East Coast landowner finances the reacquisition of timber rights of property.

Although a stable investment among a volatile market, rural land ownership requires flexible working capital in order to capitalize on the highest potential for returns. As a financial lender with a singular focus in agricultural land, AgAmerica understands the importance of operational cash flow to establish a secure financial foundation for future opportunities as they arise.

The Challenge

A family-owned rural landownership company established more than 30 years ago, was looking to finance a reacquisition of timber rights on 93,000+ acres of land that spread along Kentucky, West Virginia, and into Maryland. Having had positive experiences with our team for three previous financial endeavors, the family decided to return to AgAmerica for a fourth time to fund this new land purchase opportunity.

The Solution

Using only the surface rights of the property as collateral, AgAmerica was able to provide a non-recourse loan product that included a $10MM revolving line of credit with interest-only payments for three years. This helped the borrower secure timber rights using only their land as collateral and provided the flexible financing needed for any additional operational costs that come with the territory of land ownership.