This article is the next in our Expert Intel series where Mabrey Bank financial experts are asked specifically about one of their areas of experience. In this Q&A we talk to East Central Regional President, Mark Mabrey, about the industry of recreational and agricultural land loans. Mark is a part of the fourth generation of Mabrey family members to hold leadership roles at Mabrey Bank and specializes in rural land lending and development.
To see the previous installment in our Expert Intel series, click the link below.
Building Long-Time Client Partnerships – John Pixley
The New Age of Digital Banking – Laura Zigler
Creating and Sustaining Culture – Kendall Mullen
What is your role at Mabrey Bank and your area of expertise?
My role at Mabrey Bank is unique. I serve on our Board of Directors, as well as several committees that provide me with a perspective to better serve our different markets. My official title is East Central OK Regional President, where I help manage, along with our Market Presidents, our rural community banks in Eastern Oklahoma. In these markets, we see a great diversity of lending and banking needs, which our team handles with confidence and reliability.
I would consider the area of my expertise that I enjoy most in banking to be Agriculture and Rural Land Lending.
What trends or changes are you currently seeing in agriculture and recreational land development?
Over the last several years, we have seen an increased demand for rural land lending specifically. There has been a sharp increase in families wanting a property to call their own and have a place to get outdoors. We also have crop, beef and poultry producers wanting to increase their land holdings. This trend, in my opinion, began in 2020 during COVID when most people’s lives changed dramatically. People wanted to be outside more and live outside of city limits. As a result, they needed rural access to the internet (broadband access). Obviously Zoom and Teams meetings have increased with more people working remotely than ever. Finally, we know there have been increased commodity prices on beef, poultry, grains, etc.
Each of these, in their own way, have played a dramatic role in impacting the demand on rural land. Since 2020, I can confidently say that the price per acre of rural/raw land has at least doubled in most areas of Eastern Oklahoma and regionally. Our bank has financed several land purchases in each of our surrounding states over the last 10 years, and the price per acre has steadily increased over that timeframe.
What is a common misconception you often see from customers who are looking to develop a piece of land for Ag and Rec use?
I am not certain that it’s a misconception, but we see a lot of buyers who have the urge to buy 20, 40, 80 or 160 acres. They give in to the urge and decide to buy the land and actually end up enjoying it more than they ever thought possible. Many wish they would have done it sooner.
What should be front of mind for clients right now in Ag and Rec land usage?
Unless you have experience with buying or selling land, contact a realtor that has expertise before purchasing land. As for the usage of that land, it depends on what you want to get out of it. If you are looking to buy land to start a recreational farm (say a small cattle herd) then you would want enough grass acreage (pastureland) and access to water to sufficiently manage the amount of cattle you plan to run.
If it’s for wildlife recreation, then you would want cover (trees, creeks, ponds etc.) and diversity on the property.
How does Mabrey Bank’s approach serving Ag and Rec clients differ from other financial institutions?
We have lenders and bankers at Mabrey that not only specialize in Ag and Rec, but they live it. Each of our Ag and Recreational Land Lenders & Bankers go beyond just helping borrowers with their transactions, we also offer advice on how to improve their property to maximize their preferred outcome. All of us are passionate and enjoy what we do.
How do you utilize Mabrey Bank’s mission and core values within Ag and Rec land development?
We are here to truly help our customers and be trusted partners. Mabrey is a bank that understands and enjoys rural financing.
What should clients be preparing for in next 5 years in with land development for Ag and Rec?
If a customer has been wanting to purchase land, whether for Ag use, Investment or Recreational use, I would recommend preparing your finances and visiting with a lender sooner rather than later. We have been lending on Ag and Recreational land for 50+ years, and it continues to serve as a quality investment in many ways.