Every farmer and rancher face financial challenges at some point. Whether it’s a result of unpredictable weather, market shifts, or personal circumstances, managing financial stress is part of life in agriculture. That’s where alternative lending comes in—offering flexible solutions that go beyond traditional financing to help producers recover, rebuild liquidity, and achieve long-term success.
“Conventional lending options often aren’t enough when a farm faces tough financial times,” shared Conterra Relationship Manager Tharvin Gill. “Alternative lending provides the flexibility farmers need to stabilize their operations and plan for the future.”
At Conterra Ag Capital, we believe in creating tailored, forward-thinking strategies for farmers and ranchers. Not all lending options are the same, and we take a structured approach to help producers regain financial stability while ensuring their operations are set up for the future. “We’re determined to continue to make a footprint in the agricultural space so farmers can confidently lean on us in their times of stress,” Gill continued.
Gaining a Clear Picture of Financial Health
The first step to building a path forward is understanding where you are today. A deep dive into an operation’s assets and overall financial standing is essential. By auditing existing assets—like equipment, land, or infrastructure—producers can assess whether these resources are contributing to profitability.
For instance, some equipment may sit idle too often to justify the ownership costs, or certain parcels of land may no longer generate enough revenue to cover expenses. Identifying underperforming assets and liquidating selectively can help reduce debt, improve cash flow, and strengthen overall liquidity.
Restructuring for Immediate Relief
With a clearer financial picture in hand, the next step is often restructuring existing loans. Adjusting financing terms can lower monthly payments, stabilize cash flow, and provide breathing room to focus on operational priorities.
While alternative lending may come with higher short-term interest rates, it creates the flexibility necessary for navigating tough times. This isn’t a permanent solution but a temporary tool to help farmers and ranchers regain their footing, especially when traditional lenders may be unable to provide the necessary capital during industry-wide financial downturns.
“Every operation has its own set of difficulties, and that’s why we take a personalized approach for lending,” Gill continued. “Conterra provides a variety of flexible financing options to work with farmers during their most challenging times. As we face challenges in the ag industry, we want farmers to know you’re not in this storm alone.”
Setting the Stage for Long-Term Success
The ultimate goal is to transition back to conventional lending. After one to three years of strategic asset management and loan restructuring, many producers find themselves in a much stronger financial position. Lower debt-to-asset ratios and healthier balance sheets make it easier to qualify for market-based financing, enabling producers to take advantage of competitive interest rates and more traditional lending options.
This journey isn’t about quick fixes—it’s about creating a sustainable financial foundation that supports the long-term viability of the operation.
Tools to Navigate the Journey
Every successful financing plan starts with the right tools. Accurate balance sheets and income statements are key to identifying opportunities for improvement. These documents provide both producers and lenders with a clear roadmap for making the most impactful changes, whether that means restructuring loans or streamlining operations.
“Alternative lending isn’t a one-size-fits-all solution. It’s about understanding the complexities of farming and finding financial tools that work with operations to recover and thrive again,” concluded Gill. “We understand that farming and ranching is not just a livelihood, it’s a way of life. Our team at Conterra is committed to supporting our clients through the cycles of agriculture.”
An Alternative Lending Partner
At Conterra Ag Capital, we’re committed to more than just financing. We’re here to partner with farmers and ranchers, offering a variety of solutions that can be tailored to their unique situations. Our goal is to help producers overcome immediate financial challenges while building a foundation for long-term success.
If you’re ready to explore how alternative lending can benefit your operation, let’s start the conversation. Together, we can create a strategy that helps you navigate today’s challenges and prepare for a stronger tomorrow.
Disclaimer: Please note that the information provided in this article is for educational and informational purposes only, and should not be construed as financial or investment advice. While we have made every effort to ensure the accuracy and reliability of the information presented, Conterra Ag Capital and its affiliates make no representation or warranty as to the completeness, correctness, timeliness, suitability, or validity of any information contained in this article. You should always consult a qualified financial advisor, tax professional, or other qualified professional for advice on your specific financial situation.
