Building on previous Fund-supported design work, Propagate and its partners will develop a new model to reduce the financial risks to farmers as they transition corn and soybean acres to perennial tree crops that improve Great Lakes water quality. The model will start with chestnuts, designed to expand to other perennial crops across the Basin.

Tree crops can play a critical role in stabilizing soil and reducing nutrient runoff while generating farm income. Yet farmers need financing to establish orchards, while lenders need evidence of future revenue. Buyers, in turn, need dependable supplies before investing in new products and processing capacity. This project will address these interconnected barriers by developing farms and markets together.

Working with an initial cohort of farms in southern Michigan, northern Ohio, and western New York, the team will provide orchard planning and technical support and help arrange financing. They will also work with processors, product developers, and buyers to establish outlets for future harvests. Partners will track land transitions, market development, and water quality outcomes and document how the model could be adapted to other perennial crops, including hazelnuts and elderberries.

A critical part of the project will be developing a revolving purchase guarantee pool that provides participating farms with a backstop price for their first commercial harvests, giving lenders greater confidence to finance new orchards.

The longer-term ambition is to help establish 350,000 acres of diversified agroforestry across the Great Lakes Basin, supported by new markets and financing tools that make perennial crop transitions feasible and profitable while reducing nutrient runoff and erosion.