Capital for construction of Cairnspring’s second mill, expanding identity-preserved flour supply and regenerative grain infrastructure.
Cairnspring Mills is reshaping the flour industry by reimagining the supply chain from the ground up, connecting land, farmer, and customer through flours that honor flavor, nutrition, and transparency. They source identity-preserved grains directly from regenerative growers and process them using stone milling techniques that intentionally incorporate the germ and bran, where much of a grain’s nutrients, flavor, texture, and aroma live. The result is flour that reflects both place and craft—used by some of the country’s most respected bakeries, including Tartine, Pizzeria Bianco, Grand Central Baking, and Gusto Bread.
Cairnspring selects grain varieties for flavor and regional suitability, not just yield or protein content. Their wheat contains no additives, is never bleached nor bromated, and is always traceable to the farm. Farmers are contractually prohibited from using glyphosate as a harvest aid and neonic-treated seeds, and they're paid well above commodity rates. Having reached production capacity at their mill in Washington State's Skagit Valley and with demand continuing to rise, Cairnspring is expanding operations to Eastern Oregon, deepening their commitment to quality, soil health, and regional food infrastructure.
Designs for the new mill are complete, and construction has begun. With a total construction and working capital budget of nearly $70.74M, the new mill project will be funded through a combination of sources that includes a senior loan (guaranteed through the USDA's Business & Industry Guaranteed Loan Program), owners' and New Markets Tax Credit (NMTC) equity, and a subordinate debt position funded and held by Steward. All budgeted funds are identified and accounted for in this project.
This specific fundraising campaign focuses on the $10 million subordinate debt held by Steward.
As indicated above, Steward's financing commitment of $10 million will be raised in stages and then disbursed over the full construction period of 9-12 months.
The development of a mill at this scale takes 9-12 months, and Steward's subordinate financing commitment of $10 million will be raised in phases and disbursed alongside the senior loan, pro rata, as construction milestones are met. This ensures that funds flow directly into verified progress on the ground. This ongoing loan campaign will open throughout the coming year to match capital needs. We invite our lender community to follow progress, join each phase of the project, and help bring this cornerstone grain infrastructure online.
Steward's $10 million subordinate loan will support the construction and initial operations of Cairnspring Mills’ second facility, a regenerative flour mill to be located on land held by the Confederated Tribes of the Umatilla Indian Reservation (CTUIR) in Pendleton, Oregon. The mill site is secured through a 50-year ground lease, and construction has just begun in October 2025.
The new mill marks a strategic expansion for Cairnspring, building on the consistent growth and profitability of their existing operation in Washington State’s Skagit Valley. In 2024, for example, the company generated $5.8 million in revenue, serving both wholesale and direct-to-consumer buyers, including nationally recognized bakery clients. With demand for identity-preserved flour continuing to grow, the new Oregon facility will scale Cairnspring’s operations while preserving the artisanal quality that sets them apart.
Located in the heart of one of the country’s largest wheat-producing regions, the new mill will process regenerative grains grown across approximately 40,000 acres, providing a projected annual income of $22 million for local grain farmers from whom the mill will source. The project supports long-term relationships with growers at varying stages of adopting soil health practices and supports continuous improvement over time through partnership with local technical support providers.
The facility will also introduce modern automation to complement traditional stone milling, allowing for scalable, high-quality production while maintaining traceability and nutrient density. Secure offtake agreements, including a bespoke, white label processing line included in development plans to accommodate a new partnership with a leading premium flour company, as well as ongoing discussions with key buyers will together provide a stable foundation for projected revenues. Financial modeling, including sensitivity testing, shows the business remains cash-flow positive under multiple operating scenarios.
With Cairnspring's historical growth performance and its planning, pre-development, and capitalization progress for the new mill, Steward is confident in Cairnspring's ability to construct and operate this mill and to service this subordinate debt.
Cairnspring’s commitment to producing the highest quality flours is coupled with their focus on operating a business that has positive ecological, social, and economic outcomes.
Ecological Stewardship:
Social Stewardship:
Economic Stewardship:
Cairnspring Mills is a flour mill that is committed to producing fresh milled flours made from identity-preserved grains. Their commitment to producing excellent flour starts with their farmers. Cairnspring upholds their dedication to rebuilding local food systems through the following practices:
This subordinate loan will be made to Cairnspring Blue Mountain LLC, an Oregon limited liability company, who will build and operate a flour mill utilizing local identity-preserved heritage grains.
This subordinate loan will be used to fund development costs associated with the construction of the mill. The total loan amount is $10,000,000, which will assist Cairnspring in growing and expanding their business. The total development budget is $70.74M.
This is a secured loan with a second priority deed of trust on the leasehold, machinery, and equipment of the business, as well as a guarantee from the parent company. The interest rate is set at 12%, and the loan's term is 60 months. Monthly repayments will be interest only for the first 24 months, followed by principal and interest payments on a 25-year amortization schedule thereafter. Disbursements are expected to take place over the first 12 months of the loan term.
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