Farmers across Wisconsin are facing tighter margins, unpredictable markets, and inflation. But regional differences in lending trends are emerging between the northwest and southwest parts of the state.
Nicholas Felder, vice chair of the Ag Bankers Section with the Wisconsin Bankers Association, serves southwest Wisconsin. He said that lending demand is growing, but times remain tough for many.
“Prices are down, and the weather is unpredictable,” Felder said. “But we still see strong producers pushing forward.”
Despite the pressure, he said that many farms are becoming more efficient and smarter with marketing strategies. “More farmers are forward-thinking and adjusting to changes in the ag economy,” he explained.
Meanwhile, in northeast Wisconsin, where dairy is dominant, the tone is different.
Jeff Wilke, chair of the Ag Bankers Section, sees more cautious optimism. “There’s still expansion happening,” Wilke said. “Cheese plants want more milk, and that brings some new opportunity.”
However, higher interest rates and inflation are making it harder for some to invest. “Costs are still higher than before the pandemic,” Wilke noted. “But farmers are resilient. If it makes long-term sense, they’ll make the investment.”
In southwest Wisconsin, Felder said that while land and equipment values remain high, lenders are being careful. “We’re making sure borrowers know those values can’t keep rising forever,” he said.
Wilke agreed, saying consolidation is also shaping farm trends in the northeast. “The big guys are getting bigger,” he said. “Still, success really comes down to strong management.”
Both bankers stressed that a farm’s leadership, not just size or sector, plays a key role in lending decisions.
“Those with an executive mindset—good at managing people, money, and planning—will find a way to make it work,” said Felder.
In both regions, dairy remains a stable sector. But row crop operations are facing more scrutiny, especially due to low prices and uncertain exports.
Wilke summed it up: “If the deal makes sense, and the cash flow is there, we’re still lending—especially on the dairy side.”
Both lenders agreed that the goal is not just to provide loans but also support. “We want to help farmers improve each day,” Felder said. “Whether that’s with advice, education, or connections.”
Despite challenges, both said agriculture is filled with people who adapt and endure.
As Wilke said, “Wisconsin farmers have always found a way forward. That hasn’t changed.”
