Washington Cattle Rancher Makes Property Upgrades with $300K Refinance

Loan Consolidation Helps Rancher Increase Capital to Make Upgrades to his Land and Machinery

Throughout the years, farm and ranch operators experience equipment failures and repairs that over time can add a dent to their profit. Studies show that on average, 16 percent of crop value returns to the operation as an investment in equipment. When combined with destructive weather, unpredictable commodity pricing, and strict regulatory obligations, the financial burden becomes heavier than what an operation can comfortably carry.

The Challenge:

A Washington state rancher came to AgAmerica with the desire to generate additional income by leasing his land to a neighboring cattle rancher. In order to move forward with the leasing opportunity, the rancher needed access to working capital to help fund improvements to equipment, irrigation, and fire retention zones on his property.

The Solution:

With the help of an AgAmerica Relationship Manager, the rancher received a $300K debt consolidation loan that provided a longer amortization period and cashout option. In Addition, our Relationship Manager was able to help the rancher qualify for our Accelerate Program, which is designed to offer farmers, ranchers, and landowners a fast-track underwriting and closing process­ to reduce their time away from their operations. The Washington rancher now has the financial flexibility to make the necessary property and equipment upgrades.

As the largest, non-bank agricultural lender in the U.S., AgAmerica has the flexibility to offer farmers and ranchers the opportunity to work with trusted advisors to refinance debt and create long-term solutions for their operational needs. Speak to one of our Relationship Managers to learn more about our flexible financing.

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Colorado Rancher Finds Financial Flexibility with $19.1MM Debt Consolidation

AgAmerica’s Interest-Only Loan Consolidation Help Cattle Rancher Bridge the Gap Between Ballooning Debt Payments and Investment Payouts

As a second-generation large animal veterinarian and Colorado rancher, this AgAmerica borrower had dreams of creating a legacy for his family and giving back to the land that raised him. While working towards his Doctorate in Veterinary Medicine, our borrower and his wife began building a small cattle ranch, that would eventually grow into a large-scale agribusiness.

The Challenge:

Over the course of three decades, they scaled their modest cattle ranch into a 10,000-plus acre operation that produces a variety of row crops, livestock, and thoroughbred bloodlines. Their passion for the land and desire to improve water quality, also led them to make long-term investments in the conservation and energy sectors.

As the ranchers continued to grow their business portfolio, they began facing the challenge of balancing long-term investment payouts against ballooning debt structures. Eventually, their need for working capital was accelerated by a partnership entity with a heavy capital demand.

The Solution:

AgAmerica Lending helped the Colorado ranchers by creating a $19.1MM debt consolidation loan to help bridge the gap between their maturing loan structures and periodic returns from their investments.

Along with an interest-only loan consolidation, we were able to pay down carryovers on their existing lines of credit and increase the availability of working capital to help them fund future investments and operational expenses.

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Montana Cattle Rancher Funds Expansion with $1.2MM Credit Facility

Third-Generation Montana Rancher Expands Herd and Improves Pastureland with $1.2MM Short-Term Credit Facility

Recognized as symbols of strength and determination, female farmers and cattle ranchers are the cornerstone of today’s agriculture industry. Their growing presence on the farm and in the books has paved the way for greater discussions around their influence and contributions to farming. As a nationwide lender, we’ve had the privilege of bearing witness to these remarkable strengths, especially those of an Eastern Montana cattle rancher who came to AgAmerica looking for a loan program that would help her rebuild her breeding stock and make irrigation upgrades to her pastureland.

The Challenge:

Over the last five to six years, our cattle rancher experienced back-to-back blizzards and droughts, which adversely affected her stocking rate. To ensure that her land could provide enough forage for grazing, the rancher was forced to reduce her head from 144 to 89.

Facing a depressed cattle market, the monetary value of her livestock declined, driving her risk as a borrower up and lowering her capacity to service loan debt. Despite these obstacles, the Montana rancher developed a clear business plan for the cattle operation. With the right financial lender, she planned on refinancing her current mortgage debts to lower interest payments, as well as taking a cash out to fund the purchase of additional premium breeding stock. Producing cattle lines with specific genetic traits and dispositions would allow her to obtain premium returns on her herd in the future.

The Solution:

After working with the cattle rancher to understand her history as a borrower and operator, our loan experts created a custom $1.2MM 3-year credit facility with a $306K cash out to help with the cost of restocking her herd and making upgrades to her 4.1K-acre ranch. Acting as both labor and management of her operation, the additional operating capital granted her more freedom as the sole operator and has allowed her to focus on the portion of her operation that she is most passionate about, her cattle.

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North Carolina Farmer Consolidates Farm Debt with $7.0MM Short Term Loan

North Carolina Farmer Seeks to Refinance and Consolidate Farm Debt to Reduce Loan Payments

The Challenge:

A North Carolina farm operator approached AgAmerica seeking a refinance and consolidation of their outstanding farm debt with a traditional farm lender. The farmer’s operation processes and sells Carolina/Virginia-style peanuts to wholesalers domestically as well as on the international market. In need of a better structured loan, the operator reached out to our team to learn more about our custom farm loan packages.

The Solution:

AgAmerica was able to provide a unique, three-year interest-only term loan with no annual renewals to accommodate the borrower’s unique operational needs. By refinancing his debt into one loan program, the farmer was able to increasing his working capital and dedicate more time to his peanut operation.

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10-Year Line of Credit Helps Washington Farmer Increase Operational Capital

East Washington Farm Operator Increases Working Capital with AgAmerica’s Line of Credit

The Challenge:

A retired radiologist, approached AgAmerica looking for a source of liquidity for his farming operation in Eastern Washington state. Coming from a long history of Washington and Montana farmers, this operator was ready to return to his roots in agriculture. Over the years he held agricultural properties for investment purposes, but with the intention to grow his operation, he needed access to working capital to fund the growth.

