Genesee County Agricultural and Farmland Protection Plan

APPENDIX C: AGRICULTURAL DEVELOPMENT CASE STUDY SUMMARIES
IOWA AGRICULTURAL FINANCE CORPORATION (IAFC)
IOWA AGRICULTURAL DEVELOPMENT AUTHORITY (IADA)
A Case Study in State Financial Support Programs
The State of Iowa has been actively supporting innovations in agriculture through the
IAFC since 1981. Since the state initiated its agricultural finance programs, Iowa has
financed over $200 million in agricultural and agriculturally related improvements using
a combination of capital instruments. The stated reason Iowa has engaged in such a
comprehensive approach is to “facilitate private investment capital in this under-served
industry.”
The primary tools employed by the State of Iowa are 1.) the tecTERRA Food Capital
Fund, 2.) the Value-Added Agricultural Products and Processes Financial Assistance
Program, and 3.) the Aggie Bond Program. These programs are defined below:
1. tecTERRA Food Capital Fund I, L.P.
Program: tecTERRA is a private-public investment partnership between Cybus
Capital Advisors, LLC, the managing partner, and the Iowa Agricultural Finance
Authority. The IAFC provided approximately $25 million in seed capital and
worked with Cybus to raise an additional $18 million.
Sectors: Agribusiness, food processors, biotechnology, and related industries within
the State of Iowa.
Products/Services: Mezzanine debt and equity in connection with private
ownership transtion, management buyouts, platform build-ups, growth capital, and
recapitalization.
2. The Value-Added Agricultural Products and Processes Financial Assistance
Program
Program: This state run program promotes the innovative utilization of Iowa’s
agricultural resources by investing in the development of new agricultural products
and processing technologies. Current program focus areas are:
• Innovative Products and Processes which supports the conversion of
agricultural commodities into higher value products not common to
the state, as well as process development and improvements unique to
Iowa or the commodity.
• Renewable Fuels and Co-Products which supports the production of
renewable fuels and co-product for livestock feed.
Sectors: Agribusiness, food processors, biotechnology, energy, and related
industries within the State of Iowa.
Copyright©, 2000: Agricultural & Community Development Services, Inc, Columbia MD 14