By Lorenzo Cruz
Most political operatives prognosticated that the U.S. Supreme Court would not reverse the Wisconsin Supreme Court’s decision on the redistricting court case. In early March, the Wisconsin Supreme Court ruled on a 4–3 decision to adopt Governor Tony Evers’ legislative and congressional maps rather than use the GOP-controlled state Legislature’s version of the maps.
The majority in the split state Supreme Court decision viewed the Governor’s configured maps as more closely aligned to the ‘least change’ approach, which was used to develop the existing legislative and congressional boundaries drawn a decade ago. The state Supreme Court decision was considered a victory for Democrats and a setback for the GOP.
The Governor’s maps had 55 GOP seats and 44 Dem seats in the State Assembly and 20 GOP seats and 13 Dem seats in the State Senate. By contrast, the GOP maps had 64 Assembly GOP seats and 35 Dem seats and 22 Senate GOP seats and 12 Dem seats. Even under the Governor’s new maps, Democrats still had an arduous path to regaining majorities in both houses of the state Legislature.
In what many capitol observers considered a surprising move, the nation’s highest court in a 7–2 majority overturned the ruling and found that the state court erred in its application of the Voters Rights Act (VRA), which led to the creation of a seventh majority Black Assembly district. Currently, there are six majority Black districts on the map. The GOP-designed maps contained five majority Black districts. The U.S. Supreme Court also rejected the GOP’s request to overturn the Governor’s congressional maps.
In the appeal, GOP lawmakers contended that Evers’ plan violated the U.S. Constitution Equal Protection Clause because it improperly applied the federal VRA when drawing seven majority Black Assembly districts in the Milwaukee area. The U.S. Supreme Court conservative block sided with the GOP position and sent the issue back to the state court. The Supreme Court’s reversal in the case meant more rounds of court activity around what the maps should look like.
The state Supreme Court’s decision could have brought resolution or more litigation at the federal court. In early April, Wisconsin was under a cloud of uncertainty and momentarily waiting in limbo on the maps. However, the judicial winds changed swiftly again in mid-April with the state Supreme Court in a 4–3 decision approving the GOP’s version of the legislative maps. With the elections looming in the fall and nomination papers set to circulate on April 15, the state Supreme Court acted decisively on the case. The Wisconsin Supreme Court found the Wisconsin Legislature’s maps complied with the Equal Protection Clause, along with all other applicable federal and state legal requirements. Furthermore, the state Supreme Court concluded the Legislature’s maps were race neutral and followed the ‘least change’ approach, which the state’s highest court adopted a decade ago.
WBA expected interested parties on both sides to fight vigorously and exhaust all avenues in the judicial process to secure legal, legislative, and congressional maps that support their desired political outcomes. Barring any more legal challenges, the state Supreme Court’s action brings closure to the redistricting court case in 2022.
The political stakes are extremely high with control of the U.S. Congress and state Legislature as well as Wisconsin’s Gubernatorial seat in play. The Badger State could again be a battleground
and a bellwether for the rest of the country for hotly contested races. Stay tuned for more political developments as the drama continues to unfold in the primary and general elections.
By Kenneth D. Thompson
As my time as WBA Chair comes to a close on May 31, and I prepare to hand the baton over to Daniel Peterson, I wish to reflect upon the remarkable efforts bankers throughout our state have made this year to ensure the success of our industry. Even as we continue to feel the residual impacts of the pandemic, Wisconsin bankers continue to face every challenge in stride and stand as trusted partners in their communities.
Advocacy
This year, over 100 bankers from around the state attended WBA’s annual Capitol Day at the State Capitol in Madison. In addition to hearing from Wisconsin political leaders, bankers met with legislators to convey how issues like credit union expansion, banking regulatory modernization, interchange fee legislation, and elder fraud directly impact their local economies and consumers.
Similarly, many bankers have testified on several WBA key issues in the last year. Your grassroot involvement was critical in preventing bills such as those allowing for the expansion of credit unions from moving past either House. Your engagement in testifying, commenting, and supporting WBA’s efforts further unites our industry.
Education
As bankers continue to embrace new post-pandemic realities, WBA staff too is learning and shifting to best meet the needs of WBA members. Between new hybrid approaches to specific conferences and events geared at keeping our bankers informed — thousands of bankers from throughout the state have benefited from WBA’s adaptability in times of uncertainty which has allowed banks across the state to continue to grow and embrace each challenge faced.
