Texas Rancher Secures Line of Credit with $6.2MM Refinance
High input costs are tightening balance sheets for farmers in 2024.
Input costs in the 2024 growing season are anticipated to be the third-highest ever recorded, trailing only behind the record-high expenses of 2022 and 2023.
Expenses such as seed costs, labor, machinery and equipment, taxes, and insurance are all expected to rise in 2024. For many farmers, it’s more important than ever to protect liquidity. AgAmerica’s range of alternative and conventional financing options provides landowners greater optionality and control over their financial future.
Challenge
A rancher located in Texas wanted to prepare her 2,000-acre cattle operation for expected financial headwinds. She knew she would need to secure additional working capital to combat rising input costs, but she wanted to ensure she could manage her existing debt, too.
Solution
The rancher reached out to AgAmerica, and we were able to sit down with her to talk about her financial goals and future plans. After talking with her, we refinanced her operation’s existing debt into a $6.2MM interest-only revolving line of credit (RLOC). This credit line would give her access to the additional funds she would need to cover increased operating expenses, and the interest-only rate kept her quarterly payments low, so she had more flexibility to build operational resilience.
