Learn how this multigenerational farming family leveraged their land and AgAmerica’s financial expertise to secure capital. 

Navigating the complexities of farming requires hard work and smart financial decisions. For a North Carolina family, their ability to pass their farm legacy to the next generation was put to the test when rising input costs and debt obligations began squeezing the farm’s profitability. 

The Challenge 

Two North Carolina farmers had been farming since 1984. In 2018, they formed a family farm corporation that gave partial ownership of the farm they built to their son, who planned to take over fully once his parents retired. But when current market conditions and higher costs began straining the family farm’s balance sheet, they were worried their existing operating line of credit wasn’t going to cut it for the upcoming crop year. Feeling restricted by their current lender and determined to keep their farmland in the family, they sought an alternative solution.  

The Solution 

AgAmerica reviewed their balance sheet and financial needs, identifying that a strategic refinance of their real estate and equipment debt could provide the liquidity they needed without having to sacrifice any of their land. The final product was strategically structured into a custom multi-loan package. The first part was a 30-year amortization product. The second part was a $234K interest-only RLOC. Through this refinance, the couple lowered their annual debt service by nearly $70K/year. This significantly improved their financial resilience, setting their operation and future successor up for long-term success.