North Carolina Farmer Uses 10-Year LOC To Prepare For The Next Generation

A tobacco farmer improves the financial flexibility of his operation for his son with AgAmerica’s 10-yr Line of Credit.

Tobacco has been the backbone of the agricultural industry in North Carolina for centuries. In fact, North Carolina ranks first in the U.S. for tobacco production.

The Challenge

A North Carolina farmer had been farming his entire life. He grew up farming tobacco and swine with his father and knows the ins and outs of making a good crop. Accompanied by his son who wanted to follow in his footsteps, he approached AgAmerica to consolidate debt and refinance an existing mortgage to give them greater payment flexibility. Additionally, they sought a revolving line of credit for operating capital and to add a center pivot to irrigate the farmland.

The Solution

AgAmerica’s 10-year interest-only line of credit was combined with a term loan to create a “two-pack” loan solution. The borrowers were then able to purchase and plant over 140 acres of tobacco annually. With their custom loan package to support the operation and each acre yielding around 2,100 pounds of tobacco, this farm is well prepared to make the transition to the next generation.