The Benefits of FSA Financing And Programs

[00:00:08.270] - Chris Griffin
Welcome to Back to Your Roots, a podcast that provides insight into all things farming, financing, and farm life, guiding you back to your roots. Thanks for joining us today. I'm your host, Chris Griffin, and today we have Anna Armstrong and David Wayne. Anna is a farm loan specialist for the FSA office here in Western Kentucky, and David is the State Executive Director. Between both, they know all the ins and outs of different programs, and today we're going to pick their brains and get insights on what's available for our local farmers. So just tell me a little bit about yourselves and your time at FSA and what your positions entail.

[00:00:43.550] - David Wayne
Well, Chris, I first want to start off by saying, uh, just thank you for having us today. Uh, it's always good to get out and talk about FSA and what we do for farmers. So Uh, just again, thank you for having us and we really appreciate the opportunity. I guess a little bit about myself. I grew up on a beef cattle and tobacco farm in Taylor County. Several years ago, I was able to have the opportunity to buy a part of the family farm. So I now live on that farm with my wife Lindsay and our two children. My wife is an ag teacher there in Taylor County. So between the farm, FFA, FSA, and all the other things we get to do, agriculture is very, uh, near and dear to us. For sure. It's kind of the center of our lives, really. A little bit about my time with FSA. I've been with FSA for 7 years. I've spent most of that time as a county executive director, or CED, for the Campbellsville Service Center. I also had the opportunity to be the CED in Hopkinsville for a while when I first came to FSA.

[00:01:44.600] - David Wayne
Before FSA, I was a division director for the Kentucky Department of Agriculture. I actually handled all of the pesticide regulation and service programs for the state of Kentucky. So that was an interesting experience anyways, being regulatory for the state, but good to be with FSA and be on the assistance and support side. But I was appointed to my current role as state executive director in May of 2025. So I just celebrated my 1-year anniversary as SED for the state. Let me just say I'm truly honored to serve Kentucky farmers in this role, and I'm proud to be able to put farmers first. We were kind of talking a little bit before we started. Anna was an early introduction in my career with FSA, so I've known her my entire FSA career, I'll say. But I'll let Anna tell a little bit about herself.

[00:02:38.220] - Anna Armstrong
Yeah. So I grew up in Princeton, Kentucky. So on the other side of the lakes, I graduated and came to Murray State. My background was in agriculture, so grew up on— actually, back up a little bit— a row crop farm, corn, tobacco, soybeans. So then I came to MSU and majored in ag and got my bachelor's and master's here. And then it wasn't 2 weeks after I graduated with my master's that I actually, had my interview at FSA in Mayfield. So I started in 2012. So next month I'll be with FSA 14 years. Started as a program technician on the program side and, started, started there for about 2 and a half years. Then I was lucky enough that there's a farm loan office, uh, in Mayfield because we don't have a farm loan office in every FSA office. We have 16 in the state of Kentucky, but applied for a FLOT position, which is a Farm Loan Officer Trainee, was able to train in Mayfield, and that took about 2 years. After got that completed, I was a Farm Loan Officer there in Mayfield from 2017 to 2021, and then I had the opportunity to become a Farm Loan Specialist for our state.

[00:04:07.980] - Anna Armstrong
And I moved to Lexington in 2001, and I've been doing the farm loan specialist duties since then. I actually moved, lived in Lexington for 3 years, and they were gracious enough to let me move back to this western part of the state to still be a specialist in the field because I got married. So I actually live right across the line in Tennessee. But, uh, I reside work-wise in the Murray office for FSA. So I've tried—

[00:04:41.460] - Chris Griffin
You just recently moved to the Murray office, didn't you?

[00:04:44.100] - Anna Armstrong
I did. I recently moved to the Murray office. I was helping Mayfield out there for a little bit whenever I moved back from Lexington and got those girls trained up for y'all, uh, helping with loans. And now I am, uh, here in Murray.

[00:04:58.060] - Chris Griffin
Well, I know, uh, you know, I've been here for 4 years and, you know, I know I specifically haven't done anything with you guys directly, but I know a lot of loan officers that have, and I know how important you are to River Valley. We have a really close relationship, you know, working relationship with you all. And, you know, I think together, you know, we've been able to definitely expand some operations locally, you know, help some people with some startups and things like that. And so, you know, it's definitely an important relationship for people listening. And you know, I know you guys have a lot going on and I know that, and, but just to somebody listening, you know, what, what does a typical day, you know, at the FSA office look like, especially for you, Anna, in your role and then, uh, David in your role as well?

[00:05:41.510] - David Wayne
Well, as state executive director, uh, I get to do so many different things. Uh, no day is the same as the one before. But most of my time is spent advocating for farmers and promoting our programs, just like I'm getting to do today. But my goal is that all farmers have the opportunity to benefit from our programs when they need it, whether that's lending, price support, disaster assistance. FSA is truly here to protect the financial viability of our farm operations. So For me, daily I get to carry out that mission and promote that message across the state. I know Anna's days look a little different than mine, so I'll let her talk about what her day looks like.

