The Seeds of Ambition
After Jacob disappeared, Armando stood before the whiteboard to explain the situation to Chloe and me as we sat back down in the study room.
“The truth is... I’ve mentioned it a few times, but I’ve always wanted to cultivate my own farm. But I’m not oblivious to reality, so I just kept it as a dream. You know? I studied hard, didn't I?”
“I know. Though I’m not so sure about your grades.”
“Objectively, they weren't bad. It was just because you’re a monster. How do you get perfect scores on every exam while farming and barely showing up to school? Even for an Asian, that’s just unfair.”
“...... Anyway, that’s not the point, so let’s move on.”
“Right, move on. So, when I was bored, I went to a real estate agency and asked if there were any decent farms on the market.”
As expected... it made no sense for a vineyard listing to be publicly posted at school, let alone one including a winery for $1.1 million. If you imagine a student in Korea trying to take out a loan of over a billion won to build a brewery, it’s easy to understand the absurdity.
Chloe clicked her tongue.
“You’re a student, and you’re nurturing dreams with a $1.1 million property... Do you not realize that even $10,000 can ruin you if you take out a loan poorly?”
“Hmph! I probably know better than you! That’s why I was just watching. I was only nurturing the dream. Because selling just grapes makes it hard to pay back the loan.”
That was true. The most decisive reason the previous owner of Redwood couldn't run the farm properly was that they weren't good at making wine. It’s difficult to turn a profit by selling only grapes.
For Armando, it was hard to prove his winemaking ability to his parents yet, so he couldn't persuade them with confidence.
Chloe crossed her arms at Armando’s defense and nodded in understanding.
“But vinegar is different?”
“Exactly! If my friend Brian passes down the vinegar-making method to me, I can just make it and sell it. There’s already an established customer base that loves vinegar, and I just have to continue it, right?”
“But then it wouldn’t be Redwood Vinegar. The farm name would change, wouldn’t it? You aren’t planning on selling it under some name like Armando Vinegar, are you? No one would buy that.”
At her sharp question, Armando suddenly choked up and looked at me. His eyes were asking if there was a way.
“We’re splitting it 7:3 anyway, right? If I hold the brand and have Armando handle the production via OEM (Original Equipment Manufacturing), there won’t be any legal issues.”
“Ohhh—that’s it!”
At my words, Armando beamed with joy and said,
“I also looked into loans! With the Beginning Farmer loan and a 5% down payment program, I put in at least 5% of my own capital, the FSA lends 45% of the purchase price at a low interest rate, and the rest can be covered by commercial banks or seller financing!”
I was impressed by Armando’s level of preparation.
“You’ve done a lot of research.”
“Of course. I wanted to be perfectly prepared. I even found out that funding for Socially Disadvantaged (SDA) applicants is possible. Apparently, Hispanics and Latinos are included in the SDA under the law? But the Beginning Farmer loan and the down payment program were the best.”
It was the same loan structure we used when my family acquired Redwood.
Chloe’s eyes sparkled, as if she found it fascinating.
“So when are you planning to acquire it? Are you going to the bank right now?”
Armando hesitated and looked at me.
“When do you think would be best?”
I scratched my head, hesitating before I spoke.
“Since this isn’t my business, it’s hard for me to say anything rashly... but the cheapest time to buy would be in the winter, and it will keep rising from now until harvest. It might even exceed $1.4 million. Did you find out why they’re putting it on the market?”
“Yeah, it’s a small farm, but they grow two varieties, Cabernet Sauvignon and Merlot, and I guess they’re struggling because the prices aren't going up. So they’re trying to make a profit by selling wine to passing tourists and offering grape-picking experiences, but even that is tough.”
“What about last year’s wildfire?”
“Luckily, they said it bypassed them. They said the farm next door burned instead. But I’m not entirely trusting that. I haven’t been to the farm myself; it’s just what I heard from the real estate agent.”
When you have no money, going all the way to check the farm yourself is beyond just being interested—it’s a bit strange.
“Then you’ll have to mix the two varieties to make the vinegar.”
“Is that bad?”
“Not really... it just means you’ll need to adjust it a bit since the sugar content and acidity will change, but it’s not a problem. In fact, you might be able to set a longer aging period than here, which could improve the flavor.”
“Ah, that’s true. Redwood had to empty the fermentation stainless steel tanks for the next batch, so we couldn't keep using them just for vinegar. If I only make vinegar, I can definitely extend the aging period.”
“Did you say 13 acres? Hmm... mixed with Merlot, you’d easily get about 40 tons. If you use it all for vinegar, you’re looking at a minimum annual revenue of $400,000. Maybe close to $450,000?”
Armando’s eyes widened as he nodded, agreeing with my assessment as much as possible.
“Assuming John Anderson continues the distribution with fixed costs, you’d have at least... $250,000 left over every year.”
Excited, he clenched both fists and said,
“And if I have the capacity to bring in grapes from other farms like you do to make vinegar, I could make even more.”
“That’s right.”
“Hehe... how about it? Isn’t it doable?”
“I mean, it is doable, but...”
“And I should buy it now?”
“That’s also true, but...”
“Forget it! I’m going home right now, so Chloe, make me a contract like you did for Jacob. I need to show it to my mom and dad, so make it formal and clean. You know?”
“......”
“I’m off!”
Armando grabbed his things and bolted out. As I stared blankly at his retreating back, Chloe said with amusement,
“You’re the one who made him like that.”
“Me?”
“Yeah. You showed him perfectly, right there, what success looks like. And out of all of us, Armando has the lowest risk. His growth potential might be lower, but for Armando, stability is probably more important, right?”
