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Tag Archive for: Agricultural Banking

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Education, Member News

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.

April 22, 2025/by Lori Kalscheuer
https://www.wisbank.com/wp-content/uploads/2025/04/IMG_3198-scaled.jpg 1707 2560 Lori Kalscheuer https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Lori Kalscheuer2025-04-22 10:33:472025-04-22 10:33:47From the Fields: WBA Ag Bankers Conference Recap
Community, Education

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.

March 28, 2025/by Lori Kalscheuer
https://www.wisbank.com/wp-content/uploads/2025/03/cyclone-weather-pattern.png 353 624 Lori Kalscheuer https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Lori Kalscheuer2025-03-28 10:49:082025-03-28 10:49:08From the Fields: “Bomb Cyclone”
Community, Education, News

Two Wisconsin Students Earn 2024 WBF Agricultural Banking Scholarship

Read more
February 14, 2025/by Cassandra Krause
https://www.wisbank.com/wp-content/uploads/2021/09/Triangle-Backgrounds_Lime-Green.jpg 972 1921 Cassandra Krause https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Cassandra Krause2025-02-14 14:28:362025-02-14 14:33:06Two Wisconsin Students Earn 2024 WBF Agricultural Banking Scholarship
Family with hands cupped together holding up patch of soil with plant growing out of it
News

From The Fields: Reflecting Back on 2024

By Craig Rogan

The 2024 planting season in several areas of Wisconsin will be memorable for the spring rains that limited planting and hay harvest windows. Farms in these areas focused on obtaining enough tonnage for cattle feed through several different methods. Working with their nutritionist and agronomist to calculate the number of acres necessary to be planted for corn silage was a vital process. These meetings allowed for operations to calculate the number of acres they would need to harvest for the necessary tonnage of feed for there cattle. Knowing your carry over inventory and daily usage is important to these calculations. In many cases the farms knew they would end up needed to purchase dry corn then raising their own dry corn or HM corn. Others planted what they could and took prevented plant on several acres while working out contracts with local grain farms to obtain corn silage.  The versatility of farmers is amazing on how they navigate through uncontrolled circumstances to feed their cattle.

A steady increase in milk throughout the year 2024 eased some of the stress that was being added to our dairy farmers from a cash flow standpoint. The decrease in crop inventories will have negative effect earnings when reviewing 2024 financials.

November is one of my favorite times of the year and most notable during the Wisconsin deer hunt, but more importantly the comradery that a deer camp provides. The gathering of hunters to tell stories of previous hunts, discuss current time and the future of the hunting camp. Now is the time to get together with your farmers and discuss history on the farm, current operation and what it entails for 2025 and the future of their operation.

Wishing you all the best as we near the start of 2025!

 

Rogan is vice president – agricultural banking officer at Nicolet National Bank in Stevens Point. Rogan also currently serves as the Immediate Past Chair of the WBA Agricultural Bankers Section Board of Directors.

 

December 18, 2024/by Lori Kalscheuer
https://www.wisbank.com/wp-content/uploads/2021/10/bigstock_47646973_farmers-family-agriculture.jpg 533 800 Lori Kalscheuer https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Lori Kalscheuer2024-12-18 08:23:192024-12-18 08:23:19From The Fields: Reflecting Back on 2024
News

From The Fields: A Recap of the 2024 ABA National Ag Conference

By Matthew Hartmann

The 2024 ABA Agricultural Bankers Conference took place at the newly renovated Baird Center in Milwaukee from November 12th to 15th. With the recent election and ongoing challenges in the agricultural industry, there was a great deal for attendees to discuss.

