About the California FarmLink IDA Program 

Individual Development Account programs have been utilized primarily in urban areas over the last decade, and focus primarily on micro-enterprise development, low-income housing, and higher education. California FarmLink built on this successful model to develop the first IDA program nation-wide focused specifically on agriculture.  Our program is designed to help beginning and underserved farmers finance their agricultural endeavors.

The 2007-2009 IDA round is currently serving limited-resource farmers in three counties throughout the state. Read about their success stories here. These farmers identified asset goals in their applications and demonstrated significant agricultural experience and a commitment to a future in farming.  California FarmLink is happy to help them advance their goals.  The IDA program and participants have received local, state-wide, and national attention.

What is an “IDA”?

IDAs, or Individual Development Accounts, are special matched savings accounts designed to help families and individuals of modest means establish a pattern of regular saving and, ultimately, purchase a “productive asset.”  A “productive asset” is something of value that is likely to return substantial long-term benefits to its owner -- benefits like security, stability and opportunities for more income.  California FarmLink’s IDA Program participants may use their savings and match money for the purchase of farm equipment or for a down payment on farmland. 

What is a “savings match?”

A “savings match” is a promise to supplement an IDA participant’s savings deposits at a specific rate. A 3:1 savings match means that for every dollar a California FarmLink IDA Program participant saves, he or she will have another 3 dollars added to his or her total account balance! As the farmer participants put up to $100 a month in a bank account, FarmLink’s IDA program matches them 3:1, or up to $300 a month.  This means that after the two year program period, they then have up to $9,600 to put towards the farm asset they’ve been saving for.

Is there more to an IDA Program than just savings match?

Absolutely.  Most people need more than just cash to become successful farm owner/operators.  For this reason, participants in our IDA Program attend both farm finance and money management workshops.  These workshops are designed to help participants acquire or polish the personal and financial skills that are essential for long-term success, skills like long-range planning, household budgeting, credit repair and savvy consumer habits.

What is required of IDA participants?

In order to receive their savings match funds, participants must:
•    make monthly savings deposits of $100
•    save in the program for 24 months;
•    attend farm finance and money management workshops
•    develop and maintain a business plan; and
•    prepare annual tax forms, annual cash-flow projections, and a marketing plan.
Note: More detailed requirements are listed in the Participant Letter of Agreement.

Where are savings deposited?

Program participants will establish special IDA savings accounts with FarmLink’s partner bank. If there is not a local branch of the partner bank, participants can have a local financial institution make electronic transfers to the account.  IDA accounts will be insured by the FDIC, FSLIC or FCUIC for up to $100,000 per account.

What about making savings withdrawals?

Because IDAs are intended to help people purchase productive assets, withdrawals for non-asset uses are strongly discouraged.  However, in certain emergency situations, program participants may request to withdraw some of their contributions to the IDA savings account before they are ready to purchase their chosen asset goal.  Such withdrawals would not include savings match funds. Participants are always free to close their accounts, withdraw from the program and receive all of the savings they have contributed and earned interest.

How do participants receive match funds?

Matched funds will be made available to participants when they are ready to purchase an asset.  At that time a vendor check will be issued directly to the company, or individual furnishing all or a part of a participant’s asset goal (a mortgage company, farm equipment dealer, wholesale supplier or retiring farmer selling land, for example).

 Am I eligible to apply?

The IDA program is designed to serve farmers and ranchers with solid skills and a demonstrated commitment to agriculture, but who do not yet have significant land or other assets that are essential to agricultural operations over the long-term.  Being a participant in California FarmLink's core linking program which connects beginning farmers with opportunities to ease or buy farmland will aid your IDA application.  An applicant should:

• Be a beginning farmer with background and experience in agriculture demonstrating a commitment to farming;

• Be currently farming with a lease in hand, or a landowning farmer with less than 10 farmable acres;

• Not have significant financial resources or assets (Please note: the IDA program is designed to aid low-income and underserved farmers); and

• Not have a recent history of defaulting on agricultural loans.

When are applications accepted?

In the past, we have only accepted applications prior to a new savings round, and are not currently accepting applications.  The application process is quite competitive; because we raise matching funds from private sources, we cannot offer accounts to everyone who is qualified and deserving!  We are also working to get federal funding for agricultural IDAs included in the Farm Bill, and we encourage you to contact your representatives and ask them to support agricultural IDAs and other small farmer programs.  

Other questions? Contact us!