December 13, 2022
Agribusiness Lending Poses Unique Challenges, Opportunities
Great Lakes Business Credit CEO Rhett Rowe recently penned an article, “Considerations in Financing Florida-Based Citrus Enterprises,” for December’s “Journal of Corporate Renewal” (JCR), the official publication of the Turnaround Management Association (TMA).
The article discusses credit considerations beyond typical collateral issues with respect to perishable inventory, climate and disease impacts, and federal governmental oversight via PACA (Perishable Agricultural Commodities Act) guidelines and limitation.
The piece explores the unique challenges and experiences of a Florida-based citrus grower. It’s a third- and fourth-generation family owned and operated group of companies that provide services across the produce supply chain, including grove caretaking, packing, marketing, warehousing, and imports.
These companies market their products under a brand recognized by retailers and foodservice distributors across the East Coast for overall quality, and usually commands a significant premium in the marketplace.
The companies’ horticultural operations have pioneered unique techniques for managing citrus greening disease and have demonstrated remarkable success over the last five years with increasing grove performance, which is an isolated accomplishment in Florida’s citrus industry.
View the complete article here to learn more about the challenges as well as the opportunities presented in lending to agribusiness enterprises.