Oregon Landowner Buys Land and Uses $400K LOC for Upgrades

Custom loan package helps a rural landowner purchase land and enhance its value.

Thriving agricultural land is an essential part of a secure domestic food supply system. Farmers and ranchers are the steadfast stewards of this land, ensuring it stays healthy and continuously looking for ways to improve the way they grow our food. However, this responsibility does not all fall on their shoulders. A growing number of rural landowners understand the importance of setting their tenants up for success and play an integral role in feeding our nation and the world.

The Challenge

A rural landowner was interested in purchasing a highly profitable property to lease to a well-established tenant who specialized in growing permanent crops across the Pacific Northwest. Although rich with opportunity, this property required significant capital improvements. They searched for a solution that would provide financing for both the property purchase along with the liquidity needed to capitalize on the value of the land.

The Solution

Upon gaining deeper insight into the long-term goals of the borrower, AgAmerica was able to develop a custom two-loan package. The first loan facility was a 30-year conventional product that provided the necessary financing to purchase the desired property. The second loan facility was a five-year line of credit of nearly $400K to finance the redevelopment of the land and make capital improvements, such as the installation of a modern drip line system, that would improve production. This customized loan package allowed the financial capacity needed for the borrower to achieve multiple business goals at once while building a more resilient operation that supported the long-term success of their tenant.

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Seventh-Generation Farmer Uses $6MM to Consolidate Debt

North Carolina landowner returns to AgAmerica for custom refinance and 1031 exchange.

Nearly 40 percent of all American farmlands are rented or leased. No one understands the importance of land stewardship more than the farmer who sows the seeds and reaps the harvests year after year. Committed to preserving the American farmer’s way of life in a changing world, AgAmerica is helping farmers go from tenants to owners across the nation through innovative financing solutions that push the boundaries of traditional land lending.

The Challenge

A seventh-generation farmer in North Carolina was passionate about the conservation of agricultural land. Starting his farming career at the age of fifteen on unrented farms in his area, he quickly learned to appreciate the value of productive farmlands and the importance of being a good steward to the land. He had formed a partnership with AgAmerica back in 2017 to tap into his real estate equity and expand his rural real estate portfolio. Over the years, his smart land investment strategy led to the expansion of his potato and grain operation and solidified him as an established member of the agricultural community. He had secured multiple loan notes from different sources to finance his expansion and returned to AgAmerica once again to restructure his debt into a single loan facility.

The Solution

Admiring his spirit of stewardship and respect for the land that helps sustain the world, AgAmerica consolidated his existing debt into one, easily manageable $6MM loan. Through this refinance, the borrower was able to increase funding by $905K with a minimal increase to his existing payments. Through this restructure and 1031 exchange, the borrower purchased the leased land he had been farming on since 2005 to continue making improvements to the land he loved.

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Montana Ranchers Restructure Debt with $2MM Refinance

Multigenerational family ranch improves cash flow with AgAmerica’s Accelerate Program.

Many of AgAmerica’s land lending specialists have personal ties to the agricultural community and share a deep understanding of the volatility that exists in the industry. While other lenders may place restrictive terms on farmers to offset what they perceive as risk, our experts dig deeper to leverage the unique strengths of each agribusiness to set borrowers up for long-term success.

The Challenge

A Montana family had been operating a cow-calf ranch for four generations and were facing a less than ideal cattle market that was constricting their cash flow. They had been experiencing extreme dry weather conditions over the last few years and had a fire come close to destroying the family ranch they had worked so hard to build. Not understanding the ebb and flow of the industry, their current lender wanted to put financing restrictions in place that lowered the loan amount below what was needed to continue operating.

The Solution

Recognizing the strength and resilience of their family operation, AgAmerica was able to refinance and restructure existing debt obligations with a $2MM loan facility. Due to a strong loan-to-value (LTV) ratio and good credit history, the family qualified for the AgAmerica Accelerate Program—stretching terms and lowering payments with minimal paperwork. This increased their cash flow and eased their financial burden during a time of volatility.

