Tag Archive for: Agricultural Banking

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From the Fields: Looking Forward to 2026 WBA Agricultural Bankers Conference

By Lance Lansing

As the agricultural (ag) economy continues to shift under the pressures of weather volatility, market uncertainty, and evolving producer needs, the 2026 WBA Agricultural Bankers Conference arrives at the perfect moment. Held April 16–17, 2026, at the Kalahari Resort & Convention Center in Wisconsin Dells, the event will bring together more than 110 ag bankers from across Wisconsin for two days of education, insight, and networking.

For me, this conference represents more than an industry gathering — it’s an essential opportunity to sharpen strategic thinking, connect with peers, and bring back actionable value for customers and my organization. Here’s what I’m most looking forward to this year:

High‑impact education from expert speakers.

The conference promises over seven hours of presentations delivered by experts with deep knowledge of ag finance, policy, and economic trends. These sessions offer fresh outlooks on economic and commodity trends, market risk management strategies, and insight into regulatory changes. Some of the well-known lineup include Dr. Steven Johnson and Eric Snodgrass.

Networking with banking peers across the state. 

With more than 110 ag Bankers already registered, the conference provides unparalleled peer connectivity. It’s an opportunity to share best practices, discuss portfolio challenges, and build long‑term professional relationships. For me, these shared experiences often spark new ideas and improve how I collaborate both within my bank and across the industry.

Engaging with exhibitors and ag‑focused solution providers.

The exhibit hall is a valuable space to explore tools and technologies tailored to ag lending, as well as connect with service partners who can support ag banking initiatives. As customer needs become more sophisticated, staying connected to innovative solutions is essential.

Insights into the future of ag banking.

The conference often includes discussions about generational transitions, market volatility, and long‑term shifts in rural economies — topics essential for adapting to the future of agriculture. For 2026, I’m specifically hoping to deepen my understanding of how market dynamics are impacting credit quality, and which emerging opportunities in sustainability, technology adoption, and alternative revenue streams could impact my portfolio.

Practical takeaways to serve customers more effectively.

Ultimately, the goal is to return with insights that help our banks better support producers, improve risk assessment, and navigate uncertainty. Whether it’s improving financial communication with customers, enhancing risk assessments, or rethinking loan structures to align with farm cash-flow cycles, my goal is to return with insights that deliver real value.

If the coming year in agriculture is anything like the last, the insights and connection gained at this conference will be invaluable. And I’m ready for it.

Lansing is vice president – lending at Apple River State Bank in Darlington. Lansing also currently serves as the Vice Chair on the WBA Agricultural Bankers Section Board of Directors.

 

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Calculator and hundred dollar bills sitting on pile of wheat grain
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From The Fields: Changing the Mentality of Strategic Planning

By Ben Hertel

As the calendar has now flipped to 2026 and we all inevitably take an extra second to think about what date we’re writing on a document, it shows again how habitual a simple task becomes. Habits, by nature, are tough to break. For many, it is easy to fall back into familiar habits, after all, it is what led us to our current point in life or business.

This leads us to ask how we can help our customers break those habits and become more organized. This applies not only to their finances, but also to timely reporting that allows them to utilize those records and reports to learn from the past to apply insights to future strategic planning.

Too many farmers and business owners alike view financial record keeping as a task completed solely to pay Uncle Sam or because their banker requires it, rather than as a tool to stay ahead in their business and plan for the future. Those who are not up to date often become habitual extension filers, producing documentation that is eight to ten months outdated by the time it is filed. By the time returns are produced, the current year’s crop is already in the ground and in some cases, nearly ready for harvest, making the financials largely unusable for planning purposes.

Let’s break this process down into three steps that can help our producers break this cycle.

