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Ag lender offers advice ahead of operating loan meeting

An ag lender has some advice for farmers preparing to sit down with their bankers to discuss 2019 operating loans.

Kent Thiesse with MinnStar Bank in south-central Minnesota recommends making that appointment now.

“Have things summarized from last year, have an up-to-date balance sheet, and if you have issues, be honest and up front about it.  The worst thing you can do is not be honest and break that trust level.”

He suggests being open-minded to possible adjustments.

“If you rented a farm and paid too much rent four years in a row and lost money four years in a row, you probably can’t keep doing it.  Either that or you have to start raising a more valuable crop on it so you can make it work.”

He says that applies to inputs too.

“Fertilizer costs are going up again, and a lot of the top level seed traits have gotten very expensive.  Sometimes I think we (need) to turn the tables and if you’re a farm operator you figure out your break even and say ‘this is what I can afford.”

He says farmers, bankers, and ag retailers need to work together as a team to ensure the farm cash flows in 2019.

Thiesse made these comments during Brownfield affiliate KDUZ’s Farm Forum Thursday.