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West Coast Landowner Secures Multi-Loan Package for Tree Nut Operation

Read how this West Coast landowner partnered with AgAmerica to propel his pistachio orchard into a profit-generating operation.

Agriculture is a complex industry filled with endless opportunities, but also unpredictable roadblocks. The role of the financial lender is to support these opportunities as they arise, rather than adding to the obstacles, through innovative and flexible financial solutions.

The Challenge

A rural landowner had recently purchased an undeveloped piece of land in the Southwestern part of the United States. His goal was to develop the land for pistachio production. While the development promises the potential for a profitable return on his investment, the upfront capital needed to achieve this goal was substantial. The risk associated with current drought conditions and a lack of available research on how well pistachios orchards fared in this specific location made it an opportunity that many traditional lenders shied away from. Fortunately, the landowner’s trusted financial advisor turned to AgAmerica for a solution.  

The Solution

Never one to back down from a challenge, AgAmerica conducted research of our own to establish a long-term financial plan for the borrower that would get him on track to generating returns once the trees reached maturity. This plan encompassed a four-part loan package totaling upwards of $3MM with varying terms. This unique customization equipped the borrower with a capital safety net to purchase a neighboring lot and, in turn, increase future production potential. It also provided a 6-year RLOC for development costs and operational expenses, including an additional irrigation system to improve access to water and mitigate risk.

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