In the first article of this series, we explored how farmers describe their relationships with lenders, identifying three general types: trusting and collaborative, strained and tense, and transactional and unstable. In the second article, we discussed the challenges that can disrupt or strain the farmer lender relationship. In this final article, we address the question of what qualities farmers value most in a lender. Many farmers emphasized that strong lender relationships can influence farm management decisions and reduce stress.
Through 74 interviews with 98 farmers and ranchers across four states (Alabama, Kansas, Montana, and North Carolina), producers consistently described important traits associated with a strong lender relationship. Farmers often described their lenders as partners, advisors, and collaborators who understand agriculture and support their operations’ success. Several key traits emerged:
- Lenders as partners and advisors
- Open, honest communication and trust
- A strong understanding of agriculture
- Long-term and personal relationships
Lenders as Partners and Advisors
“The specific loan officer that we have, it’s almost like a partnership. Like he is aware of what we’re trying to do here.” – Alabama livestock producer
Farmers consistently emphasized the importance of having a lender relationship that is more than transactional and business. Lenders were described as partners and advisors who were willing to participate in planning, provide advice, and, at times, even challenge decisions. This collaborative approach makes financial decisions feel less stressful and supports the idea that the lender is invested in the farm’s success.
Open Communication
“I want to know how he feels about it. And I want to trust him. I mean, he was hard on us when he needed to be hard on us.” – Kansas livestock, row crops, grain, and forage producer
Open and honest communication was a defining trait of a strong lender relationship. Farmers valued lenders who were transparent. For many, trust developed over years of consistent, transparent communication. When lenders are responsive and approachable, farmers feel more confident discussing concerns and questions.
Understanding Agriculture
“And he [our lender] was great. Yeah. Because he grew up in the industry. He understood it.” – Montana livestock, row crop/grains, oilseeds and pulses producer
A lender’s understanding of agriculture was another key trait farmers noted. Farming presents a unique set of financial challenges, including seasonal cash flow, production risks, and volatile markets. Lenders who understand the dynamics are better able to provide advice and suggest solutions. This knowledge of agriculture helps align financial decisions with the realities of the farming operation.
Long-term and Personal Relationships
“He [our lender] used to date my sister a long time ago. Oh, but we’ve been with Southern Bank for as long as I can remember.” – North Carolina row crops, grain, and specialty producer
Strong lender relationships are often built over time. Many farmers described working with the same lender for years or even decades, creating a sense of trust and consistency. These long-term relationships allow lenders to develop a deeper understanding of the farm and its goals, making communication more efficient and allowing for more goal-focused decisions. For many producers, these relationships extended beyond business, with some becoming personal friends outside of work. This familiarity reflects a deeper level of trust that strengthens the relationship.
Conclusion
A strong lender relationship does more than provide access to capital; it helps reduce stress and supports better financial decision-making. Farmers consistently value lenders who communicate openly, understand agriculture, and invest in long-term relationships. These qualities create partnerships that strengthen operations and support the farm’s long-term success.
Briges, Gracen, Kelli Russell, and Mykel Taylor. “What Makes a Good Agricultural Lender?” Southern Ag Today
