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• June 22,1987 Des Moines, Iowa Vol. 16 No. 10 Transition in Agriculture • By ALAN J. TUBBS, Pres. 1st Central State Bank, DeWitt, la. Editor's Note: The A B A study “Transition in Agriculture: Perspec® tive on Agriculture and Finance ” is available through A ugust at a dis count. The Research Report and the Key Findings sections are reduced _ to $80 for both; the planning guide is ™ $100, and the entire set is $150 (ori ginally $195). Orders may be placed with Joyce Slater at the A B A , (202) 663-5108. ® A MERICA’S farmers are giving up hand-wringing and are begin ning to face squarely the dramatic changes that are revamping their ^ lives. America’s agricultural banks are going through these changes right beside their farm customers. The entire agricultural communi ty, from farmers to bankers to food ^ processors, is realizing it’s in the middle of a major transition. Busi ness will never be the same again. The upward business cycle has stop ped. ^ Not too long ago, we enjoyed a sustained period of increasing pro duction, rising land values, and growth in the agricultural service sector. Now we’re faced with a mas• sive change in the level of produc tion, à contraction in the absolute number of farms—and farming com- munities—and a decline in the num ber and worth of agricultural banks. These are the disquieting conclu sions of ABA’s “Transition in Agri culture: A Strategic Assessment of Agriculture and Banking." The re port, authored by Hopkin and Asso ciates, is not association policy. Rather, it’s a straightforward exam ination of the status and the future of America’s farms and farm banks. For those who are not prepared, it gives good reason to be fearful of both today and tomorrow. American agriculture is returning to the trends th at prevailed the last 150 years, where food prices de clined as agriculture became more efficient, both in this country and overseas. The report emphasizes that the 1970s, when world food prices shot up, were an aberration. The supply of food is now greater than the demand, to such an extent that traditional food importers like Europe and India now export. Rather than looking to a return to the 1970s, U.S. agriculture must face continued oversupply. Another change affecting seg ments of agriculture is the growing consumer preference for “healthconscious" foods. As consumption of lower-fat meats and poultry in creases, coupled with more fruits and vegetables and less high-calorie oils, high-cholesterol eggs, and highcarbohydrate foods, farmers will need to readjust quickly to find ways to make their production mar ketable. In some cases this is going to lead to farm integration, where the pro ducing farmer or rancher couples his business with the processor, on down the line to the actual marketer. In the case of poultry, this is already happening. There are certain other sectors, such as fruit growing, where processing and selling cooperatives have high levels of integration. While it’s not popular to talk about the decline of the full-time family-run farm, many farmers know too well the reality of the situation. Agricultural production is moving from the hands of full-time to part-time farmers and to giant corporations th at can take advan tage of economies of scale. This does not mean th at every full-time family farm will vanish. The “Transition" report notes that moderate-sized, low-debt farms will find four keys to help them remain in business: state-of-the-art tech nology, sensible investment strate gies, astute marketing and business practices, and conservative financial management strategies. W ithout these, the moderate-sized farm will likely turn into a part-time farm or be absorbed into a larger enterprise. This will have a significant effect on rural communities and rural banking. Local communities are already painfully aware th at every farm th at closes means another “no- After m ore than 120 years of providing correspondent banking services to the M idw est, you can say weVe had a chance to polish our trade. Find out for yourself. Count on Com m erce. 1-800*892*7100 1-800*821-2182 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Outside Missouri) Commerce Bank vir/ of Kansas City 2 the basis for a workable package. The goal, of course, is to provide a program for all banks to stay h r business. While th at is not likely with a prognosis of a declining number of ag banks coupled with a declining number of farms, the for-, ward-thinking banker is not going t<r wring his hands, either. The future may not be easy, but as the business cycle turns static, planning helps banks face the changes—and sur-. vive. Hr Norwest Bank Des Moines , N.A. NORWEST BANKS Call (515) 245-3131 or toll-free (800) 362-2514 Member FDIC Teamwork: one of the reasons we’re first in Iowa. M ark Conway sale” for the local feed store, hard ware store