Learn how a Minnesota farmer uses AgAmerica’s unique transitional loans to rebound his operation after several challenging crop years.

Whether it’s drought, market downturns, trade wars, or more, farmers face many obstacles that are often beyond their control. That’s why working with a lender who has a firsthand understanding of the volatility of the industry means farmers gain a partner capable of handling these ups and downs as they come with innovative and adaptable financing solutions.

The Challenge

A multigenerational farmer and military veteran was carrying on his family’s farming legacy that dated back to the late 1800s. He managed a corn and soybean operation in the Southwest region of Minnesota with his brother and hoped to one day pass the farm down to his son who was actively involved in the operation. He approached AgAmerica several years ago when plummeting grain prices and adverse weather events threatened the future of their operation. AgAmerica consolidated his total debt obligation into a $3.8MM loan with interest-only payments for 36 months to reduce overhead and boost immediate cash flow. This debt restructuring, combined with an upturn in the grain market in 2020 and 2021, improved the financial health of the family operation. Now, it was time for him to begin transitioning his short-term loan into a more long-term solution.

The Solution

AgAmerica worked closely with the borrower to refinance a portion of the interest-only loan into a $2.3MM conventional term loan through the Accelerate Land Loan Program. Through this program, the borrower was able to quickly drop his rate by nearly two percent for a portion of the loan, while maintaining lower, interest-only payments for the rest as the family continued to build on their farm profitability for the next generation.