by Bea Peterson
On Thursday, May 15, U.S. Congressman Chris Gibson joined Jim Bopp, Platinum Sales and Business Development Manager, Gary Pereira, U.S. Department of Agriculture Energy Specialist, Jim Morris, Kinderhook Bank Commercial Real Estate and Development Financing Vice President, and Jeff Stone, Kinderhook Bank Retail and Business Development Vice President, at the Hoosick headquarters of R.M. Bacon LLC and Rock Maple Farm LLC to celebrate the future growth of Mike Bacon’s businesses, thanks to a USDA guaranteed loan.
[private]According to Bopp, when the real estate bubble burst and the recession began in 2007 Bacon, owner of R.M. Bacon Excavating, LLC began looking for ways to diversify his business model and find new opportunities that took advantage of his lifelong experience in working the land in the Hoosick area where he grew up and built his business. In doing so he looked to fully utilize not only land that he owned but also looked for ways to work with other land owners in the community so he could continue to not only sustain his business but also as a way to grow his company and jobs in the face of the unprecedented downturn in the construction business. One of those plans was to reclaim unused farm land and restore it to use.
That pursuit came to fruition when he and Bopp spotted an article in the Times Union about Ecovative Design and the great work they were doing in converting otherwise unused farm bi-products into biodegradable packaging and building materials, creating a fast growing and potentially explosive business. What was even better was that this was not only good for the environment but was also something that both companies could collaborate on and grow in tandem. Out of this collaboration Bacon was able to apply his knowledge of farming, logging and mining to work with Ecovative Design to meet their need to obtain farm bi-products (substrates), grind them to exact specifications and store or deliver them to the Green Island company as needed.
“After my first meeting with Ecovative Design I knew that there had to be a way for us to work together to create the exciting business model we have today. I knew that I could tap into the natural resources that the Hoosick area and many parts of eastern Rensselaer and Washington Counties have to offer,” said Bacon. “Together I know that both of our companies can do something I have always believed in, and that is utilize the land and other natural resources to their full potential and in a way that is renewable and sustainable.”
Congressman Gibson, who worked on the bipartisan Federal Agriculture Reform and Risk Management Act of 2014, said, “It takes courage to build a new business. This is a good plan; it’s sustainable and will grow over time. I’m glad the Farm bill was able to help.” The FARRM Act overhauls the safety net program for dairy farmers, encourages the growth and sustainability of local and regional agriculture and organic farming, protects conservation programs and helps beginning farmers access the capital they need to enter the field.
USDA representative Morris said, “This loan truly is the intent of the Farm bill, to help a business be successful and expand. It’s not easy. We are proud of this company. It’s a good plan; it’s sustainable and helps the community.”
Financing Package Is $1.235 Million
With the proceeds of the $1,235,516 financing package the USDA was able to put in place, $860,000 from the USDA, $60,000 from Kinderhook Bank and Owner’s Equity of $315,516, Bacon intends to refinance his debt, decreasing his annual debt service, increase cash flow into the business, hire more employees and purchase equipment that will be required to keep up with the demand for not only substrates for Ecovative but also stone, gravel, wood and wood chips as well as topsoil and mulch. In addition to this business Bacon has also created Rock Maple Farms, LLC where he is raising hay fed beef cattle and where he uses their bi-product (manure) to make top soil and mulch. He currently has 48 cows and 18 calves.
“If you asked me 7 years ago if I was going to be involved in the ‘green economy’ I am not sure I could have said yes, but I am very excited about what the future holds for me, my business and for the local economy,” Bacon said.
Bacon still maintains his foundation and paving business and has added the rental of CAT equipment, Bacon Rentals, to the mix.
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