SPEAKER_00: 0:14

Hey Kent, welcome to the podcast. How are you doing today, man?

SPEAKER_01: 0:18

I'm doing great. Thanks for having me. Looking forward to being here for a couple months now, I guess. We schedule this maybe three or four months ago.

SPEAKER_00: 0:26

So yeah, man, it's been out. This is uh the last of the series I'm doing with the Houston Safari Club Foundation leading up to the convention. When this episode drops, it'll be the 23rd, which will be one month away from the convention. I'm excited to see you out there in person, but I'm really glad to visit with you today. Uh, you know, we're gonna be talking a little bit about your history, being a seventh generation Texan and uh working with Capital Farm Credit. And uh, you know, just kind of as I do with a lot of guests, I like to give a little bit of introduction. Why don't you uh talk us uh through a little bit of, you know, where you grew up here in Texas, being a seventh generation Texan and uh, you know, your your rural agricultural life uh styles and how that kind of threaded into working with Capital Farm Credit, if you don't mind.

SPEAKER_01: 1:07

You bet. Um, well, I was born in Bay City, Texas, Matagorda County. Uh grew up on a about a 2200 acre cow calf farming operation. Um my family, as you said, I'm a seventh generation. My my great-great-great-great-grandfather landed in Matagorda, Texas in 1826. Uh, his name was Amelia Savage. And uh, so all the Texas uh Savages started there and uh long line of them. And you know, eventually I rolled around in 1962 and was raised on the ranch, like I said, called Six Bar Ranch. We had crossbred cattle and some registered Brahmin cattle at one time. But we we evolved from ranching more to farming as I grew up, and we were a major uh rice and row crop farming operation. So uh that's what I always thought I was gonna be, a rancher and farmer, and uh went to Texas AM and got out of school in '85. And of course, that wasn't too great of a time in agriculture. Sure. And unfortunately, um, my really my first job when I got out of college was was packing up and helping move off the ranch. We sold it, and uh, so I had to go get a job, you know, like everybody else, and uh got a job in uh the bovine genetics business. And uh so my whole career I've been in sales more than anything, sales and marketing, and I've always been involved in either bovine reproduction or animal reproduction or crop repro uh production. So spent my whole career, uh I'm 63 now, so I've been in it a while, um, either in, like I said, either animal production or cattle production uh and crop production. And then an opportunity came along in 2013. Uh I had a really good friend worked for Capital Farm Credit, and uh he said, Man, I'm I'm looking for some people that aren't your typical uh banker. We want people to have relationships and and know a lot of people and know the industry. And he said, You fit that mold and I'd like to come work for us. And uh I did in January 2013. I did mostly marketing for a long time uh with the company uh because we were just in a spot where we need a lot of marketing help and there were several of us that took that feed on. Uh it wasn't until the the year of COVID, 2020, that things really changed. And uh, as you know, back in early uh what second quarter of 2020, all the conventions and marketing events got shut down. Well, me and a couple other guys, we didn't have much to do and we couldn't go anywhere. And and there was this mass exodus out of the cities to find rural land, and you know, that's what we do is finance properties, and we got so busy, they said, hey, you guys, y'all gotta start doing some lending and not just marketing because there's nothing else for you to do. So um, you know, it kind of rolled over into the lending mode more than I had been. I'd always done a little bit, but um now, you know, became a full-time lender at that point, and we were just two or two and a half years of just all we could all do uh within the company to keep up. And uh so that's where I'm at now. I've been in the lending role primarily since 2020, and uh uh that's where we're at now. Things have kind of kind of slowed down. It's not as crazy as it was for about two years there, 22 to 20 or 2020 to 2024, I guess, is was pretty crazy time in the lending business uh or any any type of real estate business was just nuts. So kind of my background, uh you know, it fits fits what I've done my whole career. I'm still still in agriculture because I deal with people either in cattle production, crop production, or you know, rural land investing or purchasing today. So that kind of brings you up speed, I hope.

SPEAKER_00: 5:19

Yeah, no, it does a great painting of the picture there. Now, you know, you've been with like you said, Capital Farm Credit for for now since 2013. They are Texas leading agricultural lender cooperative, uh, and they've been around quite a long time. Can you give us a little kind of a brief 101 on the history of them? I mean, it it's for many generations we've been here. I'm fifth generation, and for many years, Capital Farm Credit has been serving Texans.