These challenges, though difficult, have also been extremely rewarding. Bankers have shown their innovation and flexibility not only for the sake of their team members, but for their communities. This year, over 100 banks participated in WBA’s fifth annual Power of Community Week to engage with members of their communities through various service events. Throughout the year, the efforts bankers make in establishing connections within the communities they serve prove valuable in aiding the financial wellbeing of our neighbors. Additionally, your efforts assist in shaping the public’s opinion of the banking industry — a valuable perspective to hold especially as we approach election season — continue to explore new ways of embracing technology, and evolve as an industry.
I would also like to extend a sincere ‘thank you’ to WBA President and CEO Rose Oswald Poels and her staff — I speak for many of us when I say I am deeply grateful for the work that the association does for the banking community in Wisconsin and beyond.
The second in a series exploring the effects of the COVID-19 pandemic on banks in Wisconsin.
By Hannah Flanders
As COVID restrictions continue to subside and the days of isolation have since passed (we hope), bankers and customers alike return in droves to their community banks. However, the challenges
presented by the pandemic will forever leave a lasting impact on the way banks operate.
Like most Americans, banks were forced into the confusion and chaos of the COVID-19 lockdown with little to no time to prepare. With disaster plans in place, many banks quickly turned remote, began servicing loans through drive-ups or in the parking lot, and relied on technology to stay connected to their team and customers.
The pandemic’s ongoing impact has allowed banks around the country to reassess the needs of both their customers and staff in connection to the bank and its physical or online branches.
For well over a century, brick and mortar banks have been the cornerstones of communities throughout Wisconsin. Be it for the safety and security of their money, or the personal connection associated with meeting in person, consumers across the state highly value their local, physical bank branches. However, many banks are rethinking their approach to the ‘traditional’ bank.
“[The ways in which] banks interact with clients and where employees get their work done has changed,” says Laurie Richards, vice president and partner at LERDAHL, a workplace interiors company and WBA Associate Member. “Bank branches are remodeling their locations to accommodate a wider variety of expectations that have emerged over the last two years as competition increases for clients and employees.”
A key component of embracing post-pandemic life for Americans around the country has been implementing the lessons learned — and this is certainly no different for Wisconsin bankers. As new branches — including Capitol Bank on Madison’s east side and Farmers and Merchants State Bank in Lake Mills — pop up around the state, new challenges arise as to how banks reimagine themselves in their communities.
As the pandemic proved, accessible banking is the most important factor to both banks and consumers. “Horicon Bank has a renewed commitment to innovate the way we help our customers. The needs of our customers are changing — and in 2020 they changed rapidly,” says Grace Bruins, marketing officer at Horicon Bank. “We’ve had to take a look at the things that make us unique — personal service, community commitment — and find a way to offer that in a digital environment as well as a physical one.”
Throughout Wisconsin, community banks envision new ways of exceeding the expectations of their customers. “Our plan is to continue to invest in our people and technology to help the bank grow and be successful,” says Prevail Bank President Nathan Quinnell. Many banks throughout the state have made upgrades such as e-signatures, ITMs, and online chat functionality for customers — Prevail Bank also hopes to upgrade their online mortgage process, add online account opening functionality, and sustain remote employees.
While many banks offered remote options during lockdown, many Wisconsin bankers have returned with full force to their branches and remote employment is considered on a case-by-case basis. Finding ways to leverage technology and space within the office is not only critical to staying relevant to customers in a world with increasing interest in digital banking, but to finding and retaining talent in a competitive job market.
“As we are in the relationship business, in addition to valuing our customers, we value the presence and safety of our employees,” says Capitol Bank President and CEO Ken Thompson. With insight from having successfully navigated the challenges created by the pandemic, Thompson understands the value this new space adds for both his customers and employees.
The combination of private office locations balanced with the increasing need for open, conference-style spaces planned for the new Capitol Bank location highlights a shift from individual to collaborative work and supports the idea that the type of task, privacy, and level of collaboration required is flexible throughout the day. With the assistance of technology, bankers are now able to maintain the office environment and culture as well as offer support to branches across towns, cities, or the state.
“As well as providing legendary customer service, embracing future technology is an important aspect of nurturing our current and future customer relations,” says William Campbell, Farmers and Merchants State Bank president and CEO.
“As we transition into our new Lake Mills branch, offering secluded spaces where customers can meet with Lake Mills staff as well as virtually meet with Waterloo and Marshall team members, will not only allow for an easier transition but offer our customers a variety of services,” adds William Hogan, Farmers and Merchants State Bank CFO.
