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Returning Farmer Uses $37MM to Improve Loan Terms

Southeast borrower uses AgAmerica’s flexible financing to transition an interest-only loan into a conventional product in less than two years.

Working with AgAmerica means having a long-term support system dedicated to helping American farm operations thrive. Farmers, ranchers, and rural landowners across the nation are using AgAmerica’s adaptive financing solutions to access the flexible capital they need while simultaneously improving the financial health of their unique operation.

The Challenge

A first-generation farmer built a nearly 10,000-acre, vertically integrated farm operation from the ground up. Over the past several years, the operation has invested in innovative technology as well as constructed highly specialized facilities which allowed it to launch new business lines and develop the family operation into a beacon of sustainability via farming and handling practices and the reduction of food waste from 30 percent to less than ten percent.  Through these efforts, the operation increased the utilization of the produce it grows by creating value-added products from portions of its crop, launched new revenue streams creating diversity across its customer base, and created new jobs in rural America. Since 2019, AgAmerica has worked closely with this operation to provide the capital needed to ensure the operation was getting the right blend of structure and rate along the way.

The Solution

As the relationship and needs of the borrower evolved, AgAmerica was able to transition its short-term, interest-only loan structure into a blend of long-term conventional term debt and a revolving line of credit sized to meet working capital needs and the capital investment necessary to sustain the operation. Through this debt restructuring, the borrower was able to extend the term of their loans and lower their cost of borrowing in under two years.

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