Organic Transition Loan Product Available to Farmers
|Related ATTRA Publication:
Organic Certification Process
Rabo AgriFinance is offering a new loan product designed to make it more financially viable for farmers to seek organic certification. With guidance from Pipeline Foods, a specialty grain supply-chain company, Rabo AgriFinance has developed a financial framework that gives farmers the flexibility to receive the capital needed for upfront costs associated with changing production practices. Farmers can schedule repayments when they receive the additional revenue from selling certified organic goods. “There is demand from consumers and food companies for organic food and ingredients, but farmers repeatedly run into a wall trying to pencil out how they are going to survive the transition period,” said Eric Jackson, founder and chairman of Pipeline Foods.