Farm Loan Examples

Case Study 1 — Family Grain Operation Turnaround

A multi-generation grain farm faced severe financial distress after its primary lender declined to renew its operating line for the upcoming crop year. Relationships with vendors had deteriorated, accounts were delinquent, and the owners were fearful and uncertain about their future.

Over a five-month period, I worked directly with the family to stabilize their situation. We coordinated the sale of select farmland to reduce debt and strengthen working capital, secured a real estate loan to generate liquidity for negotiating with creditors, and maintained enough cooperation with the prior lender to buy time while pursuing a new financing partner.

After months of effort, we obtained a new operating loan that restored liquidity and provided capacity to hedge their upcoming crop—an essential step given the risk of falling grain prices. The family went from the brink of losing their farm to securing another full season of operation.

The measurable outcomes included substantial interest savings and major vendor concessions, but the true value extended far beyond the financials. This engagement represented a complete stabilization of a distressed family farm and a second chance at long-term survival.

Case Study 2 — Farm Reorganization

For several years, I provided financial oversight and lender relationship support to a family farm with multiple ownership groups. Following the unexpected departure of their CFO—and soon after, the death of one of the owners—I assumed responsibility for the accounting functions and uncovered that the prior CFO had falsified year-end balance sheet entries.

After completing a full reconciliation, the financial statements revealed millions of dollars in discrepancies. Because I immediately disclosed the findings to the lender and had built a foundation of trust, the lender continued its relationship with the farm rather than calling the loan.

Despite these efforts, a combination of external challenges—including failed specialty crops and severe weather—pushed the farm into insolvency. I continued assisting through the receivership and subsequent transition to new ownership, working closely with the receiver, lender, and operating team to ensure a smooth handoff.

Today, the family is emerging from personal bankruptcy and actively pursuing a plan to reorganize and continue their farming operation. My role throughout this process has been to help preserve their relationships, maintain transparency with creditors, and position the business for long-term recovery and future success.