San Mateo, CA – FBN®, the farmer-to-farmer network and agriculture's leading marketplace for inputs, capital, marketing and sustainability services—today announced the launch of its Regenerative Agriculture Financing (RAF) Land Loan pilot program, a first-of-its-kind innovation in farmland financing.
The pilot program will provide approximately 20 farmers with discounted interest rates — ranging from 0.25% to 0.5% — on newly financed land for seven years. The rate discounts will be accessible for farmers who implement sustainable soil and water health practices and meet environmental criteria developed by Gradable and Environmental Defense Fund (EDF).
The pilot program is supported by a $750,000 program-related-investment (PRI) loan and grant from the Walton Family Foundation (WFF). Through this innovative program, farmers who successfully adopt conservation practices that benefit soil health, water quality, and climate resilience will have access to discounted land loans. WFF supports lasting water solutions to make sure there is enough healthy, available water for people and nature to thrive together.
By combining financial benefits with conservation outcomes, the RAF Land Loan creates tangible incentives for farmers to continue or transition to using regenerative practices.
“This program is an innovative example of using agriculture finance to facilitate regenerative ag,” said Dan English, GM of FBN Financial. “We’re proud to work with the Walton Family Foundation and our partners to create a true win-win: a solution that reduces costs for farmers while promoting effective land stewardship at scale."
Here's how the program works:
Farmers can access loans to acquire or refinance farmland, expanding their operations or reducing current financing costs.
Interest rate discounts will be applied for farmers who implement soil and water health practices and meet annual environmental benchmarks.
FBN Finance will manage loan sourcing, servicing, and administration, while Gradable will oversee activities including data collection, quality assurance, and environmental reporting.
The RAF Land Loan builds on the success of FBN, Gradable, and EDF’s RAF Operating Line, an agricultural financing program that demonstrated that financial incentives can drive sustainability. Launched as a pilot in 2021, the RAF Operating Line has grown to support 140 farmers in 2024.
“Helping farmers to grow crops while also protecting water and soil is key to protecting people and nature together. That’s especially true in the face of climate change,” said Environment Program Director Moira Mcdonald at The Walton Family Foundation. “We're looking forward to working with FBN, Gradable, and EDF to provide farmers with access to affordable capital in order to incentivize the adoption of sustainable agricultural practices and work towards a more sustainable future."
In the years to come, FBN and Gradable aim to leverage the program’s success to secure additional grant funding, including opportunities through Climate United’s administration of the EPA’s Greenhouse Gas Reduction Fund.
Farmers Business Network, Inc. (FBN®) is a pioneering digital marketplace and farmer-to-farmer network dedicated to empowering family farmers globally while promoting sustainable agriculture. With over 100,000 members, FBN's Farmers First® promise unites growers and ranchers to maximize profitability and increase food production. FBN leverages data, AI and direct-to-farm delivery to simplify the agricultural supply chain, boost convenience and transparency, reduce farm input costs, enhance access to capital and services, and provide personalized insights. Combining Midwestern agricultural expertise with Silicon Valley innovation, FBN operates from principal offices in San Mateo, California, and Chicago, Illinois. For more information, visit www.fbn.com.
Gradable provides new technology and services that facilitate the scoring, sourcing, and pricing of Low-Carbon Grain, making environmental transparency in the grain industry a reality now. Gradable enables comprehensive environmental transparency by tracking scope 3 emissions, while supporting a market for premium, environmentally-scored grain. Gradable also provides buying intelligence software that directly connects farmers with consumer-packaged goods companies, animal feed providers, biofuel makers and the world’s other major grain buyers. To learn more, visit www.gradable.com
The Walton Family Foundation is at its core, a family-led foundation. Three generations of the descendants of their founders, Sam and Helen Walton, and their spouses, work together to lead the foundation and create access to opportunity for people and communities. They work in three areas: improving education, protecting rivers and oceans and the communities they support, and investing in their home region of Northwest Arkansas and the Arkansas-Mississippi Delta. To learn more, visit www.waltonfamilyfoundation.org.