The Solution:

AgAmerica was able to provide the borrower with a 10-yr. interest-only line of credit for operational and contingency purposes. Our Relationship Managers, Blake Averitt and Will Messina, had the opportunity to meet our borrower during the process to understand his needs and his long-term business objectives. The borrower now has the financial flexibility to make decisions and purchases for his farms without the worry of penalties or limited cash draws.

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Texas Rancher Expands Cattle Operation with $4.4MM Short-Term Loan

Multi-Generational Farm Family Expands 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.

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AgAmerica’s Alternative Lending Helps Sixth-Generation Farmers Achieve Financial Stability

Sixth-Generation Family Finds Long-Term Success with AgAmerica’s Spectrum of Land Loans and Alternative Lending

Across the nation, farmers and ranchers work tirelessly to overcome unpredictable variables like weather, commodity pricing, tariffs, and governmental regulations. These variables place an immense amount of financial strain and mental burden on farmers, often having a long-lasting impact on the farm’s profitability. This was true for two sixth-generation farmers who own an 1100-acre row crop operation in North Carolina, when we met them in 2016.

The Challenge:

This couple and their family had experienced it all: continued commodity price drops, a devastating drought, and widespread hurricane damage. Having a deep love for their land, this family couldn’t fathom giving up their operation, but with limited options they were quickly moving towards consolidation.

Meeting AgAmerica’s Relationship Manager, Cam Flowers, completely changed their operation’s trajectory. After introducing them to alternative land loans, Cam worked with them to develop a custom financial plan that would eventually transition them from an asset-based alternative loan into a fix-rate conventional loan, while still supporting their continued dream of passing their farm to the next generation.

The Solution:

AgAmerica’s alternative lending helped the North Carolina farmers pay off their land mortgages, consolidate their farm debt, and increase cash flow to improve their financial situation. After a year, Flowers helped the farmers transition into a longer-term product with a lower rate. The financial flexibility helped their operation diversify their crops, allowing them to add sweet potatoes, pay off their equipment, and increase their gross revenue by 112 percent. After three years of working with AgAmerica, these farmers had reached financial stability and were ready to make another move into a conventional fixed-rate loan.

This year, the sixth-generation farmers were transitioned into a $1.1 million, 25-year fixed-rate conventional loan to refinance just over 500 acres in Edgecombe County, North Carolina. The farmers believe that the loan’s flexible terms will further support their future operational growth as they introduce new crop rotations to their current sweet potato, cotton, wheat, and soybean operations. Looking towards the future, these farmers are hopeful that the family farm will see another generation of farmers someday.

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10-Year LOC Helps California Cattle Rancher Expand Operation

California Rancher Expands Operation with a 10-Year Line of Credit

As a young lady growing up on her family’s cattle ranch, this California rancher always had the dream of owning her own ranch in California and following in her parents’ footsteps.

Challenge:

With a small cattle operation of roughly 100 acres of land, she wanted to expand the operation and purchase over 360 acres of land on the coast of California. She turned to AgAmerica Lending for a land loan to finance the purchase of the operation.

The Solution:

AgAmerica provided her with a $1.1 million 10-year line of credit, amortized over 20 years to provide the financing needed to purchase the additional ranch land in the area of California she desired. The land affords her the opportunity to continue expanding her herd and pursuing her cattle ranching dream.

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AgAmerica Loan Package Helps Bring California-Grown Produce to Our Tables

AgAmerica Loan Package Helps Bring California-Grown Produce to Our Tables

A large, multi-generation operation in California dedicates all of their farm acreage to getting U.S.-grown Hass Avocados to our tables. After years of successful seasons, they were ready to expand their operation and needed the right agricultural financing.

The Challenge:

California has a unique climate that supports growth of over 400 commodities and when you find the right niche for your operation, you go all-in. That’s what these growers plan to do with Hass Avocados, they just needed the operating capital to help finance the conversion of their under-utilized acreage for avocado production.

The Lending Solution:

When these growers came to AgAmerica looking for a refinance that would allow them to expand their avocado operations, the AgAmerica credit team turned to our spectrum of financial solutions.

We customized a $9 million “two-pack” loan solution, combining a term loan with our industry-unique line of credit. The operating credit line gave them the financing necessary to focus on converting more land into avocado acreage, without the hassle of standard annual paperwork or renewals.

The Result:

With their passion and enthusiasm for the future of agriculture in California and long-term financing from AgAmerica, these growers will be bringing us delicious, U.S.-grown Hass Avocados for years to come.

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Tower Lending: AgAmerica’s First Foray into the Rural Infrastructure Sector

Tower Lending: AgAmerica’s First Foray into the Rural Infrastructure Sector

Overall, 59% of farm operators use smartphones. But among farmers under the age of 45, their smartphone usage increases to 91%. One thing is clear: data usage is steeply growing and tower erectors will need flexible funding to keep the pace.

Due to the niche nature of the cellular tower industry, there are few bridge lenders in the market that serve growing mid-tier cell tower developers (less than $1MM Tower Cash Flow). Conventional lenders to the industry often have restrictions on lending territories and borrower debt/covenants, and industry exposure limits. As a result, cell tower developers have typically had to rely on more expensive private equity raises to find their portfolio development.

AgAmerica Lending uniquely understands the mid-tier tower market, having originated more than $24MM in loans since 2013. Our lending portfolio is collateralized by more than 65 towers with over 85 tenants.

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