Lenders Object To Negative Remarks

October 17, 2005

I received two letters from concerned lenders about the negative perceptions of lenders and credit counselors that were contained in a recent column. I shared the advice an ex-farmer was giving about how he found a new life after farming. He had been hospitalized with suicidal thoughts, regained his coping skills and made adjustments that has brought him new happiness.

From a Kansas banker:

I am writing to say that I enjoy your column most of the time, but I was disappointed about the former farmer giving advice. I am no expert, but it seems this man has had a lot of things go wrong in his life and blames all others for his problems.

This is evident in his attitude about his lenders and his competitors in his trucking business. I took exception to his advice about his lenders as being predatory people. Also slandered are credit counselors as undercover agents for the bank.

Now if this advice is from the former farmer, I can dismiss this as bitterness being spewed at anyone perceived to have wronged him.

However, if this advice was inserts from you, I would be upset. I believe it is important for someone in your position to at least point out how this so called advice runs counter to the professionals who try to help people gain the level of economic position they desire.

Please at least try to give some balanced position in these obviously biased bits of advice.

From a North Dakota banker:

I've been a banker for 27 years. I need to respond to the article on the ex-farmer and his advice.

Especially disturbing was the farmer's comment, "Your lenders are predatory people and do not have your best interests in mind when they say that they do."

I grew up on a farm and at 14 years old, our family was forced to move after the sudden death of my Dad. My mother cooked at the local school. My brothers and I worked for local farmers since I was 14. I know hard times.

In our small country bank; our response is what is in the best interest of the farmer and his family and to protect our depositors funds. I have counseled many farmers, (I call them my friends). I have lost business to other Farm Credit Agencies because I did not think it was in the best interest of the farmer to go deeper into debt, even with adequate collateral (land).

A few years ago, my boss could not justify making a small loan, but he loaded up his van with groceries and delivered them to the farmer. We have assisted farmers in new careers, along with help from the State Credit Counselors. Most times, farmers do NOT want to listen to suggestions, just dwell on the past and "how can the neighbor operate?"

I am happy for the fellow to find "Life after Farming". We all know by now that farming is a "business" in addition to a "way of life". Costs have risen and the farmer has to be a good manager.

Make the tough decision (maybe with your banker?) and "git er" done!!!

Dr. Farmer’s reply:

I included the ex-farmer’s letter as a part of my column because of his hopeful message. He was unusually frank about his suicidal thoughts, about his efforts to get mental health treatment and how he adjusted to being employed. He also found new happiness in his personal relationships.

I do not endorse his view that lenders are predatory and that farm credit counselors are not objective and in collusion with lenders. His personal experience and perception of what happened is that of a small minority of farmers leaving agriculture.

Generally speaking farmer/lender relationships are light years ahead of where they were during the farm crisis years of the mid-80s. The anger and bitterness the ex-farmer expressed is a throwback to those days when lenders were more culpable, defensive and a part of the problem. I agree wholeheartedly that lenders are not predatory and work hard to avoid these kinds of problems.

I have great esteem for farm credit counselors and mediators. To me, they are on the front lines in terms of helping farmers face reality, work with their financial and emotional roadblocks and care deeply about the farm families who they serve. They generally have farm backgrounds and know very well what is at stake.

I met with Minnesota farmer/lender mediators and advocates in a recent training session. They noted their caseloads were up and we are headed into a rough winter for farm stress and financial pressures.

They are concerned about the high level of denial some farmers have about their financial problems and the collision course they are on with regard to losing farm assets. They are greatly concerned about the increased utilization of credit card debt by farmers to finance their operations. They are also concerned about the slippery slope of rationalizations some farmers use to justify fraudulent practices.

A great deal of the discussion was about dealing with feelings of concern and loss once their cases were resolved. They worry. They care. In some cases, too much.

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	Val Farmer 35 Years of Counseling Rural Topics III. Farm Crisis and Stress 4. Debt, Options, Farmers & Lenders Lenders Object To Negative Remarks October 17, 2005 I received two letters from concerned lenders about the negative perceptions of lenders and credit counselors that were contained in a recent column. I shared the advice an ex-farmer was giving about how he found a new life after farming. He had been hospitalized with suicidal thoughts, regained his coping skills and made adjustments that has brought him new happiness. From a Kansas banker: I am writing to say that I enjoy your column most of the time, but I was disappointed about the former farmer giving advice. I am no expert, but it seems this man has had a lot of things go wrong in his life and blames all others for his problems. This is evident in his attitude about his lenders and his competitors in his trucking business. I took exception to his advice about his lenders as being predatory people. Also slandered are credit counselors as undercover agents for the bank. Now if this advice is from the former farmer, I can dismiss this as bitterness being spewed at anyone perceived to have wronged him. However, if this advice was inserts from you, I would be upset. I believe it is important for someone in your position to at least point out how this so called advice runs counter to the professionals who try to help people gain the level of economic position they desire. Please at least try to give some balanced position in these obviously biased bits of advice. From a North Dakota banker: I've been a banker for 27 years. I need to respond to the article on the ex-farmer and his advice. Especially disturbing was the farmer's comment, "Your lenders are predatory people and do not have your best interests in mind when they say that they do." I grew up on a farm and at 14 years old, our family was forced to move after the sudden death of my Dad. My mother cooked at the local school. My brothers and I worked for local farmers since I was 14. I know hard times. In our small country bank; our response is what is in the best interest of the farmer and his family and to protect our depositors funds. I have counseled many farmers, (I call them my friends). I have lost business to other Farm Credit Agencies because I did not think it was in the best interest of the farmer to go deeper into debt, even with adequate collateral (land). A few years ago, my boss could not justify making a small loan, but he loaded up his van with groceries and delivered them to the farmer. We have assisted farmers in new careers, along with help from the State Credit Counselors. Most times, farmers do NOT want to listen to suggestions, just dwell on the past and "how can the neighbor operate?" I am happy for the fellow to find "Life after Farming". We all know by now that farming is a "business" in addition to a "way of life". Costs have risen and the farmer has to be a good manager. Make the tough decision (maybe with your banker?) and "git er" done!!! Dr. Farmer’s reply: I included the ex-farmer’s letter as a part of my column because of his hopeful message. He was unusually frank about his suicidal thoughts, about his efforts to get mental health treatment and how he adjusted to being employed. He also found new happiness in his personal relationships. I do not endorse his view that lenders are predatory and that farm credit counselors are not objective and in collusion with lenders. His personal experience and perception of what happened is that of a small minority of farmers leaving agriculture. Generally speaking farmer/lender relationships are light years ahead of where they were during the farm crisis years of the mid-80s. The anger and bitterness the ex-farmer expressed is a throwback to those days when lenders were more culpable, defensive and a part of the problem. I agree wholeheartedly that lenders are not predatory and work hard to avoid these kinds of problems. I have great esteem for farm credit counselors and mediators. To me, they are on the front lines in terms of helping farmers face reality, work with their financial and emotional roadblocks and care deeply about the farm families who they serve. They generally have farm backgrounds and know very well what is at stake. I met with Minnesota farmer/lender mediators and advocates in a recent training session. They noted their caseloads were up and we are headed into a rough winter for farm stress and financial pressures. They are concerned about the high level of denial some farmers have about their financial problems and the collision course they are on with regard to losing farm assets. They are greatly concerned about the increased utilization of credit card debt by farmers to finance their operations. They are also concerned about the slippery slope of rationalizations some farmers use to justify fraudulent practices. A great deal of the discussion was about dealing with feelings of concern and loss once their cases were resolved. They worry. They care. In some cases, too much.