RDP and Bongards Join Forces to Propel Growth in America's Heartland
Source: The DairyNews
Rural Development Partners (RDP) has collaborated with Bongards Creameries, providing $20 million in New Markets Tax Credit financing for the expansion of their cheese and whey processing facility in Perham, Minnesota.
This strategic funding aims to enhance production capacity, streamline operations, and boost milk purchases, thereby creating and retaining 158 direct jobs and stimulating 389 indirect jobs supporting operations.
Significant Impact on Rural Economy
The expansion project is set to make a substantial impact on the local economy. The added capacity will not only enable Bongards to continue serving existing members but also attract additional patrons. Dan Helgeson, CEO of RDP, expressed gratitude for the opportunity to assist Bongards in expanding its operations, emphasizing the importance of sustaining family farms through premium payments to members.
"Bongards has always paid a premium to their members, which is vital to the long-term viability of family farms in Minnesota." – Dan Helgeson, CEO of RDP
Addressing Dairy Industry Challenges
Despite a 4.5% national growth in the dairy industry over five years, Minnesota's growth has lagged. Bongards' expansion comes at a crucial time, filling the gap left by the recent closure of a Creamery just three hours away from the Perham facility. The closure left 40 dairy farms in Minnesota and Wisconsin without buyers for their milk. The increased milk intake of approximately 1.4 million pounds per day is anticipated to elevate member payments by around $60 million annually.
"The New Markets Tax Credit program has been and continues to be instrumental in our ability to provide the maximum value for the milk of our members. Our Community Development Entity partners understand the need to support our farmers and build for the future, making them wonderful partners in our mission of long-term success and service to our farmer owners." – Chris Freeman, CFO of Bongards
About Rural Development Partners
Rural Development Partners, a Community Development Entity, operates with a national service area eligible for an annual allocation of Federal New Markets Tax Credits. With a track record of twelve NMTC awards from the US Treasury, totaling $751.7 million, RDP has contributed to the expansion of 50 businesses and nonprofits, promoting job growth, economic impacts, and healthy food access in underserved communities. The organization aims to foster public-private partnerships for catalytic job growth in rural America.
Significant Impact on Rural Economy
The expansion project is set to make a substantial impact on the local economy. The added capacity will not only enable Bongards to continue serving existing members but also attract additional patrons. Dan Helgeson, CEO of RDP, expressed gratitude for the opportunity to assist Bongards in expanding its operations, emphasizing the importance of sustaining family farms through premium payments to members.
"Bongards has always paid a premium to their members, which is vital to the long-term viability of family farms in Minnesota." – Dan Helgeson, CEO of RDP
Addressing Dairy Industry Challenges
Despite a 4.5% national growth in the dairy industry over five years, Minnesota's growth has lagged. Bongards' expansion comes at a crucial time, filling the gap left by the recent closure of a Creamery just three hours away from the Perham facility. The closure left 40 dairy farms in Minnesota and Wisconsin without buyers for their milk. The increased milk intake of approximately 1.4 million pounds per day is anticipated to elevate member payments by around $60 million annually.
"The New Markets Tax Credit program has been and continues to be instrumental in our ability to provide the maximum value for the milk of our members. Our Community Development Entity partners understand the need to support our farmers and build for the future, making them wonderful partners in our mission of long-term success and service to our farmer owners." – Chris Freeman, CFO of Bongards
About Rural Development Partners
Rural Development Partners, a Community Development Entity, operates with a national service area eligible for an annual allocation of Federal New Markets Tax Credits. With a track record of twelve NMTC awards from the US Treasury, totaling $751.7 million, RDP has contributed to the expansion of 50 businesses and nonprofits, promoting job growth, economic impacts, and healthy food access in underserved communities. The organization aims to foster public-private partnerships for catalytic job growth in rural America.
