Organic Valley, a farmer-owned dairy cooperative and organic food brand, will offer loans to farmers interested in investing in renewable energy and energy efficiencies starting April 1.

The co-op’s goal is to provide its dairy farmers with the best possible loans to help them install solar panels and make other energy efficient improvements, if they want to.

Organic Valley’s sustainability team members told the Capital Press the project fills a much-needed gap, because many of the co-op’s farmers want to invest in renewable energy, but local lending institutions have been reluctant to finance it — “an increasing hurdle for many farms.”

For the project, the cooperative is partnering with Clean Energy Credit Union, a new financial institution focused on providing loans that help people afford clean energy. Organic Valley and the credit union will start by creating a $1 million fund, which they plan to expand over time.

“I’m excited to debut this energy fund,” Bob Kirchoff, Organic Valley’s CEO, said in a statement. “From farm to the shelf, I see renewable energy playing a bigger role in organic food. We are providing farmers a means to reduce their energy costs and become self-sufficient and sustainable.”

Blake Jones, volunteer board chair of the credit union, said the clean energy fund shows how organizations can work together for a common goal.

“This is a great example of cooperation among cooperatives to pursue our aligned missions,” he said in a statement.

Organic Valley farmers will be able to apply for the loans starting April 1. The money can be used for:

• Solar electric systems to offset farm energy consumption.

• Farm energy efficiency improvements such as plate coolers, variable frequency drives for their pumps, LED lighting, insulation, ventilation and more.

• Geothermal systems and ground-source heat pumps for farm heating and cooling.

Organic Valley staff told the Capital Press there’s already “a very high level of interest” in the loan fund among members.

Over the past 13 years, staff say, many members have demonstrated a growing interest in renewable energy investments, and a 2019 survey of co-op members across 11 states showed more than 200 farmers are interested in pursuing on-farm renewable energy. Of this, more than 30% are interested in self-finance.

In the Pacific Northwest, staff said, about 20 farmers have an “active interest” in renewable energy, specifically solar.

The cooperative has more than 1,700 farmers across the country, and Organic Valley’s leadership expects the interest in renewables to spread.

Loans for energy efficiency improvements will be available at three-, five- or 10-year terms, with interest rates ranging from 2.75% to 4.24% and a standard maximum loan amount of $25,000.

Farmers can apply for solar electric system loans at 12-, 15- and 20-year terms. Interest rates will vary from 4.49% to 4.99%, and the standard maximum loan amount will be $90,000.

“Farmers who participate in this loan fund contribute to a healthy, regenerative future for the next generation,” said Kirchoff, the co-op’s CEO.