The following white paper is part of a series that builds the case for creating a defined food systems asset class in order to support the market growth of robust food systems throughout the country. There are significant opportunities for development finance agencies at the state and local level to support food businesses and projects.
This paper focuses specifically on bond financing, which is onsidered a 'bedrock tool' by the Council of Development Finance Agencies (CDFA) for the historic and foundational role bonds have played in public financing. Background information on bonds is provided, including different types of bonds, the key players involved in bond deals, and the process by which a bond is sold. Case studies will demonstrate the way in which various types of bonds can support food and agriculture businesses and projects, and also highlight sectors of the food system that could be utilizing bonds more frequently.