Bankruptcy

Ag Lenders: Just Over Half of Farmers Will Be Profitable in 2024

Wed, 19 Nov 2025 19:13:57 GMT

The American Bankers Association (ABA) and the Federal Agricultural Mortgage Corporation (Farmer Mac) have released their joint 2024 Ag Lender Survey.

The big takeaway: lenders believe only 58% of farmer borrowers will be profitable in 2024. That’s down from 78% in the previous year’s study.

“The agricultural economy is inherently cyclical, and ag lenders are navigating the changing conditions across the sectors they serve,” said Jackson Takach, chief economist of Farmer Mac.

“While the responses highlight slowing land values and a profitability shift from crops toward animal proteins, ag lenders remain steadfast in leveraging their resources and relationships to guide producers through all parts of the cycle,” Takach says.

Profitability expectations did vary by region and commodity category. Optimism was greater for livestock producers over row crop farmers.

The two top concerns listed by lenders for agricultural producers are liquidity and farm income.

For lending institutions, the respondents said the biggest concern was credit quality along with agricultural loan deterioration in the next 12 months.

“Agricultural credit quality remained robust in 2024, but lenders expect deterioration in the coming year as farmers face a more challenging environment,” said Tyler Mondres, senior director of research at the American Bankers Association. “Lenders are taking prudent steps to manage risk such as tightening underwriting standards, and they remain committed to working with and supporting their borrowers.”

Demand for loans secured by farmland and agricultural production loans increased in 2024, and both categories of loans are expected to rise in the next year as well.

The ABA/Farmer Mac survey has been conducted for nine years, and this year’s responses included more than 450 ag lenders who represent institutions ranging from less than $50 million to more than $1 billion.

You can read the full report here

Prima Wawona files for bankruptcy

Mon, 30 Oct 2023 19:56:40 GMT

Prima Wawona, atone fruit producer based in Fresno, Calif., filed for Chapter 11 bankruptcy protection Oct. 13, 2023, citing in a statement “significant headwinds, including increased costs and weather-related impacts, that have combined to make our existing capital structure unsustainable.”

Coming on the heels of the company’s largest 2023 stone fruit season harvest to date, Prima Wawona said it hopes to sell the business through the bankruptcy proceedings. With the support of its current owner Paine Schwartz Partners, the company is seeking a third-party sale or a conversion of existing lender debt into equity ownership.

“Over the course of this year, we proactively evaluated options intended to enable us to build on our leading market position, our efficient and sustainable farming practices and our history as an employer of choice,” Prima Wawona CEO John Boken said in a news release. “We are pleased that our lenders have reached an agreement and fully support this ownership transition that charts a path forward to strengthen Prima Wawona and position the business for long-term success.”

Related news: California still leads the pack in peaches despite steady decline

The court-supervised process allows for the possibility that a third-party buyer will emerge as the owner of the business as an alternative to our lenders, Boken continued.

“The entire Prima Wawona organization is focused on working through this process as quickly as possible,” he said.

Founded in 2019 as the product of a Gerawan Farming and Wawona Packing merger, Prima Wawona is seeking to continue serving its customers in the company’s next chapter, the release said. As such, Prima Wawona has filed for court approval to continue its operations, pay its more than 8,000 employees and to serve customers through the entire transition process.

What’s more, the company confirmed in a statement that it intends to pay vendors for the goods and services provided on or after the filing date.

Related news: Later start but good quality expected for California tree fruit, melons

“As we move forward, we are committed to our industry-leading farming practices and continuing to provide the high-quality stone fruit for which Prima Wawona is known,” Boken said in the release. “We thank our customers and partners for their ongoing support, and we look forward to continuing to serve them. We are grateful to the entire Prima Wawona team for their hard work and dedication at this important time in the history of our company.”

Vendors and customers can learn more, access resources and review frequently asked questions on Prima Wawona’s site.

Bosch Growers to acquire AppHarvest berry and cucumber farm

Thu, 05 Oct 2023 14:42:36 GMT

Netherlands-based Bosch Growers is set to acquire AppHarvest’s 30-arce berry and cucumber farm in Somerset, Ky., in a recent auction, the latest entry in the reshuffling of the controlled environment agriculture company’s assets.

