The Farmers Club

No 240 - Monday's Club Notes

Dwain Duxson
June 24, 2024

The “Club Notes” for Monday, the 24th of June, 2024.

By Dwain Duxson

Old Fashion Bank Managers - Your replies

This is one of those topics that attracted alot of replies because banking and finance are a huge part of Agriculture, and everyone has a different story or experience to tell. So the conclusion we have come to is that it doesn't matter what bank you deal with, there are some good Agri-focused managers within the organisation; you just have to find them. See all the replies below. There are a few, and it will take a bit of time to get through, but it's fascinating reading. So many different scenarios. We might start a list of good Agri Bank Managers, so if you have a good bank manager or one you want to recommend one, please send through their name, location and which bank they work for. Reply to [email protected]

The Farmers Club - For the curious ones

See all replies below

G'day Dwain, I agree wholeheartedly; I'm one of those Bank Managers you once knew. In the "good old days", I had a delegation to approve term loans, overdrafts, Temporary Seasonal Advances, etc... provided we had satisfactory security and the Farmers could provide reasonable prospects of meeting their commitments. Those delegation limits slowly got eroded, mainly due to poor lending approvals where the bank lost money as a result in "other" area's other than the rural sector. The trips to the Farms were something to look forward to, as were the homemade cakes or baked dinners. All Farm records were recorded in the tattered notebook in their shirt pockets, (often been through the washer). I did consider all my customers as friends and was never let down. We could always discuss any situation to come to amicable agreements. Ah, the advent of technology and shareholders, they've lost sight of common sense, care and their paying customers.
Good morning Dwain. Regarding bank managers: our experience could not be more different to the "new" model of bank manager you describe. Ever since we started out Farming from scratch 15 years ago, we have had three attentive, engaged and kind Agribusiness bank managers with our local branch in Horsham (the first retired - we even got invited to his retirement party! - the second moved upwards, and the third was literally at our Farm last week). They are out there, but you need to find them and then treat them like a valued partner in your business -and it will be reciprocated. And this applies to everyone we deal with - our valued Mechanic who will drop everything for us, our local bearings supplier who knows every bit of Equipment we own, and our Sheep vet who could run our Farm better than us. These relationships are what gives us our edge over Farmers who don't have such connections; they are so valuable. Keep looking until you find them, and don't be afraid to let the un-engaged free-loaders go. Keep up the good work Dwain.
Hi Dwain, Another great thought-provoking read. Having ventured down the AgriBanking space later in life without what might be called a traditional pathway, I found it astounding the lack of overall financial literacy among Farmers. Cashflow budget? Never done one before, why should I do that! Statement of position? I'm not giving you that information! Risk strategy? No, it will be right. Succession planning? Too hard! To be frank, some Farmers are reaping what they have sown; my suggestion to EVERY farmer is to know your business and be able to talk about your plans and risk mitigation strategies; most will have a plan in their head; it just needs to be written down for the benefit of their banker. The bankers are advocates for the Farmers to the bank's credit decision-makers; it should be up to the bankers to be mind readers. The Banking Royal Commission highlighted that there are still Farmers who look to blame someone else when things don't go to plan. Farms now are in the main multi-million dollar businesses; it's time for Farmers to start treating them as such; the good ones have been doing it and have reaped the rewards. It's too easy for a bandwagon to be jumped on when piling into a group that has alienated some; maybe everyone complaining should look in the mirror and rate their level of knowledge and how well they have presented their business before looking to apportion blame. Rant over. Keep up the good work.
The days of a relationship with a bank or bank manager are long gone, unfortunately, we have financed a lot of Machinery over the years, and we have developed a relationship with several brokers that specialise in their field that are on our side Also we have found that rather than trying to have a relationship with a banker that is more and more unachievable in today's world without personal contact we have changed our way of thought and use credit cards more you can usually negotiate a decent rate on them plus there are rewards usually available by using them Yes the interest is higher but we just look at that as a cost of doing business as you don't have to justify what you are spending the money on by changing our way of thinking over the years and I have been in business over 35 years we have a successful model that works for us