Step 1: Formalize the Process

  • Resources are crucial and can make this process much easier, not just for us as bankers, but for the customers themselves. Creating a plan to organize all required information into, at a minimum, an Excel spreadsheet or another record keeping platform that suits them the best is a strong first step. Not every customer has a robust system but moving from handwritten records to an Excel sheet can make a significant difference in organization.
  • It is important to recognize that record keeping is not always simple or straightforward. Many producers are balancing long workdays, weather uncertainty, labor constraints and volatile markets, all while trying to keep operations moving forward. When record keeping falls behind, it is often due to time limitations. By acknowledging these challenges, we can better position ourselves as partners in the process. Offering practical solutions, manageable timelines, and realistic expectations can help reduce the burden and make consistent record keeping more achievable.

Step 2: Update Financials in a Timely Manner

  • Procrastination is not our friend and creating a plan to keep financials current on an ongoing basis is essential. Interim financials are important to help with planning priorities for the upcoming year. Encouraging growers to take advantage of available time before cropping season begins is key.

Step 3: Use Financials for Strategic Planning

  • Use the information you have to plan for your future. This includes pushing for accrual adjustments, calculating break-even points and learning from the past to gain efficiencies. While there will always be unpredictable events and circumstances, past performance can still help inform future decisions.
  • As bankers, we can add value when provided with current financials, demonstrating to our customers that we are partners in their future successes. We all want to be there to celebrate our customers’ wins, and successful planning can make that happen.

Breaking a habit does not happen overnight, it takes time, patience and persistence. The goal is to help customers focus on the reward of successful planning while creating an environment where we can work together effectively.

Start the conversation, break the habit, and help ensure success for generations to come.

Hertel is vice president – commercial/ag banking officer at Prevail Bank in Marshfield. Hertel also currently serves on the WBA Agricultural Bankers Section Board of Directors.

 

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From The Fields: Supporting WI Agriculture – A Resource Reminder

By Amy Austin

As we close 2025 and begin to discuss 2026 plans with farmers, it can be a stressful time as they review their financials and plan for the year to come, especially with depressed commodity prices. Agriculture bankers, milk truck drivers, technicians and countless others that are involved in day-to-day farm operations are often times the first to know about major life or farm altering events – good and bad. It is important that all of us are aware of signs of severe stress and know how to connect farmers with helpful resources. I urge you to listen carefully to those who may be struggling and help them reach out for a little extra support when needed.

I want to remind all agriculture bankers and others within the agricultural industry of the resources available through the Wisconsin Farm Center, part of the Department of Agriculture, Trade and Consumer Protection. From financial consulting, succession planning, and mediation services to their Farmer Wellness Program, the Wisconsin Farm Center is a trusted partner for the farmers we work with every day.

The Farmer Wellness Program offers:

  • 24/7 Helpline – Always available when someone needs a listening ear
  • Counseling vouchers – Assisting to cover the cost of in-person counseling services
  • Tele-health services – Support by phone or video
  • Online support groups – Connecting farmers with others around the state who understand
  • Rural Realties Podcast – Conversations on farm legacy, farm business & mental well-being

All of these offerings are free and confidential to Wisconsin farmers and their extended families.

I encourage you to visit the Wisconsin Farm Center’s website or reach out to their team directly to learn more about the resources available through their Farmer Wellness Program. One-on-one training is available as well. Our Ag Team at Lake Ridge Bank was fortunate to receive training with Karen Endres, the Farmer Wellness Program Coordinator, and Dan Bauer, the Wisconsin Farm Center Program Supervisor.

If a farmer you know is experiencing anxiety, depression, or simply needs someone to talk to, please encourage them to call the 24/7 Wisconsin Farmer Wellness Helpline at (888) 901-2558 for free, confidential, and immediate support any day, any time.

Austin is an ag & business portfolio specialist at Lake Ridge Bank in Evansville, and a current member of the WBA Agricultural Bankers Section Board.

 

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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.

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Man sitting on wheel of large farming vehicle looking at laptop

From The Fields: Preparing for Q4 – More Than Just Harvest

By Matthew Hartmann

In my first few years of ag banking, I found the fourth quarter to be an intimidating time of year. As fall approaches, the focus of our clients and prospects typically shifts to getting crops out of the ground. As we all know, harvest is demanding, and time is limited. Have you ever found yourself trying to understand how to continue to add value to your clients and prospects without adding pressure during an already busy time?

