Ag Lenders Borrowers Must Be Up Front With Each Other

It’s not a question of if a farmer needs to borrow money, but when and how much.  When that time comes, it’s important that both sides of the relationship are honest and upfront.  Curt Covington, former ag banker, currently with Farmer Mac, says farmers first need to make their case to a loan officer, but remember, that officer must run the information up the chain of commend.  So, he said it’s vital to be honest and upfront.

“In this time, after four pretty tough years, one of the things you can’t do as a borrower is sweep your problems under the carpet.”

Covington added for loan officers, it’s important to have a good gauge of what’s going on with the client and watch for changes, both personal and professional.

“Have they had any issues with checks bouncing, have they had any issues with payroll taxes, just a number of really small but key indicators that you have a borrower that potentially is in a distress situation and the whole point of it is to catch a distressed borrower before they are circling the drain,” Covington added.

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