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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