Fifth-generation cattle ranchers in Wisconsin refinance debt to divide proprietorship of land and equipment.

It’s never too early to plan out the future of your farming operation. When the time comes to step back and let the next generation take the lead, it can be a difficult but necessary process—particularly when you have multiple children ready to fill the role.

The Challenge

A Wisconsin cattle rancher, who had spent time with AgAmerica’s Relationship Managers during a trade show, began thinking about passing the torch of his 200+ acre cattle operation down to his three sons and their families. All three of his sons and their children were actively involved in the operation but the idea of dividing proprietary rights seemed like a daunting task. Arriving at the decision to transition ownership to his sons, the father recalled his positive experience with AgAmerica and recommended our services to help simplify the complicated undertaking. Each of the three sons was interested in purchasing a portion of their father’s land and refinancing debt to provide more capital for equipment and operational expenses.

The Solution

AgAmerica built upon their existing relationship with the family and worked meticulously over time to develop a strategic package with multiple loan programs that would suit each son’s specific needs. The cumulative loan relationship totaled approximately $3.4MM between six individual loan products. Through our flexible financing structure, the sons were each able to invest in a portion of the land and lower existing payments through 30-year term loans, in turn, allowing them to purchase the equipment needed to keep the multi-generational family legacy alive and well for years to come.