Fear and Anxiety are two good descriptors of the pervading environment in agriculture today. As one lender said to me recently, “We have gone from ‘grow, grow, grow’ to an era of uncertainty that leads to fear and anxiety in all components of agriculture.”  Another lender continued on to ask, “Particularly as young lenders, how can we best work through fear and anxiety with our customers?” Well, as is usually the case, some work is required. 

First, one must realize that fear and anxiety are emotions and therefore evoke emotional reactions. The best way to disperse emotions is to interject objectivity and fact. Whether you are a producer or lender, I suggest working from sound, financial information to ascertain the actual financial condition of the business. Sometimes a trend analysis can be helpful in determining if the losses or gains were part of the economic cycle or possible mismanagement. Additionally, a trend analysis can show that the business was profitable in the past, which can be comforting in the overall process of examination.

For any new producer or lender who has not experienced an economic downturn, a good mentor can be an excellent choice. Drawing from institutional memory and wisdom is often necessary to bring logic into an emotional time.

While reviewing financial information, it is important to include analysis of the overall business environment. In some instances, fear or anxiety may be driven by the spouse or partner. Conduct inclusive meetings with all stakeholders. Open communication is critical in addressing emotions, as often fear and anxiety come from the unknown. Communication will also prove useful in accurately assessing the financial condition, working through options, and mapping out a strategy for corrective action.

Often fear and anxiety stem from rumors heard at the coffee shop or on a social media exchange. Whether it’s the markets, weather or the latest surprise at the neighbor’s house, rumors can quickly incite emotional reactions throughout the business and community. Transparency and direct communication may be the best remedy for quelling fear and anxiety caused from that week’s hottest topic.

As the year 2016 progresses, fear and anxiety may result in inaction, withdrawal and even denial. Most often, this mindset causes more adverse outcomes. A proactive approach requires planning and analysis, which can be daunting. However, a proactive analysis of the business will help neutralize emotional, reactive decision making that leads to further problems. It is much like the old, infamous marketing slogan from FRAM, “You pay me now or pay me later.”