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James McJunkins, CEO

Agriculture Economic Conditions. James McJunkins, CEO. Farm Credit in Arkansas. Farm Credit in Arkansas -Largest single lender to agriculture. Number of Customers Served 11,380 Total Assets Owned & Managed (approximately) $3.8 billion Including CoBank (approximately) $5.0 billion

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James McJunkins, CEO

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  1. Agriculture Economic Conditions James McJunkins, CEO

  2. Farm Credit in Arkansas

  3. Farm Credit in Arkansas-Largest single lender to agriculture Number of Customers Served 11,380 Total Assets Owned & Managed (approximately) $3.8 billion Including CoBank (approximately) $5.0 billion Cash Patronage Paid in 2018 $19.7 million Number of Employees 265 Number of Branch Offices 40 Commodities: - Cattle, Corn, Cotton, Peanuts, Poultry, Rice, Soybeans, Timber Other: Honey, Sweet Potatoes, Watermelons, Pumpkins, Tomatoes, Apples, Peaches)

  4. U.S. Farm Sector Working Capital and Net Farm Income

  5. Projected 2018 PLC Payment Ratesas of August 2019 • Source: USDA-Farm Service Agency. • (P) – projected payment rate. • 2018 crop year payments will begin in September 2019. • Projected prices used are the average producer price forecasts from USDA’s monthly World Agricultural Supply and Demand Estimates.

  6. 2019* Projected PLC Payment Ratesas of August 2019 • Source: USDA-Farm Service Agency. • (P) – projected payment rate. • 2019 crop year payments will begin in September 2020. • Projected prices used are the average producer price forecasts from USDA’s monthly World Agricultural Supply and Demand Estimates.

  7. 2019* Projected PLC Payment Ratesas of August 2019 • Source: USDA-Farm Service Agency. • (P) – projected payment rate. • 2019 crop year payments will begin in September 2020. • Projected prices used are the average producer price forecasts from USDA’s monthly World Agricultural Supply and Demand Estimates.

  8. Interest Rates

  9. 10 year Treasury

  10. East Arkansas Land Values

  11. WHERE DO WE GO FROM HERE?

  12. RISK MANAGEMENT • The Assessment • Where are my risks? • PRODUCTION • Diversification? • Weather? • PRICE • Marketing? • PURCHASES • Inputs costs / Labor / Machinery / Living • PROFIT • Where are best investments for any profits?

  13. RISK MANAGEMENT • The Plan • How do I mitigate my risks? • PRODUCTION • Diversification – Corn/Peanuts/Vegetables/Poultry • Water/Drainage/Genetics/Insurance • PRICE • Good marketing is not getting the highest price but getting a consistent profitable price! • Book/Hedge/Options • PURCHASES • Book/Hedge/Efficiencies • PROFIT • Working Capital / Land / Capital investments

  14. RISK MANAGEMENT • Risk Advisors • PRODUCTION • Scouts / Extension / Suppliers / Neighbors • PRICE • Broker / Advisor / Buyer • PURCHASES • Accountant / Lender • PROFIT • Accountant / Financial Advisor • PLAN • If you fail to plan you can plan to fail!

  15. Thank You! James McJunkins, CEO

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