In reimagining accessibility, bankers have considered new ways customers are able to interact with bankers — via the drive-up, ITMs, and through their digital branches — and explored elevating
existing offerings.
“Since the pandemic started, [Horicon Bank] believes there are more customers looking for digital banking services,” says Horicon’s CFO Robert Traylor. Whether it be mobile banking or the desire to digitalize services already offered at the bank — there is no doubt to bankers that the use of technology in some capacity offers customers a greater personalized banking experience and, in the case of online banking, allows their money and other banking services to become accessible to customers no matter where they are.
Accessibility, be it of the physical branch or the online services, continues to be amplified by the days of COVID-19. In understanding the need for both brick and mortar and virtual banking practices as well as approaches to combine the two, Wisconsin bankers hit their stride and continue their growth looking beyond the pandemic.
Community banking is, and always has been, concerned with the relationship built between the banker and the customer. Providing safe and productive spaces — both in-person and online — that offer the relevant tools and foster growth for both the employees and clients, is ultimately beneficial to the success of any community bank.
By Rose Oswald Poels
Last week, the Federal Reserve Board (FRB), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) released a joint statement proposing changes to the Community Reinvestment Act (CRA) regulations. The joint proposal would both strengthen and modernize the regulations by expanding access to credit, investment, and basic banking services; adapt to internet and mobile banking changes; provide greater clarity and consistency with both banks and their customers; and create unique CRA evaluations requirements.
The CRA, originally enacted in 1977, encourages banks and savings associations to help meet the need of all borrowers — including low- and moderate-income individuals. In recent years, the industry has seen the agencies attempt to modernize CRA to better address new technologies and community-investment opportunities. However, those efforts left much frustration for the industry when OCC implemented its own “updated” CRA regulation in June 2020, while FDIC and FRB retained existing standards, interpretations, and regulations.
WBA advocated heavily against separate CRA regulations in meetings with the agencies and in filed comment letters. Successfully, late last year, OCC repealed its independent CRA regulation and now the agencies are once again acting together in proposing a unified CRA regulation. I am pleased to see the expansion of transparency between agencies.
The new joint proposal has the following key elements:
- Expand access to credit, investment, and basic banking services in low- and moderate-income communities. Under the proposal, the agencies would evaluate bank performance across the varied activities they conduct and communities in which they operate so that CRA is a strong and effective tool to address inequities in access to credit. The proposal would promote community engagement and financial inclusion. It would also emphasize smaller value loans and investments that can have high impact and be more responsive to the needs of LMI communities.
- Adapt to changes in the banking industry, including internet and mobile banking. The proposal would update CRA assessment areas to include activities associated with online and mobile banking, branchless banking, and hybrid models.
- Provide greater clarity, consistency, and transparency. The proposal would adopt a metrics-based approach to CRA evaluations of retail lending and community development financing, which includes public benchmarks, for greater clarity and consistency. It also would clarify eligible CRA activities, such as affordable housing, that are focused on LMI, undeserved, and rural communities.
- Tailor CRA evaluations and data collection to bank size and type. The proposal recognizes differences in bank size and business models. It provides that smaller banks would continue to be evaluated under the existing CRA regulatory framework with the option to be evaluated under aspects of the new proposed framework.
- Maintain a unified approach. The proposal reflects a unified approach from the bank regulatory agencies and incorporates extensive feedback from stakeholders.
I highly encourage you to join WBA in commenting on this joint proposal by August 5, 2022. Please contact WBA’s Heather Mackinnon, vice president – legal, at hmackinnon@wisbank.com and Scott Birrenkott, assistant director – legal, at sbirrenkott@wisbank.com if you have any questions regarding the proposed regulation updates.
WBA BOLT Summer Leadership Summit
The Building Our Leaders of Tomorrow (BOLT) Summer Leadership Summit will be held at Glacier Canyon in Wisconsin Dells next month! Join emerging leaders from across the state June 9–10 for the opportunity to develop leadership skills in addition to building and growing your career in banking.
The registration fee of $200/attendee includes several general session presentations, breakout sessions, as well as an interactive workshop facilitated by Laura Mael, director of talent and people development at Pareto’s Talent — a division of Lift Consulting, LLC — and Matthew Pletzer, president and CEO of Lift Consulting, LLC.
