Partnership with lenders crucial for agriculture

By Gary Joiner

100 years is a long time to do anything successfully.

Whether it’s marking a yearly sporting event, owning a continuous family business or working alongside farmers and ranchers, a century of success is worth noting.

Capital Farm Credit this week celebrated its 100th year of agricultural lending in the Lone Star State. It’s a story of service and survival of a financial cooperative. It mirrors the resiliency of the farmers and ranchers who are its members.

There have been many challenges in the past century. For both Capital Farm Credit and Texas growers. And this year is another tough one.

Low commodity prices are squeezing farmers’ and ranchers’ bottom lines. Cash flow on the farm is suffering. And lenders know the farm income forecast isn’t encouraging. The outlook for the agricultural economy in the next several years points to more lean times.

That’s even more reason for farmers and ranchers to have a partnership with their lender. Financial decisions, both short- and long-term, weigh heavily on a farm and ranch’s ability to survive the low tides.

Lenders can pledge to work with farm and ranch borrowers and do everything possible to manage the situation. It’s the commitment of Capital Farm Credit, the state’s largest agricultural lender.

Because agriculture changes. New technologies emerge and farmers embrace them. But the cost of doing business can be expensive.

Agricultural financing helps farmers and ranchers purchase advanced equipment and revolutionize their farms. It even helps farmers and ranchers—both young and old—get their start in agriculture.

That partnership with lenders is a key role in agriculture. Their support helps the future of rural Texas and America. 100 years of that is reason to celebrate.

Gary Joiner

Gary Joiner is the senior associate director of Public Relations for Texas Farm Bureau.

2 Responses to “Partnership with lenders crucial for agriculture”

  1. Michael E Vance says:

    Just a comment about ag lenders. Our bank is 116 years old and has been a large ag lender in Milam County all this time. If you were to combine all the ag lending activity from commercial banks in the state it might well be greater than CFC. It is the commercial banks in the state that makes things happen in rural communities in Texas. Community banks use local deposits and turn that into lending dollars. That does not happen at CFC. Check their loan funding source.

    • Gary Joiner says:

      Thank you, Michael, for the note. Commercial banks in the state provide outstanding service to rural residents. I wholeheartedly agree. The column highlights Capital Farm Credit’s anniversary milestone, and the occasion allows an opportunity to promote the crucial partnership between farmers and ranchers and lenders. In no way is the column intended to infer that other financial institutions have not provided the same outstanding service and partnership over similar successful periods of time.

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