SPEAKER_01: 5:44

And I just would love for you to kind of talk a little bit about the history, and then we'll talk uh a little bit more about what's going on these days in your so Capital Farm Credit is part of the farm credit system, which was actually started it you know a hundred years ago as well. It started in 1916. Uh Wadrillo Wilson signed that uh or created the farm credit administration, which was to give affordable financing to farmers and ranching. And so it started back then. It it basically was two separate entities at one time. There was a there was a land uh loan side or uh what they called a land bank of of whatever state it was, they primarily lended for land. Uh and then there was a production side which lended for crops and production, livestock production. And those grew over the years, and then I'm not sure this exact year, but I want to say in the late 80s, those kind of merged together and became one institution. And from that, a bunch of smaller banks evolved, more of a like a uh independent banks, such as Capital Farm Credit, and they took on both both sides of the lending. And Capital Farm Credit, I think, was started in the 90s, and I don't have the exact date on that. Uh it could be the late 80s, early 90s, and became Capital Farm Credit. Now, at one time there were oh, I guess 30 or 40 farm banks in Texas, and those began merging, and that's when where capital really uh took off. They merged with several larger uh banks and became and grew and grew, and we became the largest bank in Texas now. There's about we have 65 locations, we have about 25,000 shareholders or customers, and our loan volume is about$13 billion right now. Uh, we're by far the largest bank in Texas. I think there's only five foreign banks left in Texas now because of all the mergers. When I started in 2013, there were still 13 different farm banks in Texas. So in in the last 13 years, there's been that many mergers. So uh I I would say probably in another 10 years, there's probably gonna be maybe two or three foreign banks in Texas. Who knows? But uh yeah, we we are we are uh I think combined volume, but you can take all the rest of the banks and combine them, and they're not as big as us. So we do cover primarily 80% of this of the state. We can loan anywhere in the state of Texas, we just have to meet certain criteria uh for you to be able to do that. But um there's about 600 employees now with capital farm credit. When I started that, I think I was employee hire number 274. So as I said earlier, things took off and got crazy for a few years, and that was that was part of it. I remember during COVID, we were trying to do all this work and we couldn't hire people. You know, there was like hiring freezes and things, and then then we started hiring people, and we just hired a lot of folks, and uh it was just to keep up, and there's been a lot of changes like other companies, and uh I think we're on a good path right now. We're still growing, and uh, new leadership came aboard, have a lot of good new visions for us, and uh, but one thing we've always done is try to be out in front of the in front of the people, got back into marketing, you know, got our got our venue or uh places we go every year, such as Houston Safari Club and all the associations that we support. And and uh so yeah, it's uh it's kind of back to normal now, as they say.

SPEAKER_00: 9:25

Well, you you just mentioned Houston Safari Club, and you know, you started out like as soon as you kind of came on board, you're there as a part of the very first convention, uh, you know, during 2013, as far as the first for you uh being a part. I know Capital Farm Credits almost been like 20 years involved um with the foundation there. And I was just kind of curious, Mino, um when that you since you've been there for so many years, uh, you have a pretty good lay of the land and and a sense of that convention. You know, I I've talked to a lot of people who are you know talking about going for the first time. And I was kind of curious, you know, what is your idea as far as uh what you think is a good uh representation of what it's like to walk in those doors for the first time? I know you've done it many times, so you have that experience down, but you know, uh, and then we'll kind of talk about how you guys have partnered up and and you know a little bit more about uh Capital Farm Credit. But I just wanted to kind of you know get pick your brain as far as uh, you know, what do you think that's like for for the first time?