The interactive workshop titled “Leading Yourself to Lead Others” will help inform emerging leaders from every experience in the bank — from entry-level roles to c-level — on how they can effectively lead others. Mael and Pletzer will equip attendees with the tools and resources necessary to set personal and professional goals, reach these goals, and inspire others to do the same.
Every emerging leader attending the BOLT Summer Leadership Summit in June will enjoy hearing from nationally known speakers on leadership as well as specific banking topics, make connections, and learn to advocate for their industry in an energized environment.
In addition to breaks, meals, and a reception on Thursday evening, banking peers will have the opportunity to take part in sessions specifically designed for networking through peer group discussions over the course of the two-day Summit.
Attendees will also receive several updates regarding recent government activity related to banking, WBA’s Washington, D.C. visits, and a recap of WBA’s fifth annual Power of Community Week. This information will help advise WBA’s emerging leaders on the how and why of getting involved both in their local communities as well as state and federal government for the benefit of the banking industry.
To learn more or to register, visit wisbank.com/BOLT.
Reserve a space in WBA’s Engagement Center today!
Since the completion of WBA’s remodel in 2020, hundreds of bankers from around Wisconsin have had the opportunity to experience the new Engagement Center. Featuring two dedicated training rooms, a board room with video conferencing capabilities, and a conference room with a touchscreen smartboard — the Engagement Center offers the space and capabilities for WBA-member bankers to learn and connect.
In addition to providing bankers a space to attend WBA educational courses and training events, these spaces are available for every WBA member bank to reserve.
WBA welcomes every member bank to take advantage of the Engagement Center for the benefit of their teams. From technology-enabled spaces to a beautifully redesigned café, WBA’s modern facility is a resource that banks can use to hold strategic meetings, training presentations, or remote conference calls. The Engagement Center also serves as a quiet spot in the Madison area for those bankers visiting the state’s capital and looking to get work done.
Any WBA-member bank looking for additional locations to hold meetings, meet between branches, or access technology-enabled spaces to train, present, or remotely connect is encouraged to take advantage of WBA’s Engagement Center.
Please contact WBA’s Association Meeting Planner/Engagement Center Manager Jody Roos at jroos@wisbank.com to learn more about what the Engagement Center offers or to reserve a space.
How banks can grow their portfolio and assist communities in need
By Hannah Flanders
As the disbursement of wealth in the United States becomes increasingly polarized by the year, there is a growing need in neighborhoods throughout the country for new sources of capital and greater access to financing. To accommodate this need, Community Development Financial Institutions (CDFI) were developed to expand economic opportunity to low-income and low-wealth communities.
What is a CDFI?
A CDFI is a private financial, non-profit institution that often receives federal funding through the U.S. Department of the Treasury. Ranging from banks and credit unions to loan funds and venture capital providers, these institutions are CDFI certified for their efforts in empowering underserved communities.
With the help of the CDFI Fund, established by the Riegle Community Development and Regulatory Improvement Act of 1994, CDFIs specialize in lending to individuals, organizations, and businesses in under-resourced communities. In addition to low-interest rate loans, CDFIs have the ability to provide clients financial education and business coaching in specific aspects of our economy.
What Sets CDFIs Apart?
To become a CDFI, the financial institution must first be certified. Certification requires the institution to have a primary mission of promoting community development, principally serve one or more eligible target markets as well as be accountable to the target markets served, and to not be either a government entity or controlled by a government entity, among other conditions.
All CDFIs, with the assistance of federal funding and investments made for the purpose of community development, have the ability to take greater risk on lending to individuals, businesses, and communities that meet the CDFI’s specific funding source requirements. Because of this, CDFIs are able to expand the opportunities given to Native Americans, people of color, women, military-connected families, and many other underbanked individuals who may slip between the cracks of mainstream financial services.
CDFIs in Wisconsin
As of March 2022, there are 20 certified CDFIs in the state of Wisconsin, and throughout the U.S., CDFI institutions have increased by over 70% in the last 11 years to 1,395. In Wisconsin, CDFIs are represented by two banks (such as Bay Bank, Green Bay), one bank holding company (Bay Bancorporation, Green Bay), four credit unions, and 13 loan funds (such as Forward Community Investments, Inc., Madison). In addition, qualifying institutions may also be defined as either a venture capital (such as RFLF 2, LLC in Chicago, Ill.) or a depository institution holding company (such as American Bancorp of Illinois, Inc. in Oak Brook, Ill.). These 20 Wisconsin CDFIs play a critical role in establishing economic growth and opportunity for disadvantaged communities throughout the state.
