Melanie and Tyler Webb at Stony Pond Farm

Business Focus

Stony Pond Farm in Fairfield, VT is a family-owned, certified organic farm specializing in rich, creamy milk; pastured raised, milk-fed veal; and naturally raised grass-fed, grass-finished beef.

Loan Summary

Executing on their vision to build a viable, holistic, and environmentally sensitive agricultural enterprise, Melanie and Tyler Webb embarked on an expansion plan, buying an adjacent farm and fortifying the pastureland with needed infrastructure. When a once-reliable line of credit was unexpectedly pulled from the couple, they found themselves on a financial precipice. A loan from the Vermont Farm Fund enabled the farm to turn the corner and leverage the large investments they had just completed.

We saw all of our hard work and capital investments at risk when we lost our line of credit. Thankfully, the Vermont Farm Fund had faith in us when the bank did not.

The Backstory

Though the Webbs had never owned a farm prior to buying Stony Pond, Melanie had business experience, and Tyler a Masters degree in Agronomy and Grazing Management from UVM. He had also spent years on-farm with the Natural Resources Conservation Service and the Northeast Organic Farming Association (NOFA). Thus, in 2004, with academic understanding, field experience, and a mission to produce food that is healthy for the environment, mind, body and soul, the Webbs purchased a former dairy farm that had fallen into disrepair.

Early on, the Webbs completed a business plan with the Success on Farms program to guide the direction of their enterprise, settling on a grass-based, diversified organic dairy farm. Most of the milk, which has won 5 consecutive gold quality milk awards, is sold through Organic Valley. The farm’s pastured beef and veal can be found at the Burlington Farmer’s Market, their own farm store, and wholesale to local restaurants and stores.

From the beginning the Webbs felt strongly about creating a sustainable enterprise and treating their animals humanely. A large part of their innovative vision is running a low to no-grain fed operation. Thus, when the adjacent 200 acre farm became available with 100 acres of pastureland, the Webbs put together a plan to purchase it. Costs began to mount as a last-minute purchase expense out of the Webb’s control was tacked onto the bill, and they set about installing water lines and high tensile electric fencing on their new property.

With their fenced, watered land ready for an increased herd, the Webbs found themselves with the same 30 head of dairy cattle and 20 brood cows that they had before the new land came online, and large bills to boot. But, just as they needed an infusion of cash to purchase new milkers, the bank decided to decline the renewal of the farm’s line of credit.

The Bottom Line

In financial straights, the Webbs turned to Rose Wilson at the Farm Viability Program, who recommended that they apply for a Vermont Farm Fund loan. Between their seasonal milking approach and focus on grass feeding, not to mention a vibrant intern program and side projects like raising Muscovy ducks for fly management, they were able to qualify for $10,000 Business Builder Loan. These funds, combined with a loan from NOFA-VT, enabled Tyler and Melanie to catch up on bills and purchase 15 additional cows. Including on-farm births, their milking herd is now up to 52 head, contributing to an income on par with their new larger size.

Our business plan included a much larger herd to cover the costs of our new land and investments. That line of credit was a huge money management tool, removed at the worst possible time.

According to Tyler, things are looking better for next year. The plan they’ve put together with Rose includes paying their loans back over the next 2 years and taking advantage of new opportunities. One direction they are investigating is using their milk to make fresh mozzarella and ricotta for a growing Northeast Kingdom market.