Oregon Cattle Ranchers Use $4.2MM Global Consolidation to Refinance Real Estate Debt and Increase Working Capital

AgAmerica Customizes Short-Term Loan Package to Help Rancher Weather a Depressed Cattle Market

For farmers and cattle ranchers, one of the greatest threats to their operations’ profitability are sudden shifts in market prices. Add in one bad storm or a sick calf, and years of hard work and costly investments are instantly erased. For our Oregon family-farmers, this scenario became their reality after 28 years of farming and raising cattle.

The Challenge

Faced with the dilemma of ballooning farm debt with a traditional lender, our Oregon family turned to AgAmerica to consolidate their farm debt into a single term loan. The family had experienced a short-term cash deficit after riding out the tough cattle market and was under pressure to sell cattle as prices fell. Through a custom land loan, we were able to refinance their real estate and existing farm debt while providing them with additional operating funds.

The Solution

Our team customized a $4.2MM five-year credit facility to manage the family’s existing debt load. Having access to cash flow was critical to their operation’s success and something their previous lender could not provide. For this reason, we built in a $314K cash-out option to supplement their short-term liquidity. Our flexible financing afforded the Oregon farmers the ability to grow their operation and continue moving forward.

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