AG Lenders Conference

AGRICULTURE – IT’S FOR EVERYONE!

16th Annual Ag Conference
April 15 and 16, 2004
Colorado Springs, Colorado

Whether you are a Denver metro bank or on the eastern plains of Colorado, agricultural markets effect everyone. Colorado is the eighth largest state in area and has the highest average elevation. The approximate land area is 66.3 million acres, approximate cropland area is 10.5 million acres, and approximate irrigated area is 3.4 million acres. In 2002 there were 30,000 farms and ranches with an average size of 1,043 acres. These statistics are quoted from the Colorado Agricultural Statistics 2003 report.

Bankers from throughout Colorado enjoyed IBC's 16th Annual Ag Conference held at the DoubleTree Hotel in Colorado Springs, Colorado. More than 80 bankers, spouses and guests attended the conference. The day and a half conference was filled with top-notch speakers, camaraderie, exhibitors, and sponsors.

Dr. Wendy Umberger, Assistant Professor and Livestock Marketing Specialist, Colorado State University, began the day presenting information on Country of Origin Labeling (COOL) and Animal Identification. Everyone remembers the grotesque picture of the cow afflicted with Bovine Spongiform Encephalopathy, or mad cow disease on the news last year. Wendy discussed the implications of COOL and animal ID and their purposes. She indicated that the U.S. government's national system for animal ID will initially be voluntary and the initial implementation will focus on cattle, swine and small ruminant industries. Wendy reported the goal would be to identify within 48 hours the herdmates of suspect animals when there is a disease outbreak. Following Wendy was Keith Block, Attorney at Law, Block Markus Williams LLC. Every banker knows the importance of securing your collateral and being in first position. Why is it the UCC always seems to be so complicated and ever changing? Keith was able to breakdown the UCC and provided invaluable information on the original Uniform Commercial Code (UCC) as well on the Revised UCC. After a short break we moved on to weather. William Fortune, Meteorologist in Charge of National Oceanic and Atmospheric Administration’s (NOAA) National Weather Service Warning and Forecast Office in Pueblo joined us to gave an update on the drought situation in Colorado. He indicated Colorado was still in a drought and would more than likely continue to be for some time. Bill reported that virtually all parts of the contiguous United States experienced warmer-than-average temperatures in March 2004. The West, Southeast and parts of the Northeast were unusually dry, while precipitation was above average across the middle of the nation. Send some of that precipitation our way! Dr. Stephen Koontz had the dubious task of presenting after lunch. One word can describe the grain market – volatile. In Steve’s summary and long-term outlook he is predicting the short-term price outlook is incredible and the long-term price outlook is excellent. He indicates there is improved trade with the weaker dollar and there are opportunities now and producers must act. Three outstanding breakout sessions finished the first day, as bankers were able to attend two out of the three sessions. Jeff Probst, president and CEO, Blue Sun Biodiesel presented on growing alternative crops for fuel; Debbie Hauser, assistant vice president, Zurich North American spoke on environmental risk insurance; and Dave Taussig, Attorney at Law, Jankowski & White provided information on helping customer buy and sell water rights.

Friday morning commenced with a tasty breakfast and a state legislative update by Barbara Walker, Executive Officer of the IBC. Barbara indicated the IBC was having a good year and continues to be the only Colorado community advocate. Reece Langley, Deputy Director of Agricultural Finance, ICBA, presented the federal legislative update. Reece presented information on the 2005 budget and spending proposed by Congress, tax relief, disaster aid and crop insurance. The amazing Dr. David Kohl was welcomed back with great enthusiasm. Dave has a wonderful way of presenting his material while entertaining the audience. Did you know that in the 1990’s 1/3 of adults had a balance on a credit card and in 2003 70% of adults had a balance on a credit card and that the median household income decreased from $44,000 to $42,000 in the last two years? Also, to financially sustain a farm, it should have $300,000 in gross revenue, $40,000 to $70,000 in net income and 5% growth in net income annually? Dave asked the question – grow, stay or go and related it to both agriculture and banking. What is in your long-term goal? Last but not least, local favorite Randy Blach, Cattle-Fax, wrapped up the conference with information about the cattle market. Randy indicated the next 60 to 90 days will determine what we are made of. He also reported the export market will reopen this year and to keep a close eye on the cost of grain.

Winners of the exhibit booth bingo sponsored by the IBC were: Karen Schiffer, First National Bank - Colorado ($20), Karla Ball, Kit Carson State Bank ($30), and the big winner was Mike Harvey, Valley State Bank ($50). I would like to thank Mike Bass for serving as the Ag Committee chairman for the past two years. Mike’s passion and dedication towards agriculture, community banking and the IBC are unwavering. I look forward to working with Mike as he assuming his role as president of the IBC in 2005.

The IBC would like to thank the members of the IBC Ag Committee for their hard work and support
Mike Bass, Chairman, First National Bank of Hugo
Dan Briskey, Community Bank of the Rockies
Russ Groshans, Centennial Bank of the West
Dave Hubbard, The Eastern Colorado Bank
Brett Legg, The Eastern Colorado Bank
Myron Sams, High Plains Bank
Tom Tomky, Colorado East Bank & Trust
Dale Utley, Bankers’ Bank of the West

Thanks to our Exhibitors and Sponsors
Central States of Omaha
Colorado Agricultural Development Authority
Colorado Housing & Finance Authority
FHLBank of Topeka
IBC-Insurance
ICBA
INTRUST Bank
Rural Development/USDA
Schooley Mitchell
Western States Bankcard Association
WitsEnd Software