Farm Land Lending – is there opportunity?
It is more critical than ever that a farmer’s most important tool be a sharp pencil. Record keeping and understanding Income and Expenses, production records, marketing plans, and trends are vital. Farming is a lifestyle for many and often conflicts with the ability to make sound business decisions. A strong financial expert can use the business owner’s records to encourage decisions that will preserve loan quality and support positive financial performance for the borrower.
Challenging times present opportunity. Farmland (agriculture’s most valuable asset) has continued to appreciate and provides investment options for individuals outside the farming community. An agriculture lender must understand the needs, cycles, challenges, and opportunities and be willing. There are federal and state-funded resources a lender can partner with to mitigate some capital-intensive obstacles for both the borrower and lender to make agriculture a worthy endeavor to invest in.
No farms = No food. We’ve all heard it and we know it’s a reality.
Together, if we sharpen our tools, we can help support the industry that feeds and fuels us all.