News
Compeer Financial introduces Organic Bridge Loan program
Compeer Financial has introduced a program to help conventional farmers transition to organic.
Senior lending specialist Paul Dietmann says the Organic Bridge Loan is in response to increasing interest in organic grain production.
“And usually when they make that switch, there’s a two to three-year period during the transition where cash-flow is negative. And this Organic Bridge Loan program is designed to help get across that transition period by deferring principle payments until after organic certification is achieved.”
He tells Brownfield organic premiums have been two to three times that of conventional corn and soybean prices.
“So that’s really gotten conventional farmers’ attention I’d say. And this program really fits a need in the market. We’re really the first company to have such a program out on the market.”
Dietmann calls the Upper Midwest a hotbed for organic production and says that’s one of the reasons the Organic Bridge Loan program makes a lot of sense for Compeer. The Farm Credit member provides financial services to clients in more than 140 counties across Minnesota, Wisconsin and Illinois.
The Express Bridge loan program allows SBA Express lenders to provide expedited financing to small businesses located in declared disaster areas.