Advantage Capital Agribusiness Partners LP (ACAP) announced it has closed on a $7 million investment in large-scale agricultural feedstock supply business, Pacific Ag.

Founded in 1998, Oregon-based Pacific Ag harvests and markets wheat, corn, hay and grass crops, and other crop residues to be sold both domestically in the U.S. and overseas.  Pacific Ag has rapidly grown to become the leading agriculture biomass supply chain solutions company in the U.S., delivering hundreds of thousands of tons of product each year.

ACAP is a $154.5 million dollar fund that the U.S. Department of Agriculture (USDA) has licensed as a Rural Business Investment Company (RBIC), and which is partnering with nine Farm Credit organizations to make available more private capital to increase small rural business investment.

“The Rural Business Investment Company is a new and innovative way to encourage more private sector investment in rural America,” said U.S. Secretary of Agriculture Tom Vilsack. “Matching private investors with small businesses in rural communities helps companies get the capital they need to grow and create jobs.”

Through its work serving the residual harvest needs of growers and providing feedstock for multiple markets, Pacific Ag is helping to create sustainable supply chains for the bioenergy, cellulosic biofuel, and bio-based chemical industries as well as supply forage crops for animal protein markets.

Previous investments completed by ACAP include an investment of $5 million in precision irrigation management firm, Hortau in June 2015, an investment in North American Natural Resources in March 2015, and an investment in egg producer, Iowa Cage-Free in March 2015.