Banks in Wisconsin eligible for certification are not only better suited in supporting underserved communities into mainstream banking, but also help grow their loan portfolio in their ability to serve all members of their community. Additionally, CDFI-certified banks are eligible for a range of program awards which assist in financing specific activities.
“With the recent health crisis, economic crisis, and social justice crisis there has never been a more needed time for quality loan programs to start and grow all businesses in Wisconsin, the U.S., and our world,” says Wendy Baumann, president and CEO of Wisconsin Women’s Business Initiative Corporation (WWBIC), a Wisconsin CDFI and WBA Associate Member aimed at assisting women, people of color, veterans, rural populations, and lower wealth individuals. “We need different lending institutions with different expertise and products to meet all the demands and foster a vibrant small business sector in both urban and rural communities.”
Working Alongside CDFIs
There are many other ways, besides becoming certified, that banks work in tandem with CDFIs. “Most [CDFI] clients are unable to meet the credit requirements of the commercial banks,” says Gary Mejchar, co-executive director/development at First American Capital Corporation (FACC), a WBA Associate Member and CDFI promoting economic development in Wisconsin’s Indian Country. “In turn, FACC welcomes referrals from banks for prospective borrowers not yet ready to meet the banks’ credit requirements.”
Additionally, working alongside CDFIs provides banks with the opportunity to enhance their Community Reinvestment Act (CRA) performance and become involved in new ways within their community. These activities include providing technical assistance, collaborating to invest in loan pools and consortiums, and providing funds for lending. For the full list of ways your bank can become more involved with CDFIs, visit fdic.gov/resources.
Establishing working relationships between banks and CDFIs is becoming increasingly critical to each institution’s ability to provide development opportunities to those who need it most. “CDFIs, SBA Microlender Program intermediary lenders, and banks are integral elements of the continuum of credit available to entrepreneurs, micro- and small-business owners in Wisconsin,” continues Mejchar. “In fact, a growing number of FACC borrowers are growing capacity, capital, and collateral to ‘graduate’ from our Native CDFI portfolio and qualify for forming business banking relationships statewide.”
In assisting local, Wisconsin CDFIs — or by becoming certified — banks allow themselves greater opportunity to commit to distinguishable change in underserved communities throughout Wisconsin. By increasing their ability to support low-income and low-wealth individuals, families, and businesses, banks across the state will help lead the way to sustainable, economic equality.
Wisconsin CDFIs
Institutions certified by the Treasury’s CDFI Fund:
- Bay Bancorporation* | baybankgb.com | 920-490-7600 (Green Bay Office)
- Bay Bank* | baybankgb.com | 920-490-7600 (Green Bay Office)
- Brewery Credit Union
- Columbia Savings and Loan Association* | columbiasavingsandloans.com | 414-374-0486
- Community Assets for People | capservices.org | 715-343-7500 (Portage County Office)
- CoVantage Credit Union
- First American Capital Corporation, Inc. | aiccw-facc.org | 414-604-2044
- First Nations Community Financial | firstnationsfinancial.org | 715-284-2470
- Forward Community Investments, Inc.* | forwardci.org | 866-687-1468
- Habitat for Humanity International, Inc. d/b/a Habitat for Humanity of Dane County | habitatdane.org | 608-255-1549
- Hmong Wisconsin Chamber of of Commerce | hmongchamber.org | 414-645-8828 (Milwaukee Satellite Office)
- Impact Seven, Inc.* | impactseven.org | 715-434-1717
- Legacy Redevelopment Corporation | lrcmke.com | 414-343-0163
- Milwaukee Economic Development Corporation* | medconline.com | 414-269-1440
- NiiJii Capital Partners, Inc. | niicap.org | 715-799-4806 (Business Center)
- Northwest Side Community Development Corporation | nwscdc.org | 414-444-8200
- Prime Financial Credit Union
- Royal Credit Union
- Wisconsin Native Loan Fund, Inc. | winlf.org | 715-588-1600
- Wisconsin Women’s Business Initiative Corporation (WWBIC)* | wwbic.com | 414-263-5450 (Milwaukee Office)
* Indicates WBA Membership or WBA Associate Membership
By Cassandra Krause
Ask anyone from out of state what the first thing that comes to mind is when they think of Wisconsin, and they’re likely to respond “farms” — and for good reason. Wisconsin farmers work hard to put food on tables across Wisconsin and the globe. Fondly known as “America’s Dairyland,” Wisconsin is also a leading producer of cranberries (the state fruit), soybeans, potatoes, ginseng, corn — the list goes on and on.
