The Problem AgriTech Solves
Traditional bird mortality disposal methods come with headaches. Composting takes space and time. This can involve storing carcasses and dealing with pickup schedules. Both methods carry biosecurity risks and environmental concerns. And let’s be honest, none of it’s pleasant or particularly efficient.
AgriTech listened to the concerns of chicken growers and designed something better. They introduced thermal dehydration technology for poultry mortalities, becoming one of the first companies to bring this innovation to farmers. Today, their systems stand as some of the industry’s most advanced and cost-effective solutions.
Why Poultry Farmers Are Making the Switch
AgriTech’s mission is straightforward: provide the poultry industry with reliability you can afford. They’re headquartered in Austin, Texas, and serve poultry growers, integrators, and equipment dealers nationwide. Their systems are scalable and designed for operations of any size, which means whether you’re running a few houses or a major operation, they’ve got a solution that fits.
The Phoenix Sentry system offers several advantages over traditional disposal methods. First, it’s on-site. No more waiting for rendering trucks or dealing with storage issues. Second, it’s fast and efficient. The thermal dehydration process handles mortalities quickly, keeping your operation moving. Third, and maybe most important, it’s biosecure. You’re processing everything right there, eliminating the risk of disease transmission that comes with hauling bird carcasses off-site.
From a management perspective, it’s a game-changer. You’re reducing labor associated with mortality handling. You’re eliminating odor issues that can come with composting. And you’re getting a sterile end product that can be handled safely.
The Investment Question
Now, here’s where many farmers pause. This is serious equipment with a serious price tag. But that’s exactly why AgriTech partnered with First Financial Bank. We’ve been financing poultry operations for decades and understand how to structure leases that make these systems affordable.
Andy Carden, from our FFB team, walks us through how the financing evaluation actually works, and it’s more straightforward than you might think.
How We Evaluate Your Application
For most thermal disposal system applications, the process to start is simple. Carden focuses on two key metrics right out of the gate.
“I am primarily relying on their credit score and net worth to determine if they will be qualified for the scorecard program,” he explains. “We gather some basic financial information about the previous year’s tax return, mainly credit score and net worth.”
Your credit score and net worth get you into our scorecard program, which speeds up approvals considerably. This aligns with what we’ve written about entering the poultry business.
For larger equipment packages over $1 million, we go deeper. These applications get full underwriting treatment.
“The loan officers will gather all of the borrower’s financials: three years of tax returns and a full balance sheet, and at that point, I’ll work up a cash flow statement to be able to determine if the customer will be able to meet repayment standards and calculate their net worth,” Carden notes.
We also covered cash flow statements in our year-end financials article. They show money flowing in and out of your operation. While your balance sheet displays your financial position, the cash flow statement proves profitability.
But most AgriTech system leases don’t require that level of detail. Under $1 million, we use the scorecard approach.
Payment Structures Built for Poultry Operations
Here’s what makes equipment leasing work for thermal disposal systems: flexible payment structures that match your actual cash flow. Poultry farming doesn’t generate a steady monthly income. You’ve got flock cycles, seasonal variations, all kinds of ups and downs.
“Our leasing vendors offer just about any kind of payment structure the customer would want,” Carden shares. “Monthly, Quarterly, Semi-Annual, Annual payments or even sometimes hybrid payments – monthly payments for a period of time and then converting to any of the above payment structures.”
Want monthly payments during high-production periods but quarterly when things slow down? Done. Need annual payments synced with your integrator schedule? No problem. The payment structure adapts to your operation instead of forcing you into something rigid.
This flexibility matters for capital investments like AgriTech systems. As we discussed in solving the puzzle of poultry farm financing, experienced lenders structure financing around what you’re trying to achieve and show realistic cash flow projections. Those projections reveal what income you’ll have after payments and expenses.
The Leasing Advantages for AgriTech Equipment
Equipment leases for thermal disposal systems can run up to 12 years, spreading costs while the equipment generates value for your operation. You can finance 100% of the purchase, preserving working capital for other needs. Set residual values at 10%, 20%, or 30% based on your long-term plans. Sale and leaseback options exist if you need to free up capital from equipment you already own.
Our equipment leasing piece explains why this matters. Leasing protects cash flow since payments are smaller than buying outright. That “freed-up” cash covers other operational needs. Plus, you might be able to afford a more advanced system with better features than you could purchase with cash.
Insurance and Protection
You’ll need to add the leasing vendor as a “loss payee” on your farm’s equipment insurance. Standard practice that protects everyone if something happens to the equipment.
“Yes, they are required to add our vendor as a loss payee to their current insurance policy for the farm and their equipment,” Carden confirms. “There may be a warranty in place for some purchases, but that would be between the company selling the equipment and the customer.”
Why This Technology Matters Now
Equipment decisions tie into bigger questions about farm technology and staying competitive. We talk about this in what software farmers need. Reducing guesswork makes farms more profitable. That’s what good technology does.
AgriTech’s thermal disposal systems aren’t just about handling mortalities differently. They’re about making your operation more efficient, more biosecure, and more sustainable in the long term. As we also discussed in the latest farm tech, agriculture has always moved forward by adopting better tools.
Planning for Expansion
Already have one AgriTech system and want to add another? You’ll need a new lease application rather than modifying your existing one.
Carden explains. “If the customer wanted to expand, a new lease would need to be applied for and approved.”
This approach makes sense given the underwriting in each lease. Starting fresh keeps everything clear. If you’ve been making payments on time and running your operation well, you’ll be in great shape for additional financing.
No Prepayment Penalties
Here’s a nice detail: “There are no prepayment penalties associated with our leases unless the customer specifically asks for one,” Carden says. Have a great year, and want to pay things down faster? Go ahead.
Why Partner With First Financial Bank
We’ve been working with poultry farmers for over 30 years. Our loans have helped create nearly 500,000 jobs in the poultry and egg industry. ICBA just named us the 2024 “Top Ag Lender in the Nation” in the $1B asset category. We’re also an FSA Preferred Lender, giving us extra tools and programs for helping farmers succeed.
We understand poultry operations because we’ve lived them. Many of our FFB team walked the walk and talked the talk. We know the challenges of poultry farming. That knowledge shapes how we approach equipment financing for systems like AgriTech’s thermal disposal technology.
Making It Work
AgriTech built its thermal disposal systems to solve real problems for poultry growers. Together, it’s about giving you the tools to run a cleaner, more efficient, more profitable operation.
Like we said in our purchasing a poultry farm article, entering or expanding in poultry gets easier when you work with people who know the industry. That applies to both equipment manufacturers and lenders.
Ready to talk about adding AgriTech thermal disposal technology to your operation? We’re here. We understand the equipment, the financing, and how to structure leases that work with your cash flow.
Let’s figure out what makes sense for you.
