But when Mary and Wally Holmgren, owners of Holmgren Dairy LLC, wanted to include oversized waterbeds along with other equipment purchases to improve their organic dairy farm, ShoreBank saw the innovation behind the unorthodox decision. Although the waterbeds were only a small part of a major expansion, they perform an important function by easing the ankle and leg strain the cows get from standing indoors during the long, wet months of flooding season. This leads to cows that are healthier, better milk producers.

Loans from ShoreBank Pacific and ShoreBank Enterprise Pacific allowed the Holmgrens to expand their 240-Jersey farm with a new barn, new milking parlor and equipment upgrades, a strategy that significantly improved the farm's cash flow. They are among a group of local farmers who are capitalizing on the booming organic market and revitalizing the dairy industry in this rural corner of southwestern Oregon.

These organic dairy farmers are building wealth and employing local workers in an area filled with abandoned barns — remnants of a time when the valley was teeming with dairy farms. The market for organic products is growing quickly; customers are paying more for a product they view as a safer and more environmentally conscious choice. Organic farming also replenishes and maintains soil fertility, eliminates the use of toxic pesticides and fertilizers, and reduces pollution.

ShoreBank supports innovative, locally owned businesses that create change in rural communities by generating jobs and revenue while protecting natural resources. ShoreBank's activities support the organic dairy industry in the Coquille Valley by providing access to capital and researching new market opportunities. To date, ShoreBank has invested more than $1 million in agricultural efforts in this area.