United Bankshares' UBCD Uses NMTC to Finance Southeast's First Alfalfa‑Pellet Plant
- United Bankshares’ UBCD financed a $35M BioActive Forages pellet plant using a $9M NMTC allocation.
- UBCD says the deal aligns with United Bank’s rural lending history and supports quality job creation.
- United Bankshares will monitor five‑year community impact metrics and engage local academic and county partners.
Bank unit uses NMTC to bankroll first alfalfa‑pellet plant in Southeast
United Bankshares’ community development arm, UB Community Development (UBCD), finances a $35 million facility for BioActive Forages in Madison County, Florida, leveraging a $9 million New Markets Tax Credit (NMTC) allocation to support construction of a 57,000‑square‑foot pellet plant. The facility will pelletize three legume products—alfalfa, perennial peanut and sericea lespedeza—for equine and ruminant feed, and represents the first alfalfa‑pellet producer in the U.S. Southeast, positioning regional livestock and equine operations to shorten supply chains. BioActive Forages is led by R. Greg Stewart, a veterinarian and agronomist with nearly 40 years’ experience, partnered with finance professional Aaron Nowak.
UBCD frames the deal as a dual economic and agricultural intervention that aligns with United Bank’s long history of rural lending and community support. The project is expected to create about 62 permanent full‑time jobs and delivers a workforce plan that pairs employee training with area universities, community colleges and workforce development agencies. UBCD president Alex Jones emphasizes that using the NMTC allocation supports quality job creation in a rural county while advancing agricultural resilience through value‑added processing and legume‑based rotations.
Stakeholders anticipate broader local benefits as the plant ramps up, including increased local procurement, higher tax revenues for Madison County, and strengthened feed supply chains that may help preserve grass‑fed labels and improve farm economics. The project also opens opportunities for university research collaborations on forage quality and environmental outcomes; UBCD and United Bank monitor outcomes and plan five‑year reporting on job creation, training completion and community impact metrics.
Community development tools and regional strategy
UBCD highlights its experience in NMTC transactions and points to complementary instruments—its Community Facilities Lending Program and Community Housing Capital Fund—as tools to drive regional growth across healthcare, education, manufacturing, public works and affordable housing. The organization positions the BioActive Forages financing as part of a broader strategy to leverage bank capital for rural economic development.
Environmental and industry implications
Industry observers note the environmental benefit of legume rotations—improved soil health and reduced fertilizer needs—while regional livestock producers anticipate a more reliable, locally sourced feed supply. UBCD and United Bank plan ongoing engagement with county officials and academic partners to track economic and ecological impacts.