Regenerative Agriculture

FBN Launches Regenerative Agriculture Financing Land Loan Pilot

FBN introduces the Regenerative Agriculture Financing (RAF) Land Loan pilot program to support farmland financing with sustainability incentives.
Photo by Maria Kovalets on Unsplash

Key Takeaways

➡️ FBN introduces the Regenerative Agriculture Financing (RAF) Land Loan pilot program to support farmland financing with sustainability incentives.
➡️ Approximately 20 farmers will receive discounted interest rates (0.25% to 0.5%) for seven years on newly financed land.
➡️ Farmers must implement sustainable soil and water health practices and meet environmental criteria set by Gradable and the Environmental Defense Fund (EDF).
➡️ The program is backed by a $750,000 investment from the Walton Family Foundation (WFF).
➡️ The initiative builds on the success of the RAF Operating Line, which now supports 140 farmers.


Overview of the RAF Land Loan Pilot by FBN

FBN®, the farmer-to-farmer network and agricultural marketplace, has announced the launch of its Regenerative Agriculture Financing (RAF) Land Loan pilot program. The initiative is designed to encourage farmers to adopt conservation practices that enhance soil health, water quality, and climate resilience through financial incentives.

The pilot program will provide discounted interest rates between 0.25% and 0.5% for seven years to 20 farmers who implement qualified sustainability practices. Environmental benchmarks will be established in collaboration with Gradable and EDF to ensure compliance.


Financial Support and Conservation Incentives

The pilot program is funded through a $750,000 program-related investment (PRI) loan and grant from the Walton Family Foundation (WFF). This initiative aligns with WFF’s mission to support long-term water sustainability and conservation efforts.

Dan English, GM of FBN Financial, stated, “This program is an innovative example of using agriculture finance to facilitate regenerative ag. We’re proud to work with the Walton Family Foundation and our partners to create a solution that reduces costs for farmers while promoting effective land stewardship.”


How the Program Works

The RAF Land Loan provides:

➡️ Loans for farmland acquisition or refinancing to help farmers expand operations or reduce financing costs.

➡️ Interest rate discounts for farmers who adopt sustainable soil and water management practices and meet annual environmental benchmarks.

➡️ Loan sourcing, servicing, and administration managed by FBN Finance, with Gradable overseeing data collection, quality assurance, and environmental reporting.


FBN’s RAF Land Loan Builds on Past Success

The RAF Land Loan builds on the success of FBN, Gradable, and EDF’s RAF Operating Line, which launched in 2021 and has since expanded to 140 farmers in 2024. The program demonstrated that financial incentives can drive sustainability in agriculture.

Moira Mcdonald, Environment Program Director at WFF, emphasized the importance of the program, stating, “Helping farmers grow crops while also protecting water and soil is key to protecting people and nature together, especially in the face of climate change.”


Future Expansion

FBN and Gradable plan to expand the program by securing additional grant funding, including potential opportunities through Climate United’s administration of the EPA’s Greenhouse Gas Reduction Fund. The long-term goal is to scale regenerative agriculture financing and promote sustainable practices across a wider range of farming operations.

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