“I suppose so.”
I couldn't deny one thing. To become the owner of a million-dollar farm at that age—I understood perfectly why Armando was so excited, because I knew what that meant.
[Richard Collins – Loan Officer]
[Agricultural loans are the future of the local community]
Downtown Sacramento, inside a glass-walled Rabobank branch. Jacob felt sweat pooling in his palms even before he reached the loan consultation booth. Inside his thick blue file were the USDA NRCS documents, the SBA (Small Business Administration) loan application forms, and a copy of the TTB DSP permit that had arrived by mail a few days ago.
“Are you okay, dear?”
His mother, Maggie, asked in a low voice from the seat next to him. As the wife of a farmer who had been nursing her ailing husband, she was a simple housewife, clutching a worn-out wallet in her hands while wearing a modest dress.
“Mom, I’m fine. I’m just nervous.”
Jacob forced a smile, but his heart was pounding like a drum.
A moment later, the consultation room door opened, and a middle-aged bank employee gestured for them to enter. His name tag read [Richard Collins – Loan Officer].
“Mr. Jacob Miller, right? Please, come this way.”
The consultation room was small but tidy. A monitor and an electronic signature pad sat on the table, and a framed sign on the wall read [Agricultural loans are the future of the local community]. It was fitting for a bank specializing in agricultural finance centered in California’s Central Valley.
Richard took the file and continued,
“Sacramento Valley Distilled Spirits Plant. You’ve received a distillery permit? Your age... your birthday has passed. Twenty-one?”
Jacob flinched for a second but nodded.
“Yes, that’s correct. But I’m not doing this alone; I’m preparing this based on a partnership with our family farm. We’ve already secured the raw materials.”
“What’s the name of the farm?”
“Golden Grain Soju House.”
Richard took notes with a skeptical look and then glanced at Maggie.
“Ma’am, are you accompanying him as a guarantor?”
“Yes.”
“Your son is requesting a significantly large amount. $500,000 for initial facility costs, and up to $750,000 if operating funds are included. Are you aware of how high the risk is?”
Maggie took a moment to catch her breath. In truth, she didn’t know exactly. When she thought of farm expenses, she could only think of the cost of tractors or fertilizer. But her eyes were firm.
“Yes, I know. But my son will definitely succeed. He’s the one who kept the farm running on his own even after his father fell ill. He endured the hard times, and now he’s trying to start something new. He’s even been buying various oriental distilled spirits at home and tasting them all to learn how to make them. I believe in my son’s passion.”
Richard nodded, then tilted his head as he looked at Jacob.
“Having the permit is a good sign, but the spirits market is volatile. Unlike a winery, the recovery period relative to the initial investment is long. Besides, you don’t have any sales contracts yet, do you?”
Jacob held his breath at the sharp question. It was time to bring out what he had prepared.
“That’s correct. We don’t have contracts yet. But we have a competitive edge in terms of raw materials. Our farm produces 80 acres of Calrose medium-grain rice annually, and we can secure over 400 tons per year. This means our cost stability is guaranteed.”
He pulled a chart from his file and handed it to Richard.
“As you can see here, the average unit price for rice farmers in California is currently around $280 per ton. Since we grow it ourselves, we don’t have separate purchasing costs. We can convert it directly for brewing. Therefore, we are competitive in terms of cost basis.”
Richard scanned the chart and nodded.
“What about the yeast or brewing technology?”
“My friend, Brian Choi, who is majoring in Viticulture and Enology at UC Davis, is handling the consulting. He runs Redwood Winery and has experience creating wines that have already been featured in Wine Review West.”
Maggie suddenly chimed in.
“I’ve tasted that wine, too. He’s a very bright child. He even helped us when our farm had a pest infestation. If he’s a friend my son trusts, I trust him too.”
It was an answer that didn’t quite fit the logic of a bank loan, but Richard smiled and turned his body toward Maggie.
“Ma’am, loans ultimately come with responsibility. Can you handle it if your son fails?”
Despite the heavy question, Maggie didn’t hesitate for a second.
“Yes, I will handle it. I don’t think he will fail, and even if he does, my son will never give up and will get back up again.”
At that moment, Jacob felt a lump in his throat. The words “never give up” were what his mother always told him. When his father fell ill, when the harvest was ruined, even when the debt collection calls came, his mother always said those words.
He thought that perhaps his mother had come to trust him even more the moment he succeeded in last year’s farming and was freed from those debt collection calls.
Richard nodded for a moment and moved his fingers across the monitor.
“Very well. If you utilize the USDA FSA (Farm Service Agency) guarantee program, a guaranteed loan of up to $750,000 is possible. However, there are conditions. You must prove 25% of the initial operating funds as equity, and you must submit a profit estimation simulation. The repayment period is 10 years, at an interest rate in the 6% range.”
Jacob quickly wrote it down in his notebook. 25% equity. The money he had in his hands right now was only a few tens of thousands of dollars. But thinking of Brian, Chloe, and the future revenue, it wasn’t impossible. No, it was entirely possible.
Richard put down his pen and said,
“I can’t tell you whether it’s approved right now, but the documentation is solid. And...”
He smiled at Maggie again.
“You’ve raised your son well. Sending him to the best agricultural university in California.”
Maggie nodded.
“Yes, his father was truly proud of this child. And so am I.”
The moment Jacob heard those words, his vision blurred. His fingertips trembled, and somewhere deep in his chest, it felt as hot as if it had been scorched by fire.
‘I will definitely succeed. I definitely will...’