Cattle Farm Rebuilds after COVID-19 with $550K Pivot Loan 

COVID-19 hit everyone hard—and the U.S. beef industry was no exception. 

In 2020, even though beef prices rose five percent, producers were receiving 20 percent less for their cattle. During these tough times, many farmers were forced to make difficult decisions concerning their finances. AgAmerica understood this was exactly the case for a family-owned operation in Florida. 

Challenge 

When COVID-19 hit, a hay and cattle farm in Florida immediately lost a large source of revenue when several of their contracts pulled out without notice. The operation was in the process of culling their herd, and they were not prepared to lean on their cows for a main source of income. After a series of hard decisions, the ranch was forced to operate with a staff of just the two owners and their daughter. During these tough times, a chain of events decreased cash flow and the family was worried about how lenders might perceive them.  

Solution 

After some research, the family decided to put their land under a conservation easement. This easement would allow them to continue raising their cattle and farming while also giving their operation a boost in capital. They reached out to AgAmerica because they’d done business with us before but were unsure if we would be able to help them. After hearing their story, we fully understood why there were some gaps on their credit report, and we were able to create a custom $550K interest-only line of credit loan for the family to preserve their working capital and provide the liquidity they needed to grow and recover their business.