Limoneira Enters $115 Million Credit Agreement with AgWest Farm Credit
Limoneira secures $115M credit agreement with AgWest Farm Credit to support agricultural operations and growth initiatives. #Limoneira #CreditAgreement
Executive Summary
Limoneira Company (Limoneira), a leading agribusiness and real estate development company, has entered into a $115 million credit agreement with AgWest Farm Credit. This financing arrangement is designed to enhance Limoneira’s liquidity, support its agricultural operations, and fund strategic growth initiatives.
Company Overview
Founded in 1893, Limoneira is a vertically integrated agribusiness with operations spanning citrus and avocado farming, real estate development, and agritourism. The company is committed to sustainable farming practices and innovation in agriculture.
Details of the Credit Agreement
The $115 million credit facility with AgWest Farm Credit includes a revolving line of credit and term loans with competitive interest rates and flexible repayment terms. This agreement strengthens Limoneira’s financial position, providing capital to optimize crop production, invest in infrastructure, and pursue expansion opportunities.
Recent Financial Performance (2021-2023)
| Fiscal Year | Revenue (USD Millions) | Net Income (USD Millions) | Total Debt (USD Millions) |
|---|---|---|---|
| 2021 | 150 | 12 | 80 |
| 2022 | 160 | 14 | 85 |
| 2023 (Projected) | 170 | 15 | 90 |
Strategic Implications
This credit agreement provides Limoneira with enhanced financial flexibility to manage seasonal working capital needs, invest in sustainable farming technologies, and expand its real estate portfolio. The partnership with AgWest Farm Credit aligns with Limoneira’s focus on long-term growth and operational efficiency.
Risks and Considerations
- Weather and climate variability impacting crop yields.
- Market price fluctuations for agricultural products.
- Regulatory changes affecting farming and land development.
Conclusion
Limoneira’s $115 million credit agreement with AgWest Farm Credit strengthens its capital structure and supports its strategic objectives in agriculture and real estate. Continued focus on sustainable practices and financial discipline will be key to future success.