Do Bankers Really Make Acreage Decisions? Hear From a Banker

February 20, 2018 12:37 PM
Do Bankers Really Make Acreage Decisions? Hear From a Banker

The USDA’s prospective plantings report will be released in 37 days, and analysts and producers are making their own estimations as to what the acreage mix will be.

Some analysts are pegging soybean acres to reach upwards of 92 million acres, while others think corn and soybean acres will be split 50/50.

During the U.S. Farm Report roundtable taping at the National Farm Machinery Show in Louisville, Chip Nellinger of Blue Reef Agri-Marketing, Inc., thinks if there are extra soybean acres, they won’t all come from corn.

As for the driving force behind what crops will be planted, Nellinger thinks bankers will steer decisions, especially after the spring wheat rally and impressive cotton prices.

However, Alan Hoskins, president and CEO of American Farm Mortgage, is hoping bankers aren’t the ones calling the shots because the producers are more at risk.

“The banker obviously is there to serve as a resource to the customer,” he said. “If the producer is hearing from their banker [that] this is what you have to do, it’s certainly a valid question for the producer to look at the banker and say, ‘I want you to explain to me why.’”

Watch Nellinger, Hoskins, Jarod Creed of JC Marketing Services, LLC., and Bob Utterback of Utterback Marketing on U.S. Farm Report above.


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Spell Check

bad axe, MI
2/21/2018 06:06 AM

  If the banks were so smart in the USA why did the IMF and THE WORLD BANK kick the dollar to the curb for the China Yuan . Did they tell you at the NFMS when they were going to start to charge off the 70 trillion in credit market debt because if they don't there won't be a farm sector in 5 years. Sen. Grassley said Monday if we can't get NAFTA settled the farm sector will be in a depression . Nobody wants our fiat dollar anymore I think the 70 trillion and the 20 trillion of fiat printed to save the banks in 2008 , 90 trillion of fiat US dollars against nobody wanting to work in this country is finally catching up.

Katy Bar
2/21/2018 11:35 AM

  @C.K You are spot on. Not to mention the 1.2 QUADRILLION in derivatives (naked bets) and the the actual debt of around $200 TRILLION including unfunded liabilities. Its a good thing 99% of the population has no freakin clue what's going on or the time to educate and prepare would have been over long long ago. The central banks have thrown everything they have a this thing and we are NO better off than when this started in 2008! Worse off as a matter of fact b/c instead of fixing the problem, its only been made magnitudes worse with more of what got us in trouble in the first place,,, unserviceable DEBT backed by imaginary assets!!!


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