Southeast Farmer Buys Leased Land with $1.1MM Loan Package
Learn how this North Carolina farmer went from lessee to landowner with AgAmerica’s customizable loan solutions.
Cash rents are on the rise, along with the demand for U.S. farmland. While rising land values are great news for landowners, they create challenges for farmers who are leasing the land they steward. AgAmerica is committed to helping remove those barriers for our nation’s farmers and ranchers by providing the flexible financing needed to go from lessee to landowner.
The Challenge
A multigenerational farmer in North Carolina sought to refinance his mortgage to unlock equity and improve cash flow, giving him the ability to purchase farmland he had been leasing and operating. An active member in his local ag community, the farmer learned about AgAmerica through a fellow farmer and friend. Hearing about his friend’s positive experience with us, the farmer reached out to one of AgAmerica’s Relationship Managers to explore the financing options available to him.
The Solution
The Relationship Manager worked closely with the farmer to learn more about his operation and the goals he wanted to achieve. With this understanding, he was able to create a $1.1MM loan package that was split into a 30-year conventional loan with a fixed rate and a 10-year revolving line of credit. Through this restructuring, the borrower was able to refinance his current land debt and access a flexible line of credit to optimize his working capital.
