Association Spotlight on Joel L. Lorenzen, Senior Vice President & Chief Credit Officer, Tempe, Ariz. Office

This is the second of a series of articles highlighting Farm Credit Services Southwest staff.

Hometown: Western Oregon. My parents were educators and also owned a small part-time farm where they raised cattle, sheep, hay, grass seed and wheat.

Education: Oregon State University (OSU), business administration major with food science technology minor; Pacific Coast banking school, honors graduate. Worked on agricultural farm at OSU and played water polo.

Family: Married to his wife, Debra, for 30 years. Daughter, Lisa, and her husband, Mann, live in San Diego where Lisa is a human resources professional for a financial services firm and Mann is a financial analyst.

Prior employment: Farmer-owned grain warehouse and marketing cooperative, eastern Wash; Spokane Bank for Cooperatives, Spokane, Wash.; Northwest Farm Credit, Spokane, Wash.; Farm Credit Services Southwest since 1998 as Chief Credit Officer

Farm Credit experience: 25 years

Civic associations: Mentor of agribusiness students, ASU; occasional lectures, ASU; Arizona Agribusiness Council, water rights issues; volunteer, master swim program and ASU water polo matches

Vacations: My wife and I vacation at a cabin on Coeur d’Alene Lake in Idaho. Next spring, we will sail a boat around Tahiti to celebrate our 30th wedding anniversary.

Recreation: Masters swim team, ASU; water polo; gold medal winner, Grand Canyon State Games; 2003 national swimming championship; travel; boating, water skiing; target shooting, cooking for friends and family

Proudest accomplishment: A happy, healthy family

What Joel says ...

Current responsibilities: “My goals are to provide the highest level of service and competitive lending rates while returning a portion of the profits to our customers through cash patronage refunds. To do this I need to ensure that new loans are of the highest quality; that customers with financial challenges can work easily with us; that we effectively manage credit administration and meet federal regulation requirements. Beyond credit, I take care that our legal and appraisal services meet exacting standards and satisfy customer needs. As a member of our leadership team, I work closely with our senior staff to plan, organize, direct and manage the Association.”

Financial tip: “Teach your children and grandchildren to be responsible users of credit. Teach them to save, invest long term, and pay off their credit card bills each month. These lessons will last a lifetime and are one of the finest gifts you can give them.”

Business tip: “With most agricultural businesses experiencing very good commodity prices and profits, it is time to put some profits away for a rainy day. Also, maintain a good source of working capital. If your business has good working capital already, build an investment account that is liquid or semiliquid so you have funds to quickly take advantage of opportunities that come up from time to time.”

Interest rates: “Interest rates will continue to rise but at a more modest pace than in the last two years. Longand short-term rates are above recent historic lows, and there is no fundamental economic reason they will decline any time soon. With long- and short-term rates very similar in costs, it may be a good time to lock in long-term rates, even with potential prepayment penalties. Everyone needs to make that determination individually, but rates are still low and current economic conditions point to continued good economic growth. In spite of the risk of terrorist attacks, catastrophes and peaking real estate values, our overall economy is resilient and healthy.”

Market trends: “Current market conditions are good in most agricultural areas and commodities, but this won’t last forever. Risks include peaked real estate values, drops in commodity prices and increased costs for raw materials and agricultural operating expenses. In the meantime, the good times are meant to be enjoyed.”

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