Texas Rancher Expands Cattle Operation with $4.4MM Short-Term Loan
A multi-generational farming family expands their cattle operation with the help of a $4.4MM short-term loan.
This story begins back in the mid-1930s with a large multi-generation family and the purchase of 21,000 acres of land in West Texas. Although it took several years to build the family business, by the early 1980s they had a thriving sheep and goat partnership.
As life continued, their agricultural operation evolved, leading them to explore other avenues like cattle ranching. After four generations, multiple business ventures, and a major hardship, the family found themselves at a turning point – it was time to revive their cattle operation and rebuild their family’s farm business.
The Challenge:
During 2011, West Texas experienced the worst drought in the area’s history. Thousands of acres of crops were lost, and many ranchers were forced to downsize their livestock to reduce overhead costs. Maintaining ownership over their family’s land placed a substantial burden on the operators’ shoulders. With few resources, the ranchers began making changes to their operation, including leasing out sections of their land for hunting.
By 2017, the family ranch began to recover, allowing them to increase their livestock and rebuild their assets. With the desire to expand their ranch operations and create new business opportunities, the primary ranch owner came to AgAmerica Lending for assistance in securing a loan that would allow her to purchase her extended-family members’ business shares and become the sole proprietor, providing her the freedom to move in a new direction.
The Solution:
With a clear understanding of the rancher’s needs, AgAmerica customized a $4.4 million short-term loan package to provide her with immediate funding to purchase her partners’ shares. Through her financial partnership with AgAmerica, the rancher now has the capital and decision-power to begin breeding bred heifer lines for the private treaty market—helping to ensure her continued growth in the future.