Farm Credit Mid-America customer-owner, Dave, spent 24 years away from full-time farming after his parents sold their land during the 1980s recession. Today, he is back on the same soil his family tilled — an accomplishment he attributes to a lender that truly understands agriculture.
Traditional banks often struggle with agricultural lending. For farmers like Dave, securing capital required a partner that understands the cyclical risks of a balance sheet tied to farming.
A Lending Obstacle
When Dave decided to return to farming in 2004, he initially approached commercial lenders for lines of credit and equipment loans. Instead of support, he was met with uncertainty to pursue the complex financing needed to move his vision forward.
According to Dave, traditional lenders didn’t grasp the reality of putting time and money out into the field with no guaranteed return. “They wouldn’t help me with anything,” he said, noting they failed to understand the unique mechanics of farm life and crop cycles.
Specialized Lending Solutions
Dave’s experience changed with Farm Credit Mid-America. As a customer-owned cooperative that specializes in agricultural lending, the Association could review his business plan with industry-specific context.
Farm Credit Mid-America financial officers bring firsthand understanding of life and financing on the farm — knowledge that proved critical for Dave when he needed a trailer after an unexpected situation left him without one.
“My first thought was to call my financial officer,” Dave said. “She was able to help me with the equipment loan within a couple of hours. From the first phone call to the time I closed on the loan, it was that simple.”
“Farm Credit Mid-America understands how things work on the farm and what we need to succeed,” he said.
What I’m most proud of is coming back to the farm, it’s always been my love. I’m proud that I came back to be a farmer and proud of equipment I own. I’m proud of the crops I grow.
The Cooperative Model
Farm Credit Mid-America’s cooperative model offers educational training and resources to its customer-owners — one of the seven key principles that cooperatives follow. This ensures every individual has a chance to contribute and succeed.
“As a farmer, you’re always learning, and Farm Credit Mid-America offers several educational opportunities for current farmers and the next generation,” Dave shared. “We try to take advantage of those opportunities when we can. We’re not afraid to learn.”
As a customer-owner, Dave also benefits from patronage†, a return of the Association’s shared success and another key component of the cooperative model. Each March, a portion of Farm Credit Mid-America’s profits are returned directly to customer-owners.
“Patronage is something you don’t expect,” he said. “It gives you that feeling that you’re included and you’re part of this wider Association.”
It comes back to the cooperative model; you have stake in the game as a customer. Hallie and the entire team understand how things work and are so easy to work with. Just like with my trailer, it was just something that had to be done quick and made life that much easier.
Land as Heritage
For Dave, farming is inseparable from the legacy of the land. By merging operations with his uncles, Bob and Bill, he has helped return the farm to a family-run operation.
“It’s a privilege to be able to farm the same ground that your ancestors have,” Dave shared. “The ground is built as our forefathers built it. Now, we’re trying to do the same for the next generation.”
Learn more about how Farm Credit Mid-America can support your operation.
† Patronage is an annual decision made by the Board of Directors to return earnings to eligible customers. To learn more about patronage or patronage eligibility, please visit our Patronage page.