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California Landowners Purchase Dream Ranch with $1.8MM Custom Loan

AgAmerica helps California landowners streamline the purchase of their dream ranch with $1.8MM 15-Yr loan.

When a dream property becomes available, borrowers will often sacrifice the best deal for fast financing before the property slips through their fingers. This can lead to high-interest rates, unnecessarily strict terms, or third-party institutions that control the terms of their debt. At AgAmerica, our clients receive the best terms available with streamlined efficiency that remains within our internal team of land lending specialists throughout the lifecycle of their loan.

The Challenge

Two landowners in California were interested in expanding their portfolio through the purchase of a California ranch with pasturelands. They felt a personal connection to the property as they had used its equestrian center for years and sought financing to make their dream of one day owning it a reality.

The Solution

AgAmerica was able to structure a $1.8MM, 15-Yr loan facility that was closed and funded within one month once the land appraisal was completed. This streamlined loan process allowed the borrowers to quickly secure the financing needed to purchase their dream ranch.

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Recreational Ranch Owner Lowers Rate and Receives $400K Cash Out

AgAmerica helps borrower refinance multiple debt obligations and cash out on land equity with $1MM multi-loan package.

A partnership with AgAmerica means partnering with a lender who is singularly focused on agricultural land financing. This organizational discipline coupled with our institutional flexibility enables us to provide our clients with the best ag real estate products nationwide.

The Challenge

A Texas recreational ranch owner interested in investing in new property was feeling limited by debt obligations to another lender. In hopes of accessing more capital and boosting operational cash flow, the landowner turned to AgAmerica to see what options were available to them in terms of restructuring existing farm debt.

The Solution

Using the Texas ranch property as collateral, AgAmerica was able to create a multi-loan package just over $1MM that achieved two goals. The first product was used to refinance prior debt obligations and lowered the client’s rate by more than 200 basis points. The second product was an immediate cash out acquired at closing that provided them with instant capital for future expansion opportunities and operational expenses.

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Family Farm Consolidates Debt and Secures Capital with $13MM Package

Vertically integrated operation in New Mexico hedges against future uncertainty with $5MM RLOC.

American farmers have the unique ability to recognize and implement safeguards against potential risks before they become larger issues. Severe weather, volatile commodity prices, and global trade tariffs are all examples of risk factors outside of the farmer’s control. Proving their resilience time and time again, American farmers stay a step ahead of these challenges and take a proactive approach to risk management in order to keep our food supply chain strong.

The Challenge

A multigenerational operation in New Mexico had been hit with excessive drought conditions ranging from severe to extreme conditions for decades. The ongoing risk of drought and volatile commodity markets motivated them to improve their operational resilience over the years through crop diversification, drip irrigation systems, and precision ag technology. Along with these improvements, they became a vertically integrated operation—meaning they were responsible for the planting, harvesting, and packaging of a variety of commodities shipped nationwide. As their farm profit margin bounced back from adverse weather and suppressed prices in 2018, the family sought alternative financing to consolidate existing debt obligations and enhance the financial structure of their operation for continued improvement.

The Solution

With a customized $8MM term loan package, AgAmerica was able to consolidate existing debt obligations and provide an additional $5MM revolving line of credit for operational expenses as needed. Through this strategic consolidation, the borrowers were better positioned to recapitalize their operation, effectively manage cash flow with a flexible line of credit, and improve their financial footing for eligibility thresholds in the future.

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Row Crop Farmers Overcome Financial Hardship with $3.8MM Refinance

Midwestern farm operators improve the financial health of their family farm with AgAmerica’s custom land loan solution.

Family farms are the backbone of American civilization. Each one carries a legacy full of rich history, adversity, and achievement. But with each passing year, it becomes more challenging to keep this legacy alive. Time and time again, American farmers prove their resilience by fearlessly facing these challenges head-on in order to keep our nation sustained.

