Financing Expansion Capital For Organic Grain Pioneers

Brothers Tom and Ray Williams are 3rd-generation farmers producing wheat, rye, barley, and vegetables on about 2,050 irrigated acres in Washington and Oregon, with 800 acres certified organic, located on both sides of the
Oregon-Washington border near Walla Walla, Washington. They carry on the legacy started by their grandfather who began farming there—at the geographical center of the Hudson Bay Trading Company's farm which occupied the area from 1821 to 1854. The legendary company selected this particular area because of the good soil, plentiful water, and mild winters.

Tom & Ray’s organic wheat has been sought after, and purchased, by some of the country’s best flour mills: Bob’s Red Mill, Camas Country Mills, and, of course, Cairnspring Mills. It was also the only grain that went into Bainbridge Organic Distillery's Legacy Vodka which, in 2014, was chosen by the World Vodka Awards from of a field of over 1,000 international entries as the World's Best Vodka.

In 2020, with an eye toward retirement, the two brothers sold their 3,100-acre organic farm in Oregon. It proved to be short-lived, however, when unexpected opportunities coupled with their love of life on the land drew them back to farming full-time. Plus, as Tom likes to say, “Retired farmers die.”

In 2023, Ray & Tom expanded their operations by purchasing an additional 1,150-acre farm, two-thirds of which will be transitioned to organic production, with the first 300 acres set to be certified by 2026.

The Williams brothers are dedicated stewards of the land. The secret to their success is simple, and is summed up succinctly by Ray, “Take care of our clients. Take care of our employees. Take care of our environment.”

We are excited that this project exemplifies the importance of financing the development of resilient, regional food systems at all levels of the value chain: from grower to processor to market. Ray and Tom were originally introduced to Steward by Cairnspring Mills, a fellow Steward borrower and miller of the Williams brothers' grain. Ray & Tom’s farm is a key piece in the independent regional food system of the Pacific Northwest, and we hope you’ll join us in supporting their work.

Use of Funds

The requested loan will help the Williams brothers re-launch their farming business, including securing new contracts with some of the country's best mills, expanding their specialty grain operations, and developing new markets and revenue sources through value-added processing. This loan will also finance the installation of new irrigation pivots which will increase both crop production and water efficiency. A 24-month bridge loan from Steward will provide the working capital needed to smooth cash flow and support their growth plans. When the Williams brothers sold their Oregon farm, the deal included a non-compete agreement, restricting future sales to pre-existing grain customers. That non-compete agreement expires with the 2024 crop year and, with that, Tom and Ray are able to re-establish contracts and build a diversified farm business going forward. This cash-out refinance will allow the Williams brothers the time to reestablish their farm business to get production and marketing efforts in full swing.

Regenerative & Sustainable Practices

Ray and Tom Williams were early pioneers in the organic agriculture movement for large scale grain producers in their region. Throughout their nearly 40 years of farming they have developed a method of production that not only utilizes organic practices, but focuses on soil health, water conservation, biodiversity and more. They employ the following practices on their farm related to ecological and social health:

• Keeping living roots in the soil through cover crops and a diverse crop rotation;

• Maximizing organic matter and microbial activity in the soil;

• Utilizing equipment that disturbs the soil as little as possible such as a drill for planting and a vertical tiller rather than a conventional disk tiller;

• Utilizing organic practices on all of their conventional ground to the greatest extent possible;

• Avoiding the use of any synthetic pesticides or herbicides;

• Actively striving to increase irrigation efficiencies by investing in pivots rather than line irrigation;

• Using surface water rather than groundwater when possible;

• Using drip irrigation for some organic vegetable crops;

• Planning the re-integration of livestock into their cropping system to provide natural fertilizer;

• Providing controlled atmosphere bee storage for neighboring alfalfa seed growers;

• Designing a cropping system to ensure that their longtime key employees can be employed year round. For example, they added squash into the rotation to keep the crew busy through the end of March;

• Donating grapes and vegetables to various programs at the local community college, as well as hosting classes from a local college.