[00:06:28.450] - Anna Armstrong
Yeah, so I'll echo what, what David said. Each day is different. It just depends on what comes up. Mostly in the role that I have as a farm loan specialist, I am reviewing the loans from the county office that are above our farm loan officer or farm loan managers approval authority. And once those are reviewed, we approve those at the state office and get those obligated. Uh, my specialty is in guaranteed loans, so I'm— I work a lot, uh, with our guaranteed lenders if they have questions, one-on-one with them, with our county offices. If there's issues that arise or questions on how to maybe structure a loan, I help with that. I also, uh, work on the loss claims for Guaranteed. We don't actually have anything really going on with those right now, which is always a great thing. I wrapped up one yesterday. Also, I could take care of— if there's anybody listening that is a different lender that takes care of the status reports for our guaranteed lenders, I can set you up with the link access where you go online and report the standings of your guaranteed loans. A big deal of our day as specialists is also being that communication with the field for our managers and our loan officers and also our program, farm loan program loan analysts.

[00:07:58.380] - Anna Armstrong
If they have any questions or needs or any kind of support, I actually help them throughout their day on any questions that they have.

[00:08:06.150] - Chris Griffin
Well, and I was going to say, you know, kind of answer a little bit of the next question, both of y'all did. But, you know, a lot of times I think people want to know what FSA's role is in agricultural lending. And one of the things David said, maybe I didn't realize this or wasn't that knowledgeable about it, but you talked about disaster relief. Can you kind of go into that a little bit and explain, you know, how FSA facilitates that for Kentucky farmers?

[00:08:32.490] - David Wayne
Sure. So, you know, we kind of look at it as we have two sides to the agency, two sides of the house. One of those is our lending programs, which, you know, that's what Anna handles on a daily basis. But the other side is our price support and disaster assistance programs. So those are in place to provide financial support to producers that are really impacted by things that are outside of their control. So whether it's market fluctuations, natural disasters that affect yields, livestock losses that are through natural disasters, weather events, those sort of things. We have programs in place to provide financial assistance to help them offset some of those losses. Another big area that we have is conservation. Now, most people think of NRCS, the Natural Resource Conservation Service, as being the USDA conservation agency, but FSA has a history in production conservation. Through our CRP program. So just yesterday we were talking about a lot of waterways and field borders and those sort of practices going in, in western Kentucky to provide some erosion control while maintaining production on a farm. So we have a lot of different things that we do in addition to lending.

[00:10:00.430] - David Wayne
So Yeah, I think that kind of ties back to what you were saying, Chris, is, you know, some folks just know the lending side, but we actually have a pretty big portion of our agency devoted to, uh, those assistance type programs as well.

[00:10:14.690] - Chris Griffin
Then the next, this is a great question for Anna, cause this kind of segues back into the lending side. Kind of explain a little bit, cause I, you know, I've, I've seen it, but some of the loan options that FSA can offer that may be like a traditional lender like us. Like River Valley Ag can't. And I know, correct me if I'm wrong here, but I know one of them I see a lot is a lot of people can do up to 40 years, which obviously most lenders don't do that, which from a re-payment standpoint and getting somebody started in farming could be a huge opportunity for them. So just kind of go into that a little bit more detail and explain that to the listeners.

[00:10:49.780] - Anna Armstrong
Right. Yeah. As you said, for our direct loans, which our direct loans are going to be the money that comes straight from us, from FSA, as it would like you as a lender. Then we have our guaranteed loans where the money's coming from you as a lender and we're just backing you as a type of security if there is a loss. But on our, on our direct loans, how they differ is that, like you said, we can lend on real estate up to 40 years. We also can participate with lenders as yourself, and we can do 50% of the loan. You can do the rest of the the financing, say if it was $200,000, FSA can do $100,000, you can do $100,000, and we will allow you as River Valley to take first priority lien and we'll take second. So we're able to take a junior mortgage as a lender. Also with FSA, if you as a farmer, seasoned farmer, beginning farmer, are coming to FSA and there is no participation, you just want to get money straight from us, We can lend real estate up to $600,000, and we don't have to have a down payment.

[00:12:01.080] - Anna Armstrong
We can finance up to 100% of that as long as we are fully secured one-to-one. So I know that's a little bit different. You know, as a commercial lender, you know, there's always that down payment you have to take into consideration. And for these young beginning farmers, or some farmers that have even been in ag you know, for several years, the economy has been so up and down, there's not a great influx of cash on hand to have those larger down payments.

[00:12:28.080] - Chris Griffin
Well, and I know, you know, when we had an influx of a lot of poultry operations inside the, you know, you know, like Vital Barns, etc., you know, if it wasn't for you all working with us on some of the guaranteed options, you know, all these people wouldn't have been able to start those operations. And so You know, it's important. I mean, I know our friendship and kind of working relationship is really strong, you know, between FSA and River Valley, and it's definitely helped a lot of farmers get started and grow into what they are today. So, you know, with that said, I'm talking about some different fits for FSA loans. But, you know, typically, like, I know you're talking about, you know, maybe some seasoned farmers and you've got beginning farmers, but typically who is a good fit for FSA loan? And that may be a really loaded question, honestly.

