Lending Successful

Financing Payments To 2026 Grain Farmers For New Mill

by Cairnspring Mills
Financing Payments To 2026 Grain Farmers For New Mill

This loan will be used to purchase the 2026 crop of harvested grain from Oregon growers to use as inventory at Cairnspring’s Blue Mountain Mill in Pendleton.

Project Summary
  • Location: Pendleton, OR
  • Products: Grain Value added/CPG
  • Loan Term: 14 months
  • Interest Only Period: 4 months
  • Net Interest Rate: 11.50% APY
  • Repayments Structure: Interest-only payments for the first 4 months, step-up to partially amortizing in months 5–6, fully amortizing from month 7
  • Repayments Begin: 1 month after disbursement
$1,500,000
100% of $1,500,000

Funded on 07/30/2026

Overview

This October will mark an exciting new chapter for Cairnspring Mills, the Pacific Northwest craft flour company known for sourcing regeneratively farmed grain and stone-milling it into identify preserved flour. It’s on track to open a new facility in partnership with the Confederated Tribes of the Umatilla Indian Reservation (CTUIR): Blue Mountain Mill, which is being built on tribal land in Pendleton, Oregon. Steward is providing construction financing for the project, which will expand Cairnspring's stone-milling capacity while freeing up room at its original Skagit mill for more specialty grain varieties.

Cairnspring has made a commitment to exclusively source from either USDA Organic Certified Farms or Certified Regenerative Farms through a Greener World by 2028. The Cairnspring team supports farmers with planning and resources to implement regenerative practices, specific to each farm's bioregion. “I’ve never had a company invest in us the same way that Cairnspring is,” says one Cairnspring grower in eastern Oregon.

Paul Glowaski, Cairnspring’s Sustainability Manager, points to these bioregion-specific practices as core to their farmers’ success. “One of the principles of regenerative farming is context,” he says. “What is regenerative in the Skagit is very different from what is regenerative in the high desert in the PNW. So no one practice is the end-all-be-all…I’m most jazzed about the new jobs, economy, opportunities for healing the land, working with new farmers, meeting new people, and building trust and rapport,” says Glowaski. Cairnspring Mills’s dedication to the people and businesses that prop up the regional food system has made their impact as widespread as their chef-approved flour. 


Use of Funds

The funds from this loan will be used to buy recently harvested, regeneratively grown grain from Cairnspring's network of contracted farmers for production at their Blue Mountain Mill in Pendleton. As the mill is in the final stages of construction and on track for an October opening, Cairnspring is poised to leverage Steward’s inventory financing to secure 2026 crop for their very first season at the new facility.


Stewardship Statement

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:

  • Individually vetting each farm and include quality and sustainability  requirements that advance soil health and biodiversity goals within their sourcing contracts;
  • Prohibiting neonic insecticides during production, glyphosate (Roundup) as a harvest aid on all crops, and the use of biosolids given the high levels of PFAS;
  • Maintaining a Sustainability Manager position within Cairnspring’s organization to ensure that the business’s commitment to sustainable sourcing standards translates to real on the ground improvements;
  • Committing to sourcing from producers with certified organic or certified regenerative through A Greener World by 2028;
  • Ensuring identity preservation for grains from farm to flour and continuing to pay farmers a premium over commodity grain to ensure the added value gets back to the farm level.



Ecological, Social, and Economic Stewardship Practices

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: 

  • Sourcing from both regenerative conventional and organic grain growers; contractually prohibiting farmers from using glyphosate (as a harvest aid), neonicotinoids, and biosolids; and recognizing that growers are at varying stages of adopting soil health practices and supporting progression over time. The mix between conventional and organic wheat sourced is directly correlated to the market demand for the respective products.
  • Storing identity-preserved grains in dedicated small-scale silos, ensuring traceability from farm to flour.

Social Stewardship:

  • Supporting their farmers as they explore regenerative practice adoption based on each farm’s unique challenges.
  • Focusing on addressing the following:
  • Lifting farmers out of the commodity system by directly sourcing from farmers committed to soil health, and by paying a premium above commodity prices;
  • Intentionally building resilience into its supply chain by sourcing regionally, preserving the unique agricultural heritage of its sourcing regions, building markets for grain grown in the Pacific Northwest; and
  • Shortening the distance between their farmers and their mill.

Economic Stewardship: 

  • Paying farmers a premium above commodity prices.


Photo Credit: Andrew Snyder, Cairnspring Mills

This loan will be made to Cairnspring Mills Blue Mountain, LLC, an Oregon state limited liability company which stone-mills regenerative wheat into flour. 

This loan will be used to purchase 2026 harvested grain from Cairnspring’s Eastern Oregon growers, and will then be stone-milled to identify preserved flour. The total loan amount is $6,850,000.00 which will assist Cairnspring Mills in expanding their business with the opening of their new Blue Mountain Mill on CTUIR land. Given that the Blue Mountain Mill will not begin milling this grain until October, a four month interest reserve has been built into loan proceeds.

This is a secured loan with a UCC-1 on all inventory and accounts receivable for the  Blue Mountain Mill. This loan will be made in two disbursements, the first of which will be made at the end of July and the second, the end of August. The loan is set at a 12% interest rate, 11.5% net interest rate to lenders once Steward’s .5% servicing spread is accounted for. There will be four months of interest only payments, followed by a step-up to partially amortizing payments in months five and six, and fully amortizing payments from month seven through the remainder of the term. 

Steward Underwriting Analysis Download

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