Includes all non-deposit liabilities of commercial banks, savings and loan associations, mutual savings banks, and credit unions, plus all liabilities of other financial institutions. Other financial institutions include: Life Insurance Companies, Private Pension Funds, State and Local Government Employee Retirement Funds, Security Brokers and Dealers, and Finance Companies. ait until you see these results It's common knowledge that commer banks are involved in farm management, out extent of their participation may surprise you And whoever said surveys had to be dull? AGRI FINANCE editors have just completed the biggest survey in our magazine's history. It's a continuation of last year's (see January, '78, AGRI FINANCE) query on banks' venture in managing farmland. The methodology of selection was simple. We mailed a four-page questionnaire to one representative at each of the 8,000 commercial bank institutions on AGRI FINANCE's qualified circulation list. We asked banks about their past, present, and planned involvement in farm management. The response-1,889 usable surveys returned with 465 indicating they were professional farm managers. Join us, then, as we explore and monitor what's happening in bank farm management. A 5.5 acre peanut farm in Georgia, an Oregon trust department's 135,000 acres of timber, and the university-owned farmland of an Illinois bank's portfolio - we received questionnaires revealing this information and much more. In all, 44 states responded. Illinois and lowa led the field with 268 replies each. Kansas, Minnesota, Nebraska, Indiana, Wisconsin, Michigan, Texas and South Dakota followed to round out the top 10 states in returned questionnaires. Only Alaska, Connecticut, Maine, Massachusetts and Vermont failed to reply. The corresponding tables suggest a growing trend in bank farm management. While we promise no startling revelations, we do think you'll be somewhat surprised. The historical side of bank farm management dates back to the early 1900s. Thirty-three banks responded as having farm management departments for 50 years or more. Trust departments in commercial banks were founded as early as 1793. Interestingly enough, we received replies showing banks established in every year from 1858 through 1977. Size of bank farm management departments varies -81.2% have one or two people; 12.5%, 3-4; 4.9%, 5-9; and 1.3%, 10 or more. Number of farms in those 40 departments include: 1-4 farms The survey results point out the size of mostram management departments remain small, but this doesn't necessarily mean they are stagnant. It could signal an influx of new departments in already established banks. Replies indicated banks' responsibilities allowed them the power to serve in a number of capacities including: executor, 76.4%; trustee, 72.8%; an agent or part of trust operation, 63.4%; and as an agent otherwise, 58.2%. Probably the most significant statistic we can use in evaluating growth is the net annual change in acres of farmland under management. For 1978, 27.6% of the banks reported an increase in acreage, 62.6% say they are at least equal, while 9.8% note a loss in acres over 1977. Editors asked how many crop acres the banks manage. A total of 84.7% say their bank manages less than 10,000 crop acres; 5.6% between 10,000 and 19,999 acres; 3.1% between 20,000 and 49,999; 4.4% between 50,000 and 99,999; and 1.4% indicate more than 100,000 acres in their farmland-managed portfolio. The national average of questionnaires report 9,132 acres of cropland per bank farm manager. Again, the high percentage of banks managing 10,000 acres or less could be a result of new departments along with the competitive management environment. What about the clientele controlling these farms? Local residents and absentee landowners lead the Agri Finance/March 1979 BANK FARM MANAGEMENT/continued million: 1.7%, $50 to $74 million; 0.5%, $75 to $99 million: 1.7%, $100 million or more. Crops also vary with the diversification of agricultural interests and geographic location. Corn proved to be the most popular enterprise with 457 responses. Soybeans, wheat, alfalfa, grain sorghum and cotton follow in order of crops grown by bank farm managers. Be sure to check the tables for complete results. Our editors compiled the statistics on crop acres managed by banks and we came up with the following projections. Nationally, the average acres managed per bank include: corn, 3,780 acres; soybeans, 3,307 acres; wheat. 1,951 acres; alfalfa, 976 acres; grain sorghum, 743 acres; and cotton, 391 acres. Livestock enterprises were substantial in some cases but follow no definite pattern. Almost 24% of all bank farm managers hedge their clients' crops. Several states report that legislation blocks or limits their involvement in futures trading. auto owing Madle and the le. It is repaid |