Got Risk? ARM Is An Option

Agriculture markets are volatile, which can make it risky for lenders to work with growers who don’t have equity or experience, according to Michael Meil with Ag Resource Management (ARM).

Meil, a loan officer, explains that ARM’s loans are based on crop insurance, meaning that they’re uniquely positioned to be an asset for small or beginning farmers. ARM is an alternative to the bank, especially with the headwinds that lie ahead.

“Rates are high. They’re concerned about the cost of inputs… about the grain markets being lower. So your margins are going to be hit,” he says. “You’re really going to have to be watching what you’re putting into the crop is worth it.”

As part of their service, ARM helps growers manage their budgets in the confines of crop insurance.

“As an alternative lender, we can help the beginning farmer to whereas a traditional bank may not be able to,” Meil says. “If they’ve got multi-peril crop insurance, we can do a deal.”

He reminds farmers to get their crop insurance applications in with an agent. ARM is a crop insurance provider.