[00:13:15.090] - Anna Armstrong
So Well, when I was thinking about— yeah, it really is, uh, because I feel like we're in the era or the stage of FSA where I don't feel like there's just one defined person or farmer that can fit in FSA. I feel like we offer so many different things now that anybody can fit in, in some type of way. In loans or the programs. But for beginning farmers looking to get started, it's a really good fit with our, as we were talking about earlier, our terms. So, and then our interest rates, when we're participating with you as a lender, the interest rate is lower. We can go out longer on our terms so that maybe if your interest rate is that much higher, there's, you know, some flexibility there. And also, I did say, you know, our seasoned farmers earlier, they can also fit in there too. So if they're looking to expand their operation and need participation with FSA and River Valley or another lender to, you know, get that little bit more of leverage in there, we can do that. Also looking at if, you know, the economy, the ag economy that we're in now, if there's some kind of intermediate debts that need refinanced, um, even if you're this, and I feel like you could be a beginning farmer and need that, or even a farmer that has been around several years.

[00:14:40.560] - Anna Armstrong
We can use our operating loans to refinance intermediate debt to kind of help free up that cash flow with those smaller interest rates as well. So I think, you know, going back to what you said, it's kind of a loaded question. I feel like we can find some way to fit anybody into FSA that is looking to get more freedom in certain ways and to keep them continually successful in their operation.

[00:15:04.170] - Chris Griffin
Well, you sort of went ahead and I'm gonna put this next question to me for David because you kind of sort of already answered this question, so I'm gonna skip over it. But the next question was gonna be, you know, as far as established farmers and beginning farmers, and so you kind of dove into both of those, you know, that they're both, both of them can benefit from FSA in some form or fashion is basically what you're saying. There's options there. And so just don't think of FSA as like, hey, I'm starting, or maybe don't have the capital because I'm, a beginning farmer, how you could, like you said, with the way the environment has been, the economy, that it may, there's not an influx of cash. So if they've got an opportunity to buy a farm that could expand their operation and obviously income, that might be an option where they could go get that farm and not have a down payment or a lower down payment. And so, uh, so there's options for both. So David, like, as far as the farm programs that are used, what programs do you feel like, and this may also be a loaded question, but underutilized that maybe some farmers could benefit from that maybe they don't know about?

[00:16:02.310] - David Wayne
Sure. I think just because of the wide scope of programs that we have, you know, some of them definitely get overlooked. And especially if someone's got a preconceived notion about participating with FSA. I think even going back to what we were discussing with beginning farmers or seasoned farmer, you know, veteran farmers, you know, for a long time FSA loans were looked at as like a loan of last resort. Like you had no other choice but to go with FSA. Uh, it's not that way anymore. We, we want to be a, uh, lending agency that's, uh, you know, loans of first opportunity. Um, you know, we, we have, uh, lower interest rates we can help with. We have opportunities to partner with lenders such as you all at, uh, River Valley., to where we can really do some great things to get operations out of a tough situation with maybe some existing debt, or even give them the opportunity to expand and increase that on-farm revenue and, and hopefully secure their financial viability so they can pass that farm on to generations to come. So we really do have a good fit for any farmer that's out there through our different programs, whether it's one of our direct loans or if it's a guaranteed loan.

[00:17:27.930] - David Wayne
You know, those are good opportunities for all the producers that are out there. But I think diving into some farm programs, maybe leaving the lending side for a second, but, you know, a lot of farmers, especially, you know, in the western part of the state, they know the Agricultural Risk Coverage Price Loss Coverage, ARC PLC. They know that program. We've been signing up people on that for years. Grain Bases have been around since the mid-'80s. That's when they were first established. So you, most farmers you can walk up to and say, hey, do you know about Grain Base? And they're like, oh yeah, that's, that's the history I have on my farm. So I think that's one program that gets used quite a bit. You know, everyone's familiar with that just because of how long we've been doing that kind of sign-up, how long Grain Base has been around. But maybe underutilized programs that we would have would be, you know, some of our other risk protection products that are out there or programs that are out there like our NAP coverage. So NAP is Non-Insured Assistance Program. That's for basically all crops that you can't get, crop insurance, Federal Crop Insurance for.

[00:18:44.060] - David Wayne
Okay. Yeah.

[00:18:44.520] - Chris Griffin
So I didn't know about that.

[00:18:46.080] - David Wayne
So yeah.

[00:18:46.980] - Chris Griffin
Yeah.

[00:18:47.120] - David Wayne
Like your specialty crops. So, uh, you're seeing a big, uh, influx of specialty crop producers just as they, you know, farmers started to diversify, look at other, uh, avenues of production revenue, you know, on their farms. Specialty crop is becoming, uh, more prevalent, especially in Western Kentucky. So that non-insured assistance program, uh, the what quick way to describe it is crop insurance for everything you can't get crop insurance for. So yeah, if you're watermelon, strawberries, tomatoes, what have you, you can get a risk protection coverage based off of your production history. It works a lot like a crop insurance product to where you establish your own yields, you turn in your losses, you're paid based off of a guarantee. All those things. So that's one program that I think is underutilized, that as we see specialty crops here in Kentucky, Tennessee becoming more prevalent, that's one that's underutilized that I think could be beneficial to our producers. But also just the, you know, we talked about guaranteed loans quite a bit. I think producers think of the amount of money that they're asking for and they forget that Uh, FSA, uh, can be involved in that through that guaranteed loan program, uh, and help them out on interest rate.

