Cutting costs through the power of solar

Arkansas-based Producers Rice Mill was established in 1943 in Stuttgart by a group of small rice farmers dedicated to producing and marketing their product. Today, it has grown into a powerhouse in the industry, milling approximately 65 million bushels of rice annually. And with the recent implementation of a solar and battery project, the co-op is significantly reducing monthly electricity costs to ensure future success.

Arkansas alone grows nearly 50% of the rice crop produced in the United States, and Producers is nestled in the heart of America’s rice belt. The co-op currently has 2,100 members—covering 350,000 acres across Arkansas, Louisiana, Mississippi and Missouri. Once it receives its members’ crops, it mills and packages the rice in various sizes, from 1-pound to 2,200-pound bags. The rice is then marketed to the food service industry, industrial sectors, retail and export markets.

CoBank and Farm Credit Leasing were our trusted partners from the beginning...

The co-op has four rice mills and 12 storage and receiving locations, and on average, processes an impressive 2.9 billion pounds of rice annually. To keep pace with that scale of production, Producers turned to its financial partner, CoBank, and its subsidiary, Farm Credit Leasing, to facilitate the $86 million solar and battery project for its headquarters. The plan also included a microgrid, which continues to operate during power outages.

“We’ve been with CoBank since our formation. They’ve stood by through thick and thin— we knew they could get the job done,” said Keith Glover, president and CEO of Producers. “Our partners at CoBank went above and beyond to facilitate the financing, offering various services and cost-saving options.”

CoBank leveraged a 40% investment tax credit and a 10-year lease agreement through its Farm Credit Leasing subsidiary to finance the project. And with its new solar and battery plan now complete, the co-op will save over $100 million in electricity costs over the next 30 years, while also increasing its sustainability efforts.

“Producers is committed to creating a more sustainable future while making great strides to reduce our environmental footprint,” Glover said.

Over the last 35 years, the co-op members have reduced their water use by 52%, their greenhouse emissions by 41%, their land use by 39% and their energy use by 34%. With this new project in place, the co-op’s environmental footprint, as well as that of their members, will continue to improve even further.

“Thanks to our partners at CoBank and Farm Credit Leasing, our lease rate and payments are locked in. We’re focused on paying off the lease in the next 10 years, and knowing our price will not fluctuate is reassuring—especially as electricity costs continue to inflate,” Glover said. “CoBank and Farm Credit Leasing were our trusted partners from the beginning, and we look forward to continuing our partnership as we work together—financially and sustainably.”