Succession Planning
For more than half a century, a farmer in Iowa grew his father’s grain operation from a couple hundred acres to several thousand acres stretching across two states. As the operation continued to work on their farm succession plan, the family wanted to free up working capital for the next generation and manage risk with long-term fixed interest rates.
Land O’Lakes Finance Co. put together a financing package that included both an operating line of credit for crop operations and a real estate loan that offered a matching term and amortization with a fixed interest rate. The real estate loan consolidated all intermediate and long-term debts into one loan with semi-annual payments, which significantly reduced the families annual term payments and improved working capital.
As working capital and equity continues to grow, the family will be able to continue work on their farm succession plan and manage the transition with ease.