JOHN DAY, Ore.–Seeking a way to make local beef more accessible in its communities, especially when money is tight, Old West FCU has introduced the Farm to Table Loan, which has a 0% APR.
The product was developed in response to a desire by OWFCU CEO Ken Olson to help local consumers purchase products from local producers, according to the LaGrande Observer.
The big issue, reported the Observer, citing USDA data, the supply of meat products has been affected by temporary closures of meatpacking plants due to COVID-19, and the low supply in turn drove up prices in the grocery store.
Bob Kavanaugh, vice president of business development and member experience at the credit union, told the Observer Olson challenged an Old West team to brainstorm a solution that would make local beef more accessible — especially when money is tight.
“Food insecurity is a real thing,” Kavanaugh said. “We came up with a strategy to help our local communities purchase meat in bulk.”
Frozen Funds
Under the Farm to Table Loan program, loan amounts are available from $500 to $4,000. Kavanaugh told the publication that when someone inquiries about the loan, the member meets with an Old West staff to discuss the loan amount and pay-back details.
In addition, as storing meat can also be a challenge for some families, a freezer can be financed into the loan as well.
The interest-free loans have a 12-month APR. The $251-million Old West FCU has approximately 14,110 members.
To initially promote the program, Old West held a raffle for “Get a Freezer, Give a Freezer Full of Beef,” the LaGrande Observer reported.
When the product was initially introduced, one rancher learned of it and donated half a beef to fill the second freezer. Billy Bob’s Butcher Shop in Elgin, Ore., processed the meat at a reduced cost.
Kavanaugh said the loan program is also supported with a grant from the Northwest Credit Union Foundation.
How It Works
According to the Observer report, once a loan is approved the borrower specifies where he or she wants to buy meat (beef, lamb, chicken, pork, etc.). Old West then cuts a check to the butcher that the loan recipient hands over to receive a fresh supply of fresh meat.
At Billy Bob’s Butcher Shop, it costs about $1,200 for half a beef, which includes cutting and wrapping.