ABA’s Chris Fisher, Ed Elfmann, Blake Earley, and Kirsten Sutton

Members of the ABA’s congressional relations team, Blake Earley, Chris Fisher, and Kirsten Sutton joined ABA’s SVP of Agricultural & Rural Banking, Ed Elfmann, to discuss the impact of the recent election results on banking policy. They noted that the GOP’s control of both the House and Senate could benefit bank-friendly policies. The panel emphasized their role in making every banking priority as bipartisan as possible and discussed the need for strategic advocacy to ensure banking priorities are considered, regardless of which party holds power, as control could flip in two years. Regarding the new Farm Bill, Elfmann noted that there is a slim chance of a vote being included in the lame duck session. He suggested that another extension is more likely to give the Senate time to work on a five-year bill, as the House already has its version, and he doesn’t anticipate much change there. He also provided an update regarding the Access to Credit for our Rural Economy (ACRE) Act, explaining that it will likely be included in tax legislation outside of the lame duck sessions and that including it in tax reform is the best vehicle to move it forward. He mentioned that significant progress has been made, with more Democrats supporting the plan than ever before. However, with Sen. Jon Tester losing his seat in Montana, they might need a new supporter from the minority party in Congress. Elfmann stressed the importance of advocating to key Senate members to support this plan and making sure farmers understand how it will help them. ACRE would enable access to more affordable real estate credit for farmers, ranchers, and rural families by granting banks that serve rural communities the same tax-exempt status on certain earned interest as the farm credit system, allowing banks to offer lower interest rates to farm real estate borrowers and rural homeowners.

The pre-conference workshop, “Buckle Up. Turbulence Ahead.,” set the tone for the conference by highlighting some challenges producers will face in the coming year. Net farm income is projected to decline for the second consecutive year due to continued pressure on prices and higher interest rates. Equipment prices are softening, and in some areas of the country, real estate values have begun to plateau. Reviewing asset valuations with clients to prevent overleveraging and preserve working capital will be crucial. With average interest rates above 8% for the first time in nearly two decades, moving debt down the balance sheet to replenish working capital may be more challenging than it was between 2014 and 2019 when the yield curve was flat. Dr. Kevin Bernhardt’s (Professor, UW-Platteville School of Agriculture) presentation, “Impact of Rising Interest Rates,” was a valuable supplement, reiterating the impact of increased borrowing costs, decreased net farm income, and a slowdown in farmland value growth.

Dr. Kevin Bernhardt

He noted that 35% of agricultural bankers report tightening credit conditions and a rise in Chapter 12 bankruptcies. Lenders anticipate ongoing cash flow challenges resulting in delayed capital expenditures and increased demand for refinancing, while emphasizing the need for greater efficiency and risk management. Bernhardt recommends strategic financial planning, including budgeting for capital expenditures with interest rate contingencies, stress-testing leverage multipliers, and cautious debt restructuring to avoid deadweight debt.

With challenges ahead, there was an emphasis on the importance of building strong business relationships and focusing on cash flow management to help clients navigate these times. In his presentation, “Better Communication, Stronger Relationships,” Vernon Roberts (Executive Coach, Extraordinary Communications) highlighted the importance of enhancing communication skills to build stronger relationships. He emphasized that strong relationships are built on the ability to ask thoughtful questions and answer challenging ones. He noted that empathetic communication and strategic questioning are crucial for fostering better relationships and effectively handling challenges. Scott Sartor’s (Founder/CEO, Croptell) “The Hero Ag Lender: Modern Cash Flow Education” and Anthony “Tony” Hotchkiss’s (Retired Ag Banking Executive) “Farm Financials: What Bankers Need Their Producers to Know” both stressed the importance of strong partnerships between bankers and producers, while underscoring the critical role of proper financial management. Sartor focused on leveraging technology and data to assist in the vital role that loan officers play in guiding farmers through financial challenges and supporting sustainable operations. Hotchkiss highlighted the importance of understanding farm financials, including key financial statements, cost of production, and the impact of capital expenditures, to ensure financial stability and growth.

In their presentation “Swift Signs in Agriculture,” Jessica Lehman (Managing Director, First Financial Bank) and Zach Allen (Senior Director, First Financial Bank) drew parallels between Taylor Swift song lyrics and stressed credit scenarios to highlight the importance of identifying red flags in character, financials, loan covenants, and agricultural cyclicality to manage troubled assets and limit bank risk. Jennifer Lurken (Partner, Gislason & Hunter, LLP) and Michael Dove’s (Gislason & Hunter, LLP) presentation, “Identifying and Protecting Against Hidden Liens and Lenders,” discussed understanding and managing various agricultural liens to protect financial interests and ensure priority in the event of debtor default or liquidation. Both presentations provided practical advice for agricultural bankers to mitigate risks and manage their portfolios effectively.

