Tag Archive for: Agri-Banker Review

Posts

From the Fields: A Recap of the ABA National Ag Conference

By Nicholas Felder

The ABA Ag Banker’s Conference was held in St. Louis at the St. Louis Union Station Hotel. An architectural marvel and historical landmark that provided the setting for two and a half days of data, Q&A, humor, and personal struggles and success.

The consensus of economists from Moody’s, Dr. David Kohl, Center for Farm Financial Management, and members of academia like Dr. Andrew Griffith of the University of Tennessee was very similar: certain markets are enjoying their heyday (proteins) due to increasing domestic and global demand as a result of economic growth or health trends. And, gosh darn it, people like the flavor of U.S. grown chicken and beef! On the other hand, cash crops have been negatively impacted the entire marketing year by overhyped yield projections, trade disagreements, and domestic use concerns with the repeal of biofuels incentives.

Our protein growers and milk producers rely on domestic and close markets like Mexico to which we must be mindful of shifts in consumer demand (processing that reduces meal prep is preferred and shifts to protein-heavy diets). Overall, we may have fewer head of dairy, beef, swine, or poultry in this country that in the past as has been promoted by media for the last while, but the American Farmer continues to pound out larger, more productive animals resulting in strong volume production meeting the needs of consumers.

Liquidity retention through cost containment, family living boundaries, and effective tax strategies (not shiny paint for paint’s sake) remains the dividing line from the clear winners and losers. It was not size that determined profitability, it appeared to be cost reductions through the effective delivery of liquidity into the cash cycle. We always knew, but the data looks to be proving it out.

The loudest and most resonating topic for the week for me was the focus on the self: Culture, Training, Balance High Tech vs High Touch, Self Care through physical and mental choices, and beyond. When Dr. Kohl starts to discuss leadership, personal wealth, and the focus on personal growth – we should listen. Take NOTES via writing not a keyboard! Engages more areas of the brain! Read! Give back to your communities. All of which create communities in which we want to live, work, and play.

The ABA Ag Banker’s Conference reinforced its role as a vital forum for navigating complexity in ag lending. By blending economics, policy, technology, and personal anecdotes, the event helps attendees sharpen their strategies for their producers, be encouraged or moved to engage in meaningful advocacy, and build relationships that will support their institutions – and the producers they serve – through an unpredictable future. Participate! Advocate! Celebrate! Hope to see many of you in 2026 at the WBA Agricultural Bankers Conference, April 16-17 in Wisconsin Dells!

Felder is vice president – commercial and agricultural banking at MidWestOne Bank in Lancaster. Felder also serves as Chair on the 2025–2026 WBA Agricultural Bankers Section Board of Directors.

/by
Green combine in corn field during harvest

From the Fields: Where Do Corn and Soybean Prices Go From Here?

By Adam Sommer

As we get closer to the harvest of 2025, prices are a constant source of discussion in coffee shops, banks, and farm offices in Wisconsin. Concerns around production and supply, coupled with trade uncertainty, have led to a lot of head-scratching for farmers in Wisconsin and beyond the state boundaries. Bankers are posing the question of what fall will bring and what is beyond that. Over the past few years there is no doubt that the row crop market has turned in trend from strength to a more tepid pace. Recent USDA reports have only dampened the future crop outlook given the anticipation of record yields. Let’s dig a little deeper on that potential.

Trade in the corn and soybean market is being shaped by record production, shifting export demand, weather impacts, and evolving global competition. Farmers are hearing a variety of bullish and bearish projections and attempting to interpret it all.

Corn Outlook:

Corn prices have trended lower over the past month, falling nearly 3% compared to the previous month and down about 2% year-over-year. Prices are starting with a 3 going into fall and that doesn’t bode particularly well for anyone holding grain or waiting to price the crop. One of the significant factors holding this price down is the projected record crop out of USDA and more supply than the previous fall. Harvested acreage estimates are also up, with over 97 million acres planted.

Despite the robust supply outlook, certain localized risks persist. Drier weather across parts of the “I” states may temper that anticipated yield. So, for the Wisconsin farmer, not all hope is lost.  Export demand is still at a significant level for US corn as well. Depending on the yields that cross the monitor this fall across the Midwest the outlook isn’t bright but may not be as dark as anticipated. In southern Wisconsin the initial perspectives are that yields are strong locally.

