Wachovia To Drop Ag
(Continued from Page A 1)
Some large agribusiness clients
with yearly revenues of more
than $l5 million will remain with
Wachovia, Armfield said.
But what will happen with
loans to farmer clients generating
less than $3 million in annual
sales seems a lot less clear.
“We’re really going to look at
them on a case-by-case basis,”
said Barbara Nate, Wachovia
communications director in Dela
ware.
To put $3 million in perspec
tive, a dairy farm with average
production would need about
1,000 cows to generate milk sales
of $3 million in a year, at a milk
price of $l3 per hundredweight.
According to Armfield, term
loans may continue to be serviced
by Wachovia until they are paid
off, or the loans may undergo
“ordinary refinancing.” The
smaller loans could also be sold
to another lending institution.
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At any rate, Wachovia “ex
pects to do very little additional
business with smaller agribusi
nesses,” Armfield said.
Regarding farm producers
with Wachovia loans, “we don’t
want to have any kind of a knee
jerk reaction,” she said, adding
that the company will not ask for
“quick refinancing.”
Armfield was not able to pro
vide a dollar figure on the loans
outstanding.
In Pennsylvania, the southeast
area makes up the “heart” of
Wachovia’s ag dealings. A num
ber of producers farther west, in
cluding those in Blair and Frank
lin counties as well as others
scattered around the state, also
have loans through Wachovia,
which merged with First Union
Bank in 2001.
The strong ag lending depart
ment at the bank was developed
over the last quarter century.
Darvin Boyd retired this past
A farming practice that pays
March from heading up the agri
finance department at the First
Union/Wachovia branch in Lan
caster.
Beginning in 1976, at what was
then National Central Bank,
Boyd built the ag lending depart
ment from $l3 million to SSOO
million in outstanding loans by
the time he retired this spring.
Throughout those years, the
bank went through numerous
mergers, finally becoming First
Union in 1998 and then merging
with Wachovia in 2001.
Boyd spoke Thursday with
Lancaster Farming about the
bank’s divestment from ag lend
ing.
“It is sobering that the fourth
largest bank in the country, with
over S3SO billion in assets, has
decided it is not in their best in
terest to be committed to the ag
community and ag industry in
the Pennsylvania and Delaware
marketplace,” Boyd said.
Bank leaders tend to compare
Arabian Horse Judging At KILE
HARRISBURG (Dauphin
Co.) More than 90 students
from 20 area schools filled five
sections of the Equine Arena on
Monday, Oct. 6, during the
12th Annual Keystone Arabian
Horse Judging Contest at the
Pennsylvania Farm Show Com
plex in Harrisburg.
Youth were instructed to sit
at least one seat and row apart
from one another to insure the
contest’s validity. Prior to the
contest, judging cards and test
sheets were passed out to each
student as they anxiously
awaited their first class of
horses.
KILE sponsors the judging
contest, which offers area 4-H
youth a unique opportunity in
animal evaluation. Jeff Morse,
an agriculture education teach
er at Littlestown High School,
has been overseeing the youth
judging contest for five years.
Lahbaster Farming', Saturday, October 4 11’, 2003-A27
returns from agriculture with
other types of business, according
to Boyd. But farming has certain
features that make it different, he
pointed out.
“Commodity price swings and
the related risk are an inherent
part of ag lending,” he said.
Boyd acknowledged that the
last several years have been more
challenging than most because
markets were depressed for the
main commodities produced in
the area.
But 2003 brought signs of re
covery. For example, milk prices
are beginning to'climb and com
mercial egg producers made sig
nificant profits this year. Auction
beef prices continue to soar to re
cord levels.
Boyd said he is hopeful that
the existing ag infrastructure will
be able to step in and continue to
back farmers and agribusinesses.
Bob Zook, ag lender at Ephra
ta National bank, agreed that
there are a number of banks in
the area still interested in funding
agriculture.
“It’s a great introduction to
horse judging. For kids who
have never judged before, no
reasons are necessary, which
makes it easier for them.”
Students may enter the con
test individually or as a team.
Monetary prizes are awarded to
the top ten individuals and rib
bons are given to the top five
teams. During the contest, stu
dents first complete a written
exam, which consists of match
ing, multiple choice and essay
questions. Horse anatomy and
general knowledge topics are
covered.
After the contest, points were
added and tests were scored.
The following winners were se
lected: first place, BJ Dabbler,
York 4-H; second. Brandy
Lower, Dauphin 4-H; and third,
Stacey Fague, Danville 4-H.
