Controlled Environment Agriculture

Securing a future where food is plentiful, local, and nutritious

Controlled Environment Agriculture (CEA) encompasses horticulture, aquaculture, greenhouses and indoor farms. With fresh produce needed year-round, the ability to grow crops in a controlled space—no matter the season or location—offers answers to some of agriculture's toughest challenges.

USDA-backed loans have provided many a CEA startup with more than just money – they offer stability. Agricultural producers require patient, flexible capital to weather the seasons, without the shackles of conventional financing. USDA-backed loans allow growers to focus on what matters: production quality, operational excellence, and predictable results.

Highlights

  • Typically 100% of CEA project costs, including land, hard & soft costs, working capital are USDA guaranteed loan eligible

  • One loan to cover construction through to permanent financing, with up to 24 month interest only

  • No restrictive covenants, no call provisions, no balloon payments, long-term amortizations

  • Ag producers located in urban areas are eligible for a Rural Area exemption, subject to meeting certain conditions

  • Acquisitions of existing facilities are eligible

  • CEA uses are eligible for both B&I ($25M per applicant) and REAP ($25M per applicant)

Applications of USDA Loan Guarantees in CEA

Facility Construction and Modernization

  • New Facilities: Financing for building state-of-the-art indoor farms, vertical farming systems, and climate-controlled greenhouses.

  • Expansion and Upgrades: Funding for increasing production capacity, improving insulation, and integrating advanced climate-control systems.

  • Specialized Structures: Developing facilities with specific capabilities, such as hydroponic, aeroponic, or aquaponic farming setups.

Equipment and Technology Investment

  • Automation Systems: Acquiring robotics, conveyor belts, and seeding machines to streamline operations and enhance productivity.

  • Irrigation Systems: Installing water-efficient systems, including drip irrigation and closed-loop recycling technologies.

  • Sensors and Monitoring Equipment: Investing in devices to monitor temperature, humidity, light levels, and nutrient delivery.

Renewable Energy Integration and Energy Efficient Equipment (REAP Focus)

  • Solar and Wind Energy Systems: Financing renewable energy installations to reduce operational costs and carbon footprints.

  • Energy Storage Solutions: Implementing battery systems to store renewable energy for consistent operations.

  • Energy Efficient Equipment: Lighting (e.g., LED systems), HVAC systems, insulation, building envelope, and more.

Sustainability and Waste Management

  • Composting and Recycling Systems: Supporting projects to repurpose organic waste into fertilizers and reduce environmental impact.

  • Water Recycling Systems: Installing systems to minimize water waste and ensure efficient resource use.

Working Capital and Operational Support

  • Operational Expenses: Covering day-to-day costs, including employee salaries, utilities, and raw material procurement.

  • Debt Refinancing: Consolidating high-interest debt to improve financial stability and free up resources for growth.

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