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Women in ag get informed
about loans at conference
1.29.2008
By STEPHANIE JORDAN
Associate Editor
DOVER, Del. — In a traditionally male-dominated occupation, more and more women are becoming farm operators, and with that trend, the annual Women in Agriculture conference on Thursday attempts to make sure those women have access to information that will help them run their farm successfully.
Carolyn Cooksie, deputy administrator for the Farm Loan Program of the Farm Service Agency, served as the keynote speaker, detailing steps that all farmers, but especially women, should take when applying for farm loans.
“Once you sign on any kind of loan document , you are on tap for that debt,” she said. “Make sure you don’t sign anything you’re not comfortable with. Know what the terms and conditions are. There’s only one dumb question in lending, and that’s the question you didn’t ask.”
Cooksie discussed her “12 Commandments of Ag Lending,” with the first being to provide lenders with an accurate balance sheet and income statements.
She recommends putting that information together on the same day of each year.
It’s also important to project the cash flow for your business by month, for a year in advance and review it with your lender. This is just one of the things you can to do ensure a good relationship and open communication between you and your lender, which is another “Commandment.”
Maintaining a good set of farm business records will help better your lending experience.
And approaching the lender with a business-like manner and attitude will show your confidence in yourself and your plans, making it more likely that you will get the funds you need and show that you can run a successful business.
“To be successful in farming today, you have to look at it as a business,” Cooksie said.
Some of Cooksie’s other “Commandments” included arranging credit in advance before making any major purchases and giving your lender time to review your plans and make suggestions.
Also, have a repayment plan fully developed.
“Don’t just think it’s going to work out,” Cooksie said.
Her final “commandments” are:
• Avoid split lines of credit if possible;
• Practice good production management and sound financial management at all times;
• Do everything possible to build confidence, understanding and trust between you and your lender; and
• Set long-range goals for your business and your family
Cooksie said these financial principles are incredibly important, because finance is the No. 1 cause of divorce in farm families.