company,” Feder says. It has a five- to 10-year draw, no unused commitment fee, no annual renewal and no annual out-of-debt requirement. This line of credit, which can remain unused until it’s needed, is intended for capital or operating expenses or purchase of property. “This is meant to replace a more traditional line of credit from another ag commercial bank that might require annual renewal of the line of credit.” Traditional agricultural real estate term lending. These loans are offered with up to a 30-year term and 30-year amortization. They can be arranged for up to $50 million for qualified borrowers, Feder says. Rooted in agriculture Feder has been close to the agriculture industry in California his entire life. He was raised in Chico, where his father was president of an almond, pistachio and walnut processing company. “I admired his passion for his growers, clients and the agricultural community,” he says proudly. “My father instilled in me the desire to be a part of an industry vital to the health and well-being of not only local and state consumers, but those nationally and internationally.” After graduating from UC Davis, he worked for a bank in Visalia in their ag lending group. But before that, he worked in production agriculture for companies that grew, packed and shipped peaches, plums, nectarines, table grapes, citrus and other tree crops. “Being on the production side of the agricultural business equation gave me tremendous insight on what happens on the farm, the hurdles and adversity they deal with from weather, regulations, markets and public perception,” Feder says. “When I got back to banking, I was able to have discussions with farmers that most bankers who haven’t gotten their boots dirty might miss. Clients appreciate my knowledge and understanding of what happens on their side of the farm gate, having been there myself. I understand the cycles they go through, the timing of their business, the particulars of their balance sheets and income statements.” After working in the agricultural investments sector of two insurance companies, Feder went to work for Zions Ag Finance in 2017. At that time, he says, the department relied mostly on loan brokers and community banks to do loan originations. But in 2017,
a new position was created “for a dedicated employee on the ground in California to develop a portfolio of long-term agricultural real estate loans,” he says. “I was fortunate to be selected to fulfill that role.” Zions Ag Finance has been and continues to be a leading originator of agricultural real estate loans funded by Farmer Mac (similar to Fannie or Freddie Mac, but for agricultural landowners). A changing industry Feder says farming has changed a lot since the 1980s, when a farmer could survive financially on as few as 60 acres. But due to economies of scale and general economics over the years, the size of a self-sufficient farming operation has changed. Farms have gotten bigger with fewer farmers. As of 2022, the average California farm is 383 acres. The USDA reported that the U.S. lost 1.9 million acres of farmland in 2022 and over the last 10 years, the total U.S. farmland acreage has decreased by more than 18 million acres. The farm base has declined in California, too, Feder points out, because of conversion of farmland into new housing and commercial developments. “Smaller farms are not economical for large farming operations to run,” he says, “because they would spend time and capital moving equipment and personnel around from small parcel to small parcel. It’s more economical for larger farming entities to dedicate their resources to one large block of land.” Instead, smaller farms are owned and operated by individuals who have off-farm income to help sustain an agricultural lifestyle, Feder explains, adding that for these individuals, farming is something they weren’t raised in or desire to experience. In fact, a 2024 survey of California agriculture found that 50% of farmers have an occupation other than farmer. Whether a borrower is a full-time or part-time farmer, they can benefit from a dedicated Zions Ag Finance division. “Because I focus only on agricultural clients, it frees up our other bankers to focus on traditional commercial lending,” Feder says. “And I have more capacity to handle agricultural loans than traditional bankers. It’s a win-win for all of us.”
For more on Brendan Feder’s journey as an agriculture finance specialist, read his Take 5 Q&A on page 30.
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