Kirschenman Farms LLC




Yankton, South Dakota


Running a large farm partnership is a complex, busy operation. Kirschenman Farms LLC is a family-owned business led by Lavern Kirschenman and his two sons Kevin and Martin.

Kirschenman Farms cultivates 2700 acres of row crop, mainly focused on corn and soybeans. In addition to the row crop operation, Kirschenman Farms has a feedlot capacity that can reach up to 1800 head of cattle per year.

Kirschenman Farms had been working with Pinnacle Commerce Bank (PCB) for three years. Throughout this period, Kirschenman and PCB maintained a strong relationship.

However, in the last year of the relationship, the bank started to move in a different direction. Under the leadership of a new CEO, new policies began to be enacted and the course of the bank began to shift.

One of the affected areas of PCB’s business was a shift away from the cattle business. As a result, PCB began to shrink Kirschenman Farms’ Operating Line of Credit. In order to continue to successfully run their business, Kirschenman Farms LLC needed to seek other financing options for their operating capital.Their partnership with PCB was no longer providing sufficient funds to finance the feeding of the cattle nor the crop inputs.

Kirschenman Farms sought financing for their crop inputs from Farm Op Capital and subsequently received an operating loan from them.  However, they had to commit to paying PCB down on their bank loans to get a subordination or get free from the bank.

This commitment strained the operating loan from its inception, which led to a period of strained funding for the farm.

AFN then joined Kirschenman Farms’ efforts as an agriculture financing solution to help pay off PCB and provide highly imperative working capital.

How a family-owned farm partnered with American Financial Network to keep operations successful for years to come.

When Kirschenman Farms LLC’s bank changed direction with the type of customers it supports, the partnership was left with an uncertain financial future. By finding the right partner in AFN’s Bankers Equipment Leasing division, Kirschenman Farms was able to successfully construct a financial plan and finish out their crop and cattle production year.


Kirschenman Farms LLC operates 2700 acres of row crop, raising mainly corn and soybeans while also maintaining a feedlot capacity of around 1800 head of cattle per year. They had a strong relationship with a bank partner for three years that helped them finance their operations.


Kirschenman’s bank started to move away from the cattle industry, and Kirschenman needed to find a new banking partner. They were able to get a new crop input line from a new bank, but still needed additional funds to pay off the full amount of debt at their old bank.

Agriculture Financing Solution

Kirschenman was given an alternative financing option from AFN that is not normally available through typical agricultural financing channels. AFN was able to write a lease using their existing farm equipment & vehicles for them to pay off their previous bank and provide working capital. AFN used its own equity for this transaction.


AFN succeeded in providing Kirschenman Farms with the financing and cash that they needed. Kirschenman’s debt was refinanced, and the farm was able to keep their crop and livestock operation viable.

“AFN/BEL provided us with an alternative financing option that was not available through normal agricultural financing channels. They were able to refinance our debt from our community bank to help us keep our crop and livestock operation viable.

Mike Carey, Iowa Territory Manager, worked with the staff at AFN/BEL to help us with our machinery and equipment refinancing in a time of great need. He also provided us with a quick referral to another Farm Operating Capital lender (Ag Resource Management) when the need came about. Mike and the staff at AFN/BEL took care of our financing needs with great attention to detail and with minimal questions asked!”

-Kevin Kirschenman, Kirschenman Farms LLC Member

AFN’s Agriculture Financing Approach

American Financial Network (AFN) was referred to Kirschenman Farms from AG Resource Management, a firm that AFN provides agricultural equipment financing and leasing for.

Kirschenman needed a financial partner that could understand and act on their immediate needs:

  • Refinance their machinery line
  • Augment cash flow to keep the business operating through the end of the year
  • Pay off PCB for previous debt
  • A partner with knowledge of the agriculture industry and the ability to act fast

AFN’s Bankers Equipment Leasing (BEL) division was the perfect fit to help Kirschenman meet their financial goals and requirements. BEL has a deep understanding and knowledge of the financial needs and risks that come with the agriculture business, and strong expertise in the leasing and financing process.

The request from Kirschenman was for AFN to structure a $450k lease for Kirschenman Farms against their machinery and other assets.

Kirschenman intended to use proceeds from this $450k lease in the following ways:

  • Pay off $370k of existing debt with PCB
  • Use leftover $80k of additional working capital to successfully get the farm through the fall

How AFN Helped Kirschenman Farms LLC With an Agriculture Financing Solution

AFN built an agriculture financing solution that enabled Kirschenman Farms to pull away from their previous financial partner and successfully close out the year.

AFN’s Bankers Equipment Leasing division provided an alternative option that’s not available through the typical agricultural bank financing channels.

This financial solution included the following:

Funds Provided

  • To help Kirschenman pay off PCB and secure working capital, AFN wrote a lease for $450k, refinancing the debt from their community bank and ensuring the viability of their crop and livestock operation.
  • Due to Kirschenman Farms’ credit, AFN used its own equity for this transaction.
  • The funds from the lease provided Kirschenman with all the necessary funding needed to successfully complete the year.

Bank Relationship Management

  • AFN provided the funds for Kirschenman to pay off PCB, ensuring that the relationship was ended professionally, amicably, and with all debts paid.
  • Helped PCB transition out a customer in an industry that the bank was in the process of moving away from.

Fast and Knowledgeable Expertise

  • AFN/BEL met Kirschenman’s expectations and had a complete new deal put together and closed in less than 90 days.
  • Thanks to the speed of work and expertise provided, Kirschenman Farms LLC was able to maintain their normal course of business without interruption to the business cycle.
  • By responding promptly and conducting a thorough analysis of Kirschenman Farms’ operation, AFN structured a deal that will keep the LLC in business for years to come.

Flexible Services

  • AFN/BEL collaborated with Kirschenman Farms LLC to establish terms that aligned with their business needs.
  • AFN’s staff and expertise allowed the LLC to continue to harvest and work around their busy schedules during the busiest time of year.

“We were pleased to be able to use some creative deal structuring to offer a solution to help move Kirschenman Farms from a challenging banking relationship to a more stable position that will allow them to establish a more favorable long term banking relationship.”

Michael Carey, Iowa Territory Manager for AFN

AFN's Results

AFN brought vast knowledge and financial expertise to Kirschenman Farms’ needs. AFN’s BEL team built a successful financial plan that met the farms’ end goal: finish out the crop/cattle production year strong.

Kirschenman’s expectations were exceeded. In 90 days or less, AFN had a complete plan structured and closed.

Results of the partnership between Kirschenman Farms LLC and AFN include:

  • $450K lease structured uniquely for Kirschenman Farms’ situation
  • Paid off previous bank in full
  • Working capital provided for business operational needs
  • Future prospects for a new community bank partner
  • Ability to continue business as usual throughout the course of the project
  • Set up Kirschenman Farms LLC for success for years to come

AFN is proud to support the agricultural industry, and provide a family-owned business with a custom solution to poise them for success.