Soybean Outlook:

Soybean futures have outperformed corn in recent weeks, hovering over $10 for November soybeans. The USDA predicts a record national average yield of 53.6 bushels per acre but decreased harvested acreage, resulting in declining ending stocks on both domestic and global levels. Exports have also remained relatively stable and that has allowed for prices to remain in a manageable position.

Additionally, rains during August have remained steady and have allowed for the crop to fill out in southern Wisconsin. Yields are an anticipated strength but yet an unknown as we turn the corner to September.

What’s this mean for Bankers?

Ultimately, for those of us that work with farmers, market uncertainty leads to concern and potential for decision-making challenges into the harvest season. The best thing we can do is not only stay on top of the market movement, but also work closely with farmers to keep communication lines open. These are trying times for row crop agriculture but communication and planning can allow farmers to have some peace during harvest. It is a great time to pick up the phone and have that one final conversation before the combine goes from barn to field and provide some communication from the bank on options for the farmer to mull over from the cab of the combine.

Sommer is chief lending officer at Bank of Brodhead. Sommer also currently serves on the WBA Agricultural Bankers Section Board of Directors.

/by

From the Fields: Making an Impact

By Nicholas Felder

One of the many responsibilities and pleasures of working at a bank is the opportunity to sit on charitable boards and committees that further the interests of your bank, your community, or your personal life. Many of which are intertwined and drive personal and professional growth alike. As the newly appointed Chair of the 2025-2026 WBA Agricultural Section Board of Directors, I believe this statement is true and I look forward to the breadth and depth of the boards to which I participate.

The most recent iteration of these opportunities happened over a recent 11-day stretch to begin June. On June 3rd, I sat in on the Wisconsin Corn Growers Association board meeting to discuss the state of corn in Wisconsin as well as new or continuing ways to promote its growth and its uses. That meeting rolled into a joint meeting with the Wisconsin Biofuels Association who hosted Preston Brown from incite.ag to discuss 45Z and the Clean Fuel Production Credit. What was most interesting was how that tax credit incentivizes grain buyers to collect data from grain producers generating a fairly arbitrary Carbon Intensity score and how the US Treasury values a producer’s farming practices. Confusing and more to come I would guess.

One week later, I assisted in the execution of Grant County’s FREE Rural Safety Day who hosted 210 second through eighth graders for a day of sessions learning about Kindness & Mental Health, Weather Safety, Animal Safety, PTO Safety, ATV/UTV Safety, Electrical safety (my favorite because the local electrical co-op fully charges a small power line and electrocutes hot dogs in front of the kids), Substance Abuse awareness, and Nutrition. The kids get fed three times and all are sent home with T-shirts and other small safety items, some get cash give-a-ways, and two kids get to take bicycles home! I have served on this committee for at least 10 years, and it is a highlight of the start of my summer!

And finally, three days later I wrapped up my stretch with my WBA Agricultural Section Board Meeting where we had the opportunity to sit and chat with WI DATCP Secretary Randy Romanski. He took time to answer our questions and talk about informational (not inflammatory) topics like Federal cuts and how that is affecting USDA/FSA/DATCP; the National Milk Testing Strategy and how our state was an integral part in the creation of a reasonable and actionable plan to protect our dairy farms; and about the State Budget and how the Wisconsin Farm Center remains a priority to assisting rural Wisconsinites deal with stress and mental health as well as how the Governor has prioritized rural infrastructure through programs like ARIP (Ag Road Improvement Program). You can read more about full conversation here: WBA Ag Section Board Met With DATCP Secretary Romanski – Wisconsin Bankers Association

All these organizations need the leadership, direction, and manpower that we, as Ag Bankers here in the state, can provide. But most importantly the idea that every person you meet knows something you don’t; learn from them. Take that knowledge and share with others who can use it to grow and improve themselves or others around them. That action builds community and that, specifically, is why I have chosen this career. Please take time to volunteer and lead which will make someone else’s day better.

Cheers to timely rains and sunshine for those that need it! Hope you all have a great summer with family and friends!

