Workforce Wednesday: Meet an Agricultural Loan Officer
Working in the lending industry is often considered a desk job, but for Cathy Schommer, an agricultural loan officer, her job is more field based.
Schommer is a Senior Focused Lending Specialist with Compeer Financial.
“Our goal is to go to the farmers when it works for their schedules,” Schommer said. “A big part of my job is being on the farm.”
Schommer says she visits farmers multiple times throughout the year and growing seasons. Seeing firsthand what’s happening on the farms helps her in meeting lending needs.
Like other loan officers, Schommer’s job is to help secure financial assistance. As an agricultural loan officer, she specifically helps people working within the agricultural industry. Growers need steady available funds to ensure they’re able to help feed the world, and she helps by assessing needs and total costs associated with operating.
Lending is cyclical, Schommer said. Most costs can be projected by determining how many acres will be grown, what crops will be grown and the anticipated overall costs for operations. Then, at the end of the year, the cycle begins again by reviewing the previous year and planning for the next.
Though the lending process is typically outlined at the end of the prior year, there may be unexpected needs throughout the growing year.
“Sometimes, we need to adjust our operating lines depending on costs changing, an unplanned repair cost or something similar,” Schommer said. “We're usually working with clients throughout the year before planting, and then at harvest as well. It’s important to get out there and see what’s happening. In addition, we discuss any capital needs such as new or replacement equipment, buildings and improvements, and land purchases as they arise”.
Schommer says she enjoys working with growers and often becomes close personally with her clients by spending so much time with them. However, this can present a challenge when adversity strikes for the client she helps.
Schommer said her biggest challenge is just helping people through times of adversity.
“You really do start to become very involved in client’s lives,” she said. “It’s very hard when you know what the overall goals are, and they work hard to achieve those goals, but for whatever reason, the weather or the markets don’t cooperate and things don’t go as planned. It’s difficult because you want to make it better."
Besides farm visits, Schommer said she also works with a Credit Coordinator and Credit Analyst to review and study the financial information, discusses loan structures, appropriate interest rates, orders appraisals on real estate and equipment and completes paperwork to finalize loans.
Much of what Schommer does today has come from experience and learning within her roles. She has been working in the lending industry since she graduated high school.
She began her career with a local bank in her hometown, and then moved over to the Farm Credit Services system in 1986.
“I'm somewhat of an exception to the rule here because typically agricultural lending officers come out of college with a degree in Agribusiness, Finance or Animal Science,” she said. “I've been around banking for my entire career, and Compeer has provided me with opportunities because I grew to know the clients and their industry.”
She has completed specific courses that have helped her including some from technical colleges, American Bankers Association and several programs through the United States Department of Agriculture.
Though Schommer did not begin her career with a background in agriculture, she has taken time over the years to learn and grow to love her career.
What is the one thing you know today that you would have liked to know on day 1?
Oh, so many things! I would say I wish I would have embraced technology and encouraged clients to use some of the online tools available much earlier. After the pandemic drove the necessity for use of these options, it opened my eyes to the time savings and convenience gained by both myself and the clients I work with.