As AppHarvest folds operations and navigates through Chapter 11 bankruptcy protections, Bosch Growers has emerged alongside others taking over operations at AppHarvest’s four Kentucky-area indoor farm facilities. Mastronardi Produce is poised to secure the Berea facility, and Equilibrium Capital is set to acquire the Morehead and Richmond facilities, pending court approval, with a hearing scheduled for Sept. 6.

The acquisition marks Bosch Growers’ expansion into the U.S. market.

“It’s a huge opportunity, and we’re looking forward tremendously to getting started here,” Bosch Growers’ Wouter van den Bosch said in a statement.

“We are working on the permits for a location on the East Coast, but those are long-term processes. This came along and is a great opportunity for us to get a foothold in the U.S. all at once,” van den Bosch added.

He said he plans to operate the farm in partnership with his brother, Tijmen, in a company called Bosch Berries Kentucky.

Related news: Investors to CEA: The time for profitability is now

“Of course, you would do things differently if you built it yourself, but it’s a nice greenhouse built by Dutch suppliers,” van den Bosch said. “For example, there is already an organization ready for labor that we can use.”

Bosch Growers represents a multigenerational, family-run business with 90 years of growing experience, including growing berries indoors.

“In blackberries, we already see that we can apply the knowledge from the intensive cultivation of peppers. We expect to be able to do the same with strawberries,” van den Bosch said in the statement. “In particular, we see a lot of opportunities in the application of ever-bearers. It is a long cultivation, and that makes it complex; Any mistakes will haunt you until the end of the season. We know that from vegetables, and we want to apply it in the U.S. as well.”

In addition to expanding cultivation, Bosch Growers sees opportunities entering the U.S. market.

Related news: Kroger to expand indoor-grown produce offerings to 1,000 stores

“There is a lot of demand for strawberries, but most of the supply now comes from open cultivation. Moreover, that product is transported by truck. That’s not a strong story from a sustainability perspective either,” van den Bosch said in the statement. “Greenhouse horticulture is a good answer to this, but it is a profession: no plug-and-play. We bring our own knowledge and experience and can rely on the various partners we work with in the Netherlands. That gives us confidence that we can make it a success.”

CEA players secure four AppHarvest farms

As previously reported, as a part of AppHarvest’s Chapter 11 bankruptcy strategic plan, dubbed Project New Leaf, the indoor grower sought to reduce its outstanding liabilities through a debtor-in-possession financing agreement with Equilibrium, the company’s largest secured creditor. The second piece of the company’s strategy included a sell-back agreement of its Berea, Ky., farm to AppHarvest distribution partner Mastronardi Produce or one of its affiliates.

“Pending court approval, we expect to transition the Berea farm to Mastronardi Produce — the company from which we currently lease that farm. We expect Mastronardi to make employment offers to the team in Berea,” Travis Parman, AppHarvest’s chief communications officer, told The Packer in a previously reported statement.

Related news: AeroFarms assets up for auction at Newark farm

Mastronardi awaits court approval on its sale-leaseback deal for AppHarvest’s Berea facility, which was completed in December 2022. Additionally, Equilibrium is slated to acquire the Moreland and Richmond farms, as AppHarvest’s auctions for both facilities were canceled as Equilibrium submitted the only bid — $113 million in credit — for the two farms.

Related AppHarvest coverage

AeroFarms assets up for auction at Newark farm

Tue, 29 Aug 2023 19:24:01 GMT

This year has been marked with dramatic change for AeroFarms , a controlled environment agriculture leader and aeroponic grower. In the latest of a series of notable developments, the company has set up an auction to divest itself of all assets at its Newark, N.J., production facility.

The Newark facility — built inside of a former steel mill — was AeroFarms’ first indoor farm facility and the company’s headquarters. In April, AeroFarms moved its operations from the Newark site to its Danville, Va., farm facility; in June, the company filed for Chapter 11 bankruptcy.

Related news: AeroFarms’ Marc Oshima ‘optimistic’ in face of Chapter 11 filing

As the dust has settled, and with the transition to Danville now complete, assets in the Newark facility are now being sold through auction.

