Month: September 2023

By Dana Obrist

At a time when stock prices are slumping and inflation is soaring, farmland looks to be an appealing investment, according to a 2022 article from Barron’s. The story notes that farmland is a real asset that performs well in inflationary environments, delivers stable returns over long holding periods, and exhibits low correlation to financial assets.

So, whether you currently own farmland or are considering investing in this type of natural resource asset, there are a lot of considerations when it comes to management.

This is where Regions’ Brooks Wall and his team come in. A niche group in the financial industry, Walls’ farmland asset team consists of farm managers, account officers, wealth advisors and tax professionals dedicated to helping clients navigate the holistic financial wellbeing of these land assets.

“The Natural Resources and Real Estate group was established to manage natural resources and real estate assets held in trust at the bank,” explained Wall. “Most bank trust departments hire outside management companies to manage their clients’ assets. In 1956, Regions’ predecessor First National Bank of Birmingham, brought that function in-house, hiring a team of professionals that really understand the complexities of managing these assets.”

With approximately 125,000 acres of farmland under management, Wall and his team are more likely to be found out in the field, quite literally, than in a typical banker’s office.

In addition to managing these natural resource assets as trustee and fiduciaries for a client’s trust, the team can also facilitate agency agreements with landowners.

“With an agency agreement, we don’t hold the title as we do with trusts, but in these cases, the landowners are still needing someone to manage the land,” said Wall. “In many cases it’s an aging landowner who just needs a little help or maybe the next generation that doesn’t want to sell the farm but doesn’t have the time or desire to manage it.”

One of our responsibilities as farm managers is making sure clients are aware of and signed up for the appropriate programs. We are also there to help negotiate lease agreements with a reputable farmer to ensure soil health and productivity is maintained.

Brooks Wall, Regions Natural Resources asset manager

This is the benefit of an agency agreement, created to help manage these properties for the client while maintaining an income stream and reaching growth potential for the landowner who may have inherited the land or purchased the land as an investment.

There are government subsidies available for landowners, but in order to receive those subsidies, you must sign up for the programs,” said Wall. “One of our responsibilities as farm managers is making sure clients are aware of and signed up for the appropriate programs. We are also there to help negotiate lease agreements with a reputable farmer to ensure soil health and productivity is maintained.”

Regions’ clients are also able to take advantage of our affordable liability insurance coverage for their property. Our farm managers work with local crop insurance agents to ensure that our client’s crop income is covered at optimum rates specific for each client.

While Regions Natural Resources and Real Estate group serves clients throughout the bank’s 15-state footprint, the majority of farmland under management is in northwest Alabama, the Tennessee River Valley, Mississippi Delta, Arkansas, Illinois, and Georgia growing key agriculture crops including corn, cotton, soybeans, wheat, and rice. Wall oversees a team of five farm managers, including Jake Pustejovsky, a ranchland manager based in Houston, who also focuses on real estate assets throughout Texas.

“Investing in ranchland is a growth opportunity for many looking for alternative assets,” said Pustejovsky. “We often serve as trust advisors for our clients who invest in ranchland to either hold as raw land for pure appreciation value and future sale or lease to a rancher as grazing lands or livestock fields.”

A growing business, ranchland management and pastureland management are another focus of Regions farmland management team within Natural Resources and Real Estate. Pustejovsky knows firsthand the unique needs and challenges of ranchland owners.

We often serve as trust advisors for our clients who invest in ranchland to either hold as raw land for pure appreciation value and future sale or lease to a rancher as grazing lands or livestock fields.

Jake Pustejovsky, Regions ranchland manager

“On the agency side, ranches are very project- and goal-specific,” said Pustejovsky. “We can buy land, sell land, move trees around for different needs. It hits a lot of categories including recreational, livestock, or raw land held for eventual sale for new commercial or residential development.”

He noted that while traditional row crop farmland is very consistent, ranching can cover a lot of different aspects – and his focus is working with the ranchland owner to achieve their financial goals.

Regions’ farmland team recently helped a Mississippi client who was looking to raise cash. With help from the specialized banking team, a portion of the land was sold, and proceeds were used to add irrigation wells and complete some needed land leveling on the remaining tract. The rent on the upgraded property is equal to the rent previously received on the larger non-irrigated land.

“Our client was able to raise the money needed, improve the remaining land, increasing its value, and maintaining the income,” said Wall. “This is just one example of how our team of farmland managers work with clients and banking professionals to help out clients achieve their financial goals.”

For more on Regions Natural Resources and Real Estate:

Creating Wealth and Sustainability Through Timberland InvestmentsKeeping the Family Farm: Inheritance and Succession Planning

This information is general in nature and is not intended to be legal, tax, or financial advice. Consult an appropriate professional concerning your specific situation and irs.gov for current tax rules. The purchase of an insurance product through Regions Bank or any of its affiliates is completely optional. Regions Bank may not condition an extension of credit or the provision of other services on either: 1) the purchase of an insurance product through Regions Bank or any of its affiliates, or 2) an agreement not to obtain or a prohibition on obtaining, an insurance product from an entity not affiliated with Regions Bank.

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Trust and investment management services are offered through Regions Private Wealth Management, a business unit of Regions Bank. Investment advisory services are offered through Regions Investment Management, Inc. “RIM”. RIM is a Registered Investment Adviser and wholly owned subsidiary of Regions Bank, which in turn, is a wholly owned subsidiary of Regions Financial Corporation.

A new survey conducted by The Harris Poll and Action Against Hunger reveals that Americans are concerned that climate change is impacting food security. The research showed that 78% of Americans say rising food prices are making it harder for them to afford groceries and 72% believe that climate change is already contributing to rising food prices in the U.S.