or grocery store. As more and more farms close, it will lead to changes in the traditional county seat or cross-roads emporium. Some banks and smaller service establish ments will disappear from smaller towns, replaced by larger, centra lized business districts. There will not necessarily be a centralized business district in every county. A state official from Nebraska who works on employment training programs understands the plight of the rural community. A t a recent U.S. Department of Agriculture meeting, she said that she could not be sure jobs would ever be found for displaced farmers. When every county in Nebraska but one is a Richard Pederson farming county, there are not many options for non-farm work. USDA adds th at neither agricultural nor rural manufacturing, nor housing, will grow fast enough to take up the slack. For bankers, this not-so-subtle change in the rural economy is not going to be easy. Part of the “Tran sition in Agriculture” study is a strategic planning guide. The guide is specifically designed to help banks cope with the changing agri cultural situation and develop courses of action for an uncertain future. The guide takes the study’s find ings and develops plans the banks can use to implement changes in in ternal bank cultures, which are often resistant to change. Assessments for future-based actions in changing economic circumstances are also part of the guide. Agricultural credit delivery systems, consolidation, competition, and marketing form Iow a News The Iowa Bankers Association is< offering an Advanced Financial Statements Seminar August 18-19 at the Airport Hilton Inn in Des Moines. This seminar is a continua tion of the three-day “Analyzing Fi-^ nancial Statements” seminar, but the latter is not a pre-requisite. Registration begins at 8:00 a.m., Aug. 18. The program begins at 8:30 and runs until 5:00 both days. Conti-^ nental breakfast will be offered each day at 8:00. Registration is $250 before Aug. 4 and $270 after, and in cludes manuals, breakfasts and lunch. Enrollment is limited to 40, * so register soon. Contact the IBA to register. * * * The Agricultural Law Center ati Drake University is sponsoring the 1987 Iowa Legislation and Agricul ture Update at a number of locations A Meeting O f The Minds. At Security National Bank, our minds are on meeting all your Correspondent Banking and Investment needs. We’re Security for you! Jerry Trudo MNB Correspondent Banker Together We Can Accomplish Great Things Call 319-398-4306 or toU free 1-800-332-5991 The------- Strength« Eastern |owa Merchants National Bank isi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ron Kiel Linda Rodehorst Correspondent Banking O fficer 712 - 2 7 7-6 736 Investment Representative SECURITY N A TIO N A L B AN K IN SIOUX CITY, IOWA. MEMBER F.D.I.C. 712 - 2 7 7 -6 7 4 5 I t's easier to talk Iowa banking with people who live it — people like Ben Eilders and the correspon dent staff at Bankers Trust. Call 1-800-362-1688 or 515/245-2424. B ankers Trust Des Moines, IA Member FDIC Ben Eilders Senior Vice President IOWA BANKERS PROBLEMS WITH YOUR BANK’S BOND? ARE YOUR UNDERWRITERS DEMANDS EXCESSIVE? HA VE YOUR PREMIUMS SKYROCKETED? We have been solving Bankers bonding problems for over 75 years . . . AND AT THE LOWEST POSSIBLE PREMIUM! CALL OR WRITE IOWA BANKERS INSURANCE AND SERVICES, INC. 104 EAST LOCUST STREET DES MOINES, IOWA 50308 1-800-532-1423 or (515) 286-4344 • KANSAS BANKERS SURETY COMPANY P.O.BOX 1654 • f https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis *; TOPEKA, KANSAS 66601 (913) 234-2631 SOUTH DAKOTA BA NKERS ' PROBLEMS WITH YOUR BANK'S BOND? ARE YOUR UNDERWRITERS DEMANDS EXCESSIVE? HA VE YOUR PREMIUMS SKYROCKETED? Are you FORCED to write one type of insurance with a company at a higher premium, just so they w ill write another type of policy for you? IF SO... PLEASE CONSIDER THIS We have been solving Bankers bonding problems for over 75 years .. AND AT THE LOWEST POSSIBLE PREMIUM CALL OR WRITE KANSAS BANKERS SURETY COMPANY P.O. BOX 1654 TOPEKA, KANSAS 66601 (913) 234-2631 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OWNED BY BANKERS SERVING BANKERS 2947. Dates and locations are: June 23—Best Western Holiday, Clear ®Lake; June 24—Hilton Hotel, Sioux City; June 25—Recreation Center, Carroll; June 29—Regency Inn, Marshalltown; June 30—Civic Cen—ter Holiday Inn, Waterloo; July 1— ^Ironm an Inn, Iowa City; July 2—The Lodge a t Okoboji; July 7—Beming’s Motor Inn, Creston; July 8—Drake University Olmsted ^C enter, Des Moines; July 9—Days * In n , Ottumwa; July 10—Holiday Inn, Council Bluffs. All seminars are at 9:00 a.m. # * * * The Iowa Independent Bankers is sponsoring a Bank Lending Update and Review which will be held on June 23 at the Sheraton Inn in Cedar Rapids and on June 25 at the 1Hotel Savery in Des Moines. It will run from 1:00 to 5:00 p.m. Registra tion is $75 for the first