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Regional Organic Dairy Expansion

by Cottonwood Farms
Regional Organic Dairy Expansion

Loan to purchase a nearby 30-acre dairy and organic herd, expanding operations and regeneratively managing more pastureland in the region.

Project Summary
  • Location: Pavilion, NY
  • Products: Dairy

Overview

Cottonwood Farms is a multi-generational family dairy farm that has operated in the southeast corner of Genesee County, New York since 1880. Father-and-son team, Paul and Jason Tillotson attribute the farm’s longevity to their family’s openness to change and willingness to innovate in a shifting agricultural landscape. With Jason now preparing for his son, Zack, to return after completing his agribusiness degree, the family is expanding operations to ensure the next generation can continue their longstanding commitment to caring for the soil and the land they steward.

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.

Today, Cottonwood Farms is operated by the family’s 4th and 5th generations. With this new expansion, they milk over 300 cows and manage approximately 830 acres of owned land plus an additional 200 acres of leased land, producing thousands of pounds of organic milk for a regional milk co-op.

They 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. 


Use of Funds

This loan will be used to purchase a 30 acre dairy farm approximately 5 miles from the Tillotson’s current operation, adding the capacity to milk an additional 50–60 cows. The new property is already set up for rotational grazing and is an important piece of the puzzle as the family plans for the next generation to return to the farm after college and continue to manage land regeneratively. This loan will be used to purchase the property, acquire an organic dairy herd, add milking robots and make essential upgrades to fully prepare the site for an effective dairy operation grounded in regenerative land management.


Ecological, Social, and Economic Stewardship Practices

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:

  • Practicing no- to low-till soil management across the acres they manage
  • Utilizing Management-Intensive Grazing (MIG), moving cows to fresh paddock every 12 hours to support soil regeneration.
  • Creating and maintaining wildlife riparian areas.
  • Planting cover crops and diverse crop species to maintain soil health and decrease pest pressure.
  • Providing their cows 24/7 access to milking machines to enable the animals to choose their own milking schedule.
  • Utilizing two of only three Solar Hybrid Diffuser Augmented Wind Turbines (DAWT) in the country to help power farm operations and reduce their carbon footprint.
Economic Stewardship:

  • Providing stable, year-round employment to a rural area.

Social Stewardship: 

  • Maintaining generational family ownership on undeveloped, regeneratively managed farmland.
  • Placing their land under a conservation easement to protect it from future development and ensure long-term agricultural use. 


Stewardship Statement

Cottonwood Farms is an existing certified organic, human-scale, managed-grazing dairy operation. Jason Tillotson has started a sister company, JT & Son Dairy LLC, with his son to purchase an additional herd and manage more acres regeneratively. JT & Son Dairy will maintain the same stewardship practices as the Tillotsons’existing farmland. 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: 

  • Obtaining organic certification on the newly acquired farmland and new dairy herd as well as maintaining their existing organic certifications. 
  • Maintaining their animal welfare certification through Horizon.
  • Utilizing regular (every 3 years) soil testing to inform their farm Management-Intensive Grazing (MIG) plan which encourages ecological regeneration and resilience.

This loan will be made to JT & Son Dairy LLC, a New York State limited liability company that manages an organic dairy herd and sells organic milk to Horizon Organic. JT & Son Dairy LLC is a sister company to Cottonwood Farms, created to support the next generation’s transition into farm management, with Jason Tillotson as the sole owner. 

This loan will be used to purchase a 30 acre organic dairy property, located at 6321 East Bethany Leroy Road, Stafford, NY 14143. The purchase includes the farmland, dairy herd, robotic milking equipment and key property upgrades needed to ensure the land is set up for regenerative management. The loan will also fund all closing costs and fees. 

The total loan amount is $1,530,000.00 which will allow the business to purchase the new property, located 5 minutes from the Tillotson’s current farmstead. The borrower’s interest rate is 8.5%, with a net interest rate of 8% being passed on to participating lenders (accounting for a .5% servicing spread). The loan has a 60-month term. Payment will be deferred for the first four (4) months after origination of the loan, followed by eight (8) months of interest only payments and then Principal and Interest payments beginning in month thirteen (13) on a 20-year amortization schedule.


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