Grape and Almond Farmers Expand Land Portfolio with an $18MM California Vineyard Purchase

Second Generation Family Farm Leverages Their Existing Property to Finance a New and Lucrative Opportunity.

When it comes to land investments, opportunities can slip away as quickly as they emerge if financing isn’t secured in an adequate amount of time. As a central servicer, AgAmerica’s streamlined loan creation process allows us to provide capital when it’s needed to fund the expansion and operations of farms nationwide.

The Challenge

A family prestigious in the agriculture community was looking to further expand their farming operation with a large, 1,800-acre land purchase of California vineyards. After farming for two generations, the family had established themselves as a premier wine and almond producer. The opportunity to capitalize on a discounted price of valuable land was available and they set their sights on securing financing quickly before the offer passed them by.

The Solution

AgAmerica was able to leverage their existing property as collateral and provide a 5-Yr ARM with a rate of 4.5 percent. Through this loan package, the borrower could purchase the desired property, further increasing production levels and profit margins for their operation. The borrower was also able to pledge additional land collateral and further reduce the amount of money that was needed upfront for the land purchase. The efficiency of the loan process and overall positive experience motivated the family to continue using AgAmerica for future financial needs, including the refinance of several existing properties shortly after.

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Washington Winery Increases Working Capital with $7.6MM Refinance and $2.0MM RLOC

AgAmerica’s Pivot Program Helps Washington Winery Access Working Capital to Fund Operational Activities.

Winery owners in the tri-cities area of Washington were looking at alternative financing options for their 109+ acre operation that provided flexibility and optimized profitability within their operation. With the help of their financial advisor, they found AgAmerica to assist in their financing needs.

The Challenge

The highly-respected winery owners in the Washington community were looking for a way to refinance their existing and operational debt into an interest-only term loan. Despite their growth in wine-club subscriptions and international consumption of products, a major online retailer had recently removed their wine, making it difficult for them to obtain a loan to suit the needs of their operation.

The Solution

An AgAmerica Relationship Manager worked with the winery on site to fully understand the potential of their operation and to customize a loan package for their long-term needs. Through AgAmerica’s unique Pivot Program, they were able to obtain a $7.6MM loan that included a $2.0MM revolving line of credit for daily operations, giving them financial stability and security against any unforeseen circumstances that could affect them in the future.

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New York Farm Investor Reduces Interest Payments With $1.6MM Refinance

Investor Uses a $1.6MM Loan Package with a 20-Yr Fixed Interest Rate to Reduce Loan Payments on Equestrian and Dairy Farm.

A high-end furniture maker in New York chose to invest in the agriculture industry with the purchase of a 950-acre equestrian and dairy ranch. His previous lender had placed him in an “interest only” program with a higher floating rate even though he had never missed a payment before. His financial advisor recommended AgAmerica as an alternative source for financing.

The Challenge

The borrower was looking to leverage his superb payment history to refinance his existing loan and lower the interest rate. He wanted a flexible loan package that lowered payments and improved immediate cash flow to fund continued operations on his property, including dairy and hay production.

The Solution

AgAmerica loan specialists were able to refinance his facility and lower his current interest rate into a fully amortizing $1.6MM loan package with a fixed interest rate of 4.9 percent for 20 years. The lower interest-rate drastically improved his working capital for property maintenance and unforeseen expenses for the years to come.

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North Carolina Tobacco Operation Reduces Debt Payments with $463K Land Loan Refinance

Learn How AgAmerica’s Accelerated Loan Program Helped a Farming Couple Improve Their Working Capital.

Multi-generational farming goes beyond just a job into a way of life full of rich history that is passed down from one generation to the next. Many of these family farmers feel a responsibility to build on the legacy of their predecessors and set future generations up with a secure financial structure.

The Challenge

One such family in North Carolina had been harvesting tobacco, corn, and soybeans on their family farm through eight generations. The couple currently operating the farm wanted to solidify its financial position for when the time came to pass the reins over to their son. They analyzed their finances and searched for ways to boost working capital through refinancing multiple existing loan notes.

The Solution

AgAmerica was able to consolidate their existing real estate and chattel debts into a singular $463K loan package. Through our accelerated program, we expedited the approval process with minimal documentation required in less than two months after initially contacting AgAmerica. This fast and flexible reconstruction of existing debt provided them with lower payments made annually, increasing cash flow for their operation. Proactively taking steps to prepare their financial foundation, this couple reduced the financial load that will pass to their son and set the future of their family farm up for success.

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Louisiana Property Investor Consolidates $1.5MM in Existing Land Loans

Recreational and Agricultural Land Investor Consolidates $1.5MM in Existing Land Mortgages and Uses $550K RLOC for Existing Operation.

The most successful agricultural property investors value efficiency and take advantage of low interest rates as the economic market fluctuates. One property investor in Louisiana did just that, and with the help of AgAmerica, was able to consolidate existing loans while increasing working capital to fund future real-estate purchases and manage current property management costs.

The Challenge

An agriculture real-estate investor was looking to make additional land purchases by refinancing a collection of collateralized notes through equity in agricultural properties along Louisiana and Mississippi. He had over 1,200 acres of pasture, timber, and recreational land. He turned to AgAmerica to assist him through the process.

The Solution

AgAmerica not only refinanced his existing property mortgages with a $1.5MM 25-year term loan, but also provided a $550K revolving line of credit to fund harvesting and removal costs on existing properties. Our team was able to consolidate existing mortgages across various loan institutions into one, easily-manageable loan package and did so with no annual renewals or reporting requirements.

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Ranch Owner Increases Working Capital and Expands Property with a $1.5MM Loan Package and 10-Yr RLOC

A Texas Rancher Takes Advantage of AgAmerica’s Quick Lending Process to Purchase New Property

A Texas ranch owner was looking to add another property to his portfolio. With the guidance of his financial advisor, he decided to turn to AgAmerica to assist in the financing of his new endeavor.

