The Importance of Small Farm Entrepreneurs
My dad used to say, “We’re land rich and money poor.”
During my younger years, I never fully understood what he meant, but as the years progressed, I gathered the understanding. In essence, farmers have everything tied to their farms. They have a healthy net worth, but most of that worth is farmland. Many farmers build an abundance of equity in their land assets, but there comes a time when cash flow is still essential.
The vast majority of banks don’t understand the complexities of farming as a small business. Yet, the right banking partner can be important to your success. The plan of action should be to find that healthy balance where the farm is financially stable without relying solely on land assets.
In fact, the right bank could be the difference between a farm getting passed on to the next generation or being sold at auction upon retirement.
As the current generation of local farmers gets older, fewer young successors are stepping up to take the reins and carry on this important segment of the farming industry.
Lake Ridge Bank wants to help.
Programs Designed for Farmers
Banking should not have to be a frustrating process that feels more like an obstacle than a support system. On the contrary, we want to help you succeed. Look for a bank with experience in farming and the ag industry. For example, at Lake Ridge Bank:
You get loan products that make sense. As a Farm Service Agency (FSA) Preferred Lender, we have access to loan programs created specifically for farmers, with flexible terms designed around harvest timelines.
- You don’t have to educate us. Our ag lenders have either farming background or 10+ years of experience working with farmers – or sometimes both. Even our underwriters have farming experience, so they understand that farm finances often look different than other small businesses and know how to interpret them.
- We value small farms. While some banks will cater to large-scale farming operations, they don’t always provide services for the full range of farm types and sizes. Lake Ridge Bank believes that diversity in farming is a foundation of the industry. There is room – and value – in variety.
- We recognize your entrepreneurial spirit. Almost all small business owners are more passionate about their product or service than they are about the business side of operations. We respect your expertise while providing guidance with things like creating a farm operation business plan or reviewing financials.
- You get wrap-around services. In addition to loan products, we offer things like crop insurance and Dairy Revenue Protection (DRP) to help even out huge fluctuations and reduce risk.
- You should get to retire someday. Our Wealth Management team can help you prepare for retirement, as well as plan for succession.
One of the big differences is that rather than making you take time away from your important work to come into the bank and discuss a loan, a line of credit, or other opportunities, we come to you. In fact, it's not unusual for us to spend three or four hours at a new customer’s farm to observe and understand their specific needs and unique situation.
Focused on Solutions
People usually get into farming thanks to family ties, along with a deep love for the land and the lifestyle. Lake Ridge Bank wants to support that passion and the rich culture and traditions it upholds. If you hear the call of farming entrepreneurship, we don’t want you to give up your dreams out of fear of lost fortune.
Let us support your small farm with solutions that include:
- Low down payments
- Extended amortizations
- Competitive interest rates
- Flexible repayment plans based on harvest times and other factors
- Programs and packages unique to your situation
- Conversations without obligations
Farming can be hard, but it is also rewarding in so many ways that make people truly rich. And when you find the right financial partner, it makes life even better.
We are ready to start you on the right foot.
For more information about ways we can help your small farm succeed, contact me or any of our Ag team members today.