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| We have 2 banks in this county you could call " Farmer Friendly banks". They are now 3rd generation controlled by a farm family that got controlling interest in them 80 years ago. They have loan officers and boards of directors that are active farmers. They are not interested in 1 million real estate loans, mainly operating loans up to 3 to 4 hundred thousand dollars if you have the equity behind you. If you want a new 1 million equipment line, go to JD, IH finance. Collateral needed for borrowing from these banks, mortgage on the farm. There were several bigger commercial banks that got burnt in the 1980's during the high financing Ag bust and the local banks used that as learning experience for Ag lending. When we had the banking collapse in 2008, these were the only two 5 star rated banks in the county.
We had a good relation ship with Farm Credit but when my mother died , land free and clear, I had to borrow money for inheritance taxes, Farm credit told me to go to the bank and borrow the money. Went to a local , non ag bank, I was 4th generation to deal there, every one in there knew me, Sat down with the bank president, need this for inheritance taxes, present balance with Farm credit owed on equipment bought 3 years ago, operating needs for years production expenses, this much, will give you first mortgage as security. Need one line of operating credit to cover all. do not want a 20 year loan to pay the death tax, can do it in 5 years. He said , fill out a financial statement, lets meet tomorrow with the loan officer, "who knows nothing about Ag, you will have to educate him", should be no problems. Next day,reviewed everything and at the end of the week was gone from Farm Credit. Took 5 years to pay the taxes down and for the last 10 years I have kept the credit line open and sometimes use it to buy farm toys, dozers, backhoes. If I don't use it for a year, $200.00 fee to keep it active, farm expense deduction. Having a mortgage on something I don't owe any money on doesn't bother me.
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Why hate?
