Independent Banker - September 2022 - 54

Customer story
president of the bank if they have a
question or a problem, adds Mudd.
MONTE VISTA NURSERY, LLC, FALL RIVER MILLS, CALIF.
Alberto Medina Lira exemplifies the American dream. Originally from
Mexico, he moved up the ladder from farm worker at Albaugh Ranch
to business partner of Monte Vista Nursery, LLC, which specializes in
growing strawberry stock plants, and is now its sole owner.
Lira and his business partners had been customers at the Fall River
Mills branch of Plumas Bank for more than a decade. However, in
2022, Lira bought out his partners and became sole proprietor of the
business. For the first time, he was approaching the community bank
as the sole applicant on a loan. Whereas other banks might have
declined the application, Plumas Bank's ag lender, John Hays, took
the time to dig deeper, explaining information that was missing on
the loan app so it was detailed and better positioned for approval.
" John did more than look at the numbers, " says Lira. The two talked
in detail about the operation, as well as Lira's life and how he worked
his way up to owning the business. Hays also visited the farm, looked
at his equipment and walked the fields. " He cares for his job, and he
cares for people, " says Lira. " He really lined up all the information
that he needed from me to do the best for me and for everybody. "
Alberto Medina Lira, pictured at Monte
Vista Nursery, worked with Plumas
Bank to obtain financing for the Fall
River Mills, Calif., farm.
LEVELING THE PLAYING FIELD
One of the common frustrations for
community bankers is that they're
playing on an uneven field; banks
carry a regulatory and compliance
burden that FCS, credit unions and
other nonbank lenders simply don't
have. As a government-sponsored
enterprise and cooperative, FCS also
has other advantages, such as lower
cost of funds and tax-free earnings.
That gives it a huge pricing advantage
on rural loans, making it difficult for
banks to compete.
" That becomes a pretty big
competitive advantage for them, "
notes Busta. " Their mission is to serve
all the farm applicants out there, but
they seem to try to get the strongest,
most financially fit farmers that are in
the area. "
ICBA is advocating for a number
of changes that could help level
the playing field for community
banks, benefiting rural America
in turn. Passing the bipartisan
Enhancing Credit Opportunities
for Rural America Act (ECORA
Act) would give community banks
tax benefits like those the FCS and
credit unions receive. ICBA also
supports increases to farm, housing
and rural development guaranteed
loan programs, including increasing
guaranteed farm operating and
ownership programs to a threshold of
at least $2.5 million versus the current
$1.825 million limit. This would
provide enough capital for family,
young, beginning, small, minority and
socially disadvantaged farmers to start
or expand farming operations.
In addition, part of the solution
for supporting rural America lies
in removing the impediments
for community banks, notably
burdensome and costly regulation.
" Increasing regulation is almost
suffocating some community banks, "
54 Q ICBA Independent Banker Q September 2022
Independent Banker - September 2022

Table of Contents for the Digital Edition of Independent Banker - September 2022
