UNITY, Maine – Maine Harvest Federal Credit Union (MHFCU) has accepted its first deposit, becoming Maine’s 55th credit union and the United States’ first-and-only to be focused on food entrepreneurs and farmers. The credit union created four new, full time jobs after receiving its federal charter from NCUA in August. To date, it has been one of just two credit unions in the U.S. to be chartered in 2019.
“How appropriate that this credit union is located in a town named Unity,” NCUA Chairman Rodney E. Hood said. “Credit unions are organized through, and operate on, the principle of people working together to support one another.”
Maine Harvest will offer specialized loans and mortgages to those working within Maine’s food economy. By employing a specialized underwriter with agricultural expertise, it will enable Maine Harvest to lend when traditional institutions often don’t, the credit union said.
Maine Harvest said it will serve more than 1,000 members and become a primary financing source for more than 100 small farms and food businesses – deploying $12 million in loans within the first six years.
“The days when the local farmer knew their local banker have been over for a while – but we plan to change that,” says Maine Harvest founder Scott Budde. “We will be able to meet farmers’ needs because we intimately understand the nuances of agricultural lending.”
Farmer and award-winning cheese maker Jessie Dowling of Fuzzy Udder Creamery in Whitefield has become one of its first members. “For years, I have cobbled loan products together and forced to build my business backwards, from the least profitable sector, just to qualify for financing,” Dowling said.
As the President of the Maine Cheese Guild, Dowling holds a master’s degree in Food Policy and has regional distribution for her products – yet she’s struggling to grow due to high interest loan payments. “I’ll be more profitable and able to scale production more efficiently once better financing options are available through Maine Harvest.”
The credit union’s goal is to close a $180 million funding gap within Maine’s agricultural sector. Closing the gap will keep farmers on their land, strengthen Maine’s food economy and increase the availability of fresh, local food, the credit union said.
Maine Governor Janet Mills cut the ribbon saying “the work of Maine Harvest will help keep legacy farmers on their land, ensure others scale and grow, and attract young farmers to our renowned eateries and craft breweries – all while improving Maine’s economy. Maine is an agricultural beacon for the nation and will continue to be, with the help of Maine Harvest Federal Credit Union.”