Securing flexible financing in agriculture can be challenging. Traditional lenders often require personal guarantees, crop liens, or restrictive agreements that limit a farmer’s operational flexibility.

This case study highlights how a diversified almond grower in Kern County, California, leveraged Ag Lending Group’s Non-Recourse Line of Credit to secure liquidity while retaining full control over his operation—without the burdens of traditional lending.

The Challenge: Overcoming Traditional Lending Barriers

Managing over 42 acres of almond orchards, the grower needed a financing option that provided liquidity without exposing him to crop risks. Despite strong land equity, he faced repeated rejections:

• Conventional lenders insisted on crop liens or personal guarantees

• Full recourse lines of credit were the default option

• Term debt secured by land was often the only alternative

One underwriter described his request as “unconventional and not feasible.” The challenge was clear: the farmer needed a solution outside traditional agricultural lending structures.

The Solution: Designing a Tailored Financial Product

Ag Lending Group collaborated closely with the farmer, his CPA, attorney, and farm management team to craft a customized financing solution:

1. Non-Recourse Structure

• $3.25 million line of credit secured solely by the farmer’s land

• No crop liens and no personal guarantees

2. Interest-Only Draw Structure

• Draw funds as needed over a three-year period

• Interest-only payments, with options for extension

3. Flexible Use of Funds

• Seasonal investments, equipment purchases, or short-term working capital

• No impact on FSA programs or insurance coverage

The Outcome: Empowering Growth and Peace of Mind

The innovative structure delivered tangible benefits:

• Full Control & Flexibility: The farmer retained control over crops and operating income.

• No Cross-Collateralization: Assets remained independently managed, untangled from other lenders.

• Future-Proof Planning: The solution supported succession planning and long-term family ownership goals.

Expressing his satisfaction, the California grower remarked, “No one else would do what Ag Lending Group did. I told Madison exactly what I wanted, and she didn’t try to talk me into something else. Her team delivered it exactly — a non-recourse line tied to my ground. That’s what I needed.”

Conclusion: A Blueprint for Custom Financing Solutions

This case demonstrates the value of customized, farmer-focused financial solutions. Ag Lending Group’s non-recourse line of credit empowered a California almond grower to achieve operational flexibility, financial security, and confidence in his long-term plans.

For farmers and agricultural operators seeking financing that aligns with their unique goals, Ag Lending Group provides expert guidance, tailored solutions, and long-term partnership. To learn more about how we can help your operation secure flexible, custom financing, contact our team today.