Organizational culture was also a key topic, highlighting its significance in shaping workplace environments and overall success. In “Building & Sustaining Strong Cultures in Banking,” Nate Franzen (President, Ag Banking, First Dakota National Bank), Lynn Paulson (SVP, Agribusiness Development, Bell Bank), and Alan Hoskins (President and National Sales Director, American Farm Mortgage and Financial Services) discussed the need for organizations to adapt to new challenges, understand cultural influences, address toxic elements, and maintain core values. Casey Merkwan’s (Community Market & Engagement Manager, Old National Bank) presentation, “Merging Bank Cultures for a Seamless Transition,” underscored the importance of understanding cultural differences, promoting transparency, and the role of leadership in ensuring effective communication and strong leadership during mergers.

This year’s keynote speakers brought a diverse array of experiences and insights, captivating the audience with their unique perspectives. In his 47th conference appearance, Dr. David Kohl, as

Dr. David Kohl

always, was able to keep the room engaged while discussing an agricultural industry outlook reminiscent of the 2013-2020 down cycle. Natalie Bartholomew, a seasoned banker and community president, is known for her advocacy for women in banking through her platform, The Girl Banker. John Wesley Boyd, Jr., a fourth-generation farmer and civil rights activist, founded the National Black Farmers Association. He shared his experiences working extensively with national and international leaders to fight the discrimination many black farmers have and continue to face. Craig Culver, co-founder of the Culver’s restaurant chain, shared his journey from a family-owned restaurant to a successful franchise with nearly 1000 locations. Retired Rear Admiral Scott Moore, with 30 years of experience as a SEAL leader, offered insights into leadership and tactical planning from his time leading elite military forces, which includes leading a mission later portrayed in the Tom Hanks film, Captain Phillips. Together, these speakers provided great knowledge and inspiration with their diverse leadership perspectives, and I strongly encourage readers to spend time learning more about each of their journeys.

I want to extend a sincere thank you to all our sponsors, exhibitors, and bankers from across North America (including our Canadian friends) who attended. I hope to see you all again next November at the 2025 ABA Agricultural Bankers Conference in St. Louis, MO. As always, it was wonderful to connect with our fellow Wisconsin bankers and I encourage all bankers interested in agriculture and agricultural banking to join us at the 2025 WBA Agricultural Bankers Conference, taking place on April 10-11, 2025 at the Kalahari Resort & Convention Center in Wisconsin Dells.

 

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.

 

December 18, 2024/by Lori Kalscheuer
https://www.wisbank.com/wp-content/uploads/2024/12/20241113_122756-scaled-e1734530826370.jpg 1037 2560 Lori Kalscheuer https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Lori Kalscheuer2024-12-18 08:15:162024-12-18 13:49:38From The Fields: A Recap of the 2024 ABA National Ag Conference
Community, Member News, News

Coggins Receives Bruning Award

2024 Bruning Award winner Dave Coggins

During the American Bankers Association National Agricultural Bankers Conference held in Milwaukee November 12–15, retired Wisconsin banker Dave Coggins was recognized as the 2024 recipient of the prestigious Bruning Award. This annual award recognizes bankers who demonstrate outstanding leadership and dedicated service to providing credit and guidance to farmers, ranchers, and their fellow agricultural bankers. Bank Five Nine President/CEO Timothy Schneider introduced Coggins to the conference audience and presented him with the award. Schneider worked with Coggins directly for 12 years and reflected on the outstanding service Coggins provided to all customers and outlined the reliable and trustworthy character that all who know Coggins can attest to.

