Published: April 1, 2020

Category: Organic News, The Organic & Non-GMO Report Newsletter

Sun Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, has announced the launch of a new loan product that provides financing options for farmers transitioning their conventional grain operations to certified organic. Compeer’s organic bridge loan provides built-in flexibility that meets the unique needs of producers who are making the switch to organic.

“When farmers transition all or part of their operation from conventional production to certified organic, they are more likely to experience an initial decline in cash flow due to changing yields and increased costs related to the adoption of new organic farming practices,” said Paul Dietmann, senior lending specialist at Compeer Financial. “Our organic bridge loan addresses these specific needs, helping farmers to bridge cash flow shortfalls during the organic transition period.”

With Compeer’s organic bridge loan, clients pay only interest on their loan for the first two to three years, with a declining balance operating loan while they are working toward organic certification. The loan converts to a standard five-year intermediate term loan with fully amortized principal and interest payments after a client has achieved organic certification.

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