Fund offers organic farmers interest-free loans

Organic and ecological farming businesses across the UK can now apply for interest-free, unsecured loans of up to £25,000 from the Dean Organic Fund.

It is aimed at small or start-up businesses unable to secure commercial funding, offering loans of between £5,000 and £25,000, repayable over two to five years.

See also: Farmers to benefit from assurance scheme improvements

“We are looking to make a big impact, and support a wide variety of enterprises founded on organic farming principles,” said Chris Jones, adviser to the Dean Organic Fund.

“The fund is open to applicants from all walks of life, and may just provide that turn-key investment to a well-founded enterprise.”

Since 2018, nearly 50 businesses have benefited from the scheme, including organic dairies in Devon, market gardens in the Cotswolds, and a community-led vegetable project in Somerset.

A mobile organic shop operating on the North Coast 500 route in Scotland has also received support.

Conservation grazing

Among the recipients is Sally Hempsell, who used a £25,000 loan to purchase cattle and a four-wheel drive vehicle for her conservation grazing business, Grazing Matters, in north-west England.

“Farming and food production can work alongside the conservation of special habitats and biodiversity,” she said.

“The loan was instrumental in allowing me to set up the business.”

Each loan is tailored to suit the specific needs of the business, with a focus on realistic repayment.

“We do not expect a return on our investment, but we do expect to see the legacy fund delivering growth in the organic sector,” said Mr Jones.

Eligible applicants include private or public companies, sole traders, partnerships and community or charitable enterprises.

Loans must be used for investment in equipment, stock, or innovation – excluding land or property – and applicants should follow or be converting to organic practices.