In the first article of this series, we explored how farmers describe their relationships with lenders, identifying three general types of relationships: trusting and collaborative, strained and tense, and transactional and unstable. In this second article, we focus on the challenges that can disrupt or strain relationships. Drawing on 74 interviews with 98 farmers and ranchers across four states (Alabama, Kansas, Montana, and North Carolina), findings indicate that turnover, mergers, and financial pressures contribute to disruption, while concerns over trust and financial vulnerability affect how farmers engage with their lenders.
Turnover, Mergers, and Institutional Changes
“They had a lot of turnover lately, so I don’t know who I’m working with as well as I used to.” – Kansas livestock, row crop, and forage producer
Farmers frequently described turnover and institutional changes as key sources of instability in their lender relationships. Changes in loan officers at their lending institution required farmers to repeatedly rebuild relationships, reestablish credibility, and explain the details and goals of their operation. Repeated transitions to a new lender limited farmers’ ability to develop long-term trust and familiarity, which many farmers viewed as essential to a good lender relationship.
Broader institutional shifts, including mergers and acquisitions, further contributed to instability in the relationship. In many of these merger cases, institutional priorities shifted away from agriculture lending, leaving farmers feeling less understood and supported. According to the 2025 Ag Lender Survey Report from the American Bankers Association and Farmer Mac, lenders anticipate a 27% turnover rate among agricultural lending staff over the next five years, reinforcing the likelihood of ongoing disruption and repeated need for relationship-building.
Fear, Trust, and Financial Vulnerability
“They’re gonna look at numbers for access for capital. They have to– they’re regulated by that, and that’s their obligation.” – Alabama livestock producer
Farmers are uncomfortable sharing detailed personal and financial information with lenders they do not know or trust. They recognize that lenders prioritize financial performance and risk management in accordance with their institutional goals, which can raise concerns about whose specific interests were being served. This awareness makes some farmers hesitant to disclose information, especially during financial hardships. Fear of judgement, mistrust of lender’s motives, and a sense of vulnerability often shape how farmers interact with their lenders, creating a cautious guarded approach.
During periods of financial stress, these feelings are heightened. Farmers may limit the information they share, which reduces the opportunities for lenders to offer support, advice, and problem solving. Oftentimes the relationships become transactional or constrained, leaving farmers feeling at risk. Acknowledging the farmer’s mindset in these situations is essential for improving and fostering a more supportive, transparent relationship.
Conclusion
Farmer-lender relationships play an important role in agricultural operations, but they are often shaped by continuity, confidence, and risk. Turnovers, mergers, and institutional changes can disrupt relationships, requiring farmers to continuously rebuild relationships and limit the development of long-term confidence in their lenders. At the same time, farmers’ awareness of lenders’ financial and regulatory obligations can make them more cautious, especially in times of financial stress. Feelings of uncertainty and vulnerability may limit open communication, reducing the opportunity for the lender to understand and support operations.
While strong, collaborative partnerships are highly valued, they can be hard to build and maintain in an ever-changing lender environment. Strained relationships can have consequences for the farmer including missed opportunities for guidance, support, and improved financial decisions. Recognizing these dynamics emphasizes the value of fostering continuity, building confidence, managing risk, and strengthening the relationship as a whole to the benefit of both farmer and lender.
References
American Bankers Association & Federal Agricultural Mortgage Corporation (Farmer Mac). (2025). 2025 Ag Lender Survey Report. Released November 12, 2025. American Bankers Association; Farmer Mac. Summary available online.
Authors: Gracen Briges, Kelli Russell, and Mykel Taylor Southern Ag Today
