Black farmers appear to have acquired the tough finish of each stick this previous century.
In 1910, they represented round 14% of U.S. farmers and owned over 16 million acres of land. In the present day, one in 100 farmers are Black, proudly owning lower than 5 million acres and shedding $326 billion in land worth. Farmers are suing the USDA for alleged discrimination.
VC funding within the agtech house has been booming these previous few years, and lots of farmers additionally obtain some kind of backed funding, whether or not from the federal government or nonprofit organizations. These alternatives don’t look like trickling all the way down to Black founders, nonetheless. Crunchbase discovered that since 2018, $98.6 million out of $39.4 billion have gone to only 5 Black-owned agtech firms. This, alongside the federal government’s alleged discrimination, signifies that Black farmers have been marginalized from accessing the proper monetary sources they should survive on this explicit market.
It was for these causes that in 2017, Karen Washington and Olivia Watkins created the Black Farmer Fund. The fund supplies financial and social alternative to Black farmers and agricultural and meals companies within the Northeast with the objective of serving to construct group wealth for Black agricultural companies all through the area. There are round 703 Black-owned farms throughout the Northeast out of 196,000 whole, Watkins stated, including that in New York alone, the common Black farmer makes –$906, whereas white farmers make round $42,000. “There is a massive racial wealth gap in agriculture and across industries,” Watkins stated.
The fund is technically a nonprofit with a debt fund connected. It raised an oversubscribed $1.1 million pilot fund in 2021 from buyers and establishments, which it then invested into eight companies. It’s elevating its second fund with a goal of $20 million and has hit about half that quantity to date, Watkins stated. As a debt fund, it affords low-interest group notes and grants, writing checks starting from $1,000 to $3 million.
