Strengths

• Golden State Farm Credit serves a diverse territory and "extends across a diverse agricultural region of Butte, Fresno, Glenn, Kings, Shasta, Tehama, Trinity and Tulare counties in California."
• They have extensive agricultural experience and knowledge of the market.
• They have the ability of adjusting the loan pricing thanks to a predominately variable loan portfolio, which allows them to have a strong interest rate distributed over their cost of funds.

Weaknesses

• More than 50% of their portfolio is made up of "a commodity with annual marketing but an extended production cycle. This creates an additional risk factor" for their portfolio.

Opportunities

• "The Sustainable Groundwater Management Act (SGMA) legislation will have farreaching effects for most of California. The goal of SGMA is primarily to manage the groundwater resources throughout California in a way that is sustainable over the long-term."

Threats

• Water availability is a major concern in their line of work and continues to be so.
• Groundwater has depleted in many areas of the state and can take years to recover.
• "Continued depletion of ground water supplies due to over-drafting aquifers, land subsidence, seawater intrusion, degraded water quality, and the ability to improve surface water storage and conveyance systems" is one of the larger issues and a long-term risk.
• "The dairy industry continues to experience price volatility. While the association anticipates there will be some stress on the dairy portfolio," it would not be significant.