With recent enhancements to Powerfarm.com, the company's Web-based lending regime, Ag Services of America plans to ramp up its growth over the 2000 fiscal year, with additional term offerings somewhere down the line, said Brad Schlotfeldt, Ag Services' vice president of finance.
"I think right now, what we've given to the Street, is that Ag Services, through its regular program and through the use of Powerfarm, will probably grow its volume in the 20% to 25% range next year," Schlotfeldt said.
Consequently, the securitization program is likely to grow as well, he said.
"I think today when we look at Powerfarm, and what we're offering out of Powerfarm , there's really two options," Schlotfeldt said. "You can pay for it up front, or you can use our regular operating financing for farmers. So anybody that would use operating financing, that would become part of the asset that we securitize."
Last year, Ag Services debuted the agricultural sector's first term offering. As an addition to a $200 million commercial paper facility, the company sold $70 million worth of notes backed by agricultural receivables on the public market.
Though Ag Services doesn't plan on accessing the term market again for the 2000 to 2001 fiscal year, Schlotfeldt said, "Down the road I would say there's definitely a possibility we would use that vehicle again."
In the meantime, Ag Services plans to increase its existing facilities, continuing to issue asset-backed commercial paper.