New Organic Bridge Loan
Nora Nolden, Communications Consultant
[email protected] or (651) 245-6804
Compeer Financial Launches Organic Bridge Loan
Financing solution will help farmers transitioning operation to certified organic
Sun Prairie, Wis. (February 6, 2020) – 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.
Compeer Financial is committed to supporting farmers as they continue to innovate and adopt new approaches in agriculture. Learn more at compeer.com/.
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $21.4 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the Upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America, while providing personalized service and expertise to clients and the agriculture industry.
Compeer Financial is the third largest cooperative of the Farm Credit System, a nationwide network of lending institutions supporting agriculture and rural communities with reliable, consistent credit and financial services. Learn more about Compeer Financial’s patronage program.