The Farm Credit System continues to provide financial stability to farmers and ranchers nationwide, even as parts of the agricultural economy face mounting pressure. Kevin Kuper, Chief Credit Officer with Farm Credit Mid-America, recently shared how the cooperative lending network is helping producers navigate today’s environment.
“So, Farm Credit System, obviously we’re in business to serve farmers and ranchers. We know that business. We’re consistent in that business. We pride ourselves in staying consistent with our credit lending philosophy.”
Kuper emphasized that agriculture naturally experiences cycles of resilience and difficulty. While some sectors are currently facing financial strain, the organization remains committed to long-term relationships with producers.
“We know that there’s going to be resilient times and there’s going to be, you know, obviously challenging times and we’re in a challenging time for some parts of the economy, but by and large, we’re here just to help support and we can definitely understand those challenges that customers are going through right now and we want to work with customers that come and ask us for that guidance and help early and often so that we can be prepared for working through difficult times with them.”
Agricultural lending institutions, including Farm Credit, typically evaluate three primary financial safeguards when working with borrowers. “Most lenders are really looking at three lines of defense. They’re looking at earnings first. They’re looking at liquidity second and overall capital third,” Kuper explained.
With earnings currently under pressure for many producers, liquidity has become increasingly important. That includes maintaining working capital, evaluating cash flow projections, and utilizing risk management agriculture tools such as crop insurance programs and other mitigation strategies.
“Right now, we know earnings are struggling for most producers, so it’s relying on liquidity, understanding risk management plans, making sure that folks are really considering insurance programs or other risk mitigation strategies out there. We want to really keep customers from getting deeper into that balance sheet and that overall equity that they’ve spent a lot of years accruing and building.”
The Farm Credit System encourages farmers and ranchers to seek guidance early, allowing lenders to develop proactive solutions rather than reactive measures. Producers can explore available farm credit services, loan products, and find a local office by visiting FarmCredit.com.
As agricultural markets fluctuate, consistent access to agricultural lending and financial expertise remains a critical pillar in supporting rural America and preserving farm equity for future generations.
Audio Reporting by Dale Sandlin for Southeast AgNet.