Loan to purchase 90 new heifers, all carrying calves, in order to expand the organic milking herd at a regeneratively managed dairy farm.
Cottonwood Farms is a multi-generational family dairy farm that has operated in the southeast corner of Genesee County, New York since 1880. Owner Jason Tillotson attributes the farm’s longevity to their family’s openness to change and willingness to innovate in a shifting agricultural landscape. They have recently expanded operations to ensure the next generation can continue the family’s longstanding commitment to caring for the soil and, by extension, the customers they serve: Jason’s son, Zack, is back on the farm in a management capacity after graduating from college, where he obtained an agribusiness degree, and a stint working on a dairy farm in New Zealand. Ryan, Jason’s son-in-law, has also become a critical part of the family business, now working on the farm full time.
In 1955, the Tillotsons became the first family in the valley to build a milking parlor. By 1999, they moved away from the conventional dairy model and committed to improving soil and animal health through an ambitious grazing program. They earned Organic Certification in 2006 and have since adopted automated milking systems that support natural cow movement and greater efficiency. Earlier this year, they purchased a 27-acre dairy farm just five miles from their main operation that is already set up for rotational grazing. Here, the family will be able to add capacity to their herd and increase operational efficiency, all while maintaining regenerative management practices across nearly 1,000 acres of land.
Today, Cottonwood Farms is mainly operated by the family’s 5th and 6th generations. This acquisition of 90 heifers will bring the herd to capacity at both the home farm and the newly purchased farm, helping operational cashflow and stabilizing a regenerative future for the business. The family will continue to regenerate land, produce healthy organic milk, create high-quality jobs, and demonstrate that long-term stewardship can be both a viable and rewarding endeavor.
This loan will be used to purchase 90 heifers, all carrying calves, bringing the herd to capacity at both Cottonwood’s home dairy and their newly acquired 27-acre dairy approximately 5 miles away. The new property is already set up for rotational grazing, and will be managed by the same team, with the same practices as the home farm.
Cottonwood Farms is an existing certified organic, human-scale, managed-grazing dairy operation. Both Cottonwood Farms, LLC and sister company, JT & Son Dairy LLC, will maintain the same stewardship practices. Their thoughtful commitment to animal welfare, ecological resilience, and the integration of technology through robotic milking systems sets them apart from other dairies. Throughout the term of the loan Cottonwood is committed to:
Cottonwood Farms is committed to regenerating ecosystem resources and upholding generational stewardship. They pursue these goals through a number of practices across land, animals and community. These include:
Ecological Stewardship:
Economic Stewardship:
Social Stewardship:
This loan will be made to co-borrowers, JT & Son Dairy, LLC and Cottonwood Farms, LLC, both New York State limited liability companies that manage organic dairy herds and sell organic milk to Horizon Organic. JT & Son Dairy, LLC is a sister company to Cottonwood Farms, LLC.
This loan will be used to purchase an additional 90 heifers, all carrying calves, that will be used to expand the dairy herd at both the home farm as well as the newly acquired farm 5 minutes down the road at 6321 East Bethany Leroy Road, Stafford, NY 14143. The loan will also fund all closing costs and fees.
The total loan amount is $402,000 which will allow the business to purchase the heifers and expand production capacity at both the Tillotson’s home farm as well as the recently purchased dairy. The borrower’s interest rate is 10.5%, with a net interest rate of 10% being passed on to participating lenders (accounting for a .5% servicing spread). The loan has a 36-month term. Interest only payments will be made for the first 2 months after origination, followed by payments of Principal and Interest beginning three months after origination on a fully amortizing schedule.
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