Lending Successful

Agroforestry Equipment Purchase

by Propagate
Agroforestry Equipment Purchase

Propagate supports farmers transitioning into agroforestry. Their specialized planting and harvesting equipment helps improve success from seed to market.

Project Summary
  • Location: Eastern U.S.
  • Loan Term: 60 months
  • Interest Rate: 7.25% APR
  • Repayments Begin: 1 month after disbursement
  • Individual Lender Cap: $10,000
$245,750
100% of $245,750

Funded on 03/29/2023

Overview

“On our end, we view agroforestry as the highest potential carbon, biodiversity, revenue-generating opportunity for farmers over the long term if the transition is successful,” explains COO Jeremy Kaufman. “Our mission is to make that easy and accessible to farmers all across the country.” Propagate achieves this by offering an agroforestry-specific planning and design software, as well as their Farm Services team, which provides end-to-end support throughout the transition, from planting fields, to sourcing nursery stock, harvesting crops, and finding viable markets. 


Use of Funds

The equipment needed to prepare ground for agroforestry and efficiently plant trees and perennials across many acres is highly specialized. Propagate invests in this equipment directly and then utilizes it to support numerous farmers and projects across the country. This maximizes the impact of the equipment investment while also reducing the cost of entry for producers as they transition to agroforestry. 

In particular, this loan will include the purchase of equipment to facilitate site prep for getting trees and shrubs into the ground, as well as specialized harvesting—including a black currant harvester. 


Regenerative & Sustainable Practices

Transitioning conventional monoculture production to diversified agroforestry is one of the single most impactful land-use changes in terms of soil health, carbon sequestration, and agroecological biodiversity. One Propagate client is in the process of converting 1800 acres formerly planted in commodity corn and soybeans to perennial chestnut production. 

Propagate recently was part of a USDA partnership to advance agroforestry as a climate-smart farming solution. Agroforestry currently represents less than 1% of US agriculture, but due to its ability to sequester 2-5 tons of carbon per acre annually, it holds tremendous potential to help reach emission reduction goals, improve water quality, and increase agricultural profitability.

  • To date, Propagate has supported over 65 farms and the planting of 100,000 trees in 15 states

  • Mixed land use diversifies farm incomes, making agricultural producers more profitable and resilient

  • Perennial cropping results in less soil disturbance, improved soil health, and more carbon sequestration

  • Alleys between perennial crops can be planted with vegetables, hay, or grazed by animals, all of which benefit from the shade and wind infiltration provided by trees and shrubs

  • Propagate’s Farm Services team uses agricultural practices like compost application to encourage biological activity in farm soils and nutrient cycling.
  • April 03, 2023

    Thank You Everyone!

    I want to thank everyone for contributing to helping scale up agroforestry in the U.S. with Propagate. This equipment will be integral to our ability to work on more projects with high-quality outcomes. More to come!

    - Jeremy Kaufman, COO

Funds from this loan will be used to purchase equipment that will help Propagate effectively plan, plant, maintain and harvest various agroforestry projects across the Eastern U.S. This equipment is critical to managing agroforestry projects efficiently. Some of the primary pieces of equipment that will be purchased with this loan include

  • $57, 000 Pull-Behind Harvester

  • $40,920 Soil Amendment Spreader

  • $25,000 - GIS System

  • $32,500 - Tree Planter

Total Budget: $245,750.00

This loan will be made to Propagate Group PBC, a Delaware Public Benefit Corporation, which provides services to increase the adoption of agroforestry across the United States

  • This loan will be used to purchase a variety of pieces of agroforestry equipment 

  • The total loan amount is $245,750.00 which will assist Propagate Group PBC in growing and expanding their business.

  • This loan will be secured by a lien against all of the equipment purchased with the proceeds of this loan, as well as a $50,000 segregated cash account controlled by Propagate Group, PBC pledged as additional collateral. 

This loan is set at a 7.25% interest rate, with a 60 month term, and fully amortized monthly payments beginning 1 month after funds are disbursed.

Borrower Loan Agreement Download
Loan Participation Agreement Download

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