Agricultural Business Debt Relief

Answer-first: Agricultural businesses, farms, ranches, greenhouses, ag services, face the most extreme seasonal revenue patterns of any industry we serve, with annual revenue often arriving in 2-4 months. MCA daily ACH makes this structurally incompatible. BDA builds settlement programs around agricultural cash flow cycles.

Why MCAs hit agriculture harder

Agricultural revenue arrives around harvest. For most ag operations, 80%+ of annual revenue lands in a 90-day window. The other 9 months involve input costs, equipment maintenance, labor, land payments, and insurance, with minimal revenue.

MCA daily ACH ignores this completely. An ag operation that can comfortably service a $50,000 MCA during harvest season collapses trying to service it in February.

Equipment financing and land mortgage obligations add pressure. Ag equipment lenders (John Deere Financial, Case IH, Kubota, etc.) have established lien structures that predate any MCA. When MCA UCC-1 liens layer on, priority issues emerge.

What do ag owners typically come to us with?

• Family farms with $50,000-$250,000 in MCA debt taken to bridge pre-harvest cash flow
• Specialty crop operations (vineyards, orchards, greenhouses) with equipment-heavy structures
• Ranching operations with feed-cost and livestock-value MCA debt
• Ag services businesses (spraying, harvesting, logistics) with seasonal revenue patterns

How does BDA's settlement process fit agriculture businesses?

Settlement programs for ag operations are structured around harvest cycles specifically. Program payments are minimal during pre-harvest months and weight toward harvest and post-harvest months when cash flow is strong. MCA lenders accept this structure when BDA presents it with documented revenue patterns.

We also coordinate with USDA/FSA financing if present, USDA loan structures have specific priority rules that don't conflict with settlement but require awareness.

FAQ

Will settlement affect my USDA/FSA loan status? Usually not directly. USDA loans have their own rules and aren't typically affected by commercial settlement of unrelated debt.

Can I plant next year during settlement? Yes. Settlement is designed to keep operations running. Input purchases, planting, and harvest continue.

What about crop insurance? Crop insurance is separate from commercial debt. Settlement doesn't affect crop insurance eligibility.

Will settlement affect my land financing? Land mortgages are typically separate from MCA debt. Settlement handles MCA-specific issues without touching land obligations.

Do you work with specialty operations like vineyards or orchards? Yes. Specialty crops with multi-year production cycles require careful program structure, but the settlement process is fundamentally the same.

What if I've lost my most recent harvest? Weather-related revenue loss is often the trigger for MCA debt in agriculture. Settlement accommodates this, documenting specific crop loss strengthens negotiation position.