Ranchers purchase equipment and improve property with ag real estate refinance.

Raw land is a finite resource, full of untapped potential and opportunities to provide stable returns over time even amid market volatility. Improving land profitability takes many forms, most of which require initial capital to increase value.

The Challenge

Rural property owners in the Southern Plains were interested in increasing the production value of more than 200 acres of woodlands and pasturelands. They knew they were not utilizing the true capacity of the land and sought opportunities to quickly secure a flexible operating line to finance the upgrades they desired.

The Solution

AgAmerica was able to refinance existing ag real estate debt and provide a 10-year revolving line of credit loan facility. It carried a 30-year term with a variable rate below three percent that was tied to the RLOC. This stretched out payments to provide liquidity for capital improvements. Through this restructuring, the borrowers were able to purchase farm equipment as needed and clear overgrown land to optimize production and land value.