Read how this row crop farmer returned to AgAmerica to save big on interest expenses.  

One input cost landowners often overlook is their interest rate. But in a high-rate environment, farm liquidity isn’t just about having cash on hand. It also involves the ability to meet financial obligations if working capital is stretched. Part of that includes proactively assessing debt and reducing risk where possible.  

The Challenge 

Like many producers navigating higher interest rate environments, an Alabama row crop producer was interested in exploring refinancing options beyond what his current lender could offer.  His land debt was currently structured on a 20-year term at a significantly higher rate. While the operation remained strong, the existing loan structure limited annual cash flow and reduced financial flexibility needed for ongoing growth and operational reinvestment. He needed a long-term solution that would lower his annual payment burden while positioning the farm for stability across commodity cycles. He recalled successfully obtaining and paying off a short-term loan with AgAmerica several years ago and reached out to see if we could assist once again. 

The Solution 

After reviewing his specific financial goals, AgAmerica was able to provide an accelerated land loan package totaling nearly $8.4 million. 

Through this refinance and new loan structure, the borrower achieved the following: 

  • Reduced his interest rate by more than two percentage points; 
  • Extended loan terms from 20 years to 30 years; and 
  • Secured a more streamlined, long-term financing solution. 

With lower annual obligations and longer-term stability, this Alabama producer gained greater working capital flexibility and improved financial runway. In fact, because of the improved rate and extended amortization, the producer reduced his annual payments by roughly $200,000. This new loan structure supported reinvestment into row crop production while reducing exposure to interest rate volatility and maturity pressure. 

For operations looking to refinance, restructure, or secure new land financing, a customized approach can make a significant difference in long-term performance. Connect with AgAmerica to discuss tailored land financing solutions built around your goals. 

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