“Ag in Uncertain Times” is a webinar series organized by the Western Extension Committee.

“A crisis equals danger and opportunity.” That’s from a famous speech by John F. Kennedy that referred to the Chinese language, where the symbol for crisis is a combination from the one for danger and the one for opportunity.

Joel Lorenzen
Chief Credit Officer and Chief Operations Officer
Farm Credit Services Southwest

One of the biggest disconnects between lenders and producers we see is that both lenders and our customers come into the business with the business decisions being made with their head. They’re going to buy a piece of property. What’s the best value for it, what are they going to produce, how’s it going to fit into my operation? Once purchased, it all of a sudden takes on a different personality with our customers, and it becomes part of the family, if you will. And even though there are opportunities to sell or if you are in the dairy industry or the hog industry and it’s time to get out, you just can’t do it because of your emotions that are involved. The decision-making changes from one that’s made with the head, to one that’s made with the heart.

Chris Beyerhelm
Assistant Deputy Administrator
Farm Service Agency
Farm Loan Programs

Our most profitable and prosperous producers are very proactive to change. They look at different perspectives. They have good networks. They’ve got very good people in human resource skills. In negotiations they go for a win-win instead of a one-sided approach. They have very coordinated production systems. They’re good risk managers and calculate the risk they’re going to take. They have a balanced management approach. They may be very good in some areas, but they really don’t have weaknesses in any one area. It really helps them as they take a look at all of the things and all of the different issues that they are being challenged with.

Jay Penick
President and CEO
Northwest Farm Credit Services

What do you think the single biggest threat to agricultural credit is? In general, I think I can categorize it by saying this: outside influences. Clearly, government intervention in agriculture and in banking is more prevalent today than it was even six months ago. The second thing I would say is that there is a very well-funded, animal welfare advocacy group out there that is intent on endangering the livestock industry. Lastly, I would say there are well-funded environmental advocates out there as well. I think in some cases they are well-intentioned, but the cost to the grower and the cost to the bank, to me, is the biggest threat.

Curt Covington
Senior Vice President
and Credit Risk Manager
Ag and Rural Banking Division
Bank of the West