I’ve been blessed to have some wonderful mentors in my life that have challenged me to find solutions to problems (both inherited and self-inflicted), while providing their unique perspectives during the process. As a result, I’ve come to find that this job doesn’t stop at understanding your client’s financial metrics. It’s about understanding the challenges (and opportunities) producers are facing and providing your perspective on possible solutions. It’s about building trust and showing them that you have a vested interest in their success.

I now view the fourth quarter as an opportunity to begin the next fiscal year strong. Harvest continues to be a key focus, as it should. However, thoughtful, well-timed conversations both during harvest and post-harvest can help avoid last-minute decisions later. Whether it’s exploring capital investments, reviewing succession plans, or running a few “what-if” scenarios based on current market conditions, starting early can provide room to think clearly and plan intentionally.

So as harvest continues, consider carving out time to ask a few thoughtful questions. Not every conversation needs to be formal or complex. Sometimes, simply being present and asking, “What’s on your mind as you look toward year-end?” can open the door to valuable insights, stronger relationships and trust that extends beyond the next loan renewal.

 

 

Hartmann is vice president – agricultural banking at BMO Bank, N.A. in Menomonee Falls. Hartmann also currently serves on the WBA Agricultural Bankers Section Board of Directors.

 

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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.

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Classic Red Barn in a Corn Field

From The Fields: Navigating the Future of Wisconsin Agriculture – Resilience. Risk. Opportunity.

By Lance Lansing

Wisconsin agriculture continues to be a cornerstone of the state’s economy and identity, with dairy, grain, livestock, and specialty crops all contributing to a vibrant, diverse industry. As agricultural lenders, our role extends beyond traditional banking—we are risk managers, strategic advisors, and partners in growth. In today’s climate, that role is more critical than ever.

Economic Headwinds and Financial Stress

Inflationary pressures, higher interest rates, and volatile commodity prices are reshaping the financial outlook for Wisconsin farmers. While some have benefited from strong milk and grain prices in recent years, rising input costs—particularly fuel, fertilizer, and feed—have cut into margins. The net result is greater financial stress on operations with tight working capital and high leverage.

As lenders, we must balance risk with long-term relationships. Tools like cash flow projections, margin analysis, and stress testing remain vital, particularly when evaluating renewals or new lending opportunities in sectors such as grain, where volatility remains high.

Climate and Conservation: A Growing Focus

Weather extremes—from drought in northern counties to excessive rainfall in southern regions—underscore the need for climate resilience. Many Wisconsin farmers are adopting conservation practices, such as cover cropping, no-till planting, and managed grazing, to build soil health and mitigate environmental risk.

These efforts present unique lending opportunities. Lenders can play a proactive role by supporting farmers through USDA conservation programs or by exploring green financing models that reward sustainability practices with lower borrowing costs.

Generational Transition: Planning Ahead

An estimated 60% of Wisconsin’s farms are expected to change hands in the next 10–15 years. However, fewer than half have a formal succession plan. This generational transition presents both a challenge and a chance for agricultural bankers to add value. We can support clients with planning services, facilitate land transfer strategies, and provide the capital needed for younger generations to step into ownership.

It’s also critical that we build strong relationships with the next generation of producers—offering financial literacy, tech-savvy lending platforms, and flexible loan products that align with the evolving priorities of younger farm operators.

Technology and Innovation in Lending

Precision agriculture, robotics, and data analytics are transforming farm management. These technologies can improve efficiency and profitability—but they also require capital. Banks that understand the ROI of ag tech investments can offer more targeted financing solutions, such as equipment loans, leasing programs, or partnerships with tech providers.

Additionally, digital lending platforms are streamlining loan applications and approvals, particularly for smaller operations and rural customers. Embracing innovation in lending processes will be key to staying competitive and responsive in this fast-changing environment.