In his acceptance remarks, Coggins shared stories of his 47 years in ag finance, most recently having served as the executive vice president and chief banking officer with Investors Community Bank (ICB). ICB merged into Nicolet National Bank in December 2022, and Coggins continued to work at the bank through the transition until his retirement in June 2023. His career in ag finance started after graduating from UW-River Falls and taking a chance on a job in banking to start what he referred to as his adult life. Coggins grew up on a dairy farm near Ladysmith, where he learned early how hard and rewarding the world of agriculture can be. He shared stories of picking rocks out in the fields … one of the reasons he was looking for a career away from the family farm, but never straying far from the world in agriculture.

During his banking career, Coggins served on WBA’s Agricultural Bankers Section Board for six years, including service as the Chair in 2015–16. Coggins also served on the WBA Government Relations Committee during that time and through 2023 when he retired. He also joined the ABA Agricultural and Rural Bankers Committee for five years and chaired that committee in 2022.

Coggins now spends his time in retirement enjoying family life with his wife of 47 years, Laura, and their three grown children and their spouses who were all in attendance for the award presentation. Coggin’s new chapter is filled with family as he spends time with his 13 grandchildren. He is also volunteering in communities around Wisconsin to teach financial literacy to local farmers.

About the Bruning Award

Since 1997, the Bruning Award, named after its first recipient, Nebraska banker Frank Bruning, recognizes bankers who demonstrate outstanding leadership and dedicated service to providing credit and guidance to farmers, ranchers, and their fellow agricultural bankers. Two Wisconsin bankers have been awarded with the prestigious Bruning Award in past years, including Sam Miller and Richard (Dick) Pamperin.

For more information about the Bruning Award, please visit ABA’s website.

November 15, 2024/by Katie Reiser
https://www.wisbank.com/wp-content/uploads/2021/09/Triangle-Backgrounds_Yellow-on-Light-Blue.jpg 972 1921 Katie Reiser https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Katie Reiser2024-11-15 09:00:062024-11-15 09:01:43Coggins Receives Bruning Award
Green combine in corn field during harvest
News

From The Fields: Grain Harvest 2024

By Lance Lansing

As is done every year in September, planted and harvested acreage estimates for corn, cotton, and soybeans are reviewed based on all available data, including the latest certified acreage data from the Farm Service Agency. The USDA’s Supply/Demand Report on 9/12/2024, reported the outlook for harvest yields as “good” for our part of the country. USDA is estimating record yields in both corn and beans for southern Wisconsin and that will lead to even bigger increases in supply so we should expect to see lower prices for 2025. According to USDA data, production for corn increased by 39 million bushels to 15.186 billion. That is 30 million bushels above expectations. Record yields are projected at 183.6 bushels per acre vs. 183.1 bushels per acre predicted last month. Old Stocks are below expectations at 1.812 billion due to stronger exports and increased ethanol production. New stocks came in above expectations at 2.057 billion.

Bean production was trimmed by 3 million bushels to 4.586 billion which was 23 million below expectations. Record yields were left unchanged at 53.2 bushels per acre. Old stocks were cut 5 million bushels to 340 million in line with estimates. New crop stocks cut 10 million bushels to 550 million which is 34 million below expectation. Ending stocks were left unchanged at 828 million bushels.

As a result of the elevated yield expectations, working capital will probably be negative for most grain farmers in 2024. That could lead to increases in short-term operating loans. That could also mean a sharp decline in machinery purchases and capital improvements.

According to a recent survey done by Illinois FBFM, the cost of production for corn on owned ground hovered around $600/acre from 2015 to 2021 but has since jumped to $800/acre plus. When adding in cash rent that number increased to an all-time high of $1,182/acre in 2023. Projections are for only a slight reduction to input prices in 2025, leaving little room for the farmer to offset lower market prices. Improvements to input prices may come from anhydrous and nitrogen prices but Dap and Potash will likely remain steady. Diesel prices will be affected by who sits in office but has been trending lower. Cash rents should drop but landowners are going to be reluctant to follow through, especially those who owe money and are paying higher interest rates. The expected difference is only $25/acre.   Net income per acre hit a record high of $500/acre in 2022 and is estimated to be near zero or below for 2024 and 2025.

