Does your Bank have the necessary tools for long

JANUARY 2016
Does your Bank have the necessary tools for long-term ag real
estate loans?
Jeff Wolfgram, Dakota MAC Manager / Senior Vice President
[email protected] (605) 665-4990
Our upcoming postcard campaign asks the question, “Does your Bank have the necessary tools for long-term
ag real estate loans?” Our intent is to challenge customers and bankers to think about what tools they have
today and compare the tools to 5, 10, or 20 years ago. Think about a bank that only offers a variable rate
product for real estate loans. Twenty years ago, this was somewhat accepted by residential real estate
customers, but - unheard of today. Why the change? Why is a long-term fixed rate expected on the residential
side, but not as important to some ag lenders and borrowers? What other tools does your bank offer or not
offer that are of value to you? Does your bank offer FSA guaranteed loans? Is your bank a preferred lender
for FSA guaranteed loans? What does that even mean to you as a borrower? In today’s volatile economic
world, you need options. You need more options and tools than you needed 20 years ago. I’m not forgetting
the biggest asset a bank can offer, which is the long-term commitment and expertise towards your operation;
however, ask yourself how good the best carpenter can be if their only tool is a hacksaw.
Higher interest rates on the way? The Federal Reserve finally raised rates on federal funds on December 16th for the first time in nearly a decade…
so now what? Many banks increased interest rates on short-term loans, but what happened to long-term rates? One of the best indicators for
long-term rates is the 10-year treasury. Look at the year-to-date chart for a ten-year treasury below:
Rates are higher today than one year
ago. In 2015, the 10-year treasury spent
more time above 2.00% then below
2.00%. You will see that there has been
little effect on interest rates in the past
few weeks since the Federal Reserve
announced the interest rate change. Do
yourself a favor and track the 10-year
treasury. Follow what it does in 2016.
Rates are still very low, so don’t wait until
it’s too late. Contact your Dakota MAC
LPO today!
THANK YOU for being a part of the success Dakota MAC enjoyed in 2015. 2015 was a very good year for us with many milestones; including
exceeding $400 million in secondary market managed assets for the first time. If you are a new customer, thank you for trusting us and giving us
the opportunity to serve your financing needs. If you have been a customer for a while, thank you for your loyalty and ongoing business.
We also had many valued team members celebrate anniversaries with First Dakota/Dakota MAC in 2015:
•
Sheila Schieffer, Operations Specialist, 25 years
•
Jodi Payer, Operations Officer, 20 years
•
Boyd Mignery, LPO Officer Hastings, 16 years
•
Sarah Torsney-Goeden, Senior Credit Analyst, 16 years
•
Jim Persinger, LPO Officer Ogallala, 14 years
•
Nathan Sparks, LPO Officer Mitchell, 12 years
We thank each of these team members for their dedication, expertise and commitment to the Bank and our customers. Happy New Year!
Until the next Dirt.
Jeff
dakotamac.com
800.682.4578
Nick
Luchsinger
Corey
Maaland
Jim
Persinger
3154 18th Ave. Suite #5
Columbus, Nebraska
200 E Highland Blvd #1
Watertown, South Dakota
55 River Road Suite #14
Ogallala, Nebraska
[email protected]
[email protected]
[email protected]
(402) 740-6445
(605) 880-2585
(308) 529-1991
Planning
by Boyd Mignery
As we enter 2016, we all know none of us has a crystal ball. Commodity prices, weather, interest rates, political instability and asset values are all
factors that are out of our control. However, as I look back into 2015, the one thing I noticed is just like a sports team a farm/ranch operation needs
to have a game plan. It doesn’t have to be fancy and full of detail, but every operation owes it to themselves to have a basic plan as to how they will
address the future. Whether it be for succession planning or for possible future opportunities, the agricultural operations that have thought about
the future and planned for different scenarios are usually the best prepared when they face those challenges and/or opportunities. Succession and
operating plans don’t have to be set in stone; they should be flexible and reviewed from time to time by all members of an agricultural operation and
adjustments made as necessary.
In my 26 years as an Ag Banker, I can assure you the clients that had a plan were best prepared to visit with their banker when it came time for
transferring the farm, selling assets or even purchasing an additional farm to add to their operation. At Dakota Mac, we can offer many different
financing products and solutions. Our customers having a plan or framework already in mind will make finding those solutions a quicker and smoother
task.
Proactive - Reactive
by Nathan Sparks
Is your financial institution proactive or reactive? More importantly, are you proactive or reactive? In today’s uncertain times being a proactive
producer and working with a proactive lender is an extremely healthy relationship. Merriam-Webster defines proactive as, “controlling a situation by
preparing for possible future problems.”
Unfortunately, we can’t foresee every situation; however, we can prepare ourselves for most unforeseen problems. Being prepared each year with a
detailed financial statement and supporting material illustrating a gain or loss in equity, developing a projected cash flow, knowing your breakeven on
each enterprise, creating a defined market plan, and having open dialog with your lender are great proactive measures. On a regular basis, contact
your lender to share how your year is looking. In a proactive situation, it’s much easier to discuss upcoming purchases or anticipated changes in
your operation.
At Dakota Mac, we strive to be proactive and we encourage our clients to do the same. If your lender is not challenging you to be proactive - are they
truly being client friendly? Or are they doing your operation a disservice?
Meet Zach Zimmer, Dakota MAC Closing Specialist
[email protected] (605) 655-7519
Zach began his career at First Dakota National Bank when he joined the Dakota MAC team in November of 2015 as a
Closing Specialist. He is responsible for receiving, reviewing, and sending final loan documents to ensure that loans are
closed accurately and in a timely manner.
Zach grew up in Bellevue, NE and graduated with his bachelor’s degree from Creighton University in Omaha, NE. Zach
has been in the banking industry for seven years working primarily in real estate lending as a mortgage processor and
credit underwriter prior to joining the Dakota MAC team.
Zach and his wife, Melissa, married in August 2015 and moved to Crofton, NE where they live on their family’s farm. They
enjoy spending time with family and friends, hiking, biking, paddleboarding, and remodeling their home. Zach and Melissa
are also avid beekeepers and members of the Nebraska Beekeeping Association, which advocates for the education and
conservancy of honeybees.
Boyd
Mignery
Travis
Schieffer
Nathan
Sparks
2837 W Hwy 6 #201
Hastings, Nebraska
[email protected]
(402) 841-1897
2837 W Hwy 6 #201
Hastings, Nebraska
[email protected]
(402) 519-3206
500 E Norway Ave.
Mitchell, South Dakota
[email protected]
(605) 770-1607
dakotamac.com
800.682.4578