Preparing for Loan Renewal Season

• Introduction
  • Like, Rate, Review, Share
  • Submit ideas to farm4profitllc@gmail.com
• What’s happening
  • Nearing the end of harvest – great stretch of weather
  • Partnership with Granular.  They have been enjoying our podcasts and wanted to show their support for our show.  I think it demonstrates a commonality with a lot of producers and we appreciate the support from everyone, the listeners and granular.
• What’s working for Ag – listener or farmer feedback www.granular.ag
  • Granular
    • Introduce Guest - Dallas Welp - CO
    • 1) Accurate record keeping
    • 2) seamless transfer from my John Deere
    • 3) Helps the relationship with the banker
•  VISIONBANK COMMERCIAL www.visionbank.com
• Are you ready for the next conversation with your banker?
• Draw nervous comparisons to the meeting with the banker……dentist, wedding day, etc…
  • Start by lightly introducing the format with recording and Jeff Plagge as the superintendent of banking.(Clip @ 5 seconds)
  • Clip @ 2 minute mark – talking about reflecting on the price rallies now and being careful of how we put information on the balance sheet.  How can government payments like CFAP2 help in a cash flow projection?
  • Communicate early and often so there aren’t any surprises for either party.
  • Learn more about what your banker is looking for.  If you learn how to provide the information your banker needs more timely, more organized, and more accurate it should provide a more favorable response.
    • Faster answers because it’s easier and probably gets moved to the top of the list.
    • Better rates because each loan gets a factor for how good of a manager you are.
  • (Clip at 5:35 about restructuring) Is now the right time to look at restructuring?  What does that even mean?
  • Work with them to make sure your information is accurate.  The more you learn about reading a balance sheet or putting a projected cash flow together the better you can spot mistakes.
    • They do happen, don’t let them cost your farm time or money.
  • Should we be refinancing now?  What should we be looking at when refinancing?
    • Where are rates going? (Clip at 11:20)
  • Ok, what if I get to cash in this fall….?  Perfect storm, wind and hail policy in place, possibly unaffected by weather and have the rally to sell into, etc… what should I do with my extra cash that I wasn’t planning on?  (Clip @ 13:40)
  • Keep them honest.  Unfortunately, repetitive relationships get into a rut for pricing, structure, and more.  It doesn’t cost anything to have a relationship with another banker.  Be open and set honest expectations, but those conversations can lead to interest savings, proper structure or new ideas. 
• Summarize
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• Challenge
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• Conference Update
• Submit questions and topic suggestions