Like with most South Carolina farms, our borrower was able to sell crops at a premium due to the area’s massive grain deficit levels. The Carolinas have an incredible animal feed and soybean demand as the area is host to many of the nation’s largest protein producers, including Tyson, Perdue, and Cargill. Because the area does not produce enough grain to offset this demand, end users must often go to the Midwest to buy for their needs. The high freight cost to ship grains into the Carolinas from the Midwest creates a competitive advantage for local growers.
However, after several years of extreme weather conditions, this South Carolina farmer was facing strong local demand for soybeans, yet he could not deliver. Of the 400 acres of soybeans slated for planting, almost 200 were left unplanted when heavy rains and flood waters over-saturated the soil. The operator recalls these years as the wettest he could remember in all his years of farming.
When issues with crop insurance pay-outs arose, the borrower turned to AgAmerica for a debt consolidation package. A $1.7MM loan package helped the borrower save over $116K annually and he is now back on the road to financial recovery.
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