Hi Dwain, We don't have a bank manager. We are with NAB Agri, and our Agri branch is now in Nowra, some 5 hrs away. Why? Because we live on the Southern Tablelands, some bright spark thought: oh, that's South. We'll give them a manager there. When buying the place 7 years ago, I had to go and visit our then-manager in Bathurst. He didn't do visits. Now that office is gone, and the nearest one is in Orange, some 3 hrs away. They are all bright young things, which is good, but they all stick by the book. Our best one was when we farmed up in Grafton, and the lady there was brilliant. Nothing was a problem. Then she retired, silence. Luckily, we don't need to call on them much.
Dwain, we have had the same bank manager for about 12 years. I doubt we would still be here without his support. I got an email from the bank earlier this week; the bank has had a restructure, and I'm not sure where we now stand as far as contact is concerned. Waiting for a response from them.
G'day Dwain. Our bank manager journey has been interesting to say the least. As a first-generation operation, the move from residential to rural at NAB was lumpy, and they wouldn't get back into our first Farm. We had a guy from Rural Finance come out and meet with us, look at the Farm, talk about goals and then find a way to fund us (at close to 9%!). Then, when it came time to buy next door, Rural Finance didn't want to help, and we'd changed managers to a young guy that was a little bit slack. So back to NAB, we went, and the NAB backed us in, and at a 2% lower interest rate! The problem we hit was the new Manager wouldn't give us more than $20k as an overdraft, and he treated the bank's money like it was his own. We missed a heap of opportunities due to being so constrained with cash. We then had a young Westpac manager drop in a couple of times, and he was keen to do business and help. We made the call and left NAB. The regional Manager called to try and keep our business, but the Westpac deal was too good not to take. We bought Machinery without finance being organised, and he would just make it happen. He got us an overdraft that fit our business and would allow us to buy Stock and Equipment as deals came up. We've been truly blessed since moving to Westpac; both managers dropped in or would call randomly to check-in. I still talk regularly to the original Manager who got us to Westpac, a great fella. Moving banks was the best thing we ever did.
Morning Dwain. This story very much resonates with me. I remember in the late 80's, when we wanted to borrow to buy more Land, the bank manager was an advocate for us. He would inspect prospects, help with forecasts, advise on the most suitable loan, help with applications, etc. We had a great, trusting, mutual relationship. These days, wow! You feel like a criminal asking for an appointment with your bank manager! They seem deadset on making things as difficult and complicated as possible. Multiple applications, roadblocks, extensive reviews, long wait times.....all while having no idea or interest in what you are trying to achieve even though you have been their customer for 50 years!!! Bring back the good old caring guys!!
We just switched banks for this reason. Slow/terrible communication is the biggest reason. Gone with a broker that used to be a local bank manager in the area. And picked a bank not only on the $ were better off but also on the ability for the Manager were dealing with that has some ability to make a call.
Hi Dwain, I must say - we bank with the Commonwealth Bank, and this is the 5th generation to do so - apparently, we are one of their longest-term customers in the Bendigo area. We have had our own personal Agribusiness manager for years, and although they have changed from time to time, which is a bit scary, we have found them all to be fantastic. We speak to each other constantly; the discussions are very open and honest, they know our businesses extremely well, visit often and help us realise our short and long-term goals. Because of our relationship, we trust each other, push hard for solutions, and certainly stretch the boundaries constantly. We do realise banks are there for the profit, and we certainly contribute, but in the end, they have supported every business decision we have made and continue that solid support when we have extremely difficult times. It is a great team effort all round.
Good morning Dwain. Thankfully, I still have a bank manager who comes to the Farm. Not sure how long it will last as ANZ has brought Suncorp. I am not a strong advocate of Government ownership, but I started farming with the Commonwealth Development Bank and State Bank of NSW, both Gov owned. The big 4 have become very remote from Farmers unless you are a very big player.
