Membership in CBA of Kansas provides numerous benefits, one of which is the resources and information that helps you equip farmers for long-term financial success. Working alongside farmers to create a sustainable and reciprocal financial relationship is a central function of small banks, and you have the connections with your local farmers to extend valuable products that they need. They need to know that this often acts as a warning sign that financial stability is at risk. Talk with them, too, about the common step of restructuring operating balances into longer terms, whether it’s a portion or all of their balances. The bank and the farmer are at risk of going down together if there are terms that aren’t financially viable.
Talk with your customers about the perils of financial partnership with a lender that offers extended terms to too many people. Become the source they turn to for critical information.Įncourage farmers not to be tempted by refinancing or extended terms. Talk with them about researching multiple credit sources before making a decision and how to access critical data about each of those lenders. Informing local farmers with information about borrowing with a farm loan can help you build trust with your customers. Farmers are spending less on machinery and fertilizer and applying the same conservative approach that many borrowers are using across both business and personal financing.Īpproach your customers with the purpose of educating them, not selling your product.
Your bank depends on renting money to farmers for financial success, and you’re cautious about risk, but farmers are exercising that same caution. Understand that farmers are just as cautious about debt today as small banks are. Here are a few guidelines for assisting farmers with credit decisions: Small banks that support farm loans can build sustainable growth by helping farmers navigate their banking decisions.Īs you know, small banks are an important part of the financing landscape in rural areas. Whether they’re avoiding debt to keep their farms financially secure or making smaller investments in machinery and land, farmers are asking for smaller loans across the industry. If you’re seeing changes among your local farmers’ loan needs, you’re not alone. Small Banks Are an Important Resource For Farmers
0 kommentar(er)
