With corn and soybeans emerging from Indiana fields there are now some lulls giving farmers a chance to meet with their ag lenders. Micheal Rogers, Vice President of Agriculture at PNC Bank for north central Indiana says many of those farmers talking with him have real estate on their minds. Rogers told HAT with yearly increases in the value of farm ground it has been a hot item the last several years.
“And it’s a wide range. I’ve seen anywhere from 6 thousand per acre to $12 thousand per acre, so it takes a lot of capital to make that type of investment. That’s what I’ve seen more than anything. Of course input costs have increased year over year. The cost of leasing that high priced land has also gone up so your input costs have dramatically increased over the last few years as well. So those would be the two major causes for borrowing needs from my customers.”
Rogers also says equipment upgrades are popular with farmers holding more cash than he’s seen in his forty years in agriculture.
When looking for the right ag lender, he says farmers should be prepared to enter into a relationship with that lender.
“The biggest thing I try to look for is someone willing to form a partnership where I’m going to be giving them what I think they need, and they’re willing to work with me on making sure we do what’s best for them and their future endeavors. You know I like to know what their long term plans are and what their immediate concern is that’s facing them right now.”
Longevity and profitability are certainly positives, but Rogers says a good partnership between farmer and lender will go a long way toward building or improving both. PNC Bank has locations throughout Indiana and a special agriculture page at their website.[audio:https://www.hoosieragtoday.com//wp-content/uploads//2012/06/PNC-Bank-ag-lending-overview.mp3|titles=PNC Bank ag lending overview]
Listen to the full HAT interview:[audio:https://www.hoosieragtoday.com//wp-content/uploads//2012/06/Micheal-Rogers-PNC-Bank.mp3|titles=Micheal Rogers PNC Bank]