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Pennsylvania’s CFA Announce New Funding To Support The Agriculture Sector

The Pennsylvania Executive Budget for fiscal year 2024-25 outlines ambitious funding initiatives to bolster the state's agricultural sector.

Key Takeaways

  • The Commonwealth Financing Authority (CFA) announced five new funding awards totaling $1,885,000 to support Pennsylvania’s agriculture sector.
  • These awards align with the Shapiro Administration’s focus on strengthening the agriculture industry, which contributes over $132 billion annually to Pennsylvania’s economy.
  • The loans will help Pennsylvania farmers acquire new properties and make critical infrastructure improvements.
  • The First Industries Fund (FIF) supports the agriculture and tourism industries with loan guarantees for various investments.
  • Agriculture is highlighted as a key industry in Pennsylvania’s new Economic Development Strategy.

New Funding Awards to Support Pennsylvania’s Agriculture Sector

The Commonwealth Financing Authority (CFA) has announced five new funding awards totaling $1,885,000 in loans from the Department of Community and Economic Development’s (DCED) First Industries Fund (FIF). These awards are part of the Shapiro Administration’s broader initiative to strengthen the agriculture sector and promote economic development across Pennsylvania.

The Role of Agriculture in Pennsylvania’s Economy

Agriculture is a significant contributor to Pennsylvania’s economy, generating over $132 billion annually and supporting nearly 600,000 jobs. The Shapiro Administration has prioritized this sector within its economic development plans. “The Shapiro Administration understands that agriculture is a crucial component of Pennsylvania’s economy, which is why we’re making investments to boost the industry in the Commonwealth,” said DCED Secretary Rick Siger. “These loans approved today by the CFA will help Pennsylvania farmers acquire new properties and make critical infrastructure improvements that will help them grow and prosper.”

Objectives and Applications of the First Industries Fund (FIF)

The FIF aims to support Pennsylvania’s agriculture and tourism industries through loan guarantees. These funds can be used for land and building acquisition, construction, machinery and equipment purchases and upgrades, and working capital. The goal is to assist farmers and related businesses in overcoming financial barriers to growth and development.

Details of the Approved Loans

The following loans were approved:

  • Berks County: Dustin W. and Amber G. Fessler, through the Greater Berks Development Fund, received $400,000 for acquiring an 81-acre farm at 7283 Bernville Road in Jefferson Township.
  • Columbia County: M&K Family Farms LLC, through SEDA-Council of Governments, received $400,000 to construct a 49,016-square-foot layer barn at 75 Kulp Road in Catawissa Township.
  • Lancaster County: Willows Farm LLC, through the EDC Finance Corporation, received $400,000 to acquire a 45-acre farm at 436 and 438 Beaver Valley Pike in West Lampeter Township.
  • Lebanon County:
    • Daryl L. Alger, through the Lebanon Valley Economic Development Corporation, received $400,000 to construct a grain bin at 144 South Mount Pleasant Road in South Annville Township.
    • Meyer Farms, through the Lebanon Valley Economic Development Corporation, received $285,000 to construct a 31,000-square-foot broiler house at 1600 Church Avenue in Annville.

Strategic Importance and Future Outlook

These investments are aligned with the Governor’s Economic Development Strategy, marking the first comprehensive plan of its kind in nearly two decades. Agriculture is identified as one of the five key industries in this strategy. Secretary Siger commented, “Our new economic development plan will help ensure the Commonwealth continues to be a national leader in agriculture ― helping the industry thrive well into the future.”

Role and Responsibilities of the Commonwealth Financing Authority (CFA)

The CFA, established in 2004 as an independent agency of DCED, is tasked with administering Pennsylvania’s economic stimulus packages. It holds fiduciary responsibility over the funding of programs and investments aimed at promoting economic growth in the state. The recent funding awards underscore the CFA’s role in supporting key industries and facilitating economic development initiatives.

Latest News on Pennsylvania’s Agriculture Industry

Announces $4.8M in Grants to Enhance Food Supply Chain (2024/04/05)

Pennsylvania’s Agriculture Secretary Russell Redding announced the availability of $4.8 million in federally funded grants for purchasing equipment to strengthen the food supply chain. The grants aim to keep more dollars in the pockets of farm businesses and grow the local economy. They range from $10,000 to $100,000 and focus solely on equipment purchases.