AeroFarms auction, explained

SecondBloom Auctions, an auction management firm specializing in CEA, has been chosen to oversee the sale of key assets from the Newark facility. The auction will run online from Aug. 28 to Sept. 18, according to a news release.

Related news: AeroFarms transitions N.J. farm to R&D facility

The auction will include specialized agriculture equipment such as lighting systems, automation technology, racking and other vertical farming assets. AeroFarms will also coordinate and oversee the asset removal by winning bidders, with assets removed by Sept. 28, according to the release.

“We look forward to leveraging our expertise to ensure a smooth transition that maximizes value for AeroFarms’ stakeholders,” Chris Lange, CEO of SecondBloom Auctions, said in the release.

Interested parties can learn more about the auction at secondbloomauctions.com .

AeroFarms representatives will be on-site at Newark facility during the preview days on Sept. 7-8. During this time, they will be available to showcase assets and assist potential bidders. Interested bidders can fill out the advanced viewing form on SecondBloom Auctions’ website.

AppHarvest seeks to sell its farms in Chapter 11 filing

Mon, 24 Jul 2023 19:01:19 GMT

AppHarvest has confirmed that it has filed for Chapter 11 bankruptcy protection.

“What’s next will depend on how the buyers wish to leverage and manage the assets — through the existing team, independently or some combination,” Travis Parman, AppHarvest’s chief communications officer, told The Packer. “The goal over the next 60 days is to find buyers who can maximize the value of the operations and largely maintain the current number of jobs across the farm network.”

As a part of the goal for AppHarvest to reduce its outstanding liabilities, the company has received a commitment from Equilibrium, the company’s largest secured creditor, of approximately $30 million debtor-in-possession financing to support operations at three of the four AppHarvest farms during the Chapter 11 process. The DIP financing is subject to court approval, according to a news release.

“We have funding to keep the business running as usual for the next 60 days at Morehead, Richmond and Somerset,” Parman said, referring to farms in Kentucky.

Also awaiting court approval, AppHarvest is seeking to sell back its farm in Berea, Ky., farm to AppHarvest’s distribution partner, Mastronardi Produce, or one of its affiliates, for approximately $3.75 million, additional incremental funding and support for the company’s restructuring plan, according to the release.

“Pending court approval, we expect to transition the Berea farm to Mastronardi Produce — the company from which we currently lease that farm. We expect Mastronardi to make employment offers to the team in Berea,” Parman said.

In the big picture, AppHarvest’s plan moving forward is to restructure the company, maximize value to creditors and preserve jobs. This means continuing business as usual during the transitions, retaining employees and shipping product to customers that include grocery store chains, restaurants and food service outlets.

“Over the next 60 days, we’ll be working to sell the farms to investors with the hope that they stay operational and continue to employ about the same number of folks as now,” Parman said. “The goal is to minimize any disruption to employees.”

The Chapter 11 filing provides protection while the company works to transition operations with its strategic plan, Project New Leaf, which has shown progress toward operational efficiencies resulting in higher sales, cost savings and product quality, AppHarvest CEO Tony Martin said in the release.

“We have financing to support business operations over the next 60 days, which we’ll use to continue implementing our strategic plan, Project New Leaf, to help ramp up productivity while reducing costs to maximize value of the operation to stakeholders and demonstrate the potential of the business,” Parman said.

Catch up on AppHarvest coverage

Creditor seeks immediate $47.2M repayment on AppHarvest’s largest farm

Mon, 24 Jul 2023 12:38:29 GMT

A domino effect of cascading credit issues and financial concerns have been trailing controlled environment agriculture grower, AppHarvest, in recent weeks. The latest financial challenge facing the indoor grower is at the company’s oldest and most productive farm facility in Moreland, Ky.

According to a recent SEC filing, Rabo AgriFinance has demanded repayment from AppHarvest on its $47.2 million loan tied to the company’s Moreland farm facility, claiming AppHarvest defaulted on its credit agreement on July 3. If the two companies cannot come to an agreement, AppHarvest faces foreclosure on the largest farm in its four-farm network.

The recent demand for immediate repayment from Rabo AgriFinance is no surprise, as terms that funded the construction of AppHarvest’s Morehead tomato farm included a cross-default provision in the loan agreement.