SPEAKER_01: 10:21

So yeah, that I was literally employed for maybe three weeks when I got sent to that and uh went to it and I'd never I had never been to the Houston Safari Club convention. I I knew of the organization, but I didn't know anybody in it. And it was at the woodlands uh where it is again, and I remember going up there the first day and helping uh there was a gentleman that was uh he was head of marketing and he's he wanted me to help him and I went and helped him set up and I started meeting people, you know, and uh it was uh just the nicest bunch of folks, you know. And it's I was like, these are these are kind of my people because they're you know they're all outdoorsmen, and I've you know I've been hunting and fishing my whole life. And uh so I thought, yeah, this is a this neat organization. So the years went on, and I uh like I said, I was in the marketing side. So unfortunately, the the gentleman that was there, uh Matt, he he got in bad health and he had to retire that same year. And so uh since I was in Houston, they tapped me to say, okay, hey, you're the liaison now with Houston Safari Club to help us, you know, build that relationship. And so, and I got to meet, you know, everybody and got to know some of the board members and come to find out there were some people on there that I actually did kind of know from a distance, you know, other relationships. And uh so our my friendships in that organization grew pretty quick, and I soon realized that this was this was the customer, customer base that we were looking for for the for what we do, you know. It was uh definitely an organization we needed to to grow our relationship with, get more involved with, attend more functions. And so I tried to do that with encourage employees. Uh we stepped up our our sponsorships with them, and they've been great to work with. And now, you know, I can say there's probably 20 or 25 guys in the organization that I can call a good friend. And uh and almost that many customers out of the deal. So, you know, it's a good it's a good fit for Capital Farm Credit to intermingle and have relationships with the Houston Aspari Club because uh we have a lot of the same interests, uh a lot of the same missions and goals, uh conservation. We we like to uh publicize conversation conservation uh because our customers are land stewards and our you know they don't make any more of it. We have to keep care of what they've got. So it we encourage people to attend the Safari Club if they haven't. And then the people that are in it already kind of understand that and they help us educate other people in that. So it's a just a really good fit for us. And like I said, the the friendships go way beyond that. I mean, even even when I retire from California Credit, I know I'll have a lot of friendships that I've built within that organization.

SPEAKER_00: 13:24

Sure. Well, and then you'll just have to keep coming back for more of the all the conventions there. Well, you know, I was kind of curious as far as you know, there are, like you said, there's some other banks out there about six now. And obviously, I know you guys uh through the history. I've seen a lot of advertisements, I know friends who have worked with you guys, and I know those benefits because I know a lot of land stewards and people who are trying to, you know, build that way of life if it wasn't already something that was ingrained, or maybe they're expanding what they already have and buying some adjacent lands and farms or whatever it may be. So I'm I'm familiar, but you know, for those people who you know are trying to maybe move out of the Metro Mess, they're trying to, you know, get some rural land and you know, what is it that you feel uh because you uh that really sets you guys apart as far as working with y'all in your relationship? And I I know some of these answers myself, but I'd love to hear it from from uh you you yourself uh to the audience that may be interested here in Texas of expanding and move and making uh that move, man, getting their own place and and uh you know becoming their own land stewards.

SPEAKER_01: 14:25

Yeah, so you know, buying rural land or any any any acreage over, say, 10 acres is a little bit different transaction. It's not like your typical home loan or home mortgage. So there's a few of the things there that you know that we handle differently. I guess primarily is things most important about California Credit is this is what we do is is we lend money, we finance rural land. We know the business. We've been in it, like I said, for over a hundred years. So we understand it. We also uh understand you know the different areas of Texas, because we cover the whole state of Texas. It's a lot different purchasing a piece of land in the panhound than than say in South Texas, East Texas, wherever it may be. So we have kind of experts all over the all over the state as far as appraisers go. As far as just other loan officers or relationship managers that understand the geography, or maybe, you know, up in the north, we may not be too familiar with wind farms down here, although we're starting to get old. But back down in my home county, I go down there now, and there's wind solar or wind farms all over the place, uh, which is kind of strange to go back to see that. But you know, solar farms and things that we have to deal with whenever we're looking at financing property. Um and uh, you know, the the most important thing I would tell anybody that's looking for rural property is most definitely don't try to do it yourself. Go find a good licensed broker or agent and let them help you because there's so many things. I I don't even know all the ins and outs of it. You know, just like they don't know the financing side of it, you know, totally. I don't know the other side of what to look at as far as minerals and and you know, water rights and you know, access and things. Now we we're aware of that, but we kind of we kind of work together on that with these good agents and brokers is is they bring questions to us and vice versa to make sure that you know that property is going to be okay for that person that you know what they're looking for and is it gonna fit them? Is it gonna be a good investment for them on top of all that? Because you know, I've seen some real or you've heard of a lot of really bad situations where you uh and you go really far down the line in the transaction and something comes up that you didn't think about. Well, a good agent or broker can help answer those questions right up front. So yeah, I I would just say that we have a good network uh of people to help. Our our relationship managers across our company are all been in the business a while. You know, this is what we do, and uh so it's a little bit different than saying, like I said, than just getting a home mortgage. So that's that's probably the big thing that sticks out to me the most is what is important to a person looking for property. And and the fact that um we do do rural property. Um we tend to have to do it for more than 10 acres. Uh we do have another department that handles smaller tracks, what we call home sites. But um if we if people aren't interested in having a lot of acreage, we can handle those smaller acreage tracks. It's just another department uh that that I don't do, but we we do have that capability.

