May 1998 - Austin, TX

To say these are interesting times for Texas Agriculture is quite an understatement. Agriculture continues to be a $45 billion industry in Texas. But new challenges, new risks and new rules are dramatically changing the way agricultural producers and the industries that serve them do business. As we face one of the most uncertain periods in history, and the 1996 Farm Bill begins to have a lasting effect, both agricultural producers and lenders alike must be prepared to deal with - and succeed in - a changing environment. The importance of risk management ins agriculture has become increasingly important as farm income becomes more variable and less controlled. In this new environment, producers are at a greater risk of wider income swings, cash flow difficulties, changing expenses and more debt exposure as supply and prices of products change, new technologies are adopted and environmental constraints develop. While aggregate income for individual farmers could increase, the probability of extremes in receipts requires farmers to plan their finances, as well as the production and marketing of goods, more carefully. With the passage of the FAIR Act, the impact of global price changes will no longer be softened by the government programs of the past. This Summit focused on bringing the most current and useful information on agricultural lending to the people who need it most. Participants from banking, agricultural production and government, led by industry and economic experts, conducted a reality check on the current state of the agricultural finance industry through a comprehensive dialogue which encouraged useful discussion and forced some issues to be placed on the table that might not have surfaced otherwise.

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The Planning Committee for this Summit included the following people: