Dairy Farm

Business Capital Structures & Secures $2.5MM Recapitalization & Growth Financing Package for Dairy Farm

Our Client

Our client is a family owned dairy located in Northwestern Washington, the 10th largest producer of milk in the US. With approximately 400 milking head producing a high volume of milk rich in protein and butter fat, our client is in the upper tier of performance in the area. In addition to the herd, the Company owns real estate, water rights, farm equipment and other assets, the combination of which has allowed operations to remain largely profitable.

The Situation

The Company was seeking to expand its herd with 75 additional cows and the purchase of 53 nearby acres so as to benefit from the property’s water rights. Securing a loan with their collateral had proved a challenge for the Client as milk and feed prices, compounded by weather and reproduction rates, fluctuate and dairy industry trends can therefore be very unpredictable. Additionally, the Company had relied on short term merchant account loans to bridge its operations, which had significantly impacted the cash flow of the operations.

The Solution

With extensive experience in agriculture transactions, Business Capital was able to understand the multi-layered business, the strength of the Company’s management team and business plan, and put together a collateral pool that maximized the value of the client’s complex array of asset classes to secure the necessary recapitalization and growth financing.

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