SPEAKER_00: 17:49

Well, I think it's important that you know when people are looking at this, they can be able to have a company like you guys that they can trust to kind of walk you through. So there's so many things that that are really involved, especially being a ranch or farm owner, working in agriculture. And there's a lot of different types of agencies that are out there as well, the USDA, NRCS, there's different equip programs, different things out there that maybe there's uh areas that I think people uh need to explore as well. So, you know, you got the financing side, and then I know that there's different ways you can kind of point people towards uh the management of their lands too and kind of helping them kind of take those first few steps. I think that's a really important thing. I mean, you guys obviously have been around 100 plus years now. The R you are the quintessential leader in this space. So I encourage anybody here in the state of Texas that's looking to learn more to get out and uh, you know, reach out to Kent, reach out to the company and ask those questions. You guys have always been the leader in customer support and building those relationships. You know, together we're better is a motto that you guys have. And it's not just uh something that that's a a you know marketing term, man. It really does seem like you guys are cradle to grave working with folks and building those relationships uh for you know multiple decades and for future generations of their families as they may expand.

SPEAKER_01: 19:06

Yeah, one of the one of the things that we we like to talk about too is we like to be known as your trusted advisor. I like that term. Um because people do come with us, come to us with sincere, honest questions, you know. And I feel like any of our relationship managers, if you come and ask a question that you're not sure of, I I'm confident that we won't just tell you what you want to hear. Um we'll tell you what we know. And if we don't know, every one of us has, you know, a phone full of numbers and people that will call and find out your question and get back to you. And that I can tell that, you know, I've always been that way in anything I've sold back in my feed selling days and other things I did. Uh you get you get the person the right answer. or the best answer that you can that you can, you know. And if you can't, you say, man, I just don't know. We're we're gonna have to dig into this and get you some help. But it means a lot to people when you go to the extra mile to to find out for them. And uh again, you become their advisor. So and I I just like that philosophy. I've been that way a long time. So like I said, when you when you've been in sales for almost 40 years, uh you you have to be truthful. You can't tell certainly what they want to hear every time because you you won't sell them very much.

SPEAKER_00: 20:38

Well certainly I mean that's the thing that turns people off. I think one of the most important statements is I don't know but I will find out. And that's you know it it's it really come back with honesty. You can tell when someone's BSing or they're just trying to escape by and try to you know get you back to the hook or whatever and try to pull you in. It's like no man, you know if you you want to find those things out and it's it's this is a you know for a lot of people this is a huge huge decision on where they're gonna you know go ahead and and find financing for you know their dream property their dream home the legacy for their family and it's important to have a trusted advisor that's going to build that relationship with you and be there to answer those questions honestly. So I I think that's a great point and something that it seems that every time I've heard about you guys is that is uh what you guys stand for and you know with the legacy of a program and and a company that's been around this long it it comes around on a solid foundation.

SPEAKER_01: 21:31

It's not just built up by you know hopes and promises and wishes right those blow away in the wind real quick yeah I think that just lends you know that lands to our success is as we have a good group of people that all think alike and you know and not just me being from agricultural background I would say that the majority of our people that work at Capital Farm Credit and there's over 600 employees you know the majority of them come from agriculture background. So we all kind of think alike um so that's that's something I've always admired is how many you know people are come from some type of ag background that they work for the company. And that's just not just relationships. That's I'm credit analyst and appraisers even our executive management team there's you know people have been in the in the agriculture business. So and our board of directors is just loaded with I mean every one of them is is been in the agriculture world and very successful. So that's speaks speaks a lot about our you know how we run the company.

SPEAKER_00: 22:34

Sure no and I think that's important too because you know it it's a it's a way of life that you know like you said they're not making any more land right there is uh it's getting shorter you see all these little ranchettes happening and stuff and like bigger ranches are are selling off these productions aren't as as popular as they were when you know our our grandparents' generation or back with before where uh you know larger stretches of land people were making a living off this it can be tough and so you need to be able to have someone that knows this way of life life that can analyze this as a business and just a livelihood and figure out uh if it's not just the ranch that you're just gonna go and it'd be a play place, but something if you're making a livelihood, you need to have those trusted advisors. So it's I think it's important man. That's a big key knowing that the majority of those people know that way of life or come from it because uh you kind of have a family uh instantly when you join in with that kind of community I think.

SPEAKER_01: 23:28

Yeah one another big focus we've had over the last you know 10 years is what we used to be called the young beginning small farmer program which we've kind of turned into what we call next generation and what you just said is there's fewer and fewer farmers and ranchers and and producers producers of food. Luckily in the US we don't have a shortage of food yet I said yet I don't think we will but you know it's got to be a concern and there's less and less farmers and ranchers out there and there's not any less people um and so we've really tried to develop some programs to entice or help young people that want to get into the agriculture world and they don't even necessarily have to be come from a family that's done it their whole life that they've just never even been in it before and it it's amazing how many uh neat little programs and and farms and niche uh things that we find that people come in and you kind of scratch your head about what they're gonna do at first but then you help them out and they become pretty successful. And it's pretty amazing what uh you know some of the some of the uh concepts and ideas that come up with and and they're doing some good uh either cattle production or egg production or you know sheep production all kinds of different uh or food food crops uh that people are growing now on small farms that help you know help us uh feed the world and so you know I as I said you know I grew up in Matagorda County we were primarily rice farmers at one time there was there was over 150,000 acres of rice in Matagorda County I believe I believe as of this past year there's less than 5,000 acres of rice in Matagorda County so that puts in perspective what you know where is it all coming from and you know it's it's coming it's not coming from around here but it's been replaced somewhere but uh I'd like to see it come back. I don't know if that'll ever happen but input inputs and things of all crops are just very high now.

SPEAKER_00: 25:44

So sure no and I think that's you you know there's that movement where everyone wants to I think be able to get their food locally right and there's plenty of ways that we can and there's a lot of the the business around that and being able to help establish more of that coming back I think is kind of paramount you know especially if you want to have that way of life. And you know it's always good to to eat what's uh grown locally and support your local farmers and ranchers. Uh they are the backbone of the these industries that we see left and right that have gone big in corporate I mean you know you go get your hamburger somewhere it's coming from a farmer it's coming from a rancher you know like we those who know no but it's it's important that uh we support that and I love that you guys are supporting uh Texans left and right in in such a a a great honest uh relationship building way um for those who are maybe interested in reaching out to you learning more about the company why don't you go ahead and give me uh you know the socials website and uh you know your own contact if you want that way we can kind of uh you know steer people in a particular direction I'll also have everything in the show notes so if those are listening while you're driving or whatever don't worry just check out the show notes and I'll I'll keep all those in. But yeah if you wouldn't mind giving those I'd appreciate it.

SPEAKER_01: 26:53

Yeah so we're on the we're on the old web you know capitalfarmcredit.com we're on Instagram uh I'm pretty sure we're on uh Facebook I'm on Facebook if you want to look me up um but yeah uh any a lot of information on our website uh just about everything that uh I've talked about today is on there gives you an overview of program you can actually go on there and and apply for a loan online and uh if you're in our area you'll you know come to whoever's office is whoever area you put in as your home operating county so that'll be directed to that that office in that county so uh or you can just reach out to us directly if you want.

SPEAKER_00: 27:37

Well there's there's 65 locations I mean like you said over 650 uh employees ready to help the team's there I encourage anyone to uh reach out if you got any questions and make sure you visit the booth when you come out to the Houston Safari Club Foundation convention January 23rd 24th 25th in the woodlands it is going to be phenomenal I cannot wait to uh see you and have a little bit of FaceTime there Kent this has been uh a wonderful conversation I appreciate that all that you are doing uh and representing Capital Farm Credit and all the stuff that you guys are doing for Texans and building it stronger and uh yeah man I mean it's it like like it's said there too together we're better and I really believe it you guys uh have a motto that that stands true and I appreciate it all that you're doing uh here for for Texans and and building the rural and agricultural world up.

SPEAKER_01: 28:26

Thank you yeah I'm looking forward to the convention and everybody's looking for our booth we're gonna be dead center in the middle of the convention floor so if you walk to the middle of the deal that's where we're at in a in a big booth you can come and visit with us there. I believe it's booth 414 so nice. But you can't miss us.

SPEAKER_00: 28:42

But yeah looking forward to meeting you there and uh I'm lining up my folks uh every day right now trying to get everybody nailed down we have a pretty good uh uh group of people there that go attend the whole all three days so good deal man well you guys have been building a great relationship the Houston Sfari Club Foundation for years I know that that'll continue to uh grow and looking forward to seeing all the development in the future years thank you Kent once again for joining me today guys check out the show notes below and uh make sure you go and visit if you got any questions reach out to Kent uh he's the man to talk to and uh yeah once again Kent appreciate you man thank you so much hey thanks for having me cheers