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Landowner Buys California Orchard and Secures $200K Operating Line

Read how this borrower seized the opportunity of permanent cropland ownership with a $1MM customized loan package.  

Growth happens when one pushes beyond their comfort zone and takes a leap of faith in the direction of a successful future. Fortunately for aspiring farmland owners, that leap of faith can be a lot less daunting when you have a lender who knows the industry firsthand and can structure financing in a way that anticipates volatility, hedges against risk, and fosters long-term success. 

The Challenge 

A rural landowner was interested in expanding their existing real estate portfolio with the addition of a productive tree nut orchard in the fertile San Joaquin Valley of California. The property was well-managed with modern irrigation technology and acres of young trees already in the ground since 2016. The value of permanent cropland such as this is high, but it also requires upfront capital to reap rewards over time. Realizing the opportunity of the land, the landowner reached out to AgAmerica to help finance a portion of the purchase and provide operating expenses in the years to come. 

The Solution 

Seeing the same potential of the land as the hopeful landowner, AgAmerica got right to work to help set them up for a successful and lucrative future. The borrower was able to secure a $1MM non-recourse loan consisting of two debt facilities. The first helped finance the remaining portion needed to purchase the land. The second provided a $200K revolving line of credit that the borrower could use to fund operating expenses through the beginning stages of production. This customized loan approach provided the borrower with flexible capital that could support them as the trees on their land reached full maturity and protect them against future volatility. 

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