Felder is vice president – commercial and agricultural banking at MidWestOne Bank in Lancaster. Felder also serves as Chair on the 2025–2026 WBA Agricultural Bankers Section Board of Directors.

/by
2025 WBA Ag Bankers Conference presentation
,

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.

/by
Cyclone weather pattern
,

From the Fields: “Bomb Cyclone”

By Nicholas Felder

“Bomb Cyclone”

When you read this phrase, I am guessing many of you are waffling between thinking: “I agree, this weather is absolutely nuts! Summer one day and winter the next!” or possibly “President Trump is at it again… Grain markets go up; grain markets go down. It has been nothing but a whirlwind since he took office!”

I would be lying if I did not agree with both of those sentiments in reference to the term “Bomb Cyclone.” Frederick Sanders assisted in coining the term about an intense storm that loses 24mb pressure over a given 24-hour period. A storm with rapid, intense pressure change causing immense winds and weather. Pretty apropos for the current economic environment and its uncertainty, isn’t it?

Looking forward, we can only use the past as a barometer or guidebook to what is to come. No guarantees that history will repeat itself. That is why guys like Eric Snodgrass and Matt Reardon at Nutrien Ag Solutions are not living on islands they purchased through their wealth created by knowing exactly when and where rain might fall, or winds might blow.

The WBA Agricultural Bankers Conference will be held April 10-11 at the Kalahari Convention Center in Wisconsin Dells. I, personally, use this conference to lay a foundation of historical facts and perspective to guide me in my day-to-day occupation as a facilitator of production agriculture in conversations with producers, approval of funding requests, and partnering with other lenders in knowledge or expertise within or outside of my organization. All require resources and knowledge that are gained at this conference.

After a day and a half of listening to legends like Dr. David Kohl, Ed Elfmann, and Sam Miller as well as the camaraderie of seeing and talking with more than a hundred other bankers and industry personnel, I walk out feeling invigorated and recharged (and ready to take a nap…). Talks about market outlooks from Dr. Leonard Polzin, Dr. Steve Johnson, and a representative from Equity Livestock will give perspective that maybe I did not have or reinforce one that I already did. The ability to ask questions to these experts live, or pull them aside to discuss topics that are puzzling or intriguing to something in your role. And generally, a final speaker to give us insight on life or something that is part and parcel to what we do, but we’ve not thought about it in that way.

I would encourage each one of you to look at the value that this conference brings for the dollars and time contributed. You will be hard pressed to find a better lineup of speakers year-in and year-out with many of them familiar faces but rarely assembled in the same fashion. And I can guarantee for those of us returning attendees, that all of us have some contacts we only see at this event and that alone is worth the entire price of attendance. Please join us at the Kalahari on April 10-11 for a great couple of days to learn and reconnect. Just go to wisbank.com/ag to register and to learn more about the conference.

Thank you to the entire WBA staff for all the hard work and dedication it takes to put on this conference.

I look forward to seeing you all in April!

Felder is vice president – commercial and agricultural banking at MidWestOne Bank in Lancaster. Felder also serves as Vice Chair on the 2024–2025 WBA Agricultural Bankers Section Board of Directors.

/by
Man taking notes
,

From The Fields: Have a Plan

By Jenny Jereczek, Security Financial Bank, Durand

“If you fail to plan, you plan to fail.” A saying I am sure we are all familiar with and one that has come to mind frequently over the last few years. Planning is crucial to success. Think about the days we don’t plan, what happens? Often time is wasted as we spend time trying to decide what to do or we are easily distracted from the task at hand as we are not sure of our direction or purpose. An important part of the planning process is being intentional by defining the when and how. This will help to drive the action steps within the plan.

As the ag industry continues to experience volatile commodity prices and tight margins, it will be important for producers to have a plan. Each producer is likely to have a different plan with a different purpose whether it be marketing their grain, succession planning, transitioning from an enterprise, or maybe an exit strategy. No matter what the plan is, we as bankers have a role to play in the plan. We have the ability and tools to help the producer understand the financial implications of the plan and help them make decisions that will ensure success. By being a part of the planning process, we strengthen the relationship between the bank and our clients which serves to cement our position as trusted advisors.

