From the Fields: WBA Ag Bankers Conference Recap
By Jeff Wilke
Another WBA Ag Bankers Conference is in the books.
It was very exciting to see such a strong contingent of nearly 150 conference attendees. As in past years, attendees were provided with a strong line up of ag industry and ag banking presenters. Ample time was also available to network with peers and 15 exhibitors.
Matt Reardon, Senior Atmospheric Scientist at Nutrien Ag Solutions, kicked off the conference with his forecast for the upcoming growing season. March was the windiest on record, greatly impacted by the large temperature contrasts experienced. A strong Bermuda High helped create the recent high moisture/severe storm events in the mid-south and central US. An active weather pattern throughout the Midwest is predicted to continue into early May, with temperatures a little cooler than normal. Over the summer, based on current data, Matt predicts the Midwest to have temperatures a little above normal and below normal moisture. However, a lot will depend on what happens with sea surface temperatures in the Gulf of Alaska.
Ed Elfmann from the ABA provided the ABA’s ag banking priorities for this year, which included: Increasing FSA guaranteed loan limits; re-examining FSA interest assist; providing consistent funding for Rural Development programs; modernizing technology for USDA loan programs; providing resources that bankers and state associations can use to help lawmakers understand the value and benefits the ACRE Act will provide to rural America by making it easier for farmers, ranchers and rural homeowners to access low-cost credit; pushing for more oversight reform for the Farm Credit System.
Dr. Steven Johnson from the Iowa State Extension Outreach gave an in-depth presentation on the crop price outlook, with a prediction of corn prices averaging around $4.20/bushel and soybean prices averaging around $10/bushel. He wrapped up the presentation with strategies to manage crop insurance decisions and with a written marketing plan to capture higher futures prices.
Abdullah Hussaini from Equity Cooperative provided a beef market update. We are seeing record beef prices because of continued demand and limited supply. Rebuilding the beef herd will take time. Thus, prices are projected to remain elevated well into the future.
Leonard Polzin, UW-Madison Extension, provided a dairy outlook. The revised Federal Milk Marketing Orders will increase Make Allowances and Class I differentials, both predicted to put some downward price pressure on Class III milk. Key takeaways: $20/CWT projected average mailbox milk price, with price pressure in the second ½ of the year (mostly from Class III).
Bobbi Kubish and Joe Seubert from the The Food + Farm Exploration Center, gave a presentation on all that the Center has to offer to the public. The Center, located in Plover, WI, opened in December 2023. Its mission is to educate current and future generations about agricultural innovation and sustainability for Wisconsin growing crops and vegetables through 60 interactive exhibits, four 1.2 acre demonstration fields and a kitchen lab.
Dr. David Kohl again provided an energetic presentation on agricultural and ag lending circa 2025, including Bell Bank’s Lynn Paulson and ag consultant/former banker Sam Miller in some Q&A. Both global and ag economies are “bifurcated”. The US is doing relatively well, while the global economy is struggling. The grain industry is struggling financially, while livestock and more diversified ag businesses are faring much better. Tariffs are/will continue to negatively impact commodity prices and have damaged long-term relationships with US allies. Areas ag bankers need to keep an eye on: Producer’s non-reporting of vendor credit; non-financial factors (divorce, death, disability) move the credit quality needle quickly; set proper customer expectations at closing; customer willingness to understand and embrace their financials; “monitor, monitor, monitor”.
Jack Kasel from the Anthony Cole Training Group wrapped up the conference with an enlightened look at tailoring sales strategies for Boomer, Gen X, Millennial and Gen Z prospects by being able to speak each generation’s language and preferred communication type.
Wilke is vice president – ag banking officer at Nicolet National Bank in De Pere. Wilke also serves as Chair on the 2024–2025 WBA Agricultural Bankers Section Board of Directors.