registrant and $50 for each additional. To re gister, contact the I IB office. READLYN: Burton C. Stumme, president of the Readlyn Savings Bank, has retired after over 52 years ^ with the bank. New president and ^ cashier is Virgil J. Matthias, who has been with the bank since 1966. SOMERS: A t Somers Savings Bank, David H. Linder has been # elected to the board and promoted to vice president. He joined the bank in 1986 and manages the bank's office at Callender. Kevin Black, who has been with the bank since 1983, was also promoted to vice president. He four southern tru st offices as well as 3 works in lending and operations at continuing as manager for the Janesville office and a director of the Somers office. Valley Trust. He has been with Valley for nine years, most recently as a senior vice president/office man M innesota News ager in Janesville. ST. PAUL: Stephen J. Jarvis has been named vice president of MetroBank St. Paul. He previously served South Dakota News for six years at First National Bank A workshop entitled “Financial of Anoka, most recently as assistant Compliance: Bank Secrecy Act and ' vice president. Bank Protection Act” will be held on June 25 at The Crossroads in Huron. Registration is at 8:30, and the program runs from 9:00 until W isconsin News 4:00 with a noon lunch. Fee is $85 in Group One of the Wisconsin advance and $95 on-site. Register Bankers Association will hold its through the SDBA office. Annual Golf Outing on July 16 at the Eau Claire Country Club. Teeoffs begin at 7:30 a.m., lunch will be Colorado News served from 10:00 until 2:30 and din ner will be at 6:00. Fees are $55 pre DENVER: David R. Witte, formerly registration or $60 at the door, senior vice president and treasurer which includes cart and meals. of IntraW est Financial Corporation, Lunch and dinner only are $21 in ad has joined Colorado National Bankvance and $24 at the door, while din shares. He will be responsible for the ner only is $14 and $17. Register by company’s facilities, tax and risk July 9 with Philip Betzel of First management functions, and has National Bank of River Falls. To re been elected a vice president. serve a tee-off time, contact Jim Julsrud at (715) 832-7708. DENVER: At Central Bank of Den ver, Randall F. Komisarek has been APPLETON: Roger S. Core has promoted to vice president and gen been named executive vice president eral counsel, and Philip J. Randell of Valley Trust Company in Appleton. He will be general manager for has been promoted to vice president eight northern offices as well as in correspondent banking. manager for the Appleton office and DENVER: Barry Gatz, David Eika director of Valley Trust Company. ner, Bryon Bateman and Coleen He has been with Valley since 1978. Merritt have been promoted to vice JANESVILLE: Peter C. Jacobs has presidents at Colorado National been named executive vice president Bank of Denver. Mr. Gatz will be of Valley Trust Company in Janes manager of business development. ville. He will be regional manager for Mr. Eikner will manage personal FirsTier Correspondent Services More of what it takes to serve you well. F irs T ie r B an ks FirsTier Bank, N.A., Lincoln and FirsTier Bank, N.A., Omaha, Members FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B ill M u llin s Correspondent Services Lincoln • Omaha Brian Hughes Investment Services NEW OPPORTUNITIES JR. REAL ESTATE LENDER—Top rated group is looking fo r a sharp, aggressive professional w ith 2 years e x p e r t^ ence and desire to move up................................... To $24,000 COMMERCIAL LOAN— Prefer large bank training and ex perience fo r a $40mm com m ercial department. To $38,000 BANK AUDITOR—CPA/CIA or CBA w ith bank audit experi ence and supervisory s k ills................................... To $28,000 lending. Mr. Bateman is responsible for the portfolio administration of the financial institutions division. Ms. M erritt is responsible for the bank’s note operations, corporate client services and international divisions. NORTHGLENN: United Bank of Northglenn has named Thomas W. Swanson chairman of its board. Mr. Swanson is executive vice president of United Banks of Colorado, Inc., and has been with United Banks for 22 years. Beverly A. Honey con tinues as president and CEO of the bank. POSITION AVAILABLE $63MM Bank near metro area seeks AG/COMM’L LENDER. Excellent career path opportunity. Send resume to File No. WIY c/o Northwestern Banker. (PA) PRES/CEO $24MM Independent Bank located In a very desirable area. Looking for self confident, analytical, com m unity minded individual that can project a professional image. Send resume to File No. WJI c/o Northwestern Banker. (PA) A dditional experienced AG LOAN OFFICER, dairy back ground, degree, NE Iowa, county seat 4,000 population. $47MM bank. Send resume to File No. WJM c/o North western Banker. (PA) ACCOUNTING & CONTROL OFFICER needed