North Carolina Farmer Transitions Operation With $900k Loan
Row crop farmers turn to AgAmerica to finance shifting their farm from tobacco and cotton to sweet potatoes.
One key to the success of a multigenerational farming family is their ability to adapt to fluctuating market conditions as needed.
The Challenge
As a sixth-generation operation established in North Carolina, this family’s farm legacy dated back to the 1800s. But when an extremely hot summer followed by heavy rainfall devastated their tobacco and cotton crops, the combination of unforeseen weather and low commodity prices left the family in need of a change that required operating capital and a flexible payment structure to make it happen.
The Solution
Because of poor cotton prices and the high expenses and risk associated with growing tobacco, the borrower decided to grow sweet potatoes for the first time. The family planned on growing approximately 125+ acres of sweet potatoes irrigated by ponds on the family property. AgAmerica supported this endeavor by building a $900K loan package that allowed them to make the transition to this heartier crop. With these strategic and operational shifts, the farm is expected to return to profitability and begin recovering from several consecutive rough years.