Tips For Farmers When Working With Lenders By Benedict T. Palen, Jr.

There are signs everywhere in the farm sector that credit availability is tightening for 2019, and that lenders will exert extra scrutiny of many loan applications, whether for renewals, or new financing.  What can a farmer do to be prepared?

The first and foremost thing is to be proactive, and upfront with the lender.   This will give you, the borrower, the opportunity to frame the discussion, rather than being on the defensive from the get go.

Second, be organized, detailed, accurate, and prepared.  Have your financial ducks in a row. Analyze with great attention to detail your costs per unit of production over the last 3-4 years, and be ready to justify certain expenditures from the standpoint of ROI.

Third, have a good handle on your risk management strategy.   Be ready to explain to the lender how you are mitigating risk, whether it be on the cost of, say, diesel fuel, or with regard to the price potential for your crops.  

Fourth, put yourself in the lender’s shoes. Ask yourself whether you would lend money to someone wearing the same shoes as you, and think about what you would ask the prospective borrower.

Fifth, even if you have been with one lender for a long time, look around, and have a Plan B in case things do not pan out with the current lender. 

Finally, perceptions matter.  Do a drive through of your farm with the lender; show him a clean farmstead, well maintained machinery, and fields in good condition. 

Civility And Morality In Public Life By Benedict T. Palen, Jr.

Inherent in the idea of a “leader” is the idea of showing, by example, the ways in which we should conduct ourselves as part of a civil society where differences are tolerated, opinions are freely expressed, and good rules of social interaction are followed.

 

Sadly, in today’s world, especially in America, our “leader,” and some of his disciples, have completely disregarded these principles, and that reflects poorly on us as a leader among nations.  Some of my friends in Europe believe that we have lost our way, and that America is now a dark place where the worst of human emotions are on display.  

There is hope.  The majority of people are good and decent human beings, and their “better angels” will carry the day.  People, young and old, know that each of us must lead by example, and that the seemingly small things like respect, civility, and decency, matter, in this life.  All of us need to remember that each of us have a moral duty to make a difference, each and every day, in how we live our lives, and that means showing respect to others, and conducting oneself in a way that sets an example for our children, and others.

Societies are built on many things. One of the most important of them is hope; hope for a better tomorrow for our children, and their children, and for ourselves.  We must not lose hope that things will get better, and that we will return to the American society that we knew before it became tarnished by the politics of hate and divisiveness.  The ability to change is in our hands.  And it is our moral duty to facilitate that change.