in their own states. In February 2006, California FarmLink hosted an IDA Program Expansion Training in an effort to provide interested organizations with the knowledge and skills necessary to develop successful agricultural IDA programs. The three-day IDA training oriented staff of five non-profit farmlinking organizations around the country to the IDA model and its application to the agricultural community. The training covered aspects of program design and implementation. Hard copy and electronic versions of all forms and documents used by California FarmLink were provided to the participants. The training also allowed partners to explore and consider variations on the agricultural IDA program that California FarmLink has pioneered. California FarmLink's IDA program serves as the model from which other states are in the process of designing their own IDA programs suited to their region. Variations along the lines of this model are expected as the new states develop their respective programs. Variations may include: the match rate; the total amount of matched savings that will be contributed for a single farm; the types of training and support to be provided; requirements for applications; and evaluation criteria. The organizations designing the new IDA programs held several phone conference calls with California FarmLink to discuss progress and share challenges as well as ideas regarding evolving best practices. The training involved presentations from representatives from California FarmLink, Wells Fargo Bank, the Corporation for Enterprise Development (CFED), the Community Reinvestment Coalition, Office of the Comptroller of the Currency, and West America Bank.

Publications

  • Schwartz, etc. al., 2006. California FarmLink compiled a binder of materials for the training that is available for programs beginning agricultural IDA programs. This resource included both hard copy and electronic versions of documents. The binder included over 60 documents for IDA program developers including: an overview of IDA accounts; PowerPoint presentations; participant documents; applications; internal monitoring documents; evaluation design materials; sample proposals; and sample media releases.
  • Schwartz, 2008. California FarmLink prepared a brief "Best Practices in Agricultural IDA's" report. This short narrative described current thinking in agricultural IDA design reflecting California FarmLink's original model and the recommended improvements based on practical experience, input from the Corporation for Enterprise Development, and input from organizations participating in the training.
  • Advocates, 2007. Though not a publication from the project, the project did lead directly to the language in the 2008 Farm Bill for the "Beginning Farmer and Rancher Individual Development Account Pilot Program".