Special Report

Bankers proceed with caution into 2018

After four straight years of falling farm income and prospects for another challenging year ahead, ag lenders say they are taking a cautious approach heading into 2018.

“What we’re hearing, for the most part, is still caution, but not negative at this point,” says Richard Baier, president of the Nebraska Bankers Association. “I think the message is let’s be cautious and let’s move through this in a diligent process, and make sure that we’re making good long-term decisions.”

Bob Campbell is a senior vice president with Omaha-based Farm Credit Services of America.

“It all starts with what comes out of the fields this fall. The yields are going to be on average pretty good, I think, based on what we’re hearing out of ProFarmer and some of the other groups,” Campbell says. “If we come out with average yields, and if they took advantage of some marketing opportunities, we’re hoping for steady improvement for the most part.”

Dave Dannehl is the president of First State Bank of Loomis, Nebraska.

“Certainly as times get a little tougher, as they are now, you want to be paying close attention to all your expenses and marketing plans, etcetera,” Dannehl says, “and making sure you have a good strong relationship with your credit provider—your banker—is very important in times like these.”

Kris Holoch, CEO of Cornerstone Bank at York, Nebraska agrees that good communication is key.

“We have lenders out all the time talking to them and seeing how their crops are doing,” Holoch says. “It’s just staying on top of it and really communicating.”

Brownfield visited with the ag lenders at the Husker Harvest Days farm show near Grand Island, Nebraska.

AUDIO: Richard Baier

 

AUDIO: Kris Holoch and Dave Dannehl

 

AUDIO: Bob Campbell