By 2050, the National Forestry Service predicts the U.S. will lose 23 million acres of our nation’s forests. 

Historically, the most well-managed and productive forests in the U.S. are maintained and protected under private ownership. But with restrictive financing options available and ongoing pressure to sell for urban development, private ownership of U.S. timberland is expected to fall four percent by 2050. AgAmerica understands the importance of preserving our nation’s forests and farmland. We’re using our expertise in rural land financing to push the fold of traditional lending and provide innovative solutions for private landowners across the nation.  

The Challenge 

A couple in Georgia was interested in purchasing equity in a well-managed piece of timberland that was under a conservation easement near their residence. The current owner was hesitant to sell the property but agreed to the equity sale because of a long-standing relationship between himself and the buyers, who had fond memories of hunting and managing the property.  

Unfortunately, the buyers encountered a few challenges along the way. Firstly, they were having trouble finding a lender due to the unique nature of the purchase as an equity buyout. Secondly, some parcels of the purchase were encumbered by an existing real estate note. 

The Solution 

To find a solution, the landowners approached AgAmerica for help. By thinking outside of the box, we were able to collateralize the portion of the land that was free and clear of debt. This prevented the couple from becoming overcollateralized, but it also allowed us to continue the deal without refinancing the seller’s existing debt, which could have prolonged the sale and caused unnecessary friction between the buyer and seller. Despite the initial challenges, AgAmerica completed the deal in a timely manner and both the seller and the buyers were satisfied.  

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