Pub. 3 2014 Issue 3

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 10 T HE 2014 KAB CONFERENCE WAS HELD AT the K-State Alumni Center with 220 ag bankers attending. Farm lending is a centering point for many Kansas banks because Kansas is ranked 7th among states in total agricultural production and remains a vital component of the state economy. Speakers for the conference included Dr. David Kohl, an interactive panel session and presentations on livestock trends and commodity expectations. Attendees had an opportunity to network with industry colleagues during a visit to the new Wheat Innovation Center followed by a reception in the new Bill Snyder Stadium where the tours were well attended. Dr. David Kohl provided a lecture titled “The Pulse of the Global Economy” that included many tips and straight talk that this group has come to expect. Noting that the commodity super cycle is in the 7th inning he expects pricing to move toward former trends. Emerging nations are slowing compared to what we saw a year ago resulting in lower grain prices. Financial and record systems that assist in management will be a must. In addition to this he added that the livestock industry is in the 3rd inning and bankers will need to help customers manage profits through this cycle. Risk management will be very important going forward. Noting that he agreed with Dr. Kohl, Randy Blach of, Cattle Fax explained that inflated commodity prices have driven up production in global markets. The price of corn and wheat will still provide profit margins but they are expected to roll back to traditional margins. Blach stated that a strong run in cow/ calf margins is predicted. The impact that ethanol policy had on corn in addition to the drought forced many to decrease herd size. The Porcine Epidemic Diarrhea Virus (PEDV) is decreasing availability of pork at a time when beef production is not able to meet demand. The result is a 7% increase in poultry with strong production increases. All protein markets are predicted to be robust for the foreseeable future. Darrell Holaday, Advanced Market Concepts, explained that there were some short term hurdles on grain markets but he thought they would remain strong at traditional margins. He explained that the US gave up market share of world trade in corn and wheat and will now have to compete at lower price levels to regain share. He also noted that long-term demand on food globally is very strong but emerging economies are slowing significantly in the short term. KAB President Shan Hanes, First National Bank of Elkhart, presented the 2014 Pioneer Award to Roy Soukup, Hanston State Bank. The Kansas Ag Bankers’ Pioneer Award exemplifies the best in agricultural lending by continually bringing credit to the agricultural banking community. Roy has contributed time, energy and expertise to the ag banking profession through involvement in state and local voluntary organizations that have benefitted from his wisdom and commitment to service. Mark your calendars, the 2015 Kansas Ag Bankers Conference will be March 11-12 at the K-State Alumni Center. KANSAS AG BANKERS CONFERENCE KAB Division President Shan Hanes, First National Bank of Elkart, presented Roy Soukup, Hanston State Bank, with the 2014 Pioneer Award.