William Kitsch

Myles Anderson Joins Savings Bank Board of Directors The Board of Directors of Savings Bank of Mendocino County has appointed Myles Anderson, a prominent businessman from the Mendocino Coast, to serve on its Board. Myles is the fifth generation of his family to work in the Forest Products Industry in Mendocino County. He and his wife Stacey own and operate Haywire Inc a work apparel and western wear store in addition to Anderson Logging, Inc., a full-service logging contractor which skids, loads, and hauls. Since its establishment in 1976 by Myles’ late grandfather Don Anderson, the company has grown under the direction of his father Mike to employ nearly 100 people, some who have been employed since the company’s inception. At an early age, Myles was introduced to the logging business greasing logging trucks in the evenings after school. This led to setting chockers, falling trees, running equipment, driving trucks, and working every part of the business side-by-side with the other employees. Myles studied Agricultural Engineering, attaining a Bachelor of Science degree from Cal Poly State University at San Luis Obispo and a Master of Science degree from UC Davis. During this time, Myles returned each summer to work in the family business in whatever capacity needed at the time. “Myles and his family have been involved in one of Mendocino County’s longest lasting industries,” said Charles Mannon, Savings Bank Chairman of the Board. “His involvement in this industry and his insight regarding the coastal communities will serve Savings Bank well.” As the only locally chartered bank for over 120 years, Savings Bank of Mendocino County remains a steadfast independent financial institution, providing reliable community banking services to Lake and Mendocino Counties.

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Farmers "wear many hats" Those that are serving them best, remove a hat, or at least help it fit better The CFO hat is one of the most burdensome for most farmers. Almost 100% of ag lending teams (Credit Analysts, Ag Lender's, CLO's, COO's and CEO's) that I've spoken with since June reported receiving financial updates from farm customers only one time per year - the annual operating loan renewal request. Is that relationship management? Is that caring for the #farm customer? Is that good for the bank? Ag Lenders can bring explicit ROI and implicit value to farmers by simply taking on the CFO hat and initiating financial transparency. Edwards Deming said "In God we trust, all others must bring data" Data affirms, increases, clarifies, and guides. Whether it's ugly or fantastic, it is the ultimate bridge to a better financial relationship. Don't wait for a market rally Don't wait for a fiscal revival among your farmer customers #beaherobanker and let them #beafarmer #fintech& #data for #ag #communitybanks and #farmers 

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Drum roll on today's #ConsumerPriceIndex data. Good Morning America's Kelly McCarthy's interview with Wells Fargo Agri-Food institute's Dr. Michael Swanson pulls back the curtain on some important info: This is the first time in a while that consumers have spent more money on dining out than on groceries. When you buy food away from home, 70% of that is overhead and labor, so you're really only buying 30% of the food with the dollar that you spend. So, what does that mean for consumers and the future? Learn more here.

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The Farm Credit System remains the largest source of debt financing for the country’s agricultural sector, according to a new report on farm debt from USDA. Farm Credit accounts for 45% of total farm loans, compared to 35% for commercial banks. However, commercial banks are a larger source of credit than the FCS for non-real estate loans. Other noteworthy statistics from the report include: -- Total farm debt in the U.S. rose 34% to $504 billion in the decade between 2012 and 2021. -- Total debt as a percentage of cash receipts increased from 74% to 109% over the same period. -- The aggregate debt-to-asset ratio for American farmers was 13.6% in 2021, which USDA said “indicates sound financial risk exposure at the sector level.” One issue for the study is that the period it covers concludes prior to start of the Fed’s tightening cycle and therefore does not reflect the impact of higher interest rates over the past two years. Link to report (chart on page 8): https://bit.ly/4cLnsK5

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Economic conditions in agriculture have softened in recent months, particularly among crop producers and related businesses. Farm debt has also continued to increase as producers rely more significantly on financing. Despite the slowdown, however, delinquency rates on farm loans have remained low as discussed in our latest update on agricultural finance at the Federal Reserve Bank of Kansas City. https://lnkd.in/g7X7sn3h

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Financial conditions in U.S. agriculture have weakened slightly over the past year, largely connected to a drop in the prices of major row crops. In the second quarter, lending activity appeared to increase significantly based on recent survey data maintained by the Federal Reserve Bank of Kansas City, which is a continuation of data from the first quarter of the year showing a similar trend at commercial banks. In the article referenced below, Chart 1 is worth taking a closer look for those following economic trends in ag, which shows that financing for operating expenses increased substantially while financing of "other" expenses (purchases that tend to be more discretionary), pulled back significantly. https://lnkd.in/gqhs33V2

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Drum roll on today's #ConsumerPriceIndex data. Good Morning America's Kelly McCarthy's interview with Wells Fargo Agri-Food institute's Dr. Michael Swanson pulls back the curtain on some important info: This is the first time in a while that consumers have spent more money on dining out than on groceries. When you buy food away from home, 70% of that is overhead and labor, so you're really only buying 30% of the food with the dollar that you spend. So, what does that mean for consumers and the future? Learn more here.

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Prices associated with crop production in the United States have had a number of extenuating circumstances pushing at them in recent years, including the COVID-19 pandemic and the conflict between Russia and Ukraine. Learn more about what’s ahead for prices.

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Contact First Federal Bank for your equipment financing needs

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Essential reading for bankers - Don Slagle, our Director of Agri-Access, offers a deep dive into the liquidity challenges plaguing banks this year and emphasizes the importance of foundational strategies. Check out his article, "Solving Liquidity Challenges with the Secondary Market," in Bank Director Magazine here: https://ow.ly/lQ5330sGW7H

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For farmers facing financial difficulties this year, utilizing equity in real estate to rebuild working capital could be a proactive approach to help establish a new baseline going into the 2025 crop season. We’re here to help ag lenders explore all options for their borrowers and discover which solutions will work best for them. Read more on this topic here: https://ow.ly/1i0o30sFvHH

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Following pricing pressures brought on in part by the COVID-19 pandemic, grain and soybean prices spiked in recent years. Currently, we’re starting to see crop prices stabilize somewhat. Learn more about what may be ahead, from the team at the Wells Fargo Agri-Food Institute.

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Following pricing pressures brought on in part by the COVID-19 pandemic, grain and soybean prices spiked in recent years. Currently, we’re starting to see crop prices stabilize somewhat. Learn more about what may be ahead, from the team at the Wells Fargo Agri-Food Institute.

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Drum roll on today's #ConsumerPriceIndex data. Good Morning America's Kelly McCarthy's interview with Wells Fargo Agri-Food institute's Dr. Michael Swanson pulls back the curtain on some important info: This is the first time in a while that consumers have spent more money on dining out than on groceries. When you buy food away from home, 70% of that is overhead and labor, so you're really only buying 30% of the food with the dollar that you spend. So, what does that mean for consumers and the future? Learn more here.

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