Most farmers don’t have a succession plan. This family got ahead of schedule with AgAmerica. 

Only 23 percent of farm families have a succession plan in place. Legalese, tax burdens, and family dynamics can make it easy to put planning for succession on the back burner. Having a plan can make a huge difference in your land’s legacy—and your successors’.  

The Challenge 

A landowner had spent years maintaining more than 4,000 acres of hunting and timberland for his family’s recreational use. The landowner was planning to pass on this land to his successors, who had fond memories of hunting on the acreage and dreamed of opening it to the public with guided hunts, lodging, and other accommodations. However, the successors needed capital to begin these operations as well as covering recurring management expenses and perform needed deferred maintenance to lodging, barns, and kennels.  

The Solution 

AgAmerica worked with the landowner and his successors to provide a $5MM 10-year revolving line of credit (RLOC). This product gave the successors a large amount of financial flexibility as they navigated the future of their operation. With the RLOC, they would only pay interest on the funds they withdrew, which was important for the new operation for preserving cash flow. Through this custom line of credit, they would be able to use profit from their new operation to pay back the loan and give themselves access to more cash to allow their business to progress.