fo r a group of small banks in N.E. Nebraska. Salary negotiable. Send resume to Box 1276, Columbus, NE 68601. (PA) AG LOAN OFFICER—Good opportunity fo r a Jr. O fficer t a ^ improve career path.............................. ...............To $ 2 3 ,0 0 ^ FOR SALE Financial Careers, Inc. Two Ruan Center/Sulte 1000, Des Moines, IA 50309 515/245-3786 FIRE RESISTIVE FILES, Doors and Cabinets. American Bank Equipment, Inc. 402-571-5621. A sensible alternative. Serving the banks o f Nebraska and Western Iowa. Sales S ervice-Installation. (FS) Employer pays fee. Please contact Lorraine Lear or M alcolm Freeland c o n E earning these and other Midwest banking opportunities. REPOSSESSION of com plete line of camera equipment from a professional photographer has left us w ith a wide array of top-line 35 mm cameras, lenses, related items and dark room equipment. Original value $10,800. Appraised resale value is $5,378.00 W ill sell entire stock fo r $5,000.00. W rite File No. WJN c/o Northwestern Banker. (FS) CHECK STORAGE UNIT. W hite Powerfile Inc. 6600 series. W ill hold 96 13” X9” trays. Good condition. Call Bill Cook III, Beatrice National Bank, Beatrice, NE. (402) 228-3333. ________________________________________________(FS) 12 SECURITY CAMERAS fo r sale. In good condition. Con tact Jerry Burger @ (515) 245-5608 If interested. (FS) Used CANON NP270 COPIER. Letter, legal size, reduction enlargement. $1,195.00 or best offer. West Bank (515) 277-5300. (FS) POSITIONS AVAILABLE AG LOAN OFFICER Is your career at a standstill? Take th is opty to further your move forward quickly! A rapidly growing bank in central Minn seeks an ag loan o fficer w ith 2 + yrs lending e x p .E This is a super opty! Ready to interview. To$25K. Job#NW1826. BRANCH MANAGER Are you doing your boss' job w ithout the title or salary to show for it? A m ajor credit union in a key central ND loca tion is looking for a proven consumer lender w ith 3 + y r s ^ exp. This position w ill manage an $8mm branch w ith 5 e m ™ ployees. A te rrific opty to advance your career! To$23K. Job #NW1827. PROBLEM LOAN WORKOUT Become a key member of th is leading Twin C ities organi zation! A prestigious downtown Mpls bank needs a self motivated professional to join its loan workout team. M u s tE be degreed w ith 3 + yrs coml lending exp, strong negotia tion skills and be analytically oriented. To$38K. Job #NW1828. FOR MORE INFORMATION CONTACT PAUL GENTZKOW OR JEAN TODD ROBERT HALF OFMMNESOTA.MC. * accounting, financial and edp personnel specialists 3636 IDS Center Minneapolis, MN 55402 POSITIONS AVAILABLE COMML LENDING MGR Cities bank w ith growing metro p ortfolio seeks experi enced lender (3 + years) who can make deals. W ill have full power to get the job done and super team to manage. $45 K. RETAIL MGR Ready to take charge? Metro area bank needs consumer oriented lender who has comm’l exposure. W ill supervise 6 and should have 5 years prior banking. $32K. CASHIER Colorado bank has opening fo r rural banker who has 3 years operations in $25mm + bank. Prepare m onthly finan cials, corporate reports, manage bookkeeping and teller functions. $28K. SR VP Think its tim e you ran the show? If you are a lender who has been in $100m + bank for 7 + years this is your next stop! $200m + in stitutio n seeks #2 person who has super visory, large comml and real estate lending knowledge. $65 K. FOR FURTHER INFORMATION CONTACT KUFTT ROSENCRANTS ROBERT HALF accounting, financial and edp personnel specialists 317 6th Ave, Ste. 650 Des Moines, IA 50309 (515) 244-4414 ALL FEES COMPANY PAID (612) 339-9001 ALL FEES COMPANY PAID ® POSITIONS AVAILABLE • COMML LOAN - $50MM suburban bank w ith excellent growth and earnings history. Handle m ajority o f commer cial credits. Report directly to President. $38K CEO - suburban de novo bank. Experience as CEO or COO required. Strong commercial loan and business develop ment skills desired. Open _ LOAN REVIEW • large urban bank a ffiliated w ith major ^ midwestern holding company. Degree and 2-3 yrs. loan review/workout experience desired. $30K TRUST OFFICER - medium size com m unity bank w ith growing tru st dept. JD preferred but not mandatory. $27K COMML LOAN - $100MM com m unity bank. Supervise com mercial lending function. Future advancement possible. A $45K w Additional positions available in midwestern states for experienced bankers. TOM HAGAN & ASSOCIATES 2024 Sw ift - Box 12346 North Kansas City, MO 64116 816/474-6874 _ E “Serving the Banking Industry Since 1970” Voi. 16 No. 10 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $24.00 per year. Second class postage paid at Des Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579), manuscripts to Northwestern Banker, 1535 Linden Digitized forSt., FRASER #201, Des Moines, Iowa 50309. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis £
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