This episode is a sponsored insight from AgAmerica, the largest independent agricultural loan lender and servicer in the US. I sat down with President and CEO, Brian Philpot. Brian invested for twenty-four years in timberland, agriculture, and real estate before turning to a sole focus on farmers. AgAmerica helps farmers thrive in good times and sleep well in tough times, having originated $2 billion of loans in the past two years.
Our conversation covers Brian's background and path to focusing on the farmer. We discuss the opportunity set in farm lending and investing, inefficiencies in the market, and AgAmerica's investment process across sourcing, diligence, structuring, operations, and risk. We close discussing the future of farming and AgAmerica's business to support the farmers making it happen.
1:40 Brian’s background
4:25 Timber as a financial asset
7:36 Financing farmers
11:05 AgAmerica today
12:04 Sourcing opportunities in agriculture
14:39 Unit economics of a farm
18:51 Essential deal terms
22:27 Farm expansion and achieving efficiency
26:14 Operational risks and performance
28:18 Liquidity in agricultural lending markets
31:55 Demographic challenges in the farmer community
35:21 AgAmerica’s future
36:27 Closing questions