California Farmlink Invests in the Future of California Agriculture: Loan Capital, Land Access, and Business Education for Farmers and Ranchers
The Issue
For many small- and mid-scale California farmers, land ownership isn’t just a goal, it’s the foundation for financial stability, self-reliance, and generational wealth. Financial hurdles and leasing farmland year after year can create uncertainty, and without access to capital and knowledge, growing into land ownership is extremely challenging, and can take many years. Farmers’ business skills, market options, and access to affordable loan capital all play important roles in determining their potential for growth and success.
What Has Been Done
Southwest Regional Food Business Center (SWRFBC) partner California FarmLink invests in the future of California agriculture by providing access to land, capital, and education. The organization believes those three fundamental resources are the foundation of successful farm businesses that can grow family wealth, support rural economies, and conserve natural resources. FarmLink believes that successful farm and ranch businesses support healthy rural communities, resilient food systems, living-wage jobs, and a healthy environment with working lands providing incomes and ecosystem services.
In order to realize the full potential of the farms and ranches served by California FarmLink, loan capital plays a central role. As a Community Development Financial Institution, an organization that increases economic opportunities in low-income communities via broadening access to financial products and services, California Farmlink provides not only affordable loans, but also scale-appropriate financing to match the capital needs of a wide variety of businesses. During the 1-month period from January 2024 thru June 2025, for example, FarmLink deployed 69 loans totaling $20 million, with loans ranging in size from $10,000 for small equipment or operating costs to $1 million or more for the opportunity to purchase land.
Access to capital is important, but the skills necessary to manage the business are equally important. Throughout its work with borrowers, FarmLink provides one-on-one technical assistance and access to its unique educational courses. From January 2024 to August 2025, approximately 2,000 technical assistance interventions took place among more than 500 farmers and ranchers. Of those, 42 farmers and ranchers were served through the Southwest Regional Food Business Center.
California Farmlink’s assistance addressed topics including:
- developing cash flow projections, income statements and balance sheets;
- taking proactive steps to build or grow strong relationships with lenders;
- accessing land and managing land tenure;
- deciding on an appropriate business structure to manage financial risk and support business goals;
- developing and implement a plan for accessing and managing credit; and
- creating bookkeeping and management systems to measure business performance.
The Impact
One farm business served by California FarmLink is operated by a couple with many years of experience in California’s strawberry industry. For decades, the business owners developed production skills while envisioning how to start their own farm business. Like so many people in California agriculture, their agricultural roots go back to their childhoods, but financial uncertainty and lack of business skills, knowledge on market options and important regulations, for example, were significant obstacles to their goal
In 2018, one key step they took was to enroll in a partner organization’s 12-week course that covers the essentials of launching and managing a small business. After completing the course and starting a small farm on leased land, they secured their first operating loan from FarmLink. Despite their extensive agricultural knowledge, the transition to farm ownership came with a steep learning curve.
Over the years, the couple refined their approach and strengthened their operation. By 2023, after five years of leasing land and building business skills, they were prepared for the crucial step of purchasing their own land. FarmLink played a pivotal role in this transition, arranging a joint financing agreement with the USDA Farm Service Agency that enabled them to purchase 23 acres in Monterey County.
California FarmLink’s commitment extends beyond financial support. The organization invited the farmers to participate in its core business education program, El Resilerador, designed for farmers to strengthen financial literacy and business planning skills.
“The course was great…,” the farmer reported. “The instructors have an incredible ability to break down complex topics into clear and understandable lessons.”
With secure land tenure and enhanced business skills, the farmer is actively planning to expand their operations. In 2025, they are growing mixed vegetables while preparing for transition to organic strawberry production, but their vision doesn’t stop there. Their goal is to expand with another five acres to further diversify their production.
Their planned expansion demonstrates how land ownership creates a foundation for farm owners to build upon, enabling them to move from survival to strategic growth. With stable land tenure, business skills, and access to capital, the farmers can now make long-term investments in the operation and business practices. With support from the Southwest Regional Food Business Center, FarmLink has facilitated direct engagement between the farmers and an experienced accountant to organize their bookkeeping systems and build confidence in making sound financial decisions as they grow their business.