Persistence pays off for a farm couple looking to reduce annual loan payments after three years of storm damage.

Unpredictable weather is a main component in what makes the agriculture industry so volatile. It’s imperative for farmers and ranchers to set up a strong working capital structure to weather storms beyond their control, but it can be difficult knowing how to do that once adversity strikes.

The Challenge

A couple operating a tobacco, wheat, and soybean farm in North Carolina sought options to recover from storms that had devastated their crops three out of the last five years. Their existing debt was cross-collateralized and they were making annual payments upwards of $100k. Less than ideal tax returns from previous storm years made it difficult for them to refinance and even harder to secure an operating line of credit to maintain their operation.

The Solution

Although their land equity was not substantial enough for AgAmerica to finance an operating line of credit, Cam Flowers was persistent with finding a solution to better their current financial situation. He maintained a relationship with them for nearly a year, visiting their operation in person and discussing a plan of action for 2019. After a more successful tax year, we were able to consolidate multiple notes into one $675K refi loan package. This refinance dropped their annual payments below $50k and improved their overall balance sheet. This substantial improvement to their cash flow allowed the couple to obtain an operating line of credit through a traditional lender and make improvements to their operation.