Leading up to the 2025 ABA Agricultural Bankers Conference, the ABA Banking Journal chatted with Caleb Hopkins, chairman of the American Bankers Association’s Agricultural and Rural Bankers Committee. Hopkins, a loan production officer for Dakota Mac, a subsidiary of First Dakota National Bank in Yankton, South Dakota, discussed what he considers the most pressing issues currently facing ag lenders and how they can better position themselves to assist their farmer, rancher and agribusiness clients.
The following are excerpts from that conversation.
ABA Banking Journal: What do you think are the three biggest issues facing farmers over the next three years? How does that change based on the size of the operation or the sector?
Hopkins: Liquidity, equipment costs, and high-input costs — margins. I look for margins to be very tight if not negative over the next three years. The key to success is going to be managing your margins. Capital costs that have been incurred over the last five years have driven up that break-even. When you look at larger operations these margins create bigger positive or negative margins. A larger operation with a small negative margin can become large operational losses.
ABA Banking Journal: How are ag banks in a position to help farmers and ranchers solve some of their most pressing problems?
Hopkins: Money and liquidity have been very high the last few years, creating many different sources for producers. You still need a good banking relationship with a good ag banker to work with on your global operation. Ag banks have your whole operation in mind not just the one purchase you are looking at. They can be there to bounce ideas off of — such as does it fit with your operational goals? What is the impact to global cash flow?
ABA Banking Journal: Where can ag banks improve their knowledge or services to better work with agribusiness?
Hopkins: Networking with other ag lenders. If I look back over my career, the majority of my ag lending knowledge has come from the relationships I have built and networking with other ag lenders at conferences like the ABA Agricultural Bankers Conference.
ABA Banking Journal: How are lawmakers currently responding to famers’ needs?
Hopkins: Lawmakers in Washington, D.C., have been open to our discussions regarding the current economic conditions. They rolled out the disaster recovery program that saw affected producers receive some much-needed aid in the last couple of months. Their support in programs such as ACRE shows their support for American producers.
ABA Banking Journal: What differentiates this year’s ABA Agricultural Bankers Conference? What do you think are the key takeaways for the ag lending community?
Hopkins: I think you have to look at our current ag economic landscape and how a very large portion of the industry is struggling. This will be an opportunity for lenders to be proactive in looking to build their knowledge base and toolbox to help their clients in these adverse times.
Editor’s note: The 2025 Agricultural Bankers Conference is being held Nov. 12-14 in St. Louis, Missouri. Learn more about the event and how to register here.
