“We don't do agricultural lending." That's the common phrase uttered across America, but why? Phil Love, the leader of Pactola, and Mark Ritter delve into the benefits of agricultural lending, how to approach it, and the advantages for lenders.

WHAT YOU WILL LEARN IN THIS EPISODE:

✅ How agricultural lending empowers credit unions to support small businesses in farming communities.

✅ The role of credit unions in providing operating lines of credit and real estate loans for sustainable local food production.

✅ Key challenges and opportunities in agriculture lending, including navigating commodity markets and risk management.

✅ How credit union agricultural lending strengthens rural communities and supports America’s food supply.

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TIMESTAMPS:  

00:00 Phil’s role at Pactola, a credit union service organization focused on agricultural lending, and describes his farming activities, including harvesting honey

06:48 Phil explains the three types of agricultural lending: real estate loans, equipment loans, and operating lines

09:48 Discussion on how credit unions in rural communities can leverage credit union agricultural lending to support farming as community banks consolidate

11:56 Phil outlines the challenges in agricultural lending, including assessing small business balance sheets, succession planning, and external risks such as commodity markets and weather

17:45 Discussion of beef prices, carryover debt, the One Big Beautiful Bill, inflation, interest rates and oil prices

KEY TAKEAWAYS:  

💰 Agricultural lending boosts small farming businesses, helping credit unions fund local food production.

💰 Credit unions use operating lines of credit and real estate loans to support rural communities through agricultural lending.

💰 Credit union agricultural lending mitigates risk management challenges for farming operations.

💰 Farmer Mac and crop insurance enhance agricultural lending for sustainable local food systems.

ABOUT THE GUESTS:

Pactola - Website

Phil Love - Email

Phone 605-223-5154

RESOURCES MENTIONED: 

Mark Ritter - Website

Mark Ritter - LinkedIn

SEO KEYWORDS: 

Credit Union Conversations, Mark Ritter, MBFS, Credit Unions, CUSO Agricultural Lending, Small Business, Farming, Local Food, Rural Community, Farm Credit, Commercial Banks, Equipment Loans, Farmer Mac, Community Banks, Crop Insurance, Commodity Markets