Below are links to the PowerPoint slides presented by a panel of agricultural lenders addressing the topic Ag In Uncertain Times: Where Are We?
Presenters include:
* Joel Lorenzen – Chief Credit Officer, Farm Credit Services Southwest
* Cori Price – VP Senior Loan Officer South Valley Bank Lakeview Oregon
* Bob Syron – Director of Credit for Wilbur Ellis
Click on the presenter names to access the PowerPoint presentations made by each panel member.
A recording of the webinar presentations will be posted once it has been compiled under a separate listing.
I am just wondering:
- are the lenders aware of crop insurance?
- are they aware that they can be listed as 1st lien against an indemnity?
- do they recommend crop insurance?
- do they reward producers that use crop insurance?
- can having crop insurance make or break getting a loan?
- can having crop insurance give you a better interest rate on your loan?
Thanks
Karen: As a past Bank director and former Insurance Agent I will say that Ag Lenders are keenly aware of Crop Insurance. Whether a lien is perfected against the insurance is specific to the producer’s financial situation as is how strongly the loan covenants encourage the use of crop insurance. Your last three points are condenced to the middle one about “make or break” getting the loan. Banks don’t necessarily dictate that you have crop insurance but they can refuse to make a loan if they do not believe there is sufficient assurance of being paid back. Thank you for the questions.
This has been a great series, applaud and appreciate your efforts.
With regard to the dairy industry, I wonder how many of the presentors are aware of the dairy LGM program that protects gross margins. From what I see, if you had had it, it provided terrific protection. Unfortunately, it often takes a disaster to get peoples attention, however, it is still a teachable moment.
Thanks
Karen: Livestock Gross Margin insurance (LGM), from what you know of the insurance is it too late for dairies to participate in the current situation? You probably cannot insure for as much as 6 months ago but it may provide some floor.
It is best when the banker and farmer work together without the banker making dictates.