Equipment Purchase For Farmer-Owned Oat Mill

Green Acres Milling is a farmer-owned business led by Anne and Landon Plagge. They have been in the planning stages of building an oat mill in Albert Lea, Minnesota for the past several years and the project is finally near construction. 

The farmer-owned oat mill will be transformative for regional grain growers, allowing farmers to add a third crop into their rotation, oats. Anne and Landon are farmers themselves that have been recognized as leaders in adopting regenerative practices in their region. They have been growing oats for years and have seen the benefits to their land as they continue to adopt more regenerative practices like no-till farming, cover cropping and grazing livestock on their fields. 

Anne and Landon have worked closely with growers across northern Iowa and southern Minnesota to garner excitement and support for  the mill. Through their farmer ownership model, area farmers will be given an opportunity to adopt a third crop in the rotation that has a local premium market. The new oat processing facility will strengthen regional supply chains by creating a stable market for locally grown oats, while producing traceable, allergen-free grain products. 

Use of Funds

This loan supports a time-sensitive equipment purchase for Green Acres Milling’s new planned oat processing facility. With a $1.5M USDA Regional Food System Infrastructure (RFSI) grant secured—but requiring a 50% upfront match—this financing enables Green Acres to acquire specialized equipment that is critical to launching operations on time. The facility will create a stable, local market for oats grown with regenerative practices, and meet rising demand for traceable, allergen-free grain. Steward’s bridge loan ensures the project remains on track while unlocking long-term infrastructure that benefits regional growers and supply chains. This bridge loan will be refinanced by a larger construction loan expected to close within the next 6-9 months. 

Stewardship Statement

Green Acres Milling is committed to building and operating an oat mill that is designed to benefit farmers in northern Iowa and southern Minnesota by creating a stable market for locally grown oats, which in turn creates healthier soils and higher soil organic matter levels. Farmers will be part of the capital stack with ownership of the mill, positively impacting both the farmers and the communities in which they operate.

Central to the mission and guiding philosophy for Green Acres Milling is that farmers in rural America are the backbone of our communities and that agricultural landowners, when engaged and informed, want to be good stewards of their land. The ability to teach farmers and landowners the benefits of growing food-grade crops like oats is critical to building healthy soil, growing nutrient dense foods and thriving communities.

As farmers themselves, the Green Acres team emphasizes the importance of setting sourcing standards that allow growers an entry point into adopting new practices that have ecological as well as economic benefits. The following outlines Green Acres’ sourcing requirements for oats grown for the mill as they build a network of growers producing oats in their region. All oats will maintain traceability and identity preservation throughout the supply chain. The ramp up of sourcing requirements are outlined on a three year cycle given growers’ crop rotations:

Year 1 Sourcing Requirements for Oats: 

1. No till/minimal till planting of conventional oats 
2. No herbicide application 
3. Locally-adapted oat seed planted
4. Consult with Green Acres’ agronomist regarding any soil amendments/fertility program
5. Multi-species cover crop immediately following oat harvest 
6. Planting of hedgerows around waterways, ideally with pollinator crops

Year 4 (second rotation) Additional Requirements: 

1. Manure-based fertility only, based on agronomist consultation
2. Use of Integrated Pest Management (IPM), an ecosystem-based strategy that focuses on long-term prevention of pests or their damage through a combination of techniques such as biological control, habitat manipulation, modification of cultural practices, and use of resistant varieties.

Ecological, Social, and Economic Stewardship Practices

Green Acres Milling is committed to providing a differentiated oat product and a unique milling model through a number of ecological, social and economic practices planned for their business. While the growers supplying the mill are not at the level of regenerative practices typically seen by Steward borrowers, we believe that the scale of change of this project and the focus on continuous improvement over time makes this project a fit within our Stewardship Principles. Practices and positive impact that Green Acres Milling and their growers are committing to include: 

Ecological Stewardship

• Regenerative practice adoption following the practices set forth in the Stewardship Statement provided above.

Social Stewardship

• Providing 14 ongoing new jobs to the community, and up to 40 indirect jobs calculated through the economic benefit to the community;
• Offering full benefits including a living wage, with a goal of being in the top 25% of pay in the community.

Economic Stewardship

• Sourcing as much as possible from the region beyond just the oats, including the tote bags and some of the construction material;
• Maintaining majority farmer ownership, currently 82% producer ownership, including Anne and Landon’s share of the mill at 60%.