Custom loan package helps an Oregon rural landowner purchase land and enhance its value.

Thriving agricultural land is an essential part of a secure domestic food supply system. Farmers and ranchers are the steadfast stewards of this land, ensuring it stays healthy and continuously looking for ways to improve the way they grow our food. However, this responsibility does not all fall on their shoulders. A growing number of rural landowners understand the importance of setting their tenants up for success and play an integral role in feeding our nation and the world.

The Challenge

A rural landowner was interested in purchasing a highly profitable property to lease to a well-established tenant who specialized in growing permanent crops across the Pacific Northwest. Although rich with opportunity, this property required significant capital improvements. They searched for a solution that would provide financing for both the property purchase along with the liquidity needed to capitalize on the value of the land.

The Solution

Upon gaining deeper insight into the long-term goals of the borrower, AgAmerica was able to develop a custom two-loan package. The first loan facility was a 30-year conventional product that provided the necessary financing to purchase the desired property. The second loan facility was a five-year line of credit of nearly $400K to finance the redevelopment of the land and make capital improvements, such as the installation of a modern drip line system, that would improve production. This customized loan package allowed the financial capacity needed for the borrower to achieve multiple business goals at once while building a more resilient operation that supported the long-term success of their tenant.