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AgStar > Rural Capital Network Blog
John Monson's Blog

Rural Capital Network is now blogging. Check  back often for John’s latest ideas and thoughts.

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8/6/2010

Local collaboration versus local competition
The politics of the past has no place in this economy.  Local competion between rural communities, organizations, lenders and regions have us competing with each other rather than globally.  Agriculture and rural communities are dependent on each other.  In fact, rural communities are very important to agriculture's success.  82% of all rural income is from non-farm sources.  However, the overall population in rural America is shrinking, making local competition even more harmful.  When local communities, organizations, lenders and regions work together, they build critical mass to compete globally.  The last 18 months has taught us all that the economy is unpredictable and more volatile ahead.  We need to lean on each other in rural America to withstand the volatility.  None of us are big enough to withstand the ups and downs alone.  Sharing risks and opportunities will be key.  Every pro sports team needs enough players to compete.  They also need great talent and a great game plan.  We are losing players in rural America.  We need to make sure we have the critical mass to compete.  We will find the critical mass to compete globally when we focus on collaborating with others in our regions and industries.  When we compete with each other, we fail.  No teams succeed when teammates compete against each other in a game.  We need some new teammates in rural America.  The politics of local competition focuses our efforts on beating each other rather than winning globally.  If the politics of the past can't be changed now, it will be difficult to compete globally in rural America.
Published: 8/6/2010 10:23 AM

7/7/2010

Global Economy is impacting your rural community
The global economic volatility is worth paying attention to.  What we see in Greece is a spending appetite that exceeds its capacity.  Too much debt and an unsustainable standard of living.  The government has overspent and now very difficult decision lie ahead.  The U.S. is also on an unsustainable spending path.  This too will result in very difficult decisions to tax or cut spending.  The less obvious result of all this spending and debt is that it results in economic volatility.  It can result in higher inflation and interest rates.  It can impact job growth and investment.  All of these are key to rural communities.  Timing your investment in your community is key.  Growing long term relationships with key partners matters more than ever.  Having options is critical.  Collaboration is necessary.  These are all things AgStar Rural Capital Network does better than anyone.  As you look for a strong partner with knowledge and tools to help you through the investment process, give us a call.  If we don't know the answer, we have partners who can help.  It is not about us, it is about you! 
 
Call John Monson at 612/756-3983 if you have questions.
Published: 7/7/2010 10:30 AM

6/15/2010

Visit with USDA Secretary Vilsack
Secretary Vilsack invited the top 25 USDA lenders in the nation to participate in a roundtable discussion.  We heard the Secretary highlight the importance of renewable energy technology as the unique opportunity for Rural America to create energy independence.  The Secretary highlighted a new project focused on turning algae into "green crude".  The company highlighted has the backing of $100 million in equity from Bill Gates and USDA guarantees.  It is a game changing technology.  My message to USDA in that meeting is that we are very eager to partner on helping to spur new renewable energy technology.  However, we are seeing the small enterepreneurial technology projects emerge with little funding support.  These high risk, high reward projects are not easily supported by lenders in this regulatory and risk averse environment.  USDA's guarantees and early stage equity will be the key to their success.  Many will fail, but some will succeed.  Many are scalable technologies, but difficult to underwrite due to the lack of history.  These new entrepreneurs hold the key to our future and will challenge lenders and USDA in new ways.  To get serious about forging ahead, we won't likely see success in smokestack chasing, but rather growing entrepreneurial support.  That sounds good, but it isn't easy.
Published: 6/15/2010 3:14 PM

5/5/2010

Why we do what we do!
I heard a very interesting speech a few days ago.   I would paraphrase the main point this way..."Our careers are lifelong learning opportunity.  The goods and services we produce pays the tuition."  I am picking up on a few lessons after living 45 years in a rural community.
 
Rural Minnesota is losing population, towns are shrinking, there are fewer farmers...why not give up?  Or so we are led to believe.  We feel differently!
 
The AgStar Rural Capital Network team all live in rural communities.  Our take on rural America is much different.  We see opportunity in transforming how rural communities collaborate, rather than compete.  We see strong rural regions emerging rather than individual small towns struggling to survive.  We see business opportunity growing from within rather than smokestack chasing.  We see a culture of pride, principle and work ethic.  We see middle aged families moving back to their hometowns to reengage in community leadership, church, schools, rural business and raise a family in a familiar and safe environment.  We see connection, not disconnect.  We see collaboration, not competition.  We see strength, not failure.  We see engagement, not apathy.  These are the characterisitics that serve as the underpinning of our mission.  We live it.  We are passionate about it.  It isn't about lending money, it is about making an investment that enhances the life in Agriculture and Rural America.  That is why we do what we do!
Published: 5/5/2010 2:06 PM

3/30/2010

Connecting people in Rural America
AgStar Rural Capital Network is all about connecting dots.  The Rural Capital Network team name changed about a year ago.  The purpose for the change was to represent the work we do everyday.  Our goal is to build bridges and opportunities in rural communities.
 