As bankers, we need to recognize that our grain producers are in a downward trend after 2-3 years of profitability. We can build value in our relationships by reminding our grain clients to get back to the basics. Make sure they know their cost of production. Encourage them to spend time on their financial statements and reporting. Control costs including inputs, land rents, capital purchases and family living. Debt per tillable acre has increased from $267 in 1992 to $809 today, and it is expected to continue to increase with the cost of land. Debt to asset ratios have dropped from 32% to 17% over the same time signifying that most of our landowners are 60 years old and older. This means that farm succession planning is more important than ever for our producers.

This is a time that our grain producers will need the support of their bankers. It will be our job to make sure they have the tools and knowledge needed to weather this downturn in profit. More communication will be needed to get through this to a more profitable time. We can bring value to the relationship with honest analysis, and hopefully the profitable times will return sooner rather than later.

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

 

September 27, 2024/by Lori Kalscheuer
https://www.wisbank.com/wp-content/uploads/2023/02/Farming-scaled.jpeg 1708 2560 Lori Kalscheuer https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Lori Kalscheuer2024-09-27 11:58:342024-09-27 11:58:34From The Fields: Grain Harvest 2024
News

Newly Released FDIC Numbers Show Wisconsin Banks in Solid Position

Data released September 5, 2024, by the Federal Deposit Insurance Corporation (FDIC) shows Wisconsin banks remained in a healthy position through the second quarter of 2024. Lending held steady or increased in Q2 2024 over the prior year in all categories (commercial, residential, and farm loans), as banks responded to the borrowing needs of their customers. Deposits increased year over year (2.00%), due in part to the high interest rates offered on certificates of deposit (CDs) and money market accounts. The Q2 2024 net interest margin of 3.15% is a slight decrease over the prior year (3.24%) but an increase over the prior quarter (3.10%). Wisconsin banks remain well capitalized.

Notable indicators include:

  • Residential real estate loans were up quarter over quarter (15.21%) and year over year (11.55%). With spring being a popular time to move, homes continue to sell quickly. Borrowers have become accustomed to the current home prices and interest rates. Wisconsin’s housing shortage persists, particularly as many homeowners refinanced into low-interest rate mortgages in prior years and have little appetite to sell.
  • Commercial lending held steady quarter over quarter (0.75%) and year over year (-0.33%) as business owners await potential interest rate cuts by the Fed and potential economic changes following the November election before making significant operational changes.
  • Farm loans increased quarter over quarter (20.59%) and year over year (2.44%) as farmers entered planting season and sought to upgrade equipment, make capital improvements, or manage operational costs affected by tighter margins.
  • Past-due loans were elevated year over year (33.76%) as inflation and the high cost of living impacts borrowers. Past due loans eased, however, quarter over quarter (-5.92%), and the current level of past-due loans remains above recessionary levels.

Statement on the release of second-quarter 2024 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:  

“The latest FDIC report underscores the strength and adaptability of Wisconsin banks. Despite economic and geopolitical concerns, banks remain well capitalized and continue to meet the needs of their communities, as evidenced by steady or increased lending across sectors and a steady deposit base. As indicators point toward a likely interest rate cut by the Fed in September, borrowing costs could ease and provide additional opportunities for banks to support their customers’ growth and financial goals.”

FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)

   6/30/2024 3/31/2024 QoQ Change  6/30/2023 YoY Change 
Net loans and leases  $112,992,876 $110,786,174 1.99% $109,976,913 2.74%
Total deposits  $122,315,576 $122,823,065 -0.41% $119,920,909 2.00%
Commercial and industrial loans $18,179,173 $18,044,391 0.75% $18,240,073 -0.33%
Residential real estate loans  $34,770,361 $30,180,575 15.21% $31,170,659 11.55%
Farm loans  $4,942,403 $4,098,653 20.59% $4,824,718 2.44%
Total assets  $155,167,030 $153,075,902 1.37% $152,381,917 1.83%
Assets 90+ days past due or in nonaccrual status  $580,617 $617,124 -5.92% $434,070 33.76%
September 5, 2024/by Cassandra Krause
https://www.wisbank.com/wp-content/uploads/2021/09/Triangle-Backgrounds_Yellow-on-Light-Blue.jpg 972 1921 Cassandra Krause https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Cassandra Krause2024-09-05 13:04:142024-09-05 13:04:14Newly Released FDIC Numbers Show Wisconsin Banks in Solid Position
Man taking notes
Community, Resources

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.

