Farmers secure lower monthly payments to offset rising input costs.  

Despite a slowdown in inflationary pressure in 2023, the USDA  still expects to see elevated input costs into 2024. Farm income is predicted to decline, partially due to these increased costs. In 2024, many farmers will need to find additional funding to offset the anticipated drop in net income.   

The Challenge 

A farm family, the proud owners of a vertically integrated and diversified farming operation, were seeking competitive rate long-term financing and an RLOC which would give them operating flexibility. The family had four existing short-term loans with AgAmerica, but in light of the softening agriculture market, they wanted to plan ahead to ensure they had the capital they needed for their operations.  

The Solution 

The family contacted AgAmerica to see how they could proactively prepare. Understanding their needs, we created a $9MM refinance that consisted of a $7.3MM five-year adjustable-rate mortgage (ARM)  and a $1.7MM RLOC. By refinancing their existing debt as a variable-rate mortgage, the family secured a more competitive rate to pay down their principal. Additionally, the RLOC gave them access to flexible funds that they could use to offset higher costs for their farm operations if needed.