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Montana Cattle Rancher Funds Expansion with $1.2MM Credit Facility

A third-generation Montana rancher expands her herd and improves pastureland with a $1.2MM short-term credit facility.

Recognized as symbols of strength and determination, female farmers and cattle ranchers are the cornerstone of today’s agriculture industry. Their growing presence on the farm and in the books has paved the way for greater discussions around their influence and contributions to farming. As a nationwide lender, we’ve had the privilege of bearing witness to these remarkable strengths, especially those of an Eastern Montana cattle rancher who came to AgAmerica looking for a loan program that would help her rebuild her breeding stock and make irrigation upgrades to her pastureland.

The Challenge:

Over the last five to six years, our cattle rancher experienced back-to-back blizzards and droughts, which adversely affected her stocking rate. To ensure that her land could provide enough forage for grazing, the rancher was forced to reduce her head from 144 to 89.

Facing a depressed cattle market, the monetary value of her livestock declined, driving her risk as a borrower up and lowering her capacity to service loan debt. Despite these obstacles, the Montana rancher developed a clear business plan for the cattle operation. With the right financial lender, she planned on refinancing her current mortgage debts to lower interest payments, as well as taking a cash-out to fund the purchase of additional premium breeding stock. Producing cattle lines with specific genetic traits and dispositions would allow her to obtain premium returns on her herd in the future.

The Solution:

After working with the cattle rancher to understand her history as a borrower and operator, our loan experts created a custom $1.2MM 3-year credit facility with a $306K cash out to help with the cost of restocking her herd and making upgrades to her 4.1K-acre ranch. Acting as both labor and management of her operation, the additional operating capital granted her more freedom as the sole operator and has allowed her to focus on the portion of her operation that she is most passionate about—her cattle.

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