Organic Bridge Loan – Congrats on a Great Idea, Compeer!
January 3, 2020
The Institute isn’t in the habit of promoting products of individual companies, but when a company creates a product that builds the sustainable agriculture movement, we take note.
So we celebrate Compeer Financial’s having just announced their new Organic Bridge Loan program for grain farmers going through organic transition. During the first two or three years of the loan, the borrowing farmer just pays the interest on the loan, without having to repay part of the principal. After achieving organic certification, the loan converts to a standard loan, with typical repayment terms.
Bravo, Compeer, for recognizing that farmers undergoing organic transition often experience stresses as their farming system adjusts to the new regimen, and yields may drop, without yet benefiting from price premiums that often come with organic certification., After certification, the farm may be as profitable or more profitable than previously, at which time the extra accommodation isn’t needed.
If other companies want to compete with Compeer for this business, please let us know when you develop something as good, and we’ll gladly celebrate it as well!