According to the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP), agriculture is a major economic driver, contributing $104.8 billion annually to our state’s economy. The state is home to 64,100 farms on 14.2 million acres (the average farm size in Wisconsin is 222 acres). For those working in the industry, farming is not just a profession, but a way of life — one that poses unique stressors and challenges.
Tough Times Made Tougher by the COVID-19 Pandemic
In the years leading up to the COVID-19 pandemic, U.S. farmers were already dealing with damaging weather conditions, increased global competition and tariffs, and falling commodity prices. The U.S. Department of Agriculture (USDA), citing data from the Federal Reserve, reported in July of 2021:
Clear signs of financial distress had emerged among U.S. farmers even prior to the onset of the COVID-19 outbreak. Investment in equipment was down, farmer debt was up, and so was borrowing against land. By the end of 2019, the delinquency rate on commercial loans hit a six-year high, and the delinquency rate on farmland loans was at its highest level since 2013.
When COVID-19 began rapidly spreading and parts of the global economy shut down, the food system was hit by major supply and demand shocks. For example, when demand for milk from restaurants and schools plummeted due to closures, producers were forced to dump milk. Meanwhile, milk supply on grocery store shelves was sparse for consumers purchasing for their homes, and prices rose.
Especially on small farms, many families rely on income and benefits from jobs outside of the farm and were hurt by job losses due to the pandemic. In addition to the financial stresses of running a family farm, interpersonal issues often come into play between spouses and family members who work together. This is particularly evident when it comes to succession planning and the legacy of a longstanding family tradition.
A 2018 survey from the National Farm Medicine Center, headquartered in Marshfield, showed that 29% of farmers suffered from depression and 35% suffered from anxiety. The National Farm Medicine Center conducts a wide range of research ranging from topics such as child rearing and women on farms to veterans who become farmers. More can be found at marshfieldresearch.org/nfmc.
Sara Kohlbeck is the director of the Division of Suicide Prevention at the Medical College of Wisconsin (MCW) and is researching farmer suicide in Wisconsin for her doctoral dissertation. “Just about every farmer I talked to mentioned finances as a stressor,” said Kohlbeck of interviews conducted for her research. A small, organic farm may be one hailstorm away from being wiped out, and a larger farm may be millions of dollars in debt — the farmers’ entire livelihood can be at stake. While suicide is a relatively rare outcome (about 190 farmers are reported to have died by suicide from 2004–2018), Kohlbeck emphasizes that, “even one is too many.” Suicide rates are disproportionately high among farmers (about 2% of total suicides in Wisconsin, while farmers make up about 1% of the labor force), pointing to a larger mental health concern.
Resources for Farmer Wellness
Wisconsin Farm Center and Farmer Wellness Program
Farmcenter.wi.gov
- Farm Culture Training for Ag Lenders and Ag Service Providers
- Online Farmer and Farm Couple Support Groups
- 24/7 Farmer Wellness Helpline | 888-901-2558
- Tele-counseling | 888-901-2558
- Counseling Vouchers | 800-942-2474
DATCP’s Farm Center started during the farm financial crisis of the 1980s, when farmland values dropped up to 60% in some areas of the Midwest. At its onset, the Farm Center strengthened relationships between ag lenders and farmers. It has since expanded its consulting and referral services to include financial consulting (reviewing balance sheets and cash flow, analyzing profitability and viability, analyzing debt structure, etc.), transition/succession planning (financial stability, operating agreements, tax implications, etc.), and farm mediation (dispute resolution).
The Farm Center’s Farmer Wellness Program began with $200,000 of funding in the 2019–21 biennial state budget and is now in addition funded by USDA grant money and other sources.
The Farmer Wellness Program offers services including a 24/7 Wisconsin farmer wellness helpline (888-901-2558), tele-counseling, and counseling vouchers. It also hosts online farmer and farm couple support groups. All of the resources are free of charge to Wisconsin farmers and their families. The services are there for those who are experiencing anxiety or depression, or just need a welcoming ear to talk to. Karen Endres, Farmer Wellness Program coordinator at the Wisconsin Farm Center, explained that the program was designed with the “4 A’s” in mind: affordability, accessibility, acceptability, and awareness. “Our most important resource is our mind,” said Endres. “We need to do a better job of taking care from [the neck] up.”
