Lending with heart and compassion

Duane Laffrenzen to retire after a lifetime in ag banking

NEW ULM - For over 45 years, Duane Laffrenzen has worked in the agricultural loan business. For the last 27 years, he has worked for Citizens Bank Minnesota La Salle Branch, but after Thursday, Aug. 20 he will be officially retired.

Laffrenzen grew up on small dairy farms around Worthington, MN. The family had around 25 dairy cows, whose milk they sold to an AMPI plant in Iowa. Laffrezen said they would always transport the milk in tin cans, one of which he still owns.

From a young age, Laffrenzen realized he wanted to go into farm financing. He liked working with numbers and after taking part in the Future Farmers of America (FFA) ag financing program, he knew it was the right path for him. But he was also influenced by his family's farming experience.

"My parents never owned the farmland," Laffrenzen said. "We lived on rented land. Every few years, the owner of the land would sell it and we would move."

Laffrenzen said he grew up on four different farms. The longest the family stayed on a single farm was six to seven years. He never had a home base. This inspired him to spend his career helping other farmers own the land and secure their financial future.

"That's the best part of the job," Laffrenzen said. "If I can help someone secure their financial future, then I've been a success."

Laffrenzen graduated from Worthington Community College in May 1978 and earned a Bachelor of Agricultural Business Administration from the University of Minnesota in June 1980. He officially started working in ag loans a month later at Production Credit Association in Le Center.

Laffrenzen said at his first job, the focus was on lending for farm operations. They would loan equipment, materials and livestock. However, they did not loan money for farmland.

In 1983, he went to work for the Federal Land Bank in Windom, MN, which specialized in ag real estate. This gave Laffrenzen experience on all sides of ag lending. Eventually, the Federal Land Bank merged with Laffrenzen's first employer, forming the Farm Credits of Southern Minnesota, which is now called Compeer Financial. After the merger, Laffrenzen moved to Mankato to work as a loan officer, but was quickly transferred to a New Ulm Branch.

New Ulm would become Laffrenzen's forever home. In 1999, he began working for Citizens Bank at the La Salle Branch, but continued to live in New Ulm.

Looking back on his 46-year career as an ag lender, Laffrenzen believes that to be successful a lender needs to have heart and compassion for their clients.

He said when starting his career in the 1980s, farmers were having a difficult time. The 1980s farm crisis led to a major economic downturn for family farms. Many faced bankruptcy or foreclosure.

"I learned to work during tough times, but it helped me develop my people skills," he said. "Working with tough credits has helped shape my career."

Laffrenzen acknowledged that the most difficult part of his job was rejecting a loan request, but said "sometimes saying 'no' is the best thing for a client."

He said it is the loan officer’s job to crunch the numbers and make sure the farm requesting the loan has enough income to comfortably pay off the debt.

"Our goal and desire is for our farmers to be successful," Laffrenzen said.

The success of farmers is something Laffrenzen has taken seriously over his career and has been a driving passion for him.

"The clients know I take this personally and I am looking out for their best interest," Laffrenzen said.

In his career, Laffrenzen said he has been fortunate to work with multiple generations of farmers. In some cases, he has worked with four generations of the same family. That builds trust, which is another important part of the business.

"Crunching numbers is an important part of the job, but it is also a people business," he said. "That's something that has not changed in my career."

Laffrenzen said that though he is retiring from the bank, he plans to remain in New Ulm.

"We’ve been in New Ulm since 1986 and the community was so welcoming," Laffrenzen said. "Everyone embraced us. I've tried to give back as much as I can in the last 40 years."

Laffrenzen has been an active leader and volunteer in the New Ulm community, serving with the New Ulm Farm City Hub Club, New Ulm Rotary Club, Redeemer Lutheran Church, Narren of New Ulm, State Street Theater Board of Directors, Boy Scouts and Cub Scouts. He also previously served on the Minnesota Bankers Association Agriculture Committee and volunteered with Best Prep's Classroom Program. In January 2024, Laffrenzen was the Service to Agriculture recipient by the New Ulm Farm City Hub Club.

Laffrenzen said he intends to remain involved with each of these organizations, but will also dedicate time to his other passions, including hunting, fishing and woodworking. Laffrenzen also runs a custom photo framing business called Hollywood Haus Frames

For those who want to wish Laffrenzen a happy retirement, there will be two opportunities.

The first retirement party will be held on Tuesday, August 18 from 2 - 4pm at Citizens Bank Minnesota, La Salle Branch, 102 South Broadway, La Salle.

The second retirement party will be held on Wednesday, August 19, from 6:30 - 8 pm at the New Ulm Country Club.

All friends, clients and well-wishers are welcome to attend both open house celebrations.