Farmers are seeking liquidity as economic challenges arise. 

As input costs rise and many commodity prices drop, some farmers are struggling with tighter margins due to the drop in farm income. In response, many are actively exploring avenues to bolster liquidity, using refinancing and strategic restructuring to alleviate financial strain and safeguard long-term viability. 

Challenge 

After seeing significant growth in earlier years, a large-scale organic dairy and farming operation in Texas faced financial strain due to rising costs and falling dairy prices. They sought assistance through a CFO consultant, who worked with them to sell part of their herd and non-essential properties to increase their liquidity. When it was determined they would need a loan, their CFO consultant referred them to AgAmerica.  

Solution 

The dairy farmers talked to AgAmerica about finding a solution. After consulting with them, AgAmerica refinanced their existing debt with two interest-only loans totaling $8.1MM. The farmers’ proactive resizing efforts, paired with AgAmerica’s Pivot Loan Program, led to a successful refinancing for their dairy and farming operation. 

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