New Swine Facility

After obtaining a college degree, a young producer in Iowa moved back to the farm. The existing family farming operation needed to expand operations to provide additional labor opportunities; at the same time, the family member returning wanted to invest in a stable return investment that would build equity over time and provide additional fertilizer (manure) to the family farm.

Land O’Lakes Finance Co. put together a financing package that included both the construction of the new facility and permanent financing following the construction phase. The interest rate was fixed for 10 years minimizing interest rate risk. The full cost of the facility was financed with minimal additional collateral provided by the producer’s parents. Monthly payments were set up direct from the swine integrator.

As equity continues to build from the repayment of the facility loan, he hopes to expand his facility operation by utilizing his existing equity to construct and own an additional facility in the future.