DOVER, Del. — The Delaware Department of Agriculture (DDA), in collaboration with the Division of Small Business, has launched the Delaware Agricultural Financing Program (DAFP) aimed at bolstering the state’s agricultural industry by expanding lending opportunities for farmers and producers.
“Attracting new farmers and producers into our number one industry is a critical need for Delaware,” said Secretary of Agriculture Michael T. Scuse. “We are excited to offer this new loan program in cooperation with the Division of Small Business to help farm and aquaculture producers purchase the equipment they need to start or expand their operations.”
Eligible applicants include Delaware farmers, producers, and food processors involved in crop, livestock, aquaculture, and food production. Low-interest loans will be available for equipment purchases related to production, processing, packaging, aggregation, and distribution for operations of all sizes.
“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,” said Regina Mitchell, Director of the Division of Small Business. “We are honored to lend our financial expertise to help Delaware’s farmers and producers sustain their contributions to our economy.”
The DAFP offers $1.5 million in funding, providing loans ranging from $25,000 to $250,000. Loans can cover up to 50% of a project’s total cost, with the remainder coming from private lenders. All loans will have a maximum term of seven years, with interest-only payments due in the first year. Interest rates are set at 3.35% for first-time farmers and aquaculture projects and 4.25% for other projects.
“Farm loans can be safer investments than non-farm business loans, despite the unique challenges of the agricultural sector,” said Jimmy Kroon, DDA Administrator. “Our goal is to support first-time farmers and aquaculture producers facing these challenges and help them succeed.”
Interested applicants must provide proof of farm or food business operations or an IRS Schedule F tax form. Work must be performed by licensed contractors based in Delaware.
More information and applications for the DAFP can be found online.