Darwin Melnyk, President & CEO of IRON Solutions Inc. recently spoke at the American Bankers Association Conference about the explosive growth in agriculture:
- Farm income has grown by 147% since 1988
- Farms have increased total output by 50% since 1982
- Technology continues to change how we farm
- Demand and a global competitive marketplace drives buyers to efficient and technologically advanced machines and platforms
- Newer models of these agriculture machines are the platforms for greater yields and profits
- To meet global demand dealers and farmers need the latest technology
- To acquire the latest technology, farmers most often … finance these fleets
Behind the innovation of the ‘indispensable’ farmer is a supply chain of manufacturers, dealers and bankers and real time information. There are 2,200 farm banks in the United States. Farms loans have been growing 6% year over year increasing to $72.3 Billion. 93% of farm banks were profitable. 65% increased earnings and 99% are well capitalized. Non-performing loan ratio in 2011 was 1.97% and is declining.
In the process of bringing buyer and seller of agriculture equipment together, IRON Solutions plays a pivotal role by providing buyer and banker with accurate and timely information on equipment specification and valuation. The bank will base its risk assessment on the valuation provided and the past loan performance history of the buyer.
To see the entire presentation click on the link: ABA Presentation_10-23-12_v15_final_Distributed
For further information contact BIIA member IRON Solutions
