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Ag lender changes its face for the future
By Joann Pipkin
On the heels of its 90th anniversary, Farm Credit Services of Missouri strides out with a brand new name. Now known as FCS Financial, the rural financing organization brings two new sub brands, Ag & Business and Land & Home, to the table as it realigns itself to serve the needs of a changing rural landscape.
According to FCS Financial CEO Daryl Oldvader, the process began almost 2 years ago through strategic planning discussions.
The organization’s board of directors recognized three considerations in determining a name change to FCS Financial. Factors included: anticipating the impact of changes currently underway in the ag marketplace; the competitive environment in agricultural lending; and positioning the organization for the “next 90 years.”
“It’s not your father’s, or mother’s, agriculture anymore,” Oldvader said.
“Today in the Missouri marketplace, the trend reflects increasing numbers of smaller farms designed more for rural lifestyle with similar percentage increases for larger, commercial operations,” he added.
As it brings its new brand identity on board, FCS Financial is hopeful its Ag & Business and Land & Home sub-brands will help it better serve the needs of Missourians who need financial tools for farms and rural businesses.
Oldvader says Ag & Business will continue to focus on customers whose needs involve agriculture and agribusiness—including financing for real estate, operating expenses, equipment, machinery and livestock as well as risk management products. The group will encompass many of the organization’s larger full-time and commercial operators.
“The Land & Home sub-brand will reach out to customers seeking loans, insurance and financial guidance for real estate, investment property and land,” Oldvader explained.
There is reason to throw out the cookie-cutter approach to ag lending, said Oldvader. It’s no longer a “one-size-fits-all” environment. “Rather, each market segment has its unique requirements and niches. The new branding will allow FCS to maintain its equity in the ag market. Our core business has been agricultural lending and that will not change,” he said.
Oldvader went on to say that the new branding provides an opportunity for the organization to grow appeal in the rural lifestyle and capital markets. “It shows the flexibility and diversity of FCS Financial.”
With rural America’s changing face as a driving force for updates at FCS, Oldvader pointed out the impact such change is having on ag lending. He said the marketplace is viewed now with more sophistication by lenders. “Today, more full-time producers are specializing with fewer products, requiring lenders to become specialists in selected market segments.”
Lenders today must also be creative as it pertains to innovative, yet relevant products and services to fit the needs of customers, Oldvader noted. “Customers still seek the financial resource that is flexible and understands their business.”
There is a bottom line said Oldvader: “Agriculture is no longer just farming—it’s an economic and/or rural-social opportunity.”
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