Pacific Ag raises $7m from Advantage Capital Agribusiness Partners
Pacific Ag, the largest crop residue supply company in the US, has announced a $7 million (€6.4 million) investment from Advantage Capital Agribusiness Partners (ACAP).
The growth capital will enable Pacific Ag to accelerate the expansion of its operations across the country through acquisitions, technology, equipment, sales and marketing to meet the increasing demand for agricultural biomass in the biorefining, animal protein, composting and other markets.
'The Rural Business Investment Company is a new and innovative way to encourage more private sector investment in rural America,' says Tom Vilsack, Secretary of the United States Department of Agriculture (USDA). 'These efforts will help strengthen growing industries like bio-manufacturing, advanced energy production, local and regional food systems, 21st Century farming technologies and other emerging fields. We are excited to see this fund continue to support businesses like Pacific Ag and look forward to seeing more partnerships like this come to fruition in the coming months.'
Alongside the investment, Pacific Ag also announced two industry acquisitions that will result in annual growth of 40,000 acres harvested in the Pacific Northwest with corresponding growth in volume under sales contracts. The growth represents a 40% increase for Pacific Ag in the Pacific Northwest and 25% overall.
'The market for agricultural residue is exploding, and with our long and successful heritage in partnering with growers and supplying global and domestic markets, we are positioned well to meet this new demand,' comments Pacific Ag founder and CEO Bill Levy.
ACAP is a $154.5 million fund, licensed as a Rural Business Investment Company by the USDA, focusing on businesses involved in the production, processing and supply of agricultural products. It is a partnership between Advantage Capital Partners and nine Farm Credit organisations. The Farm Credit System is a nationwide network of banks and lending institutions federally chartered to serve agriculture and the US rural economy.