The Challenge

In the land investment industry, it’s imperative to understand the resources available to achieve financial success. One such advantage is the 1031 exchange, a section in the U.S. Internal Revenue Code that enables investors to use money originally designated for capital gains tax to purchase additional properties. Such advantages typically don’t come without stipulations. The 45-day time limit set on 1031 exchanges can sometimes pressure investors into rushed purchases and create difficulty in finding adequate financing in time.

The Solution

The efficiency in AgAmerica’s loan approval process made it possible for this Texas ranch owner to purchase his weekend ranch. The package also included an additional $743.4K 10-Yr RLOC for future property improvements and funding of ranch operations. The credit line carries no non-fees or annual renewals and is secured through existing real-estate collateral.

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$675K Refi Helps North Carolina Row Crop Farmers Save Over $50K on Annual Loan Payments

Persistence Pays Off for a Farm Couple Looking to Reduce Annual Loan Payments After Three Years of Storm Damage

Unpredictable weather is a main component in what makes the agriculture industry so volatile. It’s imperative for farmers and ranchers to set up a strong working capital structure to weather storms beyond their control, but it can be difficult knowing how to do that once adversity strikes.

The Challenge

A couple operating a tobacco, wheat, and soybean farm in North Carolina sought options to recover from storms that had devastated their crops three out of the last five years. Their existing debt was cross-collateralized and they were making annual payments upwards of $100k. Less than ideal tax returns from previous storm years made it difficult for them to refinance and even harder to secure an operating line of credit to maintain their operation.

The Solution

Although their land equity was not substantial enough for AgAmerica to finance an operating line of credit, Cam Flowers was persistent with finding a solution to better their current financial situation. He maintained a relationship with them for nearly a year, visiting their operation in person and discussing a plan of action for 2019. After a more successful tax year, we were able to consolidate multiple notes into one $675K refi loan package. This refinance dropped their annual payments below $50k and improved their overall balance sheet. This substantial improvement to their cash flow allowed the couple to obtain an operating line of credit through a traditional lender and make improvements to their operation.

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Multi-Generational Wisconsin Row Crop Farmer Saves $240K a Year With $2.3MM Refinance

AgAmerica’s Flexible Farm Refinance Helps Row Crop Farmer Reduce Monthly Payments and Increase Capital Flow

Because of the volatile nature of the agriculture industry, many small banks are making it increasingly difficult for farmers to obtain farm loans. When they do, they are often faced with high-interest payments that push them further away from long-term financial stability.

The Challenge

This past year, a Wisconsin row crop farmer found himself in a similar predicament. His previous lender was a local bank uncomfortable with agricultural lending who used high-interest loan options to offset perceived risk. Even with the help of close family members tending to daily farm tasks to soften labor costs, he was struggling to make his monthly payments and began to search for an alternative source of financing.

The Solution

Our team was able to fund $2.3MM to refinance his existing loan and cut his weekly payment by more than half with annual savings that totaled $240K. He was then able to use the additional working capital to upgrade his farm operation and invest in his farm’s trucking operation as an additional source of income.

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Oregon Cattle Ranchers Use $4.2MM Global Consolidation to Refinance Real Estate Debt and Increase Working Capital

AgAmerica Customizes Short-Term Loan Package to Help Rancher Weather a Depressed Cattle Market

For farmers and cattle ranchers, one of the greatest threats to their operations’ profitability are sudden shifts in market prices. Add in one bad storm or a sick calf, and years of hard work and costly investments are instantly erased. For our Oregon family-farmers, this scenario became their reality after 28 years of farming and raising cattle.

The Challenge

Faced with the dilemma of ballooning farm debt with a traditional lender, our Oregon family turned to AgAmerica to consolidate their farm debt into a single term loan. The family had experienced a short-term cash deficit after riding out the tough cattle market and was under pressure to sell cattle as prices fell. Through a custom land loan, we were able to refinance their real estate and existing farm debt while providing them with additional operating funds.

The Solution

Our team customized a $4.2MM five-year credit facility to manage the family’s existing debt load. Having access to cash flow was critical to their operation’s success and something their previous lender could not provide. For this reason, we built in a $314K cash-out option to supplement their short-term liquidity. Our flexible financing afforded the Oregon farmers the ability to grow their operation and continue moving forward.

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$750K Accelerated Loan Program Helps Fund Idaho Ranch Relocation

Idaho Rancher Uses Accelerated Land Loan to Move his Cattle Operation to Southwest Florida

Perhaps one of the greatest traits that farmers are known for is their resilience. Each year nearly forty-four percent of farmers and ranchers experience a year-over-year loss in profits. Yet, despite being faced with obstacles that are beyond their control, they remain committed to this way of life. They push forward, develop new strategies, and make difficult decisions all in the name of farming.

The Challenge:

This year, AgAmerica was approached by an Idaho ranching family looking to take a chance on relocating their operation. Though they were unwavering in their commitment to ranching, the growing need for greater profitability began to create challenges, forcing them to take a hard look at their business. After weighing several options, the couple determined that the most viable option for their operation would be to relocate to Southwest Florida. The longer working season presented them with an opportunity to generate more income and expand their cattle operation.

The Solution:

Putting forth 466 acres of their ranch/cropland as collateral, the Idaho couple requested a refinance and cash out loan package to help with the purchase of 1,000 acres in Collier County, FL. With AgAmerica’s assistance, the couple was able to quickly close on a $750K 30-year credit facility.

Upon selling their Idaho cattle and leveraging their land in Idaho, the couple was able to reach their goal of relocating to Florida and expanding their beef cattle operation.

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