Related news: AppHarvest ousts CEO as creditors continue to knock

According to previous public filings, Rabo’s cross-default loan provision allows the lender to request full payment of its loan and begin foreclosure proceedings if AppHarvest were to default on any of its other loans.

The conditions of this cross-default loan provision appear to be unfolding now, as the recent threat of foreclosure for the Moreland farm facility comes on the heels of a recent lease dispute with Mastronardi Produce, creditor and landlord for another AppHarvest farm located in Berea, Ky., and a recent loan default notice from Equilibrium at its farm in Richmond, Ky.

Related news: AppHarvest faces foreclosure of its Richmond tomato farm

In the most recent dispute, Mastronardi Produce disclosed that it planned to terminate AppHarvest’s lease on the property, alleging in a July 11 public filing, that “minimum production volumes” had been violated and reason enough for AppHarvest to vacate the facility.

Triaging mounting financial concerns

The indoor grower has a plan to surmount recent challenges, according to a news release. As part of the plan, AppHarvest recently appointed CEA and produce industry veteran Tony Martin to the position of CEO. Martin reportedly has a strategy for refocusing the company in the years ahead, which he calls “Project New Leaf.”

Project New Leaf’s objective is to focus AppHarvest’s workforce on improving labor efficiency, implementing disciplined close controls, leveraging industry relationships and improving feedback across the organization over the next five years, the release said.

Vertical farmer Kalera files for Chapter 11 bankruptcy

Wed, 05 Apr 2023 19:36:44 GMT

Kalera, a vertical farming company based in Orlando, Fla., filed for Chapter 11 bankruptcy April 4 in the U.S. Bankruptcy Court for the Southern District of Texas.

The public limited company is known on the Nasdaq stock exchange as “KAL,” according to a news release.

Kalera will continue to operate its business as “debtor-in-possession” under the jurisdiction of the bankruptcy court and according to the bankruptcy code. The company is requesting customary relief for transitioning into Chapter 11 so that ordinary daily operations won’t be disrupted.

Jim Leighton’s employment as Kalera’s president and CEO has ended, effective March 29. Leighton also resigned from the company’s board of directors.

Related news: The Packer’s Q&A with Kalera’s CEO

The rest of the company’s executive management team will remain with Kalera, including: Chief Operating Officer Austin Martin, Chief Financial Officer Fernando Cornejo, founder and Chief Science Officer Cristian Toma and Senior Vice President of Human Resources Leon Lachance. These members will remain on the board: Chairman Curtis Williams, Robert Arnall, Brent de Jong, Sonny Perdue and Cristian Toma.

Kalera has a global network of hydroponic vertical farms growing greens and culinary herbs, harvested on demand year-round. Farms in Orlando, Houston, Atlanta and Denver are in operation. Farms in Seattle, Columbus, Honolulu and St. Paul, Minn., are under construction, according to Kalera’s website .

Kalera also operates farms in Munich and Kuwait and had a mega-farm opening in Singapore in 2022 .

Kalera PLC, Kalera S.A. and other subsidiaries — including Vindara Inc. and Iveron Materials Inc. — are not part of the Chapter 11 filing. Kalera intends to use the court-supervised process to evaluate strategic alternatives for Kalera, including a potential sale of Kalera or its assets.

To help with process, Kalera PLC has appointed Mark Shapiro, senior managing director at B. Riley Advisory Services, as chief restructuring officer. Shapiro will oversee the business and its restructuring process to further the Kalera’s business strategy and sell it for the maximum value.

“The Chapter 11 process will allow Kalera to continue operations and serve its existing customer base while it evaluates strategic alternatives for its business and assets,” Shapiro said in the release.

To enable Kalera to continue operations during the reorganization process, Kalera’s existing lender has agreed to provide Kalera with $5.1 million of debtor-in-possession financing, as long as Kalera meets some customary conditions, including the approval of the bankruptcy court, which has not been obtained by press time.

Kalera hired the Baker & Hostetler law firm to be its legal adviser and B. Riley Advisory Services to be its financial adviser to assist in the Chapter 11 case filing, its restructuring and review of all available strategic alternatives.

Related: Kalera opens vertical farming facility in Denver

Because of this ongoing review, the company was not able to file its annual report for the preceding year ending Dec. 31, 2022, by March 31, 2022. It’s not clear when that report will be made.

