Stronger for the Future

The ups and downs of Kansas agriculture

by CHARLIE SCHIPPERS photography by KELSEY STREMEL

It is amazing to think back over 37 years ago. I was getting out of college at Fort Hays State University and wanted to be involved with agriculture in my future job. I grew up on a farm, thinking agriculture was the best and greatest business. I was the ninth of 11 kids in my family growing up, so I knew that I would need to find a job off of the family farm.

I was fortunate to obtain a job with the Farm Credit System on June 1, 1982. I trained at Marysville, Kan., for six months before moving to the Ness City office. I was a loan officer in Ness City for two years, and then I transferred to the Federal Land Bank of Hays office in March 1985.

The ’80s were some very turbulent years for farming and banking. Changes transpired that affected everyone. High Plains Farm Credit was created in 2000 because of the merger between the Federal Land Bank of Hays and the Larned PCA. This merger allowed me to work with short- and long-term lending.

In 2017, I started working at both the Ness City and Hays offices as they merged. I have had various roles within Farm Credit but have mainly worked with farmers and ranchers my entire career. Being a loan officer at Farm Credit has been an exciting and challenging job and taught me new things every day.

It has been a gratifying experience getting to know and work with some of the best people. It creates a great sense of satisfaction when a customer reaches the goals they have set forth for their operation. Agriculture continues to be one of the most trying yet rewarding, industries as technology evolves and new challenges arise. Farmers are some of the most innovative people in the world, and they continue to adjust to make the best of their situation.

I had an opportunity in the ’90s to invest and work after hours with my brothers in a farming operation. As producers trying to make a profit, it taught me some different perspectives and viewpoints from other people. Dealing with the uncontrollable weather, diseases, pests, and everchanging markets make every year new and challenging.

This helped keep me more up to date with farming technologies and feel the challenges farmers faced. We had some great conversations that were good learning experiences for all of us. I feel this was a great experience for me, and I enjoyed working on the farm and with my brothers.

A question we hear a lot lately is, “Are things going to get as bad as the ’80s with crashing land values and bankruptcies.”

In my opinion, I do not think the ag economy will get as stressed as the ’80s. Today, interest rates are still low with fixed-rate loans available. The crop insurance programs are better today to help provide an improved income safety net.

Land values have come down some from the highs around 2015 but are still fairly stable. These land values have usually allowed producers to restructure loans or sell land to reduce debt if needed. Today, with inflation and large capital requirements, everyone is dealing with more money, which can cause additional stress.

No one knows the future for sure, but the ag economy will continue to go through cycles with highs and lows. Making adjustments and hanging on through the lows is the challenge facing businesses and producers.

I feel good knowing the agricultural economy will go through its cycles, but it will get stronger, and things will get better. The producers and businesses that adjust and change to make their operations profitable will keep getting stronger for the future.

I want to share some words of wisdom from people I have heard over the years.

“Work hard and be smart about it.” “You need to put yourself in a position to be able to take advantage of opportunities when they come available.”

“People make their own luck.” “Don’t worry about the accident since no one was hurt. Equipment and iron can be replaced; people cannot.” “Your operating profits are not yours to spend until you have paid your income taxes.”

Kansas agriculture economic impact

• The Kansas agriculture economic contributions are valued at nearly $65.7 billion annually, accounting for 42.3 percent of the state’s total economy (five-year average).

• The agriculture sector in Kansas employs 248,216 people through direct, indirect and induced effect careers, or 12.6 percent of the entire workforce in the state.

• If food retail and ethanol production are included, the economic contribution rises to over $80 billion, and employs more than 21 percentage of the workforce.

• In Kansas, there are 45,759,319 acres of farmland, which accounts for 87.5 percent of all Kansas land. More than 21 million acres in Kansas is harvested for crops and over 14 million is pastureland for grazing animals.

• The Kansas agricultural sector includes renewable energy production, food processing, research and education, agribusiness, crop and livestock production and more.

• Kansas exports nearly $3.8 billion in agricultural products. The leading exports are beef, wheat, soybeans and corn.

*Data from the Kansas Department of Agriculture 2019 Economic Contribution Report

Charlie Schippers graduated from Fort Hays State in 1982 with a Bachelor of Science in agribusiness. He has enjoyed helping farmers be successful and staying connected to agriculture throughout his 37-year career at Farm Credit. Charlie is looking forward to retirement and spending time with his wife of 38 years, Joan, their three children, Kayla, Jenna and Brad, and six grandchildren.