Having a plan will help take the guess work out of emotional decisions, will help the team stay focused while increasing productivity and will drive execution. And probably one of the greatest benefits of having a plan is to reduce the stress load as having action plans clearly defined can help minimize uncertainty and prevent feelings of being overwhelmed.

Simple steps for creating a plan:

  • Define your goal in writing
  • Divide the goal into milestones
  • Identify the resources needed
  • Prioritize and assign tasks
  • Review and refine

Jenny Jereczek is market president and director of ag and commercial banking with Security Financial Bank in Durand. Jereczek currently serves on the WBA Ag Section Board of Directors.

/by
Two people having discussion on farm
,

From the Fields: Join Us at the 2023 WBA Agricultural Bankers Conference

By Craig Rogan

Spring is here, meaning the Wisconsin Bankers Association’s (WBA) Agricultural Bankers Conference is just around the corner on April 13–14 at the Kalahari Convention Center, Wisconsin Dells. These days are spent reconnecting with fellow ag bankers, sharing experiences from throughout the last year, and acquiring new and updated knowledge to propel our industry into the future. We will welcome many new ag lending professionals to our industry at this conference as well.

Whether you are new to the Ag Banking Conference or a seasoned pro, there’s always something to be learned; however, some things never change; making sound credit and risk decisions should still be at the forefront of your day-to-day analysis, assessing farm’s management practices today to ensure viability and long-term success remains a crucial piece of the puzzle.

We again welcome Dr. David Kohl, a professor emeritus at Virginia Tech who holds a Ph.D. in Agricultural Economics from Cornell University. Dr. Kohl’s solid agricultural knowledge, paired with his ongoing research and experience, makes him a true ag expert.

The months of April and May leave many farmers focused on when the fields will be dry enough to plant. Eric R. Snodgrass is the Director of Undergraduate Studies for the Department of Atmospheric Sciences at the University of Illinois at Urbana-Champaign. As an educator and engaging speaker, he will discuss if current and projected weather conditions may allow for a rapid jumpstart on this year’s growing season. With his guidance, we will examine the global weather outlook and what this could mean for potential yields outside of the U.S. as well as what role weather plays in affecting grain commodity prices.

Wisconsin is going strong in the dairy industry with nearly 1.27 million cows and 6116 dairy farms across the state. UW-Madison Dairy Markets and Policy Outreach Specialist Leonard Polzin will be speaking and updating us on all things dairy in Wisconsin.

This highlights just a few of the highly esteemed speakers that we are honored to host at this year’s Agricultural Banking Conference. I look forward to seeing you in the Dells! If you haven’t registered but would still like to attend please visit wisbank.com/ag to register today.

Rogan is vice president – ag banking officer at Nicolet National Bank, Stevens Point, and vice chair of the 2022–2023 WBA Agricultural Bankers Section.

/by
Crop duster airplane spraying chemicals on cornfield
,

From The Fields: Expect Turbulence

By Nicholas Felder

“Ladies and gentlemen please make sure your seat belt is securely fastened and your seat backs and tray tables are in their full upright position.” As many of us know, these instructions are for the safety and soundness of all those aboard commercial aircraft during what might not be a perfect landing. Well, we might all want to heed that advice and reiterate that to all our customers as soon as possible.

As of the date of this article, the American grain producer is facing $6.60 corn (which oscillated from $4.85 to $7.60 down to $5.65 now $6.60) and $13.94 soybeans (same $12.50, then $15.85, then $12.85, then $14.75, now $13.94) which isn’t all bad! However, all the pilots (and the passengers alike) who are flying across the 2022 crop year aren’t exactly sure where the runway is located and in what condition it stands. As they peer down towards harvest and post-harvest, they must deal with a dense layer of fog comprised of inflation, a strengthening dollar, global unrest, weather, mid-cycle fall elections, and the USDA’s export sales reporting system that went down just as these markets couldn’t get any more volatile. Basis spreads between new and old crops are leading the charge to what looks like a pre-harvest rally. However, the Dow and S&P markets are falling precipitously, leading some experts to believe a demand drag on domestic use is the next big hurdle for the 2022 and 2023 crop marketing cycles. Sell now or later? And, if that wasn’t enough, producers and lenders looking at the 2023 growing/feeding/milking year are facing decisions on things like fertilizer and chemical pricing, even before the ’22 crop really starts to turn away from its summer green. Can we really achieve a “soft landing” of any fashion in this environment? It’s the question both farmers and politicians are struggling to answer.

