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.
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.
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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