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Borrower Improves Ag Productivity of Raw Land with $1MM Loan

A Texas landowner uses AgAmerica’s conventional loan to buy nearly 200 acres of raw land and turn it into a recreational oasis.

According to a 2020 report published by the American Farmland Trust, 31 million acres of American farmlands were lost to urban development from 1992 to 2012. On average, that means nearly 2,000 acres of farmlands are converted each day to residential and commercial properties. The future of American agriculture begins with the conservation of our natural resources and lands to ensure the food security of our nation.

The Challenge

A landowner in the Southern Plains understood the value of raw land and was interested in purchasing 200 acres of untouched land to preserve its resources. He hoped to use part of the property for recreational use and the other to raise cattle with the long-term goal of planting crops over time. While these additions would add value to the land, they also required significant startup capital—as did the down payment for the land.

The Solution

Understanding the borrower needed capital to prevent delaying his ambitions for the land, AgAmerica proposed a 30-year term, $1MM conventional loan facility that would include covering the closing costs of the purchase. Through AgAmerica’s innovative and flexible loan programs, this structure equipped the borrower with the financing needed to purchase the land and supplied the flexibility of refinancing down the road as needed to fund future land improvements as needed.


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