Hinterhof Farm in Upper Hanover Township, Pa., embodies the perfect blend of sustainability and tradition. On a warm summer afternoon, Kelsey Derr waited at the entrance on a four-wheeler, watching for her daughters’ school bus. Nestled calmly in her lap was the family’s recently adopted Great Pyrenees puppy, a future guardian for their sheep. This peaceful scene reflects the down-to-earth charm of Hinterhof Farm, a 46-acre haven that Kelsey and her husband, Aaron, have cultivated with care.
The Derrs have deep roots in farming, with Aaron coming from a family of farmers and spending his entire life in agriculture. Together, Aaron and Kelsey wanted to create a farm that not only produced high-quality goods but also preserved the beauty and legacy of their land for future generations.
Together, Aaron and Kelsey set out to create a farm that would produce high-quality goods and allow them to live their version of the American Dream. Hinterhof Farm, permanently preserved by the Montgomery County Farmland Preservation Program, was a perfect fit for their vision.
Today, Hinterhof Farm is a permanent fixture of the local landscape, specializing in pasture-raised Katahdin sheep — a medium-sized, resilient breed known for its gentle temperament and unique coat. Unlike wool breeds, Katahdin sheep are hair sheep, meaning they don’t require shearing, which makes them well-suited to warmer climates and ideal for farmers seeking a low-maintenance breed. The sheep’s calm nature also makes them easy to handle, and their meat is prized for its mild, high-quality flavor, making Katahdins an excellent choice for pasture-raised lamb. In addition to raising Katahdin sheep, the Derrs also offer raw honey, bee sales, organically fed brown eggs, and fresh lamb meat.
Business Growth and Success
The Derrs’ commitment to sustainable farming shines through in every aspect of their work. Beyond providing food for the local community, Hinterhof Farm has become a source of inspiration and connection. Aaron and Kelsey often share their knowledge with other farmers, offering starter flocks of Katahdin sheep to those interested in raising their own. They also prioritize local, organic methods, ensuring their products reflect both quality and care. Hinterhof Farm isn’t just a business; it’s a community cornerstone where neighbors can find fresh, ethically produced goods and learn more about sustainable farming practices.
In addition to lamb meat, honey, eggs, and bees, the Derrs have expanded their offerings with plans to diversify even further. Their vision includes adding sweet corn, sunflowers, produce, fruits, and walnut syrup — an expansion that reflects their dedication to enriching the local food landscape.
Financing Programs and Advice for Other Farmers
Since purchasing the farm in July 2024, the Derrs have worked strategically to grow their operations. Their journey into farm ownership required careful planning, particularly in finding the right financial support. Through a combination of a 50 percent agricultural loan from the Farm Service Agency (FSA) and a 50 percent traditional loan, they were able to fully finance the farm’s purchase. This blend of funding options, along with the Derrs’ hard work, has allowed Hinterhof Farm to flourish.
Aaron and Kelsey’s journey to secure financing for Hinterhof Farm underscores the importance of exploring diverse funding options. Along with their FSA loan, the Derrs used two programs through the Pennsylvania Department of Community and Economic Development (DCED): the Beginning Farmer Tax Credit Program and the Next Generation Farmer Loan Program.
The Next Generation Farmer Loan Program waives income tax on loan interest for lenders, allowing new farmers like the Derrs to access lower interest rates. Their financing was also supported by a bond issuance from the Montgomery County Industrial Development Authority, helping to further reduce costs and make their dream of farm ownership a reality.
Reflecting on their journey, the Derrs share that they couldn’t have afforded the farm without these unique funding sources. While applying for these loans was more time-consuming than traditional options, they believe it was worth every effort. “We couldn’t have afforded the farm without this unique funding, and if we’d known about these options earlier, we would have done this ten years ago,” they said.
For other aspiring farmers, their advice is clear: Take the time to research all available funding opportunities and be patient with the process. The support these programs provide can be the key to making a farm purchase feasible, especially for first-time buyers.
Future Plans
Hinterhof Farm continues to grow, with plans to expand offerings while maintaining a commitment to sustainability and community-centered farming. Future additions such as produce, sunflowers, and walnut syrup will provide even more fresh, locally grown products for neighbors and customers, strengthening both the land and the lives it sustains.
Hinterhof Farm is more than just a family business; it’s a place where values, tradition, and sustainability come together, creating a future that honors the past while always looking ahead.
To learn more about the loan programs that helped the Derrs finance Hinterhof Farm and how they can benefit your farm, fill out a business request form here. A Montgomery County Commerce Department representative will review these and other financing options that may be a good fit for you. Whether it’s through networking, funding opportunities, or partnerships with like-minded businesses, the Montgomery County Commerce Department is dedicated to fostering an environment where businesses can thrive.
