Farmers are seeking flexible solutions to manage increasing farm debt. 

Farm sector debt was predicted to increase to a record high $535 billion in 2023. Farm debt is the fastest growing farm production expense. Inflation expenses increased 19.1 percent in 2023 and 33.2 percent in 2022. The more time farmers spend in the office navigating multiple bill payments, the less time they can dedicate to the fields. Loan consolidation helps farmers who are juggling multiple payments streamline their debt, freeing up time.  

The Challenge 

In South Carolina, a farmer owned more than 400 acres of ranchland and cropland. He was the proud owner of a diverse operation and over the years, he had accumulated multiple loans from different lenders and banks. Trying to navigate multiple loans, payments, and conditions throughout the year began to be a hassle. He approached AgAmerica looking for a more streamlined solution that would enhance his operation.  

The Solution 

After careful review of the farmer’s current financial position, AgAmerica consolidated his existing loans under one manageable payment by creating a five-year $1.7MM adjustable-rate mortgage with a 25-year amortization. The farmer chose the adjustable rate because it was very competitive. Additionally, economists predict rates to decrease, and the adjustable rate will allow the farmer to benefit from brightening economic conditions. The longer amortization period gave the farmer more financial flexibility and freedom to prepare for the next year and years to come.