Pub. 2 2013 Issue 3

April / May 2013 15 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s John Jenkinson gave the Sunrise Ag News Report to kick off day two. Shan Hanes, First National Bank of Elkhart thanks conference attendees as he is inducted into office as the 2013-2014 KAB Division President. Randy Blach, CEO of Cattle Fax, described the market outlook for quarterly U.S. Net Beef Production. Jason Henderson, Federal Reserve Bank of Kansas City (Omaha Branch), compared the boom and bust agricul tural cycles of the past with current trends in today’s Ag marketplace. Dr. David Kohl listens to a question during his interactive presentation on “Managing in the Great Agricultural Economic Super Cycle.” Ray Purdy, American State Bank & Trust Company, Garden City (retired), is pictured with KAB Division President, Matt Lee as Purdy is presented with KAB’s 2013 Pioneer Award. Darrell Holaday describes the challenge of food security and the global growth that will require much larger food supplies than we currently produce. Dr. Brian Briggeman discusses the ef- fect of interest rates on Ag and values. a huge impact. During the 2013 drought stored grain reserves were significantly depleted and grain reserves remain low. He avowed that a continued drought, similar to what we experi- enced last year will be more impactful to pricing than what we saw last year. With a continued focus on the current boom climate in Kansas agriculture, Jason Henderson, Kansas City Federal Reserve Bank, outlined multiple examples of how this agricultural eco- nomic cycle is different. He also noted that the increased cost of land sales is not in balance with cash rent. Acknowledging that the Federal Reserve will need to heed caution to the speed by which they raise interest rates and unwind, the balance sheet will play an enormous role in managing inflation. He closed his talk discussing the risks associated with debt and leverage with a downward pressure on agriculture as interest rates rise.