By Jamie Martin
Farmers in the U.S. will now have greater access to working capital thanks to a new $250 million agreement between Carlyle and FarmOp Capital. Carlyle will buy newly issued farm operating loans from FarmOp Capital, boosting the company’s capacity to support more farmers.
FarmOp Capital provides loans to independent row crop farmers without depending on personal balance sheets. Instead, it uses a unique underwriting system based on crop insurance and farmers’ ability to produce a crop. This helps farmers secure funding even if they don’t meet traditional banking requirements.
This agreement is managed by Carlyle Asset-Backed Finance, which is part of the company’s global credit team. Carlyle ABF specializes in tailored, asset-based investment solutions. It has already deployed $8 billion and manages nearly $9 billion in total assets.
The funds will help FarmOp Capital grow its reach and assist more producers with reliable credit access. The financing model also gives farmers more control and stability as they manage planting, harvesting, and other operating costs.
FarmOp loans are especially useful for smaller or independent farmers looking for a flexible alternative to traditional banks. This support allows them to make better decisions and invest in their operations with confidence.
Legal advice for this deal came from Paul Hastings LLP for Carlyle and Mayer Brown LLP for FarmOp Capital.
Photo Credit: karolina-grabowska
Categories: National