Expands Spotted Lanternfly Quarantine to Greene County (2024/04/02)

Pennsylvania’s Agriculture Secretary Russell Redding has announced that Greene County has been added to the quarantine zone for controlling the spread of the invasive spotted lanternfly, bringing the total number of quarantined counties in the state to 52. The community’s involvement is crucial in eradicating the pest, and the state has deployed specially trained dogs to detect egg masses in challenging locations. Governor Shapiro’s budget proposal includes continued funding for research, monitoring, and treatment initiatives to combat the lanternfly. The state is also committed to funding agricultural research and development, including new methods for pest and disease management.

Agriculture Secretary Highlights Fertilizer Law Changes That Save Pennsylvanians Money And Protect Our Environment (2024/03/28)

Pennsylvania’s updated fertilizer law, signed by Governor Shapiro in 2023, aims to promote a cost-effective and environmentally sustainable way of managing lawn care. The revisions bring new responsibilities to homeowners and residents who apply fertilizer to their lawns, ensures clearer fertilizer labels, and keeps Pennsylvania on track to meet its Chesapeake Bay goals. Homeowners and residents are required to follow nutrient application rate limits, fertilizer application location restrictions, and best management practices as specified in the law and written on the product label. The updates allow the Department of Agriculture to empower consumers with clearer fertilizer labels and improve reporting. The Department has launched a consumer awareness campaign through the Bureau of Plant Industry to connect residents with education, support, and resources to manage their use of fertilizer and other nutrients.

Funding For Agricultural Innovation and Sustainability (2024/02/07)

The Pennsylvania Executive Budget for fiscal year 2024-25 includes funding initiatives to support and expand agricultural practices. It includes $10.3 million for agriculture innovation, $3 million for food security, $655,000 for seed certification and pest detection, $5.6 million for dairy industry support, $5 million for a state laboratory, and $1.7 million for IT modernization.

108th Pennsylvania Farm Show: A Celebration of Agriculture & Economic Growth (2024/01/15)

The 108th Pennsylvania Farm Show concluded recently, drawing a huge crowd. The event highlighted the role of agriculture in the state’s economy, with Governor Josh Shapiro emphasizing its contribution to economic growth and opportunity. The show also focused on education and career opportunities in agriculture, sustainability, and consumer engagement. It set a one-day record by parking nearly 11,000 cars and raised funds for future iterations of the show.

USDA and Pennsylvania Partner (2024/01/12)

The USDA recently launched the Resilient Food Systems Infrastructure Program, which aims to allocate up to $420 million to strengthen local and regional food systems. Pennsylvania will focus on increasing the capacity and resilience of farm and food businesses, and supporting historically underserved farmers. Interested entities can apply through the Pennsylvania Department of Agriculture by March 30, 2024, and the program also offers technical assistance and support for supply chain coordination.

Invests $3.5M to Preserve Farmland Across 13 Counties (2023/10/13)

The Shapiro Administration invested over $3.5 million to preserve 1,336 acres across 18 farms in 13 counties in Pennsylvania. The investment ensures that these farms will not be developed for residential or commercial purposes. This investment is part of the commonsense budget that Governor Josh Shapiro signed for the fiscal year 2023-24, which includes a nearly 6.4% overall increase in the Agriculture Department’s budget to support Pennsylvania farmers to conserve land, soil, and water resources.

Invites Farmers to Apply for $13M Tax Credits (2023/08/01)

Pennsylvania farmers can apply for $13 million in tax credits to support their efforts in improving soil health and water quality through the Resource Enhancement and Protection (REAP) program. The tax credits can be combined with other state and federal funding to pay for on-farm enhancements that protect the environment and boost farm sustainability. Farmers who implement best practices or purchase equipment to reduce runoff, enhance soil health, and improve water quality are eligible for the tax credits, which can cover 50 to 75 percent of a project’s eligible out-of-pocket costs. Private investors may act as project sponsors by providing capital in exchange for tax credits. Since its inception in 2007, REAP has awarded $147 million in tax credits for more than 8,500 projects, keeping millions of pounds of nitrogen, phosphorus, and sediment out of Pennsylvania’s streams and rivers.

To See a New 316,000 sqft Vertical Farming Facility (2022/12/09)

In Hazle Township, Pennsylvania, Crop One Holdings announced the opening of its second farm in the country. When fully operational in 2024, the facility will be more than 316,000 square feet large and produce 7 tons of food per day. The news is released as the business experiences great growth after announcing earlier this year that the largest hydroponic vertical farm in the world had opened. The commercial-scale farm’s main crops will be romaine lettuce and spring mix, which it will supply to restaurants, stores, and other partners. PNK Group provided a high-quality, completely insulated industrial warehouse project of 316,000 square feet to help Crop One begin its U.S. expansion. Along with the facility’s integration of cutting-edge technology, 40 family-sustaining employment will be established.

Read the complete budget here.

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