Wells Fargo plans to increase agriculture lending

Wells Fargo & Co. will boost agriculture lending this year as producer costs climb, said Rod Alt, a senior vice president in the bank's food and agribusiness division.

The bank issued $9.4 billion in new U.S. agriculture loans last year, he said, without providing details on how much lending may gain in 2011. He spoke today in an interview at an industry conference in Denver.

Analysis of borrower balance sheets and cash flow will be "critical" when producers seek more funding as everything from grain to gasoline rises, he said in a presentation at the conference.

"We all understand that it's going to cost more to produce," said Alt, who is based in Amarillo, Texas. "We understand that, and the lines of credit are going up."

The price of corn, the main ingredient in livestock feed, has surged 84 percent in the past year, and crude oil is up 18 percent.

The bank has already increased some loan facilities and was invited into other syndicated loans, Alt said. As of Dec. 31, Wells Fargo had $25 billion in total commitments in agribusiness, he said.