Carlyle and FarmOp Team Up for Farmer Financing Support
Global investment firm Carlyle announces a new partnership with FarmOp Capital to help U.S. farmers access working capital. The $250 million agreement allows Carlyle to purchase farm operating loans issued by FarmOp Capital.
This partnership helps FarmOp Capital expand its loan offerings to independent row crop farmers across the country. The goal is to provide farmers with easier access to financing so they can run their operations with more flexibility.
FarmOp Capital uses crop insurance and production history instead of relying on borrower balance sheets. This means farmers are approved based on their ability to grow a crop, not just their financial documents. The model offers working capital that is flexible and scalable, helping farmers manage costs and expand their operations.
The financing deal is handled by Carlyle Asset-Backed Finance (Carlyle ABF), which focuses on private fixed income and asset-backed deals. Since 2021, Carlyle ABF has deployed nearly $8 billion and now manages around $9 billion in assets.
This collaboration reflects a growing interest in alternative lending models for agriculture. By combining Carlyle’s financial reach with FarmOp’s innovative approach, the partnership supports farmers in managing risks and achieving long-term growth.
Legal support for the transaction was provided by Paul Hastings LLP for Carlyle and Mayer Brown LLP for FarmOp Capital.