Banker to talk Iowa economy at Gazette event May 11

Iowa's economy has some good trends going for it but plenty of headwinds, too, the head of the Iowa Bankers Association and the Iowa Business Council treasurer told The Gazette this week.

Pockets of entrepreneurial activity have sprouted across Iowa, home values have risen and interest rates are low — all good signs for consumers, John Sorensen said. The state still faces a decline in farm income and a tight labor market.

'The thing that's really impacted the Iowa economy, and we saw it in changes that had to be made to the state budget this year, is the ag economy, and the fact that we've seen net farm income drop precipitously over the last few years,' Sorensen said.

Sorensen will discuss the economy and what may be