Wednesday, Mar 23 2011 8:46AM
Rabobank is teaming up with other organizations to create a loan fund aimed at helping small farmers in California.
Rabobank, a Dutch banker that has expanded into California, has created a $15 million loan fund aimed at helping small farmers in rural areas of the Golden State.
The company has joined a partnership with Valley Small Business Development Corporation and the California Coastal Rural Development Corporation to provide loans to farms with revenues of $1 million a year or less.
"Rabobank was founded by farmers who pooled their savings to provide loans to their neighbors and communities," said Frank Bravo, Rabobank's vice president and community development finance manager. "Our partnership with Valley and California Coastal will help continue that legacy by providing small farms with the funds they need to grow."
Bravo added that the loans will also allow farmers and their employees to invest more money in local businesses, which he said will encourage additional
economic community development.
California farmers are being threatened by budget cuts that impact the state's agricultural industry, according to the California Farm Bureau Federation. Cuts in President Barack Obama's proposed 2012 budget would reduce funding for pest control, direct farm-program payments, wildlife management, and other programs important to the industry.