Conclusion

Wisconsin’s agricultural landscape is evolving, and so too must our approach to agricultural banking. By deepening our understanding of the challenges our clients face—and proactively offering strategic, customized solutions—we can continue to be trusted partners in Wisconsin’s agricultural success.

Lansing is vice president – lending at Apple River State Bank in Darlington. Lansing also currently serves as the Vice Chair of the WBA Agricultural Bankers Section Board of Directors.

 

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A New Tax Advantage for Banks: 25% Interest Exclusion Explained

Wisconsin’s community banks have long been a cornerstone of the state’s rural and agricultural economy. A new federal tax provision introduced under the One Big Beautiful Bill Act (H.R.1) signed into law on July 4, 2025, offers an opportunity for financial institutions engaged in rural and agricultural lending to strengthen that impact. Section 139L of the Internal Revenue Code allows qualified lenders to exclude 25% of interest income earned on eligible rural and agricultural real estate loans from federal taxable income. This measure is intended to promote increased lending activity in rural areas by providing a tax incentive to participating institutions.

Eligibility Criteria for Lenders

The definition of a “qualified lender” is intentionally broad, ensuring a wide range of financial institutions can benefit from the new tax exclusion. Eligible entities include FDIC-insured banks and savings associations, state- or federally regulated insurance companies, U.S.-based subsidiaries of bank or insurance holding companies, and certain federally chartered institutions within the Farm Credit System. This inclusive approach is particularly advantageous for Wisconsin-based lenders, many of whom already serve rural and agricultural markets and are well-positioned to take advantage of this incentive.

Loan Qualifications

To qualify for the 25% interest exclusion, a loan must be secured by real estate classified as rural or agricultural, issued by a qualified lender to a U.S. customer, and originated after July 4, 2025. The exclusion applies to interest earned during tax years ending after July 4, 2025. While the borrower does not need to be a farmer or operate an agricultural business, the collateral must meet the rural or agricultural criteria.

Specifically, “rural or agricultural real estate” includes (i) any real property substantially used for the production of one or more agricultural products, (ii) any real property substantially used in the trade or business of fishing or seafood processing, and (iii) any aquaculture facility. These definitions ensure the exclusion targets loans supporting core agricultural and rural economic activities.

It is important to note that refinanced loans are not eligible for the exclusion under the current guidelines.

Interest Expense Limitations

Section 139L modifies the application of Section 265 of the Internal Revenue Code, which traditionally disallows deductions for expenses related to tax-exempt income. Under this provision, lenders are prohibited from deducting expenses associated with the portion of interest income that is excluded from taxable income. The expense disallowance is calculated based on 25% of the tax-exempt loan’s adjusted basis.

State Tax Conformity

Wisconsin already provides a state-level exemption for certain commercial and agricultural loan income; that exemption remains unchanged by the new federal Section 139L provision. Although both aim to encourage lending in key sectors, they operate independently. Wisconsin does not automatically conform to federal tax law, and its treatment of loan income will stay the same unless the state legislature takes specific action to adopt the new federal provision. Financial institutions should continue to track and report federal and state tax benefits separately.

Implications for Financial Reporting

It is equally important to consider how these changes affect financial reporting. The exclusion of a portion of interest income under this provision introduces specific considerations for both C corporations and S corporations.

  • C Corporations

For C corporations, the 25% interest exclusion reduces taxable income, thereby lowering the current tax expense reported on the income statement through the tax provision calculation. Because this exclusion represents a permanent book-to-tax difference rather than a temporary timing difference, it does not give rise to a deferred tax liability.

  • S Corporations

For S corporations that are treated as pass-through entities, the exclusion reduces the taxable income reported on shareholders’ Schedule K-1s. The deduction may influence the calculation of distributable income and affect shareholder basis.

Strategic Considerations

Financial institutions are encouraged to review their loan portfolios and origination strategies to identify opportunities to benefit from the Section 139L interest exclusion. Given Wisconsin’s strong agricultural presence and extensive rural lending activity, this provision may offer both tax savings and strategic advantages. Institutions should consult with their trusted tax advisors to explore planning opportunities and accurate financial reporting.

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