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“Farmers are the starting point for all that allows us really, in this society, to survive.” This fundamental belief lies at the heart of the Maine Harvest Credit Project, which hopes to become Maine’s 56th credit union and the first in the country to lend exclusively to farmers and food entrepreneurs. Maine Harvest announced Monday that it has raised the $2.4 million it needs to become chartered.
“Stronger local food systems are critical for improving environmental, community, and personal health,” said co-founder Scott Budde. Maine Harvest’s founders believe environmental impacts include better soil quality, improved water quality, and carbon sequestration. Health and social impacts include improved diet, greater food security, higher rural employment, improved social cohesion, and stronger rural demographics.
“Our credit union work will be a key part of building that stronger system,” Budde said, “one that can be replicated in other regions in America.”
Budde and co-founder Sam May recognized that small, sustainable farms and related businesses struggle to grow due to a lack of access to capital. Maine Harvest, they believe, will fill critical financing gaps facing this sector, particularly around financing the acquisition of land and specialized food processing and agricultural equipment. “Young enterprising farmers and food entrepreneurs have an opportunity to scale up their businesses,” said May, “and they need access to capital.”
“Our research estimates that there is about a $186 million financing gap among Maine farmers and food producers,” says Amanda Beal, President and CEO of Maine Farmland Trust. “Bridging that gap will keep farmers on their land, help others scale and grow, and generally act as a catalyst for this entire industry.”
Financial and other support for Maine Harvest has come from a variety of sources, with the vast majority coming from philanthropic donations and grants. The final piece of funding was donated by Synergent and other Maine-based businesses. In addition, Synergent was selected to be Maine Harvest’s core processing and technology provider.
“Starting a credit union isn’t easy; it takes a lot of time, money, paperwork, and dedicated people to guide the process,” said Todd Mason, the Maine Credit Union League and Synergent’s President/CEO. “The people behind this have worked tirelessly. This includes other credit unions that have helped along the way and more that have offered support as it gets started. It has been a truly collaborative effort.”
Maine Harvest plans to begin staffing by next spring and to hire a specialized loan officer who understands the needs within the agricultural sector. “Everyone wants to deal with financial institutions that understand their needs,” said Budde. “And that’s what Maine Harvest will be.”
Maine Harvest expects to open its headquarters in Unity by June 2019.