Agribusiness Partners Funding will enable company to expand biomass supply chain services across U.S.
HERMISTON, Ore. (August 6, 2015) — Pacific Ag, the nation’s largest crop residue supply company, today announced $7 million investment from Advantage Capital Agribusiness Partners, LP (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 bio-refining, 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,” said Tom Vilsack, Secretary of the United States Department of Agriculture. “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 percent increase for Pacific Ag in the Pacific Northwest and 25 percent overall.
“Pacific Ag is already the single largest harvester and marketer of crop residue and hay in the United States. This investment and our acquisitions will enable us to grow national market share and serve more customers in more regions,” said Pacific Ag Founder and CEO Bill Levy. “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.”
Advantage Capital Agribusiness Partners is a $154.5-million fund, licensed as a Rural Business Investment Company by the U.S. Department of Agriculture, 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 organizations.
The Farm Credit System is a nationwide network of banks and lending institutions federally chartered to serve agriculture and the U.S. rural economy.
“Pacific Ag is a perfect fit for our model, given their positive economic impact on the communities in which they operate,” said Tim Hassler, Principal at Advantage Capital Partners. “They’ve built a solid foundation of trust with their grower partners, a record of operational excellence and innovation which in turn enables them to grow and scale quickly. Given the growth in the industry, they are really the only company out there who can meet the demand.”
Founded in 1998, Pacific Ag is the nation’s largest biomass supply chain management provider.
The company develops and operates commercial-scale supply chains for crop residue and hay products and offers a set of supply chain services for developers and market participants that need a dedicated feedstock supply chain.
Pacific Ag’s customers include the largest cellulosic bio-refineries in the U.S., the largest forage importers in Asia and the Middle East, numerous cattle and dairy operations in the U.S., and a growing number of companies in the mushroom composting and erosion control product technologies. Pacific Ag is on track to increase tons harvested by at least 25 percent in 2015.
About Pacific Ag Matching grower needs to responsive harvest capabilities since its founding in 1998, Pacific Ag has become the nation’s largest builder and operator of sustainable supply chains to meet the demand for forage crops for beef and dairy markets, for mushroom and erosion control markets, and for the production of cellulosic biofuels and bio-based chemicals.
The company owns and operates the single largest fleet of biomass harvesting equipment in the U.S. Its proprietary PowerStock Pro™ supply chain management system provides a turnkey tool for managing every aspect of the complex feedstock supply chain from grower contracts to GIS-enabled field mapping to equipment deployment, harvest results and inventory management. More information is available at www.PacificAg.com.