I had a farm producer that I regularly work with that was undergoing some financial struggle.  I had met with the producer and his lender to discuss the situation.  The lending bank was unable to approve the operating loan for this producer due to the losses sustained in 2024 and the lack of collateral to guarantee the loan.  The Lender indicated that the only way to get the loan approved would be through a guarantee from the Producer's parents.  A guarantee had been provided 2 years prior when the producer was just starting out after the retirement of his father and uncle.  The producer was not happy about having to have this guarantee and did not want to ask his parents to provide it.

After the meeting with the Lender, I had several more discussions with the producer about the situation.  I encouraged him to at least talk with his dad about the situation.  I knew that his Dad had been in a similar situation many times through the years and that he would provide some sound advice and wisdom.  After speaking with his Dad the producer called me again, indicating that he had talked with his Dad and that he fully expected him to call and talk to me about the situation.  I had full permission to talk with his Dad candidly about the situation and any path forward. 

A few days went by and his Dad did call me to talk about the financial situation and what the options were.  I was able to meet with the parents of my producer and lay out the financial situation.  It was agreed that everything should be done to give the son (producer) the ability to continue farming at least one more year and see if he could make some behavior and management changes to turn the operation around.  The lender was able to get the loan approved with the guarantee from the parents.

I have been working diligently with the producer along with the lender on keeping costs low and doing all that we can to make this farm profitable in 2025.  In a few short months we will be able to see if we have been successful or not.