In this week’s edition of Money Minute, AgriFinancials’ Mike Reed talks about something that does not show up on the balance sheet, isn’t part of cash flow, and can’t be amortized. Yet, it plays a big role in most financial transactions that involve family farming operations. It is the personal relationship you have with your lender. “Farmers are a bit different, they like to have relationship with their lender,” Reed states.
Reed points out that, when he works with a farmer customer, he gets to know the whole family, “As a farm lender, we like to be able to know the wife and the kids.” He adds, when it comes to making major decisions about the farm, the spouse and family members do have a role to play and their opinions and observations should be heard.
Challenging times like we currently have in agriculture are when these relationships become the most important. Reed says, “When you get into a situation where things are up and down, that relationship and understanding is critical. It is always our desire to stick with people in the good times and the bad times.”
AgriFinancial has partnered with Hoosier Ag Today to produce this informational series designed to provide quality, financial advice and information for farmers during these challenging economic times.
For more information, contact Agri Financial at www.cgb-agfi.com.