KeyBank and Operation HOPE, Inc., a national non-profit dedicated to financial empowerment for underserved communities, celebrated the beginning of a new era in homebuyer and financial education in Buffalo. KeyCorp Chairman and CEO Chris Gorman, and Operation HOPE Chairman John Hope Bryant took part in a celebration at KeyBank’s East Delavan branch located at 752 East Delavan Avenue. The event marked the start of HOPE Inside, which delivers financial education programming and coaching, including homebuyer education, to help empower community members with knowledge and tools to create a secure financial future.

KeyBank has a dedicated Operation HOPE financial coach placed in its East Delavan branch to provide education and programming to everyone including adults, youth, disaster survivors, and employees at no cost.

KeyBank and Operation HOPE’s partnership is focused on two key areas:

Homebuyer Education. HUD-certified Operation HOPE coaches will offer group homebuyer education classes and coaching sessions to provide individuals with knowledge, skills, and resources to help overcome common challenges first-time homebuyers face as they go through the home loan process.
 Financial Education. Credit and money management education, where onsite Operation HOPE coaches will assist and lead individuals through guided steps on how to improve money management and provide support throughout their financial journey.

“KeyBank’s purpose is to help our clients and communities thrive. An important part of building thriving communities is providing access to financial tools and planning,” said Chris Gorman, Chairman and CEO, KeyCorp. “Through this groundbreaking relationship with Operation HOPE, we are proud to take a significant step in empowering Buffalo community members with the knowledge and tools to build a more secure financial future.”

“By joining forces with Keybank, we can expand Operation HOPE’s reach and impact, bringing financial education and resiliency to those who need it the most,” said John Hope Bryant, Founder, Chairman and CEO of Operation HOPE. “Together, we are creating a pathway to financial success and homeownership, empowering individuals and families to build a better future for themselves and their communities. Our shared commitment to empowering underserved communities lays the foundation for a more prosperous future in Buffalo.”

KeyBank’s homebuyer focus with Operation HOPE is just one way the bank is making access to homeownership easier and more equitable. This program follows Key’s introduction of the KeyBank Neighbors First CreditSMi,Key Opportunities Home Equity Loanii and the increase of KeyBank Home Buyer Credit SMiii, two Special Purpose Credit Programsiv offered for qualifying properties in eligible communities to help borrowers on their path to owning a home, as well as a commitment to invest more than $25 million in grants, fee waivers, and marketing over five years to increase mortgage lending in majority-minority neighborhoods and more than $1 million to homebuyer education and other community support.

NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. All home lending products, including mortgage, home equity loans and home equity lines of credit, are subject to credit and collateral approval. Not all home lending products are available in all states. Hazard insurance and, if applicable, flood insurance is required on collateral property. Actual rates, fees and terms are based on those offered as of the date of application and are subject to change without notice. Mortgage and Home Equity Lending products offered by KeyBank are not FDIC insured or guaranteed.

ABOUT KEYBANK

KeyBank’s roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $195 billion at June 30, 2023. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC. NMLS #399797. Equal Housing Lender.

ABOUT OPERATION HOPE, INC.

Since 1992, Operation HOPE has steadfastly advanced America from civil rights to “Silver Rights,” empowering millions of low and moderate-income youth and adults across the nation through its visionary community uplift model, HOPE Inside. Lauded as the Innovator of the Year by American Banker magazine, Operation HOPE has impacted over 4 million individuals and facilitated over $4 billion in economic activity within disenfranchised communities. This transformative approach has converted check-cashing customers into banking clients, renters into homeowners, small business dreamers into successful owners, minimum wage workers into living wage consumers, and uncertain disaster victims into financially empowered survivors. Recognized with Fast Company’s World Changing Ideas Award for fostering entrepreneurship, and honored with the prestigious 4-star charity rating for fiscal management and commitment to transparency and accountability by Charity Navigator, Operation HOPE continues to level the economic playing field for underserved Americans. Recently, HOPE launched The 1865 Project, an initiative designed to drive economic equity. For more information: OperationHOPE.org. Join the conversation on social media at @operationhope.

Copyright © 2023 KeyCorp®. All Rights Reserved CFMA #230907-2234428

iEligibility is determined based on both census tract and community location. Not all census tracts within a listed community are eligible. Not all properties in communities that are listed may qualify. Eligible communities are subject to change without notice. Available on primary residence purchases only.

iiKey Opportunities Home Equity Loan is a rate discount program provided as a permanent rate reduction that will be reflected in the Promissory Note interest rate. Interest rate discount is not combinable with any other offers. Not available in all states. To apply for a home equity loan, you must: Be 18 years of age or older Live within the following states: AK, CO, CT, ID, IN, MA, ME, MI, NY, OH, OR, PA, UT, VT, or WA Agree to provide additional personal and business information, if requested, such as tax returns and financial statements Certify that all information submitted in the application is true and correct Authorize the bank and or a credit bureau to investigate the information on the application Please read our Disclosures. If you applied for your credit account online within the last 90 days, you may also review the original disclosures provided to you.

iiiEligibility is determined based on both census tract and community location. Not all census tracts within a listed community are eligible. Not all properties in communities that are listed may qualify. Eligible communities are subject to change without notice.

ivSpecial Purpose Credit Programs are, generally, programs that are established to meet special social needs or the needs of economically disadvantaged persons by extending credit to persons who would probably be denied credit or would receive it on less favorable terms, under certain conditions. See 15 U.S.C. § 1691(c)(1)-(3); 12 C.F.R. § 1002.8(a).