On April 14, 2022, according to the release, Kalera took a loan from Farm Credit of Central Florida, in which Farm Credit agreed to make:

Revolving loans in an aggregate principal amount of up to $10 million.
One or more term loans in an aggregate principal amount up to $20 million.

On March 21, 2023, Farm Credit informed Kalera that as of the close of business on March 17, 2023, Farm Credit had sold its interest under the loan agreement to Sandton Credit Solutions Master Fund V.

Starting this Chapter 11 bankruptcy case constitutes a default on the loan, which accelerates Kalera’s obligations under the loan. The loan agreement provides that, upon a Chapter 11 case filing, the unpaid principal and interest due under the loan agreement are automatically due and payable.

But Chapter 11 bankruptcy protects Kalera from this: Any efforts to enforce these loan payment obligations are automatically stayed as a result of the Chapter 11 case filing, according to the release, and the creditors’ rights of enforcement are subject to the bankruptcy code.

Kalera has more than 200 creditors, according to the petition for Chapter 11 bankruptcy .

Some of the creditors with the largest unsecured claims that aren’t insiders include: Orlando-based House of Plastics Unlimited Inc. for $352,053; Orlando-based accountant Grant Thornton for $345,622; Grand Rapids, Mich.-based public relations firm Lambert for $323,822.63; Columbus, Ohio-based freight brokerage firm BBI Logistics for $197,991; and Tavares, Fla.-based Aaron’s Electrical Services for $116,632.35.

More information about the case is available here .

Related news, via the “Tip of the Iceberg Podcast": Where vertical farms (like Bowery) are headed

Farm Bankruptcies Are Scarce In Corn Belt, Study Finds

Fri, 13 Nov 2020 06:04:24 GMT

Although nearly 10,300 Chapter 12 farm bankruptcies have occurred since October 1996, a disproportionate number have happened in regions where commodity volatility is highest. Meanwhile, national economic conditions such as the Great Recession have contributed to temporarily widespread upticks in filings. Those are among the findings of a new report by researchers at The Ohio State University.

“Some regions have experienced relatively low and stable bankruptcy rates,” write Robert Dinterman and Ani Katchova. “One such region coincides loosely with the Corn Belt, encompassing the states of Iowa, Missouri, Illinois, Indiana, and Ohio post-2000.”

Meanwhile, the Northeast and Southeast “appear to have elevated levels of financial stress post-2009,” the authors note. The West Coast and states such as Hawaii and Nebraska also have higher bankruptcy rates per 10,000 farms.

Much of this discrepancy can be attributed to the structure of commodity markets in specific geographic areas, explains Jackson Takach, Farmer Mac economist.

“Those low rates are probably indicative of the good economics of grain producers throughout that time period,” Takach says. “In the Southeast and in the Northeast, I think it’s more that there are fewer farms. They’re also more susceptible to swings in commodities because those commodities are typically nonfungible commodities . They’re not like the futures markets. There’s no way to easily hedge them.”

Read more insights from The Feed, Farmer Mac’s quarterly update on agriculture, at farmermac.com .

Country Fresh, Sun Rich assets acquired by Stellex Capital Management; new company will operate under Country Fresh name

Tue, 04 May 2021 18:14:08 GMT

Country Fresh and Sun Rich USA, two divisions previously part of the Fresh Food Group, will now operate as a standalone company under the Country Fresh name following the completion of the acquisition of Country Fresh and Sun Rich USA assets by a group consisting of Stellex Capital Management, previous management, and Country Fresh’s original founder.

The new parent entity will operate under the Country Fresh name and provide Country Fresh and Sun Rich USA brand products. Country Fresh is a premier full-service, fresh food solutions partner for retail, foodservice, club, and convenience stores.

Doug Burris, an experienced food industry executive who served the company from 2005 to 2019 and most recently held the Executive Vice-President title, will serve as CEO. The new enterprise will focus on its core-competencies of producing convenient, ready-to-serve fresh fruit and vegetable products for customers in the United States.

