Capital

Access to the right kind of capital is a critical to making the successful transition to certified organic production. Capital may be required for investment in facilities or equipment, or to cover short-term operating deficits during the transition periods. The LINK TO THE MANAGEMENT TOOL can help identify what those costs. Assess what you have on-hand, what you can sell and what you can borrow. Beyond the traditional lending agencies, consider peer lending groups, and even your customers. Perhaps one, or a group, of your faithful customers will be interested in helping to finance your venture.

Some crops, such as tree fruit, require a large initial investment and don’t generate income for years – can you cope with that in terms of cash flow? What crops can you grow using equipment you already have? Can you easily adapt your equipment for other crops? Can you borrow or rent equipment?

When Andrew Kernohan, a grain and oilseed grower near Parrsboro, NS, was considering going organic, he was worried about weed problems. So, he borrowed a finger weeder for a few years and realized that he could control weeds without spraying. Then, he bought a finger weeder and started the transition.