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 His 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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Texas Rancher Finances Generational Land Purchase with Custom $11.2MM Loan

AgAmerica Helps Borrower Secure a $11.2MM Loan with a 30-Yr Fixed Rate to Begin the Family Legacy of His Texas Ranch.

Rural land purchases are a stable investment in economic uncertainty. The low-interest rate climate makes it an opportune time to lock in a fixed rate over the long term to minimize payments and increase cash flow. A strong financial structure in the beginning provides needed capital for operational expenses without worry while setting you up for steady returns and a bright financial future.

The Challenge

A Texas rancher was interested in obtaining finance for the purchase of more than 1,200 acres to begin the journey of creating a family ranch. He hoped to pass down the Texas ranch through generations and wanted to provide a stable financial foundation for them to grow the operation. The property was predominantly pastureland and the borrower planned to use the land for recreational purposes as well as a cow/calf operation.

The Solution

AgAmerica customized an $11.2MM loan product to finance the land purchase. The payments were fully amortized and stretched through a 30-year term. This enabled the borrower to maintain liquidity for operational expenses on his ranch without becoming overleveraged from high loan payments and created the sturdy foundation he was looking for.

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Midwest Ranchers Purchase Family Property with $3.4MM Multi-Loan Package

Fifth-Generation Cattle Ranchers in Wisconsin Refinance Debt to Divide Proprietorship of Land and Equipment.

It’s never too early to plan out the future of your farming operation. When the time comes to step back and let the next generation take the lead, it can be a difficult but necessary process—particularly when you have multiple children ready to fill the role.

The Challenge

A Wisconsin cattle rancher, who had spent time with AgAmerica’s Relationship Managers during a trade show, began thinking about passing the torch of his 200+ acre cattle operation down to his three sons and their families. All three of his sons and their children were actively involved in the operation but the idea of dividing proprietary rights seemed like a daunting task. Arriving at the decision to transition ownership to his sons, the father recalled his positive experience with AgAmerica and recommended our services to help simplify the complicated undertaking. Each of the three sons was interested in purchasing a portion of their father’s land and refinancing debt to provide more capital for equipment and operational expenses.

The Solution

AgAmerica built upon their existing relationship with the family and worked meticulously over time to develop a strategic package with multiple loan programs that would suit each son’s specific needs. The cumulative loan relationship totaled approximately $3.4MM between six individual loan products. Through our flexible financing structure, the sons were each able to invest in a portion of the land and lower existing payments through 30-year term loans, in turn, allowing them to purchase the equipment needed to keep the multi-generational family legacy alive and well for years to come.

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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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