A swine and row crop farmer uses $2.85MM loan package and saves 44 percent per year.
Operating for seven generations, this borrower’s farm and its longevity can be attributed to adjusting with variances in the market and crop diversification. There are nine commodities that contribute to the farm’s income: corn, cotton, soybeans, peanuts, tobacco, wheat, canola, cattle, and swine. The borrowers also managed 10 hog houses, further diversifying his sources of farm income.
The Challenge
The borrowers noticed that grain prices were projected to be lower in the coming years and decided their multigenerational farm needed to prepare for decreased margins. However, they were also planning for future operations and possible expansion, so reducing annual principal and interest payments became a priority when seeking a new lender.
The Solution
AgAmerica was able to refinance several existing mortgages into a longer-term, low-interest rate loan with greater flexibility. This $2.85MM loan package saved the borrower 44 percent annually, or $357K per year.
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