IMP Matrix Rating: C6

What: California Farmlink is an agriculture-focused debt fund, recognized as a Community Development Financial Institution (CDFI) . The Impact Note to California Farmlink enables it to lend to a broader set of borrowers who are looking to acquire land, expand their farms, operate in more climate-conscious approaches, and/or start a new farm.

Who: The impact thesis is focused on cross-sectionality of climate action and social justice. California Farmlink aims to transform food systems and support farmers and ranchers. Through financial inclusion of underserved communities – people of color, immigrant farmers, women farmers, many of whom are monolingual non-English-speaking – California Farmlink aims to reignite our food systems through more diversity, equity and inclusion. Its cross-sectional impact approach is a catalyst for racial justice through wealth creation and environmental impact through education of ecological practices centered on carbon sequestration, soil health and water conservation.

How Much Impact: 80% of borrowers are people of color. 60% are immigrants and refugees. 80% of borrowers have organic farms. The depth of the multidimensional impact California Farmlink enables is not yet fully captured and a full impact report for 2022 is expected in 2023.

Our Contribution: We provided the organization with highly additional funding to scale its loan operations.

Impact Risk: The main risk is growing competition by which farmers might prefer cheaper financing than the value-added services plus financing offering that California Farmlink provides. Moreover, the geographic concentration in California alone means that all borrowers are subject to similar climate and agro-ecological risks, representing both an impact and a financial risk.

Sample Investments: Avalos Farms, Tara Firma Farms, Gonzales Farms