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Financing 2025 Rice Inventory For Family Rice Mill

by McKaskle Family Farm
Financing 2025 Rice Inventory For Family Rice Mill

McKaskle Family Farm is purchasing this year's rice harvest that they will mill and deliver to restaurants and families throughout the coming year.

Project Summary
  • Location: Braggadocio, MO
  • Products: Grain Value added/CPG
  • Loan Term: 12 months
  • Net Interest Rate: 9.00% APR
  • Repayments Begin: 1 month after disbursement
$1,994,000
100% of $1,994,000

Funded on 12/18/2024

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Overview

McKaskle Family Farm is a regenerative grain farm and rice mill in the “bootheel” of Missouri that has been a pioneer in producing Organic and regenerative crops since the 1990s.In this time, they have produced USDA Certified Organic cotton, popcorn, Basmati and Long Grain rice, soybeans, corn, cotton, wheat and oats on the land. This family enterprise currently has members of the family’s 5th, 6th, and 7th generations working to keep the land, family, and economics of the farm healthy.

McKaskle Family Farm has been vital to the development of environmentally-sound, organic, and regenerative farming management. Currently, they are building on this foundational work alongside the Soil & Climate Initiative (SCI) to confirm, improve, and amplify the positive ecological impacts they intend.

 

Use of Funds

This loan will fund the annual purchase of the rice that the McKaskle Family Farm’s rice mill will need to supply their contract with Chipotle Mexican Grill—a national restaurant chain with a focus on using sustainable and regenerative ingredients.

 

Regenerative & Sustainable Practices

McKaskle’s “Climate-Friendly” system is designed to enhance soil health, promote biodiversity, maintain a healthy water cycle, and capture atmospheric carbon in the soil. Presently, the practices they’re using include:

  • Working with Soil & Climate Initiative and Soil Regen to develop and implement production plans;

  • Minimizing soil disturbance through no-tilling all soybeans and wheat fields and minimizing tillage using a vertical tiller for all rice fields;

  • Maintaining conservation buffers of tree lines, hedgerows and pollinators to reduce wind erosion and create wildlife and pollinator habitat;

  • Working to maximize diversity on the farm by maintaining an expanded crop rotation of rice, soy, corn and wheat (recently added) to help with nutrient cycling and prevent disease and pests;

  • Utilizing furrow irrigation rather than flood irrigation for over 80% of rice fields which uses much less water and allows there to be living roots in the ground longer;

  • Keeping year-round soil coverage by leaving rice straw residue in the field to cover fields, retain moisture, and create a beneficial habitat for bugs and microbes;

  • Avoiding the use of all insecticides and fungicides to support soil microbiome health;

  • Reducing synthetic nitrogen by ensuring application methods maximize uptake of nitrogen into the crop and reduce runoff;

  • Actively working toward continuous learning and improvement through involvement with other area regenerative farmer mentors, comprehensive soil testing across the farm, and attending monthly meetings with the Soil & Climate Initiative group;

  • Maintenance of Organic Certification on the rice and popcorn processing facility in order to offer Organic products purchased from growers that have been able to maintain their Organic certification;

  • McKaskle Family Farm provides stable employment in the poorest county in Missouri and provides a living wage, overtime, and health insurance.

Producing rice in a way that is beneficial to the climate is no easy task. The most-commonly used method involves widespread flooding of fields coupled with heavy soil tillage. This approach has been shown to release large amounts of methane and carbon dioxide into the atmosphere and degrade soil condition.

As the McKaskles are dedicated stewards of the land, after they lost their organic certification due to Dicamba drift issues, they still wanted to find a way to produce rice in an ecologically minded manner. Therefore, Steven and his family helped develop “Climate-Friendly” rice production, which avoids flooding and heavy tillage, and reducing the high emissions that are standard in conventional rice production.

To advance the mission of developing regenerative rice production methods, the McKaskles have teamed up with the Soil & Climate Initiative (SCI) and Soil Regen to build a farm regeneration plan that will build soil health, cycle water, and keep greenhouse gases stored safely underground.

This plan eliminates the negative outcomes produced by flooding and tillage, but unfortunately, flooding and tillage were effective means of chemical-free weed control. Without those tools, weeds invade recovering soil and degrade crop quality.

It was determined by SCI, Soil Regen, and the McKaskles that by judiciously using herbicide in places, the McKaskle Family Farm could control weeds while quickly building soil structure and soil health. Once the soil recovers enough health, it will produce plants strong enough to fight off pests and weeds themselves—allowing the McKaskles to use an ever-decreasing amount of herbicide. In this instance, using the herbicide judiciously, when and where it is needed, actually regenerates the ecology of the land faster than the widespread non-chemical methods of rice production.

The McKaskles have been dedicated stewards of the land for generations. Their goals are, and have been, to regenerate the land, to produce nutritious food, and to keep farming. We appreciate the complexity of the environments and challenges of working within complex ecosystems. The McKaskle family is working with regeneration experts, making tough decisions, and humbly pushing forward in an effort to clean up and regenerate the land.

This loan will be made to McKaskle Family Farm LLC, a Missouri State Limited Liability Company, which sells Climate-Friendly rice and popcorn to food companies and restaurants around the country.


This loan will be used to purchase rice needed for McKaskle Family Farm’s expanded contract with Chipotle in 2025. Throughout the 12 month loan term, they will pay down the balance of the loan from monthly product sales. The total loan amount is $1,994,000.00 which will assist McKaskle Family Farm in growing and expanding their business. 


This is a secured loan with a first lien on all current and future rice inventory and proceeds thereof.  This loan is set at a 9.5% interest rate for the borrower, net interest rate 9% for lenders, with a 12 month term, and fully amortized monthly payments beginning 1 month after funds are disbursed.

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