[00:20:07.460] - David Wayne
And they can work with their, uh, commercial lender, you know, like River Valley, uh, that they're used to working with, all those same loan officers. Um, they can work with them to secure that loan and then we can guarantee the funding, uh, and get them an opportunity that they may not normally have been able to get, uh, without FSA participation. So, um, yeah, I think those are always a couple things.

[00:20:31.440] - Chris Griffin
Yeah. I just feel like it gets their foot in the door a lot of times. And, you know, like you said, it's just having that FSA guarantee for us just allows that borrower just to get into an operation that maybe otherwise they, they couldn't do it. And I mean, if it wasn't for you all, I don't, you know, there's a lot of people, I don't know if they could. And then obviously over time they get established and, and they're in a different situation. And so. Uh, you know, we, I've always said, like I said, I haven't, you know, I don't do a lot of poultry loans and stuff, but, you know, I used to work with, you know, some people that were here and, you know, I've just seen it multiple times just talking to credit stuff. And, you know, when obviously been to y'all's guaranteed lender training, which is super helpful that you all have for us. And, you know, just how much of a benefit it is for the farmers and for the borrowers and for us to be able to, you know, try to benefit that community as much as we can.

[00:21:21.290] - Chris Griffin
And so. We always appreciate that. And, you know, I think you answered a little bit, you know, I think it talks about, you know, some of the misconceptions farmers have about FSA loans. And I think you all answered a little bit earlier, I think, and you can kind of add extra to this if you want to. But, you know, just thinking that it's only for beginning farmers, I just don't think that's the case. And that's actually something I'm learning right here on this podcast is I always thought about it as just beginning farmers. Um, so dive in that just a little bit more if you've got a little bit more to, to add to it and, uh, and, and just kind of give a little bit more info on that.

[00:21:57.320] - Anna Armstrong
Yeah, I'll, I'll talk on that. And I also wanted to add like what, before they go into that, what David Wang was saying about some other programs, the first thing that I always think about that I don't think that a lot of people realize on the program side is that we have the MALs, which is the Marketing Assistant Loans, and And then we have the FSFLs, which are the Farm Storage Facility Loans, which it's not on the farm loan side, but that's actually on the county office side. So the marketing assistance loans is where if you have grain in a bin, you can take a loan out against that grain if you need cash right now, but you're still marketing your grain. And then the Farm Storage Facility Loans, I mean, you could— it's loans for like grain bins, hay barns. You can also— I think they've changed with it. Look at me talking like I know programs. They've talked about, uh, in the last few years, you can actually do loans like on semis or a hopper bottom or things like that. I think that a lot of our borrowers and farmers don't realize that there are some of those availabilities too, even for loans on the program side.

[00:23:00.170] - Anna Armstrong
So I just kind of wanted to throw that out there. Sorry, David.

[00:23:02.290] - David Wayne
No, that's quite all right. Yeah, the FSFL program and the MAL program, those are both considered price support programs because what we're doing is we're giving producers an opportunity to better market, maybe delay marketing for more favorable prices. So that's why they're on the— we consider them a program side and not the lending side, as they use price support dollars to support, to fund those loans. But yeah, definitely all these opportunities, you know, we— our goal is to expand the playing field for producers, expand their opportunities to better their operation. And each one of those coupled with a guaranteed loan from River Valley AgCredit, an FSFL for a grain cart, an MAL so you can market later and still fund, you know, inputs on your farm or whatever at the time, do prepaids. Those are all things that are going to make that producer manage their revenue differently, their income differently, and hopefully make them more secure financially moving forward.

[00:24:13.280] - Anna Armstrong
Right.

[00:24:13.460] - Chris Griffin
Something I wanted to circle back to, because I meant to ask about this and, you know, you're talking about that NAP program. I think, I don't think like probably the average listener, you know, who's maybe not familiar with farming, you know, what I've noticed is here locally is obviously there is a lot more diversity, people adding, you know, like strawberries and watermelons and things like that because it does diversify their program, you know, their operation. 'cause if they're just strictly row cropping. So have you seen that more across the state over the last, you know, 3 to 5 years than in the past? Is that something that's growing and do you expect it to kind of continue?

[00:24:49.750] - David Wayne
Yes, I think so. The, the need for, excuse me, different revenue streams, uh, on the farm or diversification, um, something that, you know, with row crops or livestock, the revenue is so cyclical, you've got to wait till you, you know, sell the commodity, what have you, you know, months later versus the quicker turnaround maybe on some specialty crops has made that more attractive. Also, you know, we see a lot of tobacco producers making that transition to specialty crop, for one, because they're used to the, the high input per acre. That tobacco has compared to specialty crops. They're used to that type of production strategy. So that's one thing that we're seeing as well. But a lot of it is, is that I think producers are looking at ways to add revenue to their operation, utilize the land that they have, the equipment that they have, the knowledge that they have to just, you know, get that extra, extra bit of income that can help carry them into the next year. So specialty crops is a great way to do that. And I think that's why they've really become more prevalent in years to come. I think if you look at the change in acreage for specialty crops, especially in western Kentucky, has grown almost exponentially in the past 4 to 5 years because of some of those producers transitioning into specialty crops.

