7 Ways to Ruin Your Lender Relationship
Your lender is a powerful partner. To create a win-win relationship, stay focused on traits your lender appreciates—and avoid those that make your lender squirm.
During the Online Top Producer Summit three ag lenders shared insights on trends, communication, metrics and more.
Angie Treptow, regional vice president in East Central Iowa for Farm Credit Services of America; Alan Hoskins, president and national sales director for American Farm Mortgage and Financial Services; and Kurt Downs, senior relationship manager for Rabo AgriFinance; say these are the red flags they don’t want to see from their farmer-customers:
A Lack of Flexibility: Farmers can easily fall into the trap of just hitting repeat, Downs says. “Their plan is to keep doing what they've always been doing, whether that's worked or not worked,” he says. “Farmers must be dynamic and willing to change based on the markets and other environmental factors.”
Takes an Ostrich Approach: The best farmers Treptow knows are proactive and avoid surprising their lenders. “We want to help farmers succeed,” she says. “So, when farmers have open conversations with us and even tell us what is not going well, then we can start helping them look for adjustments and ideas.”
A Wishy-Washy Marketing Plan: Last year, Hoskins says, many farmers simply abandoned their marketing plan which prices started improving. “We don't want to ever set a marketing plan in stone, but we do want to realize that prices can and do change so our marketing plan should have flexibility and accountability built into it,” he says.
No Focus on the Future: The majority of operations Hoskins works with do not have an adequate succession plan in place. If you don’t have one, take steps to create one, he advises.
Not Prepared for Meetings: As farmers, you likely have expectations your lender will be prepared for your meeting. But are you prepared? Downs says farmers who have good financial information ready, along with their projections and goals can make all transactions smooth and quick.
Have Few or No Questions: Hoskins says his favorite customers are the ones who ask him more questions than he asks them. “I absolutely love it when a customer comes in prepared to have a conversation,” he says. “I want to be a resource to my customers.”
No Plan for Profits: With the dramatic increase in commodity markets, farmers could see improvements in their working capital. Treptow says farmers need to know how they will spend or protect that working capital. “Farmers need to take advantage of profitability and position their farm for years to come,” she says.
You can still register for the Online Top Producer Summit, which gives you access to content through March 31. Use the code “ONDEMAND” to take $25 off your registration fee.
Read more coverage of the Top Producer Summit.
