Lending Successful

Financing Payments To 2026 Grain Farmers For Skagit Mill

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

This loan will be used to purchase 2026 harvested grain from growers to use as inventory at Cairnspring’s mill in Skagit Valley, Washington.

Project Summary
  • Location: Skagit Valley, WA
  • Products: Grain Value added/CPG
  • Total Loan Amount: $2,153,000
  • Loan Term: 13 months
  • Interest Only Period: 3 months
  • Net Interest Rate: 9.00% APY
  • Repayments Structure: Interest-only payments for the first 3 months, followed by fully amortizing payments.
  • Repayments Begin: 1 month after disbursement
$1,000,000
100% of $1,000,000

Funded on 08/05/2026

Overview

It was a decade ago that a determined group of community leaders in Washington’s Skagit Valley founded Cairnspring Mills, a new kind of flour mill in the Pacific Northwest. They aimed to ensure viability for local farmers, build markets for regional grains, and make the local communities more resilient—all while stone-milling premium, identity-preserved flour from a crop synonymous with the region. Cairnspring’s Skagit mill is expected to produce more than 12 million pounds of grain in the coming year, and the company’s founding principles are still guiding production today. 

Steward is providing inventory financing so Cairnspring can purchase 2026 harvested grain from their network of contracted growers for processing at the Skagit mill. 

Cairnspring Mills only buys wheat that is free of neonicotinoids (insecticides), desiccants (for burn down prior to harvest), and biosolids (given the high level of PFAs). Their unique stone-milling process intentionally incorporates the natural oils and fats into the flour, preserving flavor and nutrition. Cairnspring pays a premium for premium grain. 

The company also supports the farmers with planning and resources to implement regenerative practices specific to each farm's bioregion. Cairnspring has committed to certifying all of their growers who are not Certified Organic as Certified Regenerative through a Greener World in 2028. “I’ve never had a company invest in us the same way that Cairnspring is,” says one of the company’s farmers in eastern Oregon.

Paul Glowaski, Carinspring’s Sustainability Manager, points to these bioregion-specific practices  as core to the success of the company and its farmers. “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.” 


Use of Funds

The funds from this loan will be used to buy 9.9 million pounds of recently harvested, identity-preserved grain from Cairnspring’s network of contracted farmers in the region for milling at Cairnspring’s original Skagit mill. Historically, Cairnspring’s grower contract outlined payment in December of each year; however, Cairnspring recently shifted its grain contracts to pay net 30 terms, which is industry standard. This will enable Cairnspring growers to get paid shortly after harvest, which will help them with farm expenses and cashflow and save on interest on their loans. 


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 including 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 as fertilizer due to the high level of PFAS present;
  • Partnering with local technical support providers to help guide trials, and identifying agricultural best practices for growers based on the region and their specific land, climate, and weather patterns;
  • 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; and
  • Ensuring identity preservation for grains from farm to flour, and continuing to pay farmers a premium over commodity grain to ensure the added value returns to the farm level. 



Ecological, Social, and Economic Stewardship Practices

Cairnspring’s commitment to producing the highest quality flours is coupled with its 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 its 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 physical distance between farmers and their mill.

Economic Stewardship: 

  • Paying farmers a premium price above the commodity prices.

This loan will be made to Northwest Mills and Specialty Grains (DBA Cairnspring Mills), a Washington State Special Purpose Corporation, which stone-mills regenerative wheat into flour.

This loan will be used to purchase 2026 harvested grain for milling at Cairnspring’s Skagit Valley Mill. Throughout the following year, they will then pay down the balance of this loan from monthly flour sales.The total loan amount is $2,153,000 which will assist Cairnspring Mills in growing and expanding their business. Given that the mill will continue to mill mostly 2025 harvested grain until November, a three month interest only period has been built into the repayment schedule. 

This is a secured loan with a second lien on all business assets subject only to Steward’s existing amortizing grain inventory note which has a balance of $1,085,460.25 and will be repaid in full by December 2, 2026. Upon repayment of last year's inventory loan this loan will assume a first priority position on all of the company’s assets. This includes the grain inventory they will purchase with this loan (both raw and finished), along with cash, accounts receivable, equipment, and other business assets. This loan will be made in two disbursements, the first of which will be made in mid August and the second in early September. This loan is set at a 9.50% interest rate for the borrower, net interest rate 9% for lenders, with a 13 month term, 3 months of interest only payments beginning one month after funds are disbursed followed by fully amortized monthly payments for the remainder of the term. 

Steward Underwriting Analysis Download

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