Farm Director KC Sheperd recently had the chance to visit with the Senior Vice President of Agricultural and Rural Banking Policy at the American Bankers Association, Ed Elfman. Sheperd and Elfman talk about farm bill priorities and recommendations for ag producers when it comes to communicating with their bankers.
Elfman said one of the American Bankers Association’s priorities is ensuring that agricultural borrowers are well represented.
“Everyone wants to talk about the runup in interest rates and where the world is going and all that, but we have got to keep looking forward for our borrowers,” Elfman said. “At the end of the day, it affects us as bankers. We want to make sure we know what is coming down the pipe.”
Looking into 2024, Elfman said one of the biggest issues is going to be the rising interest rate environment.
“Bankers and farmers need to be talking to each other,” Elfman said. “It can’t be just when you come in for renewal. You have got to have a constant conversation.”
Elfman also recommends that producers make keeping documentation a priority.
Regarding the farm bill, Elfman said out of 12 titles, six of those are extremely critical for ag bankers.
“On the credit side, we want to increase the guaranteed loan programs because they are too small right now,” Elfman said. “Ag is getting bigger and bigger, and we have to make sure FSA-guaranteed programs match the needs of our producers in the future.”
Elfman also said there are some issues regarding beginning farmer programs. Elfman added that reducing the barrier to entry for beginning farmers and ranchers is of top priority.