[00:26:22.640] - David Wayne
I think also the push for, uh, you know, locally produced food and produce and vegetables, fruits and vegetables, those sorts of things have driven that as well, where retailers are contracting with local producers versus, um, you know, having to ship the stuff across several states. Uh, so I think that's another benefit too, is just the, the movement towards, uh, real food in our consumption stream.

[00:26:52.320] - Chris Griffin
Even here in western Kentucky, I mean, there's a bar that we have that, you know, they grow watermelons and strawberries and melons and some different things. They sell directly to Costco. You know, I don't think anybody would sit here and go, oh, we have an operation in Kentucky, in Graves County, that sells directly to Costco. Right? I mean, and so, you know, it is, there is opportunity there. Like you said, it has grown.. I think we see it, we've seen it more and more over the last couple years. So, Anna, this question's for you. So YBS, and for the listeners, Young, Beginning, and Small Farmers, that's a big initiative for FCA and Farm Credit. Tell us how you guys are trying to support that and some programs that you're offering to try to obviously cultivate those young, beginning, and small farmers, because obviously that's something that that is really important with the longevity of farming in the future.

[00:27:45.780] - David Wayne
Right.

[00:27:46.590] - Anna Armstrong
So a lot, I know being in the Mayfield area, a lot of, um, opportunity that people forget about is our youth loans. So we have youth loans that, um, the young generation that are interested in farming, agriculture can get their foot in the door by, um, looking at that with FSA. So that also, if you have a youth loan and it's paid in full, that can also count towards 1 year's eligibility for, uh, if you come back looking for a farm ownership loan, uh, as a beginning farmer. We also have a lot of people, you know, I feel like I kind of skipped over earlier and kind of got us off track. You asked about misconceptions, and I agree, like everybody has always been under the impression that, you know, you have to be a beginning farmer to get our loan. Or I've had the question of, okay, so what's the interest rate for the beginning farmer loan? So really, for our young beginning farmer, we do have one loan that is just for the beginning farmer, and it's called the Down Payment Loan. So that can help you get in the door as a young beginning farmer with a lower interest rate.

[00:28:53.750] - Anna Armstrong
We don't have to take any additional security, and then again, the lender that is participating can also have first lien. That, that kind of helps you get started and kind of some kind of foundation. Our youth loan, as I've talked about, I feel like it kind of goes out sometimes and doesn't really get remembered or talked about enough. You just have to have an advisor, 4-H, FFA. We can go up to $10,000. You can buy cattle. The loans can be from 1 to 7 years, but I feel like that is a really good foundation to get you started. And then we have microloans as well. That's like a smaller amount, less paperwork, and those are actually micro for farm ownership or operating loans as well. Um, but, you know, kind of like we said earlier, FSA isn't just beginning farmer, so all of these categories that we're talking about can help anybody looking for that that credit or finance that they need to expand or start their operation. As a young beginning farmer, FSA doesn't have to have the cash down payment. A lot of the additional security regulations have gone down, uh, in percentages than they have in the past.

[00:30:13.970] - Anna Armstrong
So with us being the young beginning farmer, you don't have to have as much working capital, your equity doesn't have to be a certain amount, we don't look exactly at your credit score,. We just look at creditworthiness. So I think all of those different categories together help a young beginning farmer get started since we don't have as many contingencies on what you have to meet as maybe like a credit or commercial credit does.

[00:30:40.550] - Chris Griffin
That makes perfect sense. You know, one of the questions, and you know, we, I know we've talked about some operations that, you know, use dual financing between, let's say, River Valley and FSA. Um, and, and you may have to go back in your memory bank, but can you think of an operation, obviously without naming names, but obviously an operation where dual financing really helped that operation grow? And maybe, you know, I know you've said you've been there 17 years. Um, you know, from the time, like maybe when you did and, and you look back, hey, we did that one. And you look at them now, you're like, wow, you know, look at where they are now as an operation. Uh, can you kind of talk about that? Maybe one that just stands out for you?

[00:31:18.340] - Anna Armstrong
Oh yeah.

[00:31:18.900] - David Wayne
So.

[00:31:19.880] - Anna Armstrong
I've done several different kinds of loans, several participation loans. River Valley has always been, you know, a main component in all these participations that we do. But first-time farmer looking to purchase a farm, just getting started, been farming with the family entire life, poultry. Poultry, you know, in this area is huge and even, even when I was a farm loan officer, the cost of these things, the participation with FSA and another lender as River Valley is very important to make the operation work, make the cash flow work, and also help that, you know, that borrower have leeway to be able to live and have that cash flow. But beginning farmer purchasing the farm wanted to build, I think it was 6 chicken barns. We were doing broilers, and I think it was Pilgrim's here in Mayfield. And, uh, came in, um, worked with FSA and River Valley, did the joint financing. I think we also did like the KFC loan with Kentucky Ag Finance, so that got them a really good interest rate on that end. Uh, they got the participation rate on our end, then, uh, got them up and running. And I think it was a few years later that Pilgrim's came back and asked them to build 2 more barns..

