Barings and Homestead Capital Close $300 Million Agricultural Finance Program
Barings, one of the world’s leading investment managers, has partnered with Homestead Capital USA LLC to launch and close a $300 million asset-based finance program aimed at expanding agricultural lending across the United States. The strategic collaboration is designed to accelerate Homestead’s loan origination activities in key agricultural regions while simultaneously broadening Barings’ footprint within the growing agricultural credit market.
The newly established program reflects a forward flow financing arrangement that aligns the strengths of both firms. Under this structure, Homestead will originate loans backed by agricultural assets, while Barings will provide capital support, enabling expanded lending capacity and access to differentiated credit opportunities for institutional investors. The partnership underscores the increasing investor interest in agriculture as a resilient and attractive asset class amid shifting macroeconomic conditions.
Expanding Access to Agricultural Credit Nationwide
The $300 million initiative will significantly enhance Homestead’s ability to scale its lending platform across a diverse range of U.S. agricultural regions. Through the forward flow agreement with Barings, Homestead is positioned to grow its national footprint in the approximately $624.7 billion U.S. agricultural credit market. The program will target new and existing coverage areas including the Delta, Midwest, Mountain West, Pacific region, Pacific Northwest, Southeast, and Southwest.
This geographic expansion is expected to support a broad mix of commodity markets. Lending will span staple row crops such as corn and soybeans, specialty row crops, and permanent plantings including orchards and vineyards. By diversifying across crop types and regions, the program seeks to mitigate risk while delivering consistent, risk-adjusted returns for investors.
Homestead’s credit platform is structured to serve borrowers across the agricultural spectrum. Capital solutions will be provided to small and mid-sized family farmers as well as large, vertically integrated agribusiness operations. This inclusive lending approach ensures that financing is accessible to a wide range of producers navigating operational growth, refinancing needs, or capital improvements.
Homestead Capital’s Growing Investment Platform
Headquartered in San Francisco, Homestead Capital manages approximately $1.6 billion in equity and credit assets on behalf of a global client base. Its investors include pension plans, endowments, foundations, insurance companies, and family offices seeking exposure to farmland and agricultural credit strategies.
Since its founding in 2012 by Co-Founders and Co-CEOs Gabe Santos and Dan Little, Homestead has built a vertically integrated farmland investment platform. The firm acquires, finances, and manages diversified portfolios of high-quality farmland assets across major U.S. agricultural regions. Its strategy emphasizes operational excellence, long-term stewardship, and disciplined underwriting.
Over the years, Homestead has steadily developed its agricultural credit capabilities alongside its farmland equity investments. By combining deep sector knowledge with structured financing expertise, the firm has established itself as a trusted capital partner within the farming community. The new partnership with Barings represents a significant milestone in scaling these credit operations.
Gabe Santos highlighted the firm’s long-term vision, noting that Homestead has spent years building its credit platform with the goal of becoming a leading standard-bearer in agricultural investing. The collaboration with Barings provides the capital backing necessary to accelerate that ambition.
Dan Little emphasized that agriculture offers compelling portfolio diversification benefits. He pointed to the asset class’s historically attractive risk-adjusted returns and low correlation to traditional equities and fixed income markets, characteristics that have drawn increasing attention from institutional investors seeking stability in volatile market environments.
Barings Strengthens Its Asset-Based Finance Platform
For Barings, the partnership enhances its Asset-Based Finance (ABF) investment platform by expanding into U.S. agricultural credit. The firm has built its ABF strategy around long-term origination partnerships that provide differentiated access to private credit opportunities. By aligning with Homestead, Barings gains exposure to a specialized segment of asset-based lending backed by tangible farmland and agricultural production assets.
Burak Cetin, Managing Director for the ABF team at Barings, expressed enthusiasm about the collaboration, citing Homestead’s experienced management team and established agricultural expertise. The arrangement increases Homestead’s origination capacity while enabling Barings to offer clients access to unique agricultural credit investments that may not be broadly available in traditional markets.
The forward flow structure supports scalable, repeatable loan production, creating a durable pipeline of investment opportunities. This approach reflects Barings’ broader strategy of building partnerships that generate consistent deal flow and long-term value creation.
Agriculture as a Resilient Investment Asset Class
The agricultural sector continues to draw attention from global investors due to its essential role in food production and supply chain stability. Farmland and agricultural credit have historically demonstrated resilience during economic downturns, supported by the fundamental demand for food and fiber.
As inflationary pressures, commodity price fluctuations, and supply chain disruptions influence global markets, agriculture offers diversification benefits and potential inflation hedging characteristics. Asset-based loans secured by farmland and crop production provide investors with collateral-backed exposure to real assets, enhancing risk management profiles.
The partnership between Barings and Homestead reflects a broader institutional trend toward alternative credit strategies. With increasing demand for private market investments that generate steady income and lower volatility, agricultural credit presents a compelling opportunity for diversified portfolios.
Strengthening Capital Access for Farmers
Beyond investor benefits, the initiative is expected to improve capital access for farmers and agribusiness operators nationwide. Agricultural producers often face cyclical revenue patterns, weather-related risks, and fluctuating input costs. Flexible, well-structured credit solutions can play a crucial role in maintaining operational stability and supporting long-term growth.
By expanding Homestead’s lending capacity, the program aims to address financing gaps across multiple agricultural segments. Borrowers may utilize capital for land acquisitions, refinancing existing debt, operational expansions, equipment investments, or crop transitions. The increased availability of institutional capital may also contribute to more competitive lending terms within the sector.
The partnership’s geographic diversification strategy further ensures that agricultural communities across diverse climatic and production zones benefit from expanded credit access.
Legal Advisory and Transaction Support
The transaction was supported by experienced legal counsel on both sides. Barings received advisory services from Holland & Knight LLP, while Homestead was advised by Paul Hastings LLP. The involvement of specialized legal teams helped structure the forward flow agreement and ensure regulatory and compliance alignment.
Positioning for Long-Term Growth
The $300 million asset-based loan program represents a foundational step in what both firms view as a long-term strategic collaboration. As Homestead continues to scale its credit platform and Barings deepens its asset-based finance capabilities, the partnership is expected to evolve alongside market conditions and investor demand.
By combining Barings’ global investment expertise with Homestead’s deep agricultural knowledge and operational presence, the firms are positioning themselves to capitalize on expanding opportunities within U.S. agricultural finance. The initiative not only enhances investment access to farmland-backed credit but also supports the broader agricultural economy by delivering much-needed capital solutions to producers across the country.
Together, the partnership reflects a shared commitment to building a durable, scalable agricultural credit platform capable of generating consistent value for investors while strengthening the financial foundation of American agriculture.
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