With mortgage, auto and other loan markets slowing, agricultural businesses may offer community institutions a new way to reap profits.
by Jim O'Brien
September 14, 2022
Historically, banks have been reluctant to pursue agricultural lending, largely because of the complexity with assessing risk. This may be a missed opportunity.
With inflation at 40-year highs and much of the country enduring long-term drought conditions, the need for ag loans is growing. Fertilizer prices increased by as much as 300% during 2021 while the price of farm equipment continues to climb.
To cover rising costs, farmers will need to borrow. New and smaller farming operations, however, are reporting challenges with finding banks that will lend them money. Banks can capitalize on this opportunity, but a different approach is needed.
In this issue of BAI Banking Strategies, Jim O’Brien discusses the steps banks can take to simplify agricultural risk assessment, speed up loan approvals and pivot to a digital experience.
Read the full article here!
Jim O'Brien has been helping corporations navigate innovation initiatives & build sustainable processes for over a decade. He is Co-Founder and CEO at Agrograph. Connect with him on LinkedIn.
Farmers need access to financing faster than they did previously, but traditional methods cannot keep pace. Banks that leverage modern technology can accelerate lending decisions.
CUs are in a key position to not only help local farmers, but move into a new lending space that is currently underserved.