Conterra Asset Management announces $400 Million Conterra Debt Fund

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Farm Forum

WEST DES MOINES, Iowa — Conterra Asset Management (Conterra) announces that it is broadening its agricultural loan product offering to benefit more farmers and ranchers. The Conterra Fund will initially invest up to $400 million to provide transitional financing to borrowers facing stress brought on by current agricultural economic conditions.

Seeking to better serve borrowers needing to transition or reposition farming operations, Paul Erickson, President & CEO of Conterra stated, “Today’s ag economic environment has created a void of credit products available to agricultural producers that need time to make adjustments to return to desired levels of profitability. The Conterra Fund seeks to fill that void.”

The Conterra Fund serves an expanding segment of borrowers that require loans outside of traditional underwriting standards. TJ Wilson, Region President for Morrill & Janes Bank and Trust Company stated, “The new Conterra Fund allows bankers to access an additional loan option to assist borrowers experiencing stress in their operation, going through a transition or just don’t meet traditional underwriting criteria.”

Conterra’s loan products provide flexibility to farming and ranching operations and include up to 30 year amortizations, level principal structures, and interest only payments. This loan tailoring results in an improved trend of profitability for the borrower, based on applying reasonable revenue and expense assumptions. All borrower income sources are taken into account, as are all debt obligations.

Tom Stenson, Executive Vice President of Conterra stated, “The Fund is the culmination of work to bring new sources of capital into agriculture to serve a need brought to Conterra by lenders and their customers. Providing liquidity to agriculture will benefit farmers and ranchers as they reboot or reset the structure of their debt to cope with the farming world of 2016 and beyond.”

Paul Erickson, Conterra’s President and CEO said, “This new program continues to further Conterra’s mission of connecting agriculture and rural America with untapped sources of capital.”