Alternative agricultural lending, bridge financing, and distressed agriculture loans have been rising in 2017 around the stressed pockets around the U.S. Many farmers that have been with traditional ag lending banks for a few years are starting to feel pressure applied. Many farmers have been trying to refinance but with the three years of falling farm incomes they have felt the burden of trying to keep up with payments, setting of a string of negative consequences to their financials. While trying to refinance out of the trouble brought upon by these harder times many operations have begun to fall below the traditional lending standards.

Many lenders were nervous coming into 2017 after farm incomes have fallen for the past three years in a row. And even though it has been a relatively tough year in pockets of the U.S., multiple major commodities and markets have bounced back this summer with cattle and corn prices rising as of late. Despite rebounding prices there is still heightened skepticism on the recent future of ag.

In the plains and dry wheat areas of the U.S. pressure is being reflected on the troubled loans popping up. Cattle prices rebounding have helped keep many operations out of trouble but many crop farmers are still in a tight financial situation. It could be a very stressful fall for farmers and lenders in the area. Where a borrower cannot meet traditional lending standards; there are alternative options to help ease the pressure.

We have been experiencing a record number of applications for balance sheet restructuring and agricultural bridge financing.  These types of programs have not existed on a large scale in the past and have been a very welcome financing option for farmers and ranchers.  We see continued demand for these programs in the near future.