United Bank unit backs Southeast’s first alfalfa‑pellet plant with $35M NMTC financing

Headline: United Bank’s community development arm backs Southeast’s first alfalfa‑pellet plant

Main development: United Bank subsidiary finances pellet plant

UB Community Development, the community development partner of United Bank, is financing a $35 million facility for BioActive Forages in Madison County, Florida, using a $9 million New Markets Tax Credit allocation to support construction. The 57,000‑square‑foot plant will pelletize alfalfa, perennial peanut and sericea lespedeza for equine and ruminant feed, making BioActive Forages the first producer of alfalfa pellets in the U.S. Southeast. United Bank’s community arm positions the project as both an agricultural and rural economic development initiative rather than a pure manufacturing play.

The financing underscores United Bank’s focus on rural community and agricultural support, with UBCD President Alex Jones saying the use of NMTCs “just further cements this endeavor” as part of the bank’s roughly 120‑year history of serving farming communities. Founders R. Greg Stewart, a veterinarian and forage specialist with nearly 40 years of experience, and finance professional Aaron Nowak lead the project operationally and financially. UBCD highlights that the facility addresses regional supply gaps for high‑quality forage pellets and supports healthier livestock feed options for local livestock and equine operations.

The project is expected to create 62 full‑time jobs and deliver workforce training in partnership with area universities, community colleges and workforce development agencies. UBCD and United Bank plan to monitor outcomes over the coming five years, tracking job creation, training completion rates and broader community impact metrics. The financing package uses the NMTC allocation to blend public‑purpose tax incentives with private financing in a model UBCD says is replicable for other rural manufacturing and agriculture projects.

Other relevant activity: community development tools

UB Community Development stresses its experience in NMTC transactions and points to other lending tools — including a Community Facilities Lending Program and a Community Housing Capital Fund — as ways to support healthcare, education, manufacturing, public works and affordable housing in its regional footprint. Headquartered in Atmore, Alabama, the unit presents the BioActive Forages deal as a demonstration of those programs’ application to agricultural supply‑chain gaps.

Other expected impacts

Stakeholders expect economic ripple effects including increased local procurement, higher county tax revenues, strengthened regional supply chains for livestock and equine operations, and opportunities for university research collaborations. UBCD and United Bank also highlight environmental benefits from legume‑based crop rotations that can improve soil health and farm economics.