We have learned that the demand for investment across Rural America is greater than any one lender can supply.  The necessity for partners to invest, share risk, manage capital and make rural communities stronger is more important now than ever.   Collaborating is a real challenge for most lenders, but for us, it has been our mission from day one.  Few, if any, real rural investments result from a simple borrower/lender relationship.  In most cases, it takes community support, collaboration between mulitple partners and lenders.  There are a lot of builders, economic developers, city, county, state and federal officials and others involved in most significant rural investment projects.  AgStar Rural Capital Network connects those people everyday.  We do it unlike any other lender.  We take rural investment very seriously, and we do it as a way to build the foundation of comprehensive support for any project we finance.  Give us a call if you are looking at a new or expanding project in your city. 
 
612-756-3983 - ask for John Monson, Vice President, AgStar Rural Capital Network - or email, John.Monson@AgStar.com
 
Have a great Spring!
Published: 3/30/2010 8:42 AM

3/1/2010

Sharing Rural Regional Investment Model at USDA Ag Outlook Forum
On February 18, 2010, at the USDA Ag Outlook Forum in Washington DC, I had an opportunity to share the results of the Southern Minnesota region's invesment work.  This is a region where multiple partnerships (private, public and non-profit) have collaborated to make investments directed by research conducted by the Rural Policy Research Institute.  The process is now coordinated and led by the Center for Rural Policy and Development in Minnesota.  AgStar Rural Capital Network is a lead investor in the regional collaboration model.  The results show 290 jobs created and 320 saved, and the collaboration has just begun.  USDA program guarantees have also supported the investments.  This is a program where USDA shares in the risk of investment with the lender.  The total investments made so far exceed $20 million through a rural regional capital network made up of AgStar, Southern MN Initiative Foundation, Southwest MN Initiative Foundation and various community banks.  It is a model which leads the nation in its collaboration and investment. 
 
If you have questions or comments, please feel free to email me at John.Monson@AgStar.com.
Published: 3/1/2010 9:03 AM

12/11/2009

Aging Healthcare Infrastructure in Rural America
Healthcare is a hot topic inside the Beltway of Washington DC.  Legislation related to reform of programs, funding, and policies are the hot topics.  However, in Rural America, aging healthcare facilities, technology and equipment flies under the political radar.  These are big issues facing rural communties.  Rural hospitals, nursing homes, assisted living centers and memory care facilities serve our farmers and rural residents.  Many of these facilities serve as the economic engine in small rural communities.  They often employ the most people, pay the best wages and give a major boost to the local economy.  Of the 1305 Critical Access Hospitals in Rural America, half expect to update their facilities, equipment and technology in the next five years.  Most of the projects AgStar Rural Capital Network finances average $15 million per facility.  That is nearly 10 billion of capital needs, without even considering nursing homes and assisted living centers.  AgStar Rural Capital Network is not capable of financing the needs of all rural healthcare.  That is why we are focused on building capital networks to support rural investments.  USDA direct loans and guarantees are major sources of capital.   AgStar recognizes the need to work with banks and other farm credit associations as a means to build more sources of funding to invest in these essential community facilities and economic engines.  More importantly, it is critical we have the best facilities and healthcare available to meet the needs of an aging rural population.  We are proud to be in a lead role as investor in rural healthcare.
Published: 12/11/2009 11:22 AM

10/27/2009

Welcome!
In 2006, AgStar made a commitment to invest in rural communities. In establishing the Rural Capital Network (RCN), AgStar recognized the growing interdependence between agriculture and rural communities. AgStar’s Rural Capital Network’s mission is to build partnerships and opportunities across the rural landscape. Rural businesses, healthcare, multi-family housing, and infrastructure remain economic pillars in rural communities. Farmers and rural residences depend on vibrant communities. RCN focuses on building capital networks which invest in rural communities.
 
AgStar works with over 160 banks to provide capital to agriculture and rural community investments. In addition, AgStar leads the Farm Credit System in over $120 million in rural community investments, many in partnership with rural community banks.
 
RCN now offers competitive financing tools to help rural communities meet their healthcare capital needs, including hospitals, clinics, nursing homes and assisted living facilities. RCN also aligns with a variety of public and private lending partners (including banks and financial advisors) to design a financing package specifically for your current or future projects. The RCN has an experienced healthcare team and a growing network of partners working together to tailor a financing package to meet the needs of each healthcare facility.
 
In the weeks to come, I’ll start blogging about our important projects and welcome any discussion you may have in regards to this topic. In the meantime if you have any questions, please email me at John.Monson@AgStar.com or visit the AgStar Rural Capital Network website at RuralCapitalNetwork.AgStar.com.
 
Thank you,
John Monson
Published: 10/27/2009 4:23 PM

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