G'day Dwain, I'm not sure how much we owed the bank when I was a kid.....but it must have been a fair bit as we had to pick up and deliver his Dog back when he went on Holidays!
Good Morning Dwain, Newly married and looking to purchase our own Farm, there seemed to be little interest shown by the suburban branch Manager of our then-current bank. Not to be deterred we approached the SSB in the same suburb - neither of us holding current accounts at the time. This branch Manager, having a holiday home in Wandiligong, could not have been more interested and supportive of our venture, and as a result, we changed banks. The cherry on the cake was a letter received from Head Office noting with dismay the closure of the previous long-standing account and seeking reasons as to why, after many years of family banking, the account had been closed and what could be done to regain our custom.
Hi Dwain, I remember the days your talking about with bank managers been more hands on. As a teenager remember them visiting my parents and uncles/aunty's grandparents altogether for a full day (all in partnership) While us grandkids played outside. After leaving school at 15 brothers and I started a partnership and had the same Manager for about 10 years. Since my brothers and I went separate ways in 2009, I think I've seen a new bank manager 3 times and haven't even asked for a budget since being out in partnership with my wife.
Dwain, Farming is too long-term for a lot of outsiders to understand, which can include your local or not-so-local bank manager. Too many variables that can't be tied down, such as the weather or the price you are going to get for what you produce on the Farm. I used to remember the bank manager coming to our Farm in the UK for a catch-up with my parents and then coming and finding me for a chat. The son who came home was a plus in points for lending.
Hi Dwain, I have an awesome manager at NAB. He will call me at least a couple of times a month for a yarn, and borrowing is not as easy as it was a few years ago, but it gets sorted within a month, not a few days like before
Hi Dwain. Since ANZ took over Landmark Rural Finance (who were great to deal with), we have not had a lot of fun. The first easing-in period was great as a Landmark employee was there to set things up, aid the ANZ staff etc, etc. Since then, not so great. Messages not returned, appointments not kept, (forget about a visit to the actual Farm, as the Landmark staff did annually around budget time), queries un-answered and when I wished to find out why, was informed that the person who was dealing with me had moved on to another position - no warning, no informative email, no info passed on to the new staff, nothing. So I forgot about the large branch, which shall not be named, and dealt with our local ANZ, who were great and on the ball until our little local branch closed down. So back to the big branch again where the one who greets you at the front desk can't even name who is available out the back in the Rural Office, or even if anyone is there!!
G'day Dwain. Your daily blogs are excellent, thank you. We are going through a succession plan at the moment, and it's very interesting to note what you have written. Late last year, I went to see our Farm bank manager with my parents and sister. I hadn't been involved with the Farming business for quite a number of years, but it was very clear that no matter which options we asked to move forward on, it was a clear no. This doesn't fit the module with the bank etc. As a family, we had a conversation about how disconnected the banking sector is with the day-to-day running of the Farm. The borrowing seems to favour the highest commodity product at that particular time. Earlier this year, we decided to apply with another bank, and it was refreshing to have a lady who was off a Farm and come to the kitchen table and have a face-to-face meeting. She was fantastic at her job and knew straight away what we were asking for and what her bank could offer. Up until meeting her, I had only ever heard of my parents saying gone are the good old days when the bank manager would come out, have a drive around, and say no worries, we can make that happen. Onwards and upwards for us, but many Farmers are becoming far more disillusioned by banking departments that have no background or knowledge of the day-to-day running of a Farm and what Farmers require. Confidence and connection require a two-way street.