Endres noted that rural areas lost some of their sense of community during the pandemic as people were no longer seeing each other at coffee shops, card clubs, and so forth. The Farmer Wellness Program’s farmer support groups have served to combat the isolation felt by many farmers and have the added benefit of connecting farmers from around the state who may not otherwise have met but have much in common. Every session is facilitated by a licensed mental health provider with experience serving farmers and/or a trained peer leader.
The helpline, tele-counseling (via phone or Zoom), and vouchers for in-person counseling sessions all connect farmers and their families with licensed mental health professionals. The counselors can help bring control to farmers in navigating challenging situations. One farmer caller who sought mental wellness counseling for the first time through the program said, “please tell every farmer there is hope.”
Shifting the Mindset
Endres teamed up with mindset coach and former banker Penn Vieau to produce the Farm Center’s ‘Rural Realities’ podcast, which provides expert advice that can help farmers reduce stress, improve finances, implement effective farm family communication skills, and more. Vieau recently addressed the Wisconsin Bankers Association (WBA) Agricultural Bankers Conference on the power of a positive mindset and is scheduled to speak at the upcoming WBA Building Our Leaders of Tomorrow (BOLT) Summer Leadership Summit, June 9–10, 2022 in Wisconsin Dells. He discussed how the stigma of mental health in farming communities can be a barrier to getting help. “Stress does not equal crazy,” said Vieau. “When stress is too much to bear, talk to somebody.”
A 2019 American Farm Bureau Federation study revealed that a majority of farmers/farmworkers think the media (72%), people in their local community (58%), and their friends (56%) attach at least a fair amount of stigma to mental health.
How Bankers Can Support Farmer Mental Health
Agricultural bankers are part of rural communities and have strong ties to the farming industry — many grew up on or live on farms themselves. MCW’s Kohlbeck said bankers may be coming into contact with farmers more often than their doctors. “We’re not expecting them to be therapists, but in some ways, bankers can be nontraditional helpers,” she said. She said the most important ways bankers can help are 1) sharing resources and 2) understanding the red flags and what to do about them.
Endres underscored, “bankers are relationship people, and they want to do what’s best.” She recommends the Farmer Wellness Program’s online farm culture training for agricultural service providers. It is a free, virtual course to help ag lenders and other service providers understand the unique stresses and challenges of farming, handle difficult conversations, and recognize signs and symptoms of stress with farm clients. More information and the link to register are available at farmcenter.wi.gov.
One piece of advice Vieau offered the attendees of his presentation was to create a “personal board of directors” for their mental wellbeing — in other words, identify a group of close contacts to serve as trusted advisors and consultants. He pointed out that a banker is most likely already on a farmer’s “personal board of directors,” so the banker has a unique opportunity to share a flyer or card for the Farm Center’s services. “Bankers are always offering a value-add, like sharing trending reports,” said Vieau, and likened the practice to hospitality staff offering tips on local attractions. He said it’s a great idea for bankers to use the resources and information offered by the Farm Center for themselves personally and as an added service for their clients.
To learn how to spot the signs of distress in farmers, bankers and community members may participate in gatekeeper training for lay people. The Wisconsin Chapter of the American Foundation for Suicide Prevention is one example of an organization that offers free, one-hour training sessions online and in person.
The Outlook
All of the experts interviewed for this story agreed that more can be done to build more supportive communities and policies for farmers. “Instead of expecting farmers to reach out, we need to reach in,” said Kohlbeck. “Farmers are proud. For policies on things like climate change, don’t put the onus on farmers to solve the problems on their own.”
Vieau noted, “we spend a lot of time with [corporate] executives doing leadership training, and we need to do the same to break the stigma with farmers, who are independent businesspeople.” He highlighted that this focus is also important in encouraging the next generation of young people, who prioritize mental wellness in their careers, to become farmers.
Similarly, Endres expressed the need for everyone to look out for our farmers, who are stewards of the land and grow our food. She encourages community members to talk to one another and direct those who could benefit from a resource or service on how to access it.
“If one person shares a resource and saves a life, that’s a pretty great day,” concluded Endres.
If you are thinking about suicide or are concerned about the wellbeing of someone you know, call the Wisconsin Lifeline at the National Suicide Prevention Lifeline (800-273-8255), the Wisconsin Farmer Wellness Helpline (888-901-2558), or 911.
