Blog: RSF Makes a Loan to Eastern Carolina Organics
RSF is pleased to announce a new loan to Eastern Carolina Organics (ECO), a farmer and employee-owned food hub distributing fresh, seasonal, organic produce to retailers, institutions, distributors, and restaurants across North Carolina. RSF provided a line of credit through its PRI Fund that will be used to help bridge cash flows between timing of payments to farmers and sales receipts from customers.
ECO started in 2004 as a project of the Carolina Farm Stewardship Association (CFSA) and as a recipient of a $48,000 Tobacco Trust Fund Commission grant. The goal of CFSA was to support emerging organic produce and tobacco farmers while improving the supply of local organic food. In 2005, ECO became a private, grower-and-manager-owned LLC with 13 growers and 2 staff.
“It’s important to us that our business partners are mission-driven like we are and align with our core values and vision for building a sustainable food system,” says Sandi Kronick, CEO of ECO. “We’re grateful for the opportunity to partner with RSF, a leader in lending with a commitment to understanding our needs and unique business model. For example, by granting us flexible winter terms they acknowledge the unique challenges of our seasonal produce business which allows us to continue operations even when the fields are under a blanket of snow.”Today, ECO works with over 60 growers and 100 wholesale, retail, and institutional customers to provide an efficient and sustainable route to market for organic produce. Several of ECO’s initial farm-owners started farming under five acres of land and have grown to over 200 acres as a result of ECO opening the market, paying good prices, and providing technical assistance for organic certification. Farms with histories in conventional farming but aspirations of transitioning to organic also have a place within ECO, during and after the transition.
The purpose of RSF’s PRI Fund is to support the advancement of a more just and sustainable food system. Food hubs are seen as central and catalytic to developing this system.Since ECO’s founding, Sandi has been a leader in the sustainable food movement in North Carolina. By recognizing the need for viable production and distribution networks between organic farmers and their existing and potential customers, Sandi and the ECO team have forged new pathways to success for organic food systems.
“ECO has an incredible reputation for its integrity and service to small farmers and are arguably one of the strongest food hubs on our radar,” says Kate Danaher, RSF Senior Lending Associate. “Food hubs like ECO have the ability to connect producers with growing market demand, which holds incredible promise for positive impact on the local economy, social equity, and the environment.”
About Eastern Carolina Organics
Started in 2004 as a project of the Carolina Farm Stewardship Association, Eastern Carolina Organics (ECO) is a private, farmer/worker-owned for-profit company with a mission to support established and emerging organic farmers while improving the supply of local organic produce. ECO is a “Food Hub” that markets and distributes wholesale Carolina organic farm produce to retailers, restaurants and buying clubs. They currently work with over 60 growers and 100 customers throughout the state of North Carolina. www.easterncarolinaorganics.com