August 30, 2024/by Lori Kalscheuer
https://www.wisbank.com/wp-content/uploads/2023/08/Online-Study.jpeg 0 0 Lori Kalscheuer https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Lori Kalscheuer2024-08-30 13:01:492024-09-12 09:18:17From The Fields: Have a Plan
Classic Red Barn in a Corn Field
Advocacy, Community

From the Fields: A Legacy of Agricultural Excellence

By Nicholas Felder

As agricultural lenders in Wisconsin, we all play a crucial role in supporting the backbone of our state’s economy. Agriculture is not just a primary contributor; it is a way of life, deeply rooted in tradition yet constantly evolving to keep up with opportunities and threats.

As we all know Wisconsin’s agricultural sector is diverse, ranging from dairy farming to crop production to cattle and poultry and beyond. The state of Wisconsin is heralded for its dairy industry, leading the nation in cheese production and near the top in milk production. Additionally, Wisconsin farmers grow a variety of crops including corn, soybeans, cranberries, vegetables like potatoes and green beans, contributing significantly to the state’s economy.

However, like many agricultural regions across the country, farmers in Wisconsin have encountered numerous challenges in recent years. Fluctuating commodity prices, adverse weather conditions, increasing input and equipment costs, and regulatory pressures have strained cash flows for many operations. These challenges, compounded by global market dynamics and shift in consumer preferences, underscores the need for adaptive financial strategies and robust support from agricultural lenders.

As we navigate through 2024, uncertainty over the political landscape will be a point of discussion and possible contention around many dinner tables as we steam ahead into the fall Presidential election. This also includes discussion around the expired farm bill. The farm bill, typically renewed every five years to provide some stability and support to farmers across the country, is a cornerstone of U.S. agricultural policy. However, the expiration of the 2018 farm bill has left the agricultural community in limbo as we await congressional collaboration to pass a new bill or extend existing provisions.

This farm bill has, and will likely again, include provisions of: Income Support Programs, Conservation and Environmental Programs, Rural Development and Infrastructure; and Trade and Export Promotion. All of these provide support and opportunities for Wisconsin producers and rural economies to grow food, fiber, and fuel at affordable prices which are used locally, nationally, or exported for distribution worldwide.

In its absence, agricultural lenders here in Wisconsin should proactively engage with clients to assess risk exposure and explore strategies to mitigate market volatility. This should lead to conversations about cash flow management and repayment capabilities. We should be informed and ready to utilize the buffet of lending and treasury management options to put our producers in the best position to succeed as possible. We also need to stay informed of developments in the farm bill process and guide producers to resources as well as advocate for policies that support the long-term viability of agriculture in Wisconsin. Please engage with the WBA, local policymakers, and community leaders including engaged customers to voice concerns and influence policy outcomes.

Your role in navigating uncertainty is pivotal in supporting the resilience and prosperity of our farming communities. By staying informed, proactive, and adaptive in your approach to your clients can assist in mitigating risk, allow for capturing of opportunities, and foster sustainable growth amidst a historically challenging environment. As always, while the path forward may be uncertain, your commitment to serving the needs of Wisconsin producers and communities remains steadfast. Together, we can weather the storm and continue to uphold the legacy of agricultural excellence in our state.

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.

July 26, 2024/by Lori Kalscheuer
https://www.wisbank.com/wp-content/uploads/2023/01/Farm-corn-scaled.jpeg 1707 2560 Lori Kalscheuer https://www.wisbank.com/wp-content/uploads/2021/09/Wisconsin-Bankers-Association-logo.svg Lori Kalscheuer2024-07-26 13:19:412024-07-26 13:19:41From the Fields: A Legacy of Agricultural Excellence
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