Despite producing around $12,000 a month of mushroom revenue, Collar City Mushrooms is struggling to be seen as a legitimate farm. When looking for financing, the farm was "too agricultural" for bank loans and "too urban" for USDA grants, said owner Avery Stempel. "Mushrooms as a specialty crop are relatively new," Stempel said. "The definitions of food really need to change."
Collar City Mushrooms, a vertically farmed mushroom business, is facing significant financial challenges after struggling to secure quality loans. Founder Stempel turned to private lenders but was unable to purchase the building, leaving the future of his business uncertain as it is now in the hands of the building's new owners. This issue is not unique to Stempel; urban farmers across New York, particularly those in specialized and indoor farming, are finding it increasingly difficult to access agricultural loans and support programs. A USDA spokesperson said any place producing $1,000 or more of agricultural products in a year is defined as a farm. But the requirements for loans vary, as St. Jacques said the definition of a farm depends on what loan or program a person is applying for, and whether it's on a state or federal level.
Urban farmers like Stempel and Robbie Gianadda of Flat 12 Mushrooms face systemic barriers, with the current agricultural support systems mostly geared toward large-scale, rural farming. While Stempel is advocating for a redefinition of farming to include urban and vertical operations, the USDA has made some recent adjustments, such as lowering the acreage requirement for certain programs. Still, challenges remain. Stempel is pushing for further changes to support businesses like his, emphasizing that indoor farming is the future of agriculture due to its sustainability and environmental benefits.
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