Recently, it seems like I hear a lot of comments about how people aren’t doing better, either because of the President, some Congressman, some policy or some other factor out of our control.

One of the most common problems faced by many businesses today revolves around their ability to obtain financing they need. This challenge becomes even more pronounced when we are faced with a tight lending environment. This has been compounded by the Sub Prime Mortgage mess and its related financial issues! This certainly magnifies the importance of maintaining a solid banking relationship.

Oh, how the times have changed – Let’s face it. The days of the “handshake equals dairy loan” are long gone! Actually, it’s been that way for 25 years. I find it remarkable that some people think that “Old Bob” down at the bank still exists. They simply told Bob what they needed, shook hands and signed one sheet of paper before achieving access to unlimited loan amounts. At least that is how they remember the process. Was it truly that simple? I don’t know because I wasn’t there. What has changed? Here is a list of items that come to mind for me:

This is a question many people are asking. I believe it’s something we need to be looking at regularly. As far as when you should fix them, that depends on many factors.

Wow! Wasn’t 2009 a real tragedy in terms of overall cash flow and bottom line results? It was absolutely pathetic for most producers. Since then dairymen have been enjoying the fruits of higher milk prices. How can we avoid revealing the same calamities again? What could you have done differently as a manager? These are critical items to spend some time on.

It’s time for a reality check. Maybe I’ve missed something. I’ve been in the dairy industry for almost 40 years. I got my first job in it when I was in my early teens. Now, I think I’ve seen it all. A program for banks called TARP (Troubled Asset Relief Program) now being in need of a new name: TRAP! Let me tell you why I’m so ticked off.

Given the difficult state of the dairy industry, lenders might, in some situations, be taking longer to make their credit decisions. Is this truly a tough year? YES!!! Is it the end of the world? Hardly. Is your dairy farm loan renewal taking longer than usual this year? Perhaps, but so are the renewals of many other dairy farms.

Given the difficult state of the dairy industry, lenders might, in some situations, be taking longer to make their credit decisions. Is this truly a tough year? YES!!! Is it the end of the world? Hardly. Is your dairy farm loan renewal taking longer than usual this year? Perhaps, but so are the renewals of many other dairy farms.

It’s time for a reality check. Maybe I’ve missed something. I’ve been in the dairy industry for almost 40 years. I got my first job in it when I was in my early teens. Now, I think I’ve seen it all. A program for banks called TARP (Troubled Asset Relief Program) now being in need of a new name: TRAP! Let me tell you why I’m so ticked off.

This is a question many people are asking. I believe it’s something we need to be looking at regularly. As far as when you should fix them, that depends on many factors.