Schools represented included
Littlestown, Biglerville, Line
Mountain, Ber
mudia, York,
Northern York,
Dauphin,
Northern Bed
ford, Perry,
Gettyburg, Big
Spring, Ken
nard-Dale, and
Dover.
| 717/629-2756 J
The Schuylkill County Agricultural Museum will be hav
ing Antique Tractor Pulls at the Schuylkill County
Fairgrounds on Sat, October 25th at II a.m. The Antique
Tractor Pulls held in October have been a tradition for
many years. The first Tractor Pulls at the Schuylkill
County Fair were held this year with the possibility of
expanding to include 4 wd pickup trucks, mini modified
tractors, and some later model tractors In the future.
The Ag. Museum will be open for tours all day. Featured
in the museum will be many antique gas engines includ
ing a 1906 Bessemer gas engine weighing 14,000 lbs. that
was donated to the museum by a load family that owned
a feed mill in western PA. It has been totally restored and
will be In operation periodically throughout the day. Also
on display will be an original Conestoga Wagon along
with other antique farm machinery.
Admission to pull and museum is Free.
Anyone Interested in competing in the tractor pull
may call Kevin Berger at (570) 739-4263 for details.
Tractors must be manufactured prior to 1960.
A fee of $7 per hook will be charged to compete.
Registration starts at 9 a.m.
“Obviously, there’s one less
lender to provide capital for agri
culture,” Zook said of Wachovi
a’s decision. “I look at it first as
an opportunity.”
Zook said relatively small
banks such as Ephrata National
should continue to grow in the ag
finance department. Even though
the Wachovia portfolio will need
to be purchased by a larger lend
ing institution, he said, smaller
lenders will be able to pick up
some of Wachovia’s individual
loans.
Wachovia Corporation, based
in Charlotte, N.C., offers finan
cial services in 11 Eastern states
and Washington, D.C. The com
pany does additional business in
48 states and internationally.
Total assets are $364 billion.
Calls this week to the Lancas
ter First Union/Wachovia office
on the subject of ag lending were
directed to the Delaware commu
nications office and Armfield.
Slaughter Cattle
Weekly Review
Oklahoma City, Okla.
October 3,2003
Report Supplied By USDA
NATIONAL SLAUGHTER CATTLE
SUMMARY - Week Ending Oct. 3 Slaughter
steers and heifers traded steady to LOO high
er. Packer demand moderate at higher levels
but to fill orders were forced to give more
money. Packers have slowed the chain speed
in order for feedlots to build their inventories
The choice select spread remains at an ail
tune high of 34.00 as cattle continue to be
marketed with only minimal days on feed.
Choice grading beef and higher now costing
significantly more on the retad level as sup
plies of these are very short. Investors worry
that this could slow the demand for beef, es
pecially when we are only a few months away
Rom the holidays when beef sales are usually
not so prevalent. Boxed beef values Friday
morning opened at an average of 140.73
down 2.21 from last Friday. Sales of slaugh
ter cattle on a national basis for negotiated
cash trades totaled 167,700 head through
10:00 a.m Fnday Last week’s full count to
taled a moderate 188,800 head.
STEERS AND HEIFERS: MIDWEST DI
RECT MARKETS: Live Basis: 35-80 percent
Choice, 900-1400 lbs 91.00-95.00, wtd avg
93.40. Dressed Basis: 35-80 percent Choice,
SSO-9SO lbs 142.00-149.00, wtd avg 145.66.
HIGH PLAINS DIRECT MARKETS: Live
Basis: 35-65 percent Choice, 900-1400 lbs
89.00-90.00, wtd avg 89.91.
SLAUGHTER COWS AND BULLS (Av
erage Yielding): Slaughter cows 1.00-3.00
lower. Slaughter bulls I 00-2.00 lower, except
the southeast 3.00-5.00 lower. Demand con
tinues light for cows. Large numbers of cows
are headed to market as we are in the peak of
culling season. The dairy buy-out and Cana
dian beef product moving into processed beef
channels have added to the declining cow
and bull markets. USDA’s Cutter cow car
cass cut-out value closed Thursday at 84.46
down 3.11 from last Thursday
COWS: Breakers 75-80% lean 1000-1600
ibs. Colorado 42.00-45.50, Oklahoma
42.00-44.50; Alabama 36.00-39.00. Boners
80-85% lean 1000-1500 Ibs: Colorado
41.50- Oklahoma 41.50-44.75; Alabama
35.50- Lean 85-90% lean 950-1400 Ibs
Colorado 38.50-41.25; Oklahoma 38.00-41.50;
Alabama 31.00-34.00.
BULLS: 88-92% lean 1500-2200 Ibs; Colo
rado Sl.oo-54.00; Oklahoma 46.50-49.50; Al
abama 44.00-48.00.
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