[00:32:44.080] - Anna Armstrong
And so with the equity that they had built, uh, in the operation that we had helped finance with River Valley, they were able to build those barns and not have to get direct money, but went solely through River Valley. And I think maybe there was just a guaranteed requested, uh, because, you know, when it comes to some of these poultry deals, that extra cushion there for any lender, whether it is River Valley or, um, someone else, is always good to have because you never know., with the ag economy, you know, what things could happen. But it's always good to see, you know, a story like that when they come to us first getting started, they do well, and then, you know, the integrator comes back and asks them to build 2 more barns. And they've done well enough that FSA didn't have to be directly involved that time, that they could solely be with you all at River Valley.

[00:33:33.930] - Chris Griffin
Well, David, I'll kind of let you answer this one. I mean, I know from our perspective, like, I mean, I love seeing operations grow. I love seeing, you know, I think the reason all three of us are in this is we like seeing people succeed. I mean, I don't think, uh, you know, I think a lot of times people are like, oh, we're just lending money. It's really not. I mean, I really feel like you become part of that operation and that family and you like seeing the success that they have. And, you know, just tell us a little bit, you know, I know you talked, kind of talked about, you know, you're really honored to, to be in your role. You know, tell us a little bit about that and just kind of, your perspective and what you bring to work every day and on a daily basis?

[00:34:10.170] - David Wayne
Well, Chris, that's a good question. I think my career has been focused on and through the different agencies that I work for and the path that has led me to FSA. I've tried to get more and more to where I can give back to agriculture. You know, growing up, if you asked me as a, when I was a teenager out in the tobacco patch, if I wanted to farm, I would've said no way. But I remember, I don't know, I was probably 20 or something home from college for Christmas break and was talking to my dad and just, you know, telling him, I was like, I don't think I understood when I was younger what the farm did for me.. And it gave me a sense of pride for a hard day's work, uh, uh, appreciation for, uh, those that raise our food, uh, or, you know, raise the fiber that clothes us, uh, those sorts of things. So what I've tried to do with my time with FSA, even as accounting executive director, was, uh, make sure that I can do the job in a way to get as many producers involved with our programs as I can because our programs are designed to offset their losses, you know, protect them from risk, mitigate the risk.

[00:35:36.680] - David Wayne
We're really there. You know, the old saying is, you know, we're from the government, we're here to help. Some of the scariest words that can be said. But really, truly, at FSA, that's what we're here to do. You know, our middle name is service, the Farm Service Agency. And I think we have a state full of staff, FFA staff or FSA staff that are truly here to help the farmer.

[00:36:02.670] - Anna Armstrong
They—

[00:36:03.560] - David Wayne
These are their neighbors, their family members, their friends, and they're working alongside them to make sure that their operations are protected. They're navigated through some of the more complicated paperwork for some of our disaster programs. You know, that's what our staff do on a daily basis, is help farmers navigate that to be able to participate, to get those benefits, to keep farming into the next year, years to come. So what I hope to bring to that is a sense of leadership of someone that has been there across the counter with the farmer working through those programs and also helping make decisions to where we can efficiently and effectively roll out these programs in the state of Kentucky. So, uh, that's, hope to answer your question. I think, I think that's what you were going.

[00:36:58.410] - Chris Griffin
Yeah. I just, I think people need to realize, you know, especially even us as loan officers and relationship managers, you know, you know what, I do it because I really love working with people and, you know, obviously the, the loans that we do and, and, you know, that we put on, that's a bonus, but. The relationships that we build along the way is obviously, you know, that's what most important. So I know you guys have a similar heart. That's, you know, we appreciate that. So, and I got, okay, so Anna's gonna love these next two questions.

[00:37:28.170] - Anna Armstrong
I can only imagine.

[00:37:30.520] - Chris Griffin
So Anna, and I'll combine the two questions. So, okay. Walk us through the application process and kind of what someone should expect. All right. That's part A. Part B, this is where the hard-hitting question comes in. What can, what can they do to expedite the process and make your life easier? Okay. Not like their life easier, but like, what can they do to help? Because I know just like in my role, you know, borrowers who, you know, if I email, if I need something and they get it to me quickly, it definitely expedites the process. Right? I can't, there's only so much I can do as the lender. And so what can they do? You know, what does that application process look like and what can they do to help the process be as smooth as possible and easier for you all?

[00:38:14.710] - Anna Armstrong
Right. So, uh, this is, this is always like the first question that everybody asks, like, what do I have to do?

[00:38:19.710] - Chris Griffin
I should have asked this on the very front end. Just come, just dove right in and just started.

[00:38:23.430] - Anna Armstrong
Just dove right into it.

[00:38:24.290] - Chris Griffin
Hard hitting questions right up front.

[00:38:26.490] - Anna Armstrong
So, yeah. So application process, there's a different few ways that you can start an application. Now we've moved up in the world and you can apply online. We have the online tool. I've always, and I think that's great. I like talking to you in person. I like that kind of communication. And I've ran into like a lot of our farmers, a lot of people we work with, they like that better too. So they can look at you and sit down with you. You can always call, you can always set up a meeting with our, your local office and come in and fill out the application. So our application has actually been like dialed down a little bit. It's like all in one form instead of several different pages now. It still is a lot of paperwork. I feel like I always say with FSA, it's all the paperwork up front and not as much at the end of it. I feel like that's a little bit opposite as it is for maybe a commercial lender. It's not as much up front as it is at closing, but sit down, fill out an application. We take your financials, your production records, credit report fee.