The Challenge

Several Minnesota row crop farmers were feeling the cumulative weight of recent weather events, volatile market pricing, and trade issues on their multigenerational family farm. The combination of these events led to a steady decrease in farm profitability over the years and limited the cash flow needed to keep their farm operational. They judiciously began researching alternative financing options, which led them to our team at AgAmerica.

The Solution

Understanding the gravity of the situation, AgAmerica worked closely with the family to assess their existing financial structure and formulate a solution. Despite the unforeseen events beyond their control, the farm maintained steady farm production rates, had excellent repayment history, and had already cut expenses to ease their financial obligation. AgAmerica was able to consolidate their existing farm debt into a $3.8MM debt facility with interest-only payments for 36 months. This equipped the borrowers with the time and payment relief needed to return to operational profitability, recapitalize while managing debt obligations, and keep their farm in the family for generations to come.

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East Coast Operator Lowers Payments with $4MM Refinance

East Coast farmer leverages land equity to increase operational liquidity.

Taking the time to understand the financing options available to you is the first step towards financial success and a thriving operation. The loan development process can be intimidating, confusing, and time-consuming, but can also pay off tenfold⁠—especially when you partner with a lender who understands the specific financial structure needed for agricultural operations to excel.

The Challenge

An East Coast farmer realized his current financial structure was limiting the cash flow he needed to enhance and expand on his operation. He was the primary operator of nearly 5,000 acres of timberland. He realized his land rich yet cash-poor financial structure was inhibiting his ability to grow his operation and caused him to seek out alternative options that would provide the flexible liquidity he was searching for.

The Solution

AgAmerica reviewed his existing debt obligations and was able to reduce both his interest rate and payments through a $4MM, 30-year amortization loan product. While this already boosted his operational liquidity, AgAmerica was also able to secure a $1.5MM 5-year RLOC to supply him with instantaneous capital. Through this two-product loan package, the borrower had the capital required to fund upcoming sales, future expansions, and product development.

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East Coast Rural Landowner Uses $10MM RLOC for Operational Costs

East Coast landowner finances the reacquisition of timber rights of property.

Although a stable investment among a volatile market, rural land ownership requires flexible working capital in order to capitalize on the highest potential for returns. As a financial lender with a singular focus in agricultural land, AgAmerica understands the importance of operational cash flow to establish a secure financial foundation for future opportunities as they arise.

The Challenge

A family-owned rural landownership company established more than 30 years ago, was looking to finance a reacquisition of timber rights on 93,000+ acres of land that spread along Kentucky, West Virginia, and into Maryland. Having had positive experiences with our team for three previous financial endeavors, the family decided to return to AgAmerica for a fourth time to fund this new land purchase opportunity.

The Solution

Using only the surface rights of the property as collateral, AgAmerica was able to provide a non-recourse loan product that included a $10MM revolving line of credit with interest-only payments for three years. This helped the borrower secure timber rights using only their land as collateral and provided the flexible financing needed for any additional operational costs that come with the territory of land ownership.

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Louisiana Farmer Lowers Payments and Rate on Multiple Debts with $1.1MM Refinance

Sugarcane Farm Increases Cash Flow Through A Custom Debt Consolidation Package

In uncertain times, having access to working capital is critical to the resiliency of a farm operation. When a farmer’s debt is spread too thinly across multiple notes or financial institutions their cash flow can begin to wane.

The Challenge

A sugarcane farmer in Louisiana was stuck between a rock and a hard place when it came to his existing farm debt. He had several loan notes spread across multiple banks with high-interest rates. This impacted his working capital and created a rigid financial structure that neglected to allow the flexibility needed to meet both loan payments and operational expense obligations. Knowing the importance of a safety net in an unpredictable industry such as agriculture, he turned to AgAmerica to assist in securing a more resilient financial structure for his family business.

The Solution

Through AgAmerica’s unique Accelerated Loan Program, the Louisiana farmer was able to consolidate his existing farm debt into one manageable $1.1MM loan with stretched amortization, better interest rates, and minimal paperwork. Through this refinance, he lowered his payments drastically and secured the working capital needed to create a more solid financial structure moving forward.

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