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January 11, 2023

Creating More Farm Financing Options Through Disruptive Financing

Agricultural lending is a fragmented industry with gaps in financing options for farmers. AgAmerica is changing that.  

For more than a century, farm financing has remained relatively unchanged. Yet, with the rapid growth of technology and globalization, the landscape of agriculture has become more competitive, making it harder than ever to protect family farming.  

“America has experienced a lot of change over the past several decades, and farmers have had to change with it. But banking in ag hasn’t. When it comes to financing, we understand that better than anyone. We’re here to provide programs that make farmers’ lives better.”

Brian Philpot, CEO of AgAmerica

In the face of adversity such as trade wars, labor shortages, and climate change, American farmers have carried the burden of adapting their way of life to compensate for a lack of resources. 

Over the years farmers have had to face an array of financial roadblocks, including,  

  • Limited flexibility in farm financing options to meet the unique needs of their operation;  
  • Stringent regulations and long approval timelines that strain their productivity during crucial seasons; and, 
  • Profitability outweighing the relationship between a farmer and their bank. 

Rooted in agriculture and land value expertise, AgAmerica’s approach to lending is simple—we close the gap between traditional and alternative lending by building smarter and more flexible financing solutions to support farmers through all stages of life.   

How Can Disruptive Finance Improve Farmers’ Financing Options?  

Disruptive financing is defined as innovations in the financial sector that cause the industry to evolve and adapt. It is a phrase coined for alternative financing options—such as crowdfunding and marketplace lending—that fill the gaps that exist in traditional financing options.  

Farmers are constantly navigating external disruption and adapting their operations to meet growing global demand. In doing so, they often accumulate farm financing in a variety of forms, including:  

  • Conventional farm loans; 
  • Equipment loans; 
  • Operation lines of credit; 
  • Equity cash outs and more.  

With each farm financing option comes its own set of loan requirements and restrictions, making it increasingly complicated for the farmer to manage or even obtain financing when circumstances beyond their control strike.  

Bringing Disruptive Farm Financing Options to U.S. Agriculture 

Limitations in traditional farm financing options have negatively affected American farmers and ranchers by placing them in a box of what they can and cannot do with the financing they are able to secure.  

No one knows better than a farmer that no two farms are the same. The path to success looks different for each one. At AgAmerica, we understand this and build our financing around the needs of farmers and use our relationships to guide decision-making.  

As a nonbank agricultural land lender, AgAmerica brings disruptive financing to U.S. ag sector in the form of an SEC-regulated agricultural mortgage REIT.  We are the largest agricultural mortgage REIT in the nation, trailblazing the path towards a more common-sense approach to agricultural finance. 

You may be wondering—so what does that mean exactly?  

As the first agricultural mortgage REIT in the industry, AgAmerica offers a spectrum of farm financing options rather than a one-track approach. 

For example, the AgAmerica Pivot™ program provides short-term liquidity relief through interest-only loan payments for landowners who are looking to scale fast or farmers recovering from a rough year. The program includes expedited approval options and an easy application process that requires minimal documentation. AgAmerica also provides conventional farm financing options with the option to transition to or from a short-term alternative loan without going through the hassle of switching lenders.  

This flexibility in farm financing options empowers landowners with the freedom to choose the product that best suits their specific needs and provides them with a dedicated team of ag-focused financial experts to assist and advise as needed.  

Explore Your Farm Financing Options Today 

Why do we do what we do? Because the future of American agriculture depends on it. Just as agriculture is a people-first industry, AgAmerica follows suit. We bring compassion and empathy to an industry where numbers are the standard focus.  

Through this disruptive method, we’re making a difference in the lives of those who keep the world fed by putting farmers in the driver’s seat when it comes to loan terms, payment schedules, and use of funds. 

Want to learn more? Contact one of our land lending experts today to explore the innovative financing options available to you. 

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AgAmerica Lending® LLC is a licensed mortgage lender. NMLS ID# 372267
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