Guest: PHIL LOVE

“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.

IN THIS EPISODE:

  • (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.

RESOURCE LINKS:

Mark Ritter Website
Mark Ritter – LinkedIn
Pactola – Website
Phil Love – Email
Phone 605-223-5154

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.