“This is an exciting opportunity to continue building a market-leading business that offers quality, consistency and innovative new products – attributes that has historically differentiated Country Fresh in the market” said Doug Burris, CEO of Country Fresh. We have brought together an exceptionally talented team to lead this business into a new era and capture the opportunities before us. Our immediate goal is to strengthen the company’s operations and enhance its fresh food product offerings to create an optimized foundation for increased growth.”

“I am excited to be re-entering this product category,” stated Bryan Herr, Country Fresh’s original founder. “Service to the customer was the core tenant of Country Fresh’s foundation, and this philosophy will guide all priorities at the company moving forward.”

Mr. Herr provided investment alongside Stellex and has assumed the role of Chairman.

Trey Lee, Principal at Stellex, offered further commentary: “Country Fresh was an early pioneer in providing innovative produce solutions to retailers and was instrumental in growing the value-added fresh product category. We are pleased to once again partner with Doug and Bryan to drive renewed focus on product innovation, quality, and service. We want to let Country Fresh’s valued customers know the company has an entirely new balance sheet with significant equity support, and Doug and his team have Stellex’s financial and strategic resources at their disposal.”

Country Fresh plans for reorganization

Mon, 08 Mar 2021 05:26:38 GMT

The Woodlands, Texas-based Country Fresh , a fresh-cut fruit, vegetable, and snacking solutions provider, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.

The action was taken in order to effectuate the upcoming sale of the company, according to a news release. The sale includes all Country Fresh brands, including SunRich and Tiffany Gate.

“Pandemic-related supply chain and business disruptions have affected Country Fresh and our customers dramatically over the past year,” Bill Andersen, Country Fresh president and CEO, said in a Feb. 16 release. “Despite efforts to improve company results before and during COVID, we believe that this sale transaction will result in a better capitalized company and positions our customers, suppliers, employees, and all other stakeholders for maximum success going forward.”

The auction itself and resulting transaction is expected to close within 60 days, according to the release. Additional information regarding Country Fresh’s Chapter 11 filing is available at https://dm.epiq11.com/countryfresh, according to the company.

On Feb. 17, Country Fresh Holding LP also announced that its Canadian subsidiaries, Sun Rich Fresh Foods Inc., Tiffany Gate Foods Inc. and TGF Acquisition Parent Ltd. have filed for protection under the Companies’ Creditors Arrangement Act (Canada) pursuant to an order of the Ontario Superior Court of Justice.

The CCAA filing follows an earlier filing by the company’s U.S. affiliates under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The U.S. and Canadian proceedings will operate as parallel main proceedings, with the common goal of facilitating a court-supervised solicitation and sales process in respect of the assets of the company, according to the release.

“It is our goal to position our customers, suppliers, employees and other stakeholders for success,” Anderson said in the release. “The filing in Canada is the next step in our reorganization plan and continues the process we initiated in Texas to move the planned sale forward. This restructuring signifies the beginning of the next chapter for Country Fresh and we are looking forward to the bright future ahead.”

The company said in the release it has entered into a binding stalking horse asset purchase agreement with certain affiliates of global private equity firm, Stellex Capital Management, subject to potential overbids obtained pursuant to the sales process, according to the release. Country Fresh intends for the sales process and resulting transaction to close within 60 days, according to the release.

Pursuant to the initial order of the Canadian Court, an initial 10-day stay of proceedings has been issued in Canada, subject to further extensions by the Canadian Court. Ernst & Young Inc. has been appointed as Monitor in the Canadian proceedings, the release said.

The company said it has ensured that sufficient funding is in place for its manufacturing and distribution facilities in the U.S. and Canada to continue operating in the ordinary course during the court-ordered stay of proceedings, as the company delivers meal kits, cut fresh fruit and vegetable trays, and containers to a wide range of retailers and foodservice customers across the U.S. and Canada while the sales process remains ongoing.

A copy of the initial order and more information about the Canadian CCAA proceedings will be available on the Monitor’s website at: www.ey.com/ca/freshfoodcanada.

Vertical farmer Kalera files for Chapter 11 bankruptcy

Wed, 05 Apr 2023 17:26:18 GMT

Related news: The Packer’s Q&A with Kalera’s CEO

Related: Kalera opens vertical farming facility in Denver

Revolving loans in an aggregate principal amount of up to $10 million.
One or more term loans in an aggregate principal amount up to $20 million.