[00:39:26.580] - Anna Armstrong
There are certain items depending on what kind of loan that you're doing that have to be given. To your loan officer or loan manager to get that application complete. If that application isn't complete and we have everything that we need within 7 days of receiving it, the applicant will get a letter and it'll state on there exactly what we need. If there also will be a date on there that says, hey, within 15 days of receiving this, if you don't have it, you'll get 15 more days to get it to us. So by the time we get a complete application, that's, that's when that loan officer can really dig into it and start working on it because we have everything that we need to start processing. Now, along the lines, there may be a few other things that we need that's not a part of a complete application, which could be like, um, some environmental stuff. Maybe it's a hog operation and we have to have your nutrient management plan, or you're doing some type of construction and we have to have your stormwater runoff permit. So kind of going into your next question, how to expedite that process, it really, really depends on what kind of loan we're doing, what time frame that office is looking at as you know, what they're doing locally.

[00:40:37.450] - Anna Armstrong
Do they have a lot of influx of loans? So whenever your loan officer sends you a letter or you're in conversation with them and they ask you for, we need your 3 years of financial history, we need your 3 years of production history, and we need verification of cash on hand in your checking account. As soon as you're able to get those to your loan officer that you're working with, the faster that we're able to work on your application. And I also think a big misconception with FSA, when you're first working with us, then what you may think of, like if you're working with a local bank, is our Farm Loan Officers and our Farm Loan Managers, they're the one that sits down with you and takes the application. They're the one that inputs it into our system. They do the underwriting. They do the approval if it's within their authority. They're the ones that orders the appraisal and reviews the appraisal. They order the title work, they review the title work, and they also prepare the loan closing. So it's not going from one person to another. We have it from start to finish.

[00:41:41.230] - Chris Griffin
So really they're like the processor, underwriter, approver.

[00:41:45.290] - Anna Armstrong
Yes, sir. We're everything in one. Yeah. So that, that process, because it is that way, kind of slows things down a little bit.. But I assure you, each of us don't want anything on our desk longer than it has to be because we're wanting to get that out the door and help you all as a lender and the borrowers too. So the best way is to get the information to your county office and your loan officer as soon as possible. Now, this is kind of going down a different rabbit hole, but like environmental, I know you all know what I'm talking about, but like that also adds on to to, uh, you know, the process as well. So it's always good to make sure to talk to your loan officer, farmer manager about, um, all the ins and outs of what your loan is going to entail, just depending on what type of loan it is and what your operation is.

[00:42:38.030] - Chris Griffin
So, and not speaking for you all, but, you know, and I still do some home loans, but I, when I came here 4 years ago, I came from home site, the secondary market, and obviously it's very, you know, underwriting's gonna come back there and ask you for certain things.

[00:42:51.420] - Anna Armstrong
Yeah.

[00:42:51.560] - Chris Griffin
And he used to always tell people, I'm like, you can either gripe about it and drag your feet or just do it. Right.

[00:42:58.860] - Anna Armstrong
Like, right.

[00:42:59.260] - Chris Griffin
The quicker you get it in and the quicker we get it back, the quicker we're gonna get approval. And a lot of times I just got, even as a loan officer, you know, sometimes I'd roll my eyes. Like, I can't believe they're asking for this. Then I finally got to the point where I was like, you know what? Who cares? You know, it's like, If they need it, they need it. Let's just get it and move on. And I kind of took that approach with borrowers. And I think a lot of times, I think your borrowers look at it that way. You know, they're not like questioning anything. They're not nitpicking. I think it's just, you know, it's just part of their job. And the quicker you get it to 'em, the quicker they can sign off on it and mark that off their list too. Because I promise you, even from my perspective, and I know you all, the quicker you can mark that, checkmark that. Item off your list, the better. Because I know you probably don't have like, you know, you don't want to have a bunch of loose ends either. So, you know, I think the biggest thing, and like I said, I'm not speaking for you all, but I know from a lender perspective, you know, I just look at, we're all on the same team here.

[00:43:52.830] - Chris Griffin
We're all wanting to get to the same goal, and that is getting the loan closed and getting the borrower set up. And so, you know, I think if people go into it with that perspective and not saying, well, they're just fighting against me not to get this loan closed, that's not what they're doing. I promise you they want to get it closed and they want to get it done. So, so that's just a word of advice, I guess, for anybody. Switching from my perspective to kind of take over for you guys a little bit. But, you know, as agriculture changes, and I know, you know, I know even on our end, like, the Farmer Mac dwelling limit has changed over the last couple of years, obviously with inflation and some other things. You know, I know in our last meeting, you know, some of the lending limits have increased for you guys. And either one of you guys can answer this however you want, but you kind of discussed that, how you guys are changing with the changing environment, you know, rising costs, lending limits, etc.?