Wisconsin Department of Financial Institutions (DFI) Secretary-designee Cheryll Olson-Collins, a native of Portage, Wis., spent more than two decades in the private sector banking industry before joining the State of Wisconsin in 2007. She began her banking career with the First National Bank of Portage. She later joined Associated Bank and over a period of 20 years served in a variety of leadership positions, including ten years as the community bank’s president in charge of 14 branches.
In 2007, Olson-Collins began her service to the State of Wisconsin as the Administrator of the DFI’s Division of Corporate and Consumer Services. In 2011, she became the Administrator of the DFI’s Division of Administrative Services and Technology, a position she held for more than three years. In May 2015, she became the Deputy Administrator of the DFI’s Division of Banking and was later appointed to be the Administrator of the DFI’s Division of Banking in May 2016. Olson-Collins most recently served as the DFI’s Deputy Secretary from January 2019 until being appointed by Governor Tony Evers to serve as the Secretary of the DFI in January 2022. Olson-Collins earned her bachelor’s degree from the University of Wisconsin-Madison and is a graduate of the University of Wisconsin School of Banking. She has been active in a variety of civic organizations.
The following is an interview with Secretary-designee Olson-Collins.
What put you on the path to your profession in the banking industry?
After college, I started working at the First National Bank of Portage. I thought I would just work there for a few years, but to my surprise, I fell in love with banking! I worked my way up from the accounting department to being the vice president of operations. When Associated Bank acquired First National Bank of Portage, I wasn’t sure what was going to happen. Luckily, it created a fantastic opportunity for me to become a community bank president, which ultimately led me to where I am today!
What has been the most meaningful aspect of your career thus far?
I have had the privilege to help many people in my career: families, businesses, communities, and mentoring individuals career-wise. I believe to be an effective leader you need to truly care about people. That may sound corny, but it’s true. If you don’t care about the people you work with and the people you serve, it becomes very apparent and will be difficult to gain trust or get things done.
What/who inspires you and motivates your work?
I enjoy working. I feel accomplishment and tremendous satisfaction by doing a good job. My father was a tremendous influence on my work ethic. He was always planning ahead, which certainly helps when you are trying to do strategic planning, all the while working diligently. He was such a role model and his actions and encouragement made me believe I could do anything if I put my mind to it.
How would you describe your vision for the future of DFI?
My vision is for the DFI to remain a strong, effective agency that continues to evolve and protect the safety and soundness of Wisconsin’s financial institutions, safeguard the investing public, facilitate commerce, and increase financial capability throughout the state. We have a dedicated staff who work hard to carry out our mission and connect the dots between state agencies to serve the people of Wisconsin because we are stronger when all state agencies work together. My vision is for the agency to continue to work in this manner for many years to come.
What opportunities and challenges do you foresee in the coming years, and how should bankers prepare for them?
During my career, I have seen exponential change in banking – and it certainly seems the pace is faster than ever. We have seen banks interest in crypto-asset-related activities increase, including interest to engage in crypto safe-keeping and custody services, facilitation of customer purchases and sales of cryptocurrency, and loans collateralized by crypto-assets.
This emerging sector presents potential opportunities and risks to banking organizations, their customers, and the overall financial system. Banks looking to get into this sector should ensure that any activities promote safety and soundness, consumer protection, and compliance with applicable laws and regulations, including anti-money laundering rules.
Along those lines, banks are increasingly dependent on IT to deliver services every day, so cybersecurity continues to be an ongoing concern. Disruption, degradation, or unauthorized alteration of bank data through cyber-attacks, including ransomware, can affect operations and core processes. Banks must continue to be diligent and ensure they are protecting customer information and maintaining a solid, tested IT program.
These topics are not new to bankers. I know our Wisconsin bankers are very perceptive and are working diligently to address these opportunities and risks head on and will continue to do so in the years to come.
Is there anything else you would like Wisconsin bankers to know about you or your work?
During my time at the DFI, I have had the privilege of working with and getting to know our incredible bankers. I have seen firsthand how our banks stepped up to help customers in their communities — and not just during a pandemic — every day. I have the utmost respect for the hard work being done in this ever-changing environment. Although the past two years were filled with uncertainties, the health of Wisconsin’s financial industry remains strong thanks, in large part, to the efforts of our Wisconsin banks. Their leadership in a time of uncertainty, their commitment to our communities, and the assistance they provided to individuals and small businesses truly made all the difference. On behalf of Governor Evers and myself, I want to thank our Wisconsin banks and bankers for all they do to serve the people of Wisconsin. Keep up the great work!