VACC's Organic Transition Program

• Individuals, partnerships, corporations or limited liability companies who operate a Vermont dairy farm that is in the last year of transition to organic dairy production;
  
• Eligible borrowers must provide VACC with proof that organic transition has begun through an USDA-accredited organic certifying body (NOFA-VT or others) and a copy of their contract with a buyer of organic milk;
  
• Loan applicants must show creditworthiness by providing financial and production information about the dairy business, including tax return information, and cash flow projections;
  
• Other information may be required, as necessary.
  

• Loan proceeds may be used to offset any costs associated with transitioning the farm’s operation to organic production, including: 
  
  • increased costs for organic grain and forage;
    
  • remodeling of barns, barnyards and/or changes to pasture systems; and
    
  • purchase of organic dairy animals. 
    
• Borrowers must show that they have applied for all other available sources of cost-share funding on barnyards and/or pasture management systems.
  

• In accordance with normal lending practices, VACC collateralizes its loan with mortgages on real estate and or security interests in cattle, machinery and equipment; 
  
• Repayment of the loan will begin 60 days after organic certification is achieved or 14 months after the closing of the loan, whichever comes first;
  
• Loans must be repaid within 60 months after repayment begins.   
  

• Individual loan amounts will be capped at $20,000.  The level of VACC participation in any project may be influenced by VACC’s available funds and other considerations.
  

• A processing fee of .5% of the VACC loan amount is payable at loan closing.
  

• Applications may be downloaded or obtained from VACC office; 
  
• Applicants are advised to discuss their proposed project with VACC staff prior to submitting the application.