[00:44:40.950] - David Wayne
Yeah, so I'll take that one. Um, yeah, lending limits are definitely an example of us trying to keep up with the times. Um, you know, as costs go up, as prices of equipment, inputs, all those things go up, the amount of lending, uh, that's available has to go up as well. So, um, you know, that, that is one thing. I'm glad you brought that up, that that is reflective of us changing with the agricultural times. But I think another example is our use of technology. Anna mentioned that, you know, we— you can now apply online. We have the fast-track process that's available to producers that we— that has been implemented to speed up that process. Some other modernizations that USDA is doing— just recently, Secretary Rollins announced One Farmer, One File. This is an effort to create a single streamlined record for that follows the farmer no matter what agency within the USDA system they're using. So we have a lot of producers that participate with FSA, NRCS, and RMA, the Risk Management Agency. So, and each agency uses a different format for their customer profile. Eligibility, those sorts of things. So this modernization effort is really going to bring that down to, like the name says, one farmer, one file, so that they can move seamlessly between the different agencies to participate in the different programs.

[00:46:13.790] - David Wayne
So just as farmers have to be more efficient in their operations, USDA wants to be more efficient as well, so that we can better serve the farmers that need us.

[00:46:26.770] - Chris Griffin
No, look, you know, even on our end, you know, we've started doing DocuSign and some other things to try to, you know, even from a time perspective for a lot of our farmers, you know, if they're renewing a lot of credit, they don't have to take out, you know, drive to the office and sign and then go back, you know, sometimes it's right in the middle of planting season. So, you know, so we're trying to adapt as well. And I know you guys are as well. So this is our last question and it's, It's going to be a loaded question probably. And whoever wants to answer can, but what's probably the best advice you could give to a farmer? And probably if you could, from this podcast, if somebody's listening, what's one takeaway you want the farmers to know about FSA? If there's one thing that they could remember when they're thinking about you guys.

[00:47:09.910] - David Wayne
I think Anna and I both will take a stab at this one, but my advice is stay informed. Uh, there's so many opportunities and programs that farmers miss out on. Uh, we do our best to provide outreach, but it's tough reaching everyone. Uh, you know, it's tough to get to all the grower meetings. Uh, we may have producers that don't sign up for our newsletters or our text message alerts. So, uh, my advice to farmers is just try and stay informed. Uh, you know, make a stop by our office and say, hey, what This is what I'm doing in my operation. What do you all have program-wise, lending-wise that I could use on my farm? So that would be my one bit of advice is to stay informed. I guess my takeaway would be if anyone gets anything from this whole conversation is that the Farm Service Agency is truly here to serve the farmer. That is the heart and soul of of what the employees have. The mission that we have every day is to serve the farmers, to keep them farming into the next year, to protect their financial viability. Really, I mean, this, the whole administration now is focused on putting the farmer first.

[00:48:28.500] - David Wayne
And I know Ana probably has some advice as well from the loan specialist view of things as well.

[00:48:36.530] - Anna Armstrong
Yeah, so I would say my best advice, and you may think I'm a little crazy on this one, but working with farmers in the finance standpoint of things on their operation as many years as I have is know your balance sheet. Um, maybe look at it a few times throughout the year, know where you stand, uh, yourself. I feel like I think maybe some of the hard times people fell on is because they rely on us as lenders to be able to tell them that they can do it or not. May check that balance sheet throughout the year and know your inputs, know what it's costing you to put out an acre of corn or an acre of beans. Kind of like Gavin said, be informed about your operation as well as you can. I know that kind of sounds silly to say that, but I feel like that's one of the most important things as a farmer, young farmer, seasoned farmer, veteran farmer that you can do for yourself and your operation. Best takeaway for anybody listening, you know, I'm a farmer's daughter, I'm a farmer's wife, I live agriculture all day long. So if I'm not here at work helping, you know, my people, they're farming, I'm at home farming, and we are truly here to help you.

[00:49:53.710] - Anna Armstrong
We take it very seriously. It's not something that comes lightly. We know that all of our programs and all of our loans are there to help you, and a lot of times in a lot of years, It's what keeps you going. And so, like, as David said earlier, we're a farm service agency. And so we're here to serve our borrowers and our farmers in the best way possible as we can.

[00:50:18.840] - Chris Griffin
Well, I'm just going to back that up and say, you know, we have a ton of respect for you all. I know you guys sometimes have a thankless job, honestly, and I get that. And so, you know, I've listened to you guys at guaranteed lender training that you offered us and always had a lot of respect and for the time and the effort that you guys put in. And so I know, I know you're extremely busy and I appreciate you guys taking the time out of your day, you know, an hour and to do the podcast and, and we've really enjoyed it and I thought it was excellent. I learned a lot today and hopefully the listeners learned a lot as well.

[00:50:53.140] - Anna Armstrong
So, yeah, I really appreciate you asking us and being able to come and talk about the loans and what FSA can offer. And we appreciate River Valley and all the lenders who want to participate with us. And kind of like you said earlier, we all have the same end goal, and that is to help the farmer, support the farmer, and get them the support and financing they need. So we really appreciate River Valley and their relationship.

[00:51:20.080] - Chris Griffin
We appreciate you guys. So, well, David and Anna, we thank you guys for being on, and, uh, thanks for everybody listening today. And, and as always, thanks for joining us today on Back to Your Roots. Thanks for tuning in to Back to Your Roots, where we dish the dirt on all things ag. Be sure to never miss an episode by following and subscribing. While there, leave us a review about what you want to hear next. Stay in the know between episodes by following us on Facebook, Instagram, Twitter, LinkedIn, and TikTok. For more resources, go to our website at rivervalleyagcredit.com.