Change and interruption are inevitable in a global and electronic economy. Too many hands in the pot waiting to grab their “fair share,” while people and animals across the globe fight to find their next meal. However, preparation and a good commodity marketing offense is the best defense for headwinds of the nature noted above. It really all begins with cash flows that are created well before final planting decisions made. Then, regularly updating the living, breathing document as itemized expenses change or planting and crop maintenance is completed so it can be an accurate tool to price whatever commodity being produced. These strategies don’t have to be complex; just planned and emotionless. Nickels saved through discipline and, many times, luck create opportunities to land as softly as anyone is able in today’s environment. A producer can’t farm next year if he doesn’t make it through this year.

We all know that equity may be the key to growth, but liquidity is the key to longevity. As we transition into the autumn harvest season, your fellow banking professionals ask that you be that trusted advisor who is slightly risk averse, but supportive of growth and profitable ventures. There is still money to be made and balance sheets will improve if producers are intentional in their actions and lenders the same. The sky can be prevented from falling if we work together!

Thank you all for your service to the industry, diligence and support of America’s producers, and presence within your local communities. Wishing all a safe harvest season!

Nicholas Felder is vice president, commercial and ag banking, with MidWestOne Bank in Lancaster. Felder currently serves on the WBA Ag Section Board of Directors.

/by
Corn sprouting in field
,

From The Fields: Remaining Proactive

By Jenny Jereczek, Security Financial Bank, Durand

ESG. . . yet another acronym to add to the ag lender’s vocabulary! Environmental, social, and governance (ESG) reporting requirements have been a topic of discussion for several years now, and these discussions continue to gain headwind. Rather than regulatory reporting requirements focusing strictly on financial considerations, investors and regulatory agencies are now considering a broader set of decision-making criteria, which includes ESG ratings. Most recently, bond investors have begun to question ESG ratings for producers who received financing with the bonds the investors are purchasing.

While regulators have not yet standardized ESG reporting, these ratings may have significant impacts on ag banks and their clients. A few things to keep in mind when discussing ESG ratings within your institutions or with your ag clients:

  • Currently some ESG frameworks only mandate reporting of emissions and energy consumption. Going forward, financial performance and ESG ratings may also be impacted by the following:
    • Changes in water availability, sourcing, and quality
    • Tillage practices and their impact on soil health
    • Use of chemicals, fertilizers, and solid waste disposal
  • Consumer groups continue to use ESG ratings to pressure companies along with lenders to be “green” even though metrics to determine what “green” really means have not be identified or standardized.
  • Often the focus of agriculture’s environmental impact is negative, focusing on things such as risks from deforestation, pesticide usage, fertilization application rates, animal welfare, and manure disposal. Yet the agricultural sector can also have a positive environmental impact, such as the creation of alternative fuels — as we have seen with ethanol and biodiesel production as a means reduce the total consumption of fossil fuels. Education and communication with the consumer should be a primary focus for producers, lenders, and all that partner with the agricultural community. The American public cannot support what it does not understand.
  • Most producers are already deeply committed to improving sustainability as well as using technology to reduce inputs and costs. With fertile land availability outpacing demand and freshwater needs exceeding supply, the importance of sustainability should not be driven solely by reactions to investor attitudes, but more so from a place of improving efficiency and profitability to ensure longevity of the operation.
  • ESG ratings are driven by governmental entities — therefore without clear objective standards — and ESG regulations within the looming 2023 farm bill or federal financial regulations could be of concern and could affect farm bill and federal crop insurance payments.

While the impacts of ESG ratings are not totally known today, we can be certain that there will be impacts to our producers and our institutions. As lenders, we need to keep up with developments regarding potential legislation surrounding ESG ratings. We also need to encourage education amongst not only consumer groups but our producers to be proactive in our approach to dealing with future ESG requirements.

Jenny Jereczek is market president and director – ag banking with Security Financial Bank in Durand. Jereczek currently serves on the WBA Ag Section Board of Directors.

/by
Wisconsin Bankers Association logo

questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

Get our Newsletter!
Subscribe