Brian Gilbert highlights community banks' role in agricultural lending at First National Bank

The U.S. House Committee on Agriculture convened on July 17, 2025, to discuss critical issues surrounding financing farm operations, focusing on the importance of credit and risk management in the agricultural sector.

Brian Gilbert, Senior Vice President and Ag Banking Manager at the First National Bank in Sioux Falls, opened the meeting by highlighting the significant role of community banks in agricultural lending. He noted that these banks account for nearly 80% of all agricultural loans made by commercial banks, totaling approximately $151 billion. Gilbert emphasized the deep-rooted connections community banks have with their localities, with many institutions having served their communities for over a century, enduring economic challenges such as the Great Depression and the Great Recession.

Gilbert shared insights from his experience as both a banker and a farmer, managing a family farm that raises cattle and crops. He underscored the importance of relationship lending, where local banks fund loans with local deposits, thereby supporting farmers in acquiring land, expanding herds, and enhancing operational efficiency. He pointed out that agriculture is fraught with uncertainties, necessitating robust risk management strategies to prepare producers for various challenges.

The meeting underscored the vital role of credit access and risk management in sustaining agricultural operations, with community banks positioned as key players in providing the necessary financial support to farmers. The discussions highlighted the ongoing commitment of these banks to assist agricultural producers in navigating the complexities of farming, ensuring their resilience and productivity in an ever-changing economic landscape.

As the meeting concluded, the committee acknowledged the importance of continued support for community banks and their role in fostering a stable agricultural economy. Further discussions and follow-up actions are expected to address the evolving needs of the agricultural sector in the coming months.