Yes, been a Farmer since 1966. The local ANZ bank manager came once a year to know my operation and had a cuppa. ANZ closed the local branch, so it felt like a number at the regional bank. I moved to Rural Finance; wow...old fashion good service! The government sold it to Bendigo Bank, rebranded to Rural Bank, and promised the same service; for a while was good, then ok. I still had a relationship manager who had been to the Farm but now only visited if there was something to discuss. Then he's made redundant and now a call centre. To make matters worse, Rural Bank will disappear later this year and be left with Bendigo Bank. Local Bendigo Bank staff are really terrific and helpful. But in honesty, they deal with everyday things for the majority of people, not Agriculture-specific. Hopefully local branch stays open for my needs as I don't trust Internet banking, and probably never will.
I am a 3rd generation Farmer; I just bought our first Farm off my parents last year at half of the market value (huge leg up). The bank manager they had, who I'd often be sitting around the table with for a decade or more discussing options for my parent's Farm, had a guy that could "shoot from the hip" make a decision on an idea in a few minutes either way it went we had an answer to pursue or not. He had a medical scare and retired just before our Farm changed hands, so for what we thought was a very simple transaction became very complicated, 12 months in I haven't actually met our loan manager it's all via DocuSign, further on that since the Farm settled I've only had him on the phone once, I called him when we started Harvesting Corn in march. Just thought I'd share my story, thought it was just me, but if it's on your radar must be quite common.
It's not just Farms, I believe. It's most businesses. We continue to run our construction and Farms, which we have been for the last 14 years, but even after these major changes, I've never seen my Manager.. guessing with the technology, they don't think they need to. I think it’s a little short-sighted on the bank's part
I have to correct you here Dwain, the friendly bank manager does still exist! Well, they do if you bank with Rabobank anyway! We left NAB and went to Rabobank nearly 5 years ago as I'm still waiting for our NAB bank manager to get back to me re loan options as we were gearing up in the hunt for a future Farm purchase. I called Rabobank with zero clue about where to start, and the lady who answered the phone that day is our bank manager today and helped us get the auction ready within 3 weeks of moving banks, where we were successful in buying our first Farm. She will come out for a yearly visit and Farm tour and call us to see how Sowing/Harvest, etc, is going and how much rain we had. Plus, we have her direct mobile number. With NAB, we would have to call the generic Sydney number, then get transferred to our local branch, then transferred to our account manager, and half the time, they had already left, and no one had even told us or introduced our replacement. Within 2 years of converting to Rabobank, my whole family (2 brothers and parents) had converted too and wouldn't go anywhere else. And they were with smaller credit unions where you would expect more personalised service. I think this level of service is coming back, at least in Ag, anyway. And we should demand it!
Hello Dwain, Back in the day, I worked in a small Branch that consisted of 2 staff and the Manager. You knew every customer by name, and yes, the Manager did those trips out to the Farms, businesses, etc. Sadly, today, you are just treated like a number, and to this day, I do not know where my bank manager is situated or if I have one. Most times, when you contact the local branch, it leaves a message, and we will get back to you. Never a happy "Good morning, what can I do for you?" Sign of the times.

End of message.

Dwain Duxson
0427 011 900

Added Extras for subscribers only:

Event - FarmTender2025 - The Business of Farming event is on in SA in 2025. Take a sneak peek here.

Video - Terry Tran’s quarterly economic update is available here.

Offer - Any New Commander Ag Self-Propelled Augers - Get $1000 off RRP any new Commander Ag Quip Self-Propelled Augers through Farm Tender. Available to paid-up Farmers Club members only. Email [email protected] if interested.

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Offer - FarmTender2024 - See the (for paid subscribers only) FarmTender2024 - Entrepreneurs in Farming event. 6 hours of content, so many takeaways (valued at the ticket price of $350). It’s like 11 separate Farming podcasts all in one.

Offer - FarmTender2023 - See the (for paid subscribers only) FarmTender2023 - The Business of Farming event. 6 hours of content, many takeaways, and many things have changed (valued at the ticket price of $350).

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Good Ag Podcasts:

I listened to the Agricoach podcast over the weekend, and it features former Wallaby Beau Robinson from Dubbo, who works as a leadership coach with Farmers and rural-based businesses. A good deep dive into the goings-on with these businesses and how Beau plays his role in making them better. Rating 7/10. 59 minutes. Take a listen here.