DLL has securitised $896.5m (£654.4m, €744.3m) worth of contracts originated by AGCO Finance, a joint venture between the Rabobank-owned lessor and agricultural equipment manufacturer AGCO.

The securities are backed by a pool of 27,307 contracts for the financing of agricultural equipment, all originated in the US.

A third of the contracts is on used equipment. Just under 84% of the contracts are loans, with the remainder being leases.

Rating agency Moody’s put residual value risk at 7.4% of the securities’ total value. According to the agency, the presence of leases is not a common feature of American agricultural equipment securitisations. DLL was the first agricultural lessor to include them, in late 2017.

Moody’s said the AGCO Finance securities were supported by “strong credit quality” of collateral, high stability in both DLL’s and AGCO Finance’s business, and a solid financial landscape for US agriculture.

It said: “Agriculture equipment transactions retain the inherent concentration risk of single industry exposure.”

It noted a fall in commodity prices pushed profits back to average levels following a peak in 2014, resulting in lower equipment acquisition volumes.

“However, net cash farm income levels have recently stabilized, and the credit performance of agricultural equipment loans and leases, while weakening slightly, remain resilient because of continued strength in farmers’ balance sheets.”

Georgia-headquartered AGCO Finance was founded in 1996 as a captive finance unit for the AGCO family of brands. The company operates both retail finance and wholesale dealer finance offers. DLL is the majority owner of the company, with 51% of shares.

The joint venture has expanded into markets outside North America, including Brazil, Argentina, Australia and Europa. It recently agreed a collaboration to provide retail finance to farmers in Zambia, in partnerships with local vendor BHBW Zambia and bank Zanaco.