Farmer goes from Lessee to Owner with $2MM Conventional Loan
Read how a Delta pecan grower bought the land he farmed for years through AgAmerica’s Accelerate Land Loan Program.
AgAmerica holds a deep commitment to seeing farmers across the nation thrive. When potential borrowers turn to us, they find a lender focused on finding solutions rather than pointing out problems. We take the time to understand the ins and outs of each unique operation to remove roadblocks and ensure both short-term and long-term goals are achieved.
The Challenge
A Mississippi farmer born and raised in the agricultural community had spent the last 25 years working with a close friend who owned over 400 acres of highly productive pecan orchards. The farmer had been leasing and managing the land for the past five years. During this time, the farmer made significant upgrades to the property to improve productivity and efficiency for the operation. Prior to the landowner’s passing, he had requested that the farmer be given the opportunity to purchase the land that he had been a steward of for several years. When the time came, the borrower found AgAmerica to finance the purchase. However, the combination of probate court red tape and COVID-related business closures dragged out the land purchase to longer than expected.
The Solution
As the borrower navigated the unique situation, AgAmerica worked diligently to keep an open line of communication and provide assistance when needed. Initially, he was able to buy a portion of the property with savings and AgAmerica remained dedicated to helping him purchase the remaining acreage. In 2021, we did just that by providing a $2MM conventional term loan with a 30-year fixed interest rate through our Accelerate Loan Program. This loan not only provided the financing for him to buy the property in full, but also reimbursed him for the previous purchase and equipped him with additional working capital to help fuel his next chapter as a landowner.