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.
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.
"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."
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.
Only the project owner can select the next research path.