An investor uses a $1.6MM loan package with a 20-Yr fixed interest rate to reduce loan payments on his equestrian and dairy farm.

A high-end furniture maker in New York chose to invest in the agriculture industry with the purchase of a 950-acre equestrian and dairy ranch. His previous lender had placed him in an “interest only” program with a higher floating rate even though he had never missed a payment before. His financial advisor recommended AgAmerica as an alternative source for financing.

The Challenge

The borrower was looking to leverage his superb payment history to refinance his existing loan and lower the interest rate. He wanted a flexible loan package that lowered payments and improved immediate cash flow to fund continued operations on his property, including dairy and hay production.

The Solution

AgAmerica loan specialists were able to refinance his facility and lower his current interest rate into a fully amortizing $1.6MM loan package with a fixed interest rate of 4.9 percent for 20 years. The lower interest-rate drastically improved his working capital for property maintenance and unforeseen expenses for the years to come.