Key Takeaways:
- Financing Renewal: ARM has renewed its $325 million crop loan backed VFN, enhancing its capacity to meet farmers’ financing needs.
- Support for Farmers: ARM aims to provide alternative financing options backed by crop collateral, addressing challenges in agricultural income stability.
- Partnership with East West Bank: East West Bank remains the lead lender and administrative agent, supporting ARM’s mission to offer debt solutions.
- Focus on Risk Management: ARM’s VFN structure is designed to support farmer resilience, providing capital options even during economic downturns.
ARM Secures $325 Million in Crop Loan Backed Financing
Ag Resource Management (ARM), a provider of agricultural lending and risk management services, announced the successful renewal of its Series 2020-1 variable funding note (VFN) financing series. The $325 million VFN renewal supports ARM’s ongoing strategy to offer capital solutions tailored to the unique financial needs of American farmers, particularly during times of income instability.
Ralph S. Mason, III, ARM’s Chief Executive Officer, acknowledged recent challenges in the agricultural sector. “The past two years have been challenging for agriculture, with net farm income declining. Farmers need alternative finance solutions backed by crop collateral,” he noted. “At ARM, we are here for the farmer in good times and in bad.”
Focus on Supporting Farmers Through Financial Solutions
ARM’s mission is to support farmers in navigating economic challenges by offering debt capital market solutions. The company’s VFN financing structure allows ARM to connect with farmers nationwide while addressing investor needs, ensuring a balance between agricultural support and market demands.
Jesse Watson, Chairman of the Board at ARM, emphasized ARM’s dedication to the agricultural sector, stating, “Ag Resource Management’s goal has always been to keep farmers farming. It is a privilege for ARM to create debt capital market solutions that allow ARM to partner with farmers across the country.”
Ongoing Partnership with East West Bank
East West Bank continues to serve as the lead lender and administrative agent for ARM’s VFN facility. Joe Weingarten, Managing Director of Structured Finance at East West Bank, expressed the bank’s commitment to ARM’s objectives, saying, “We are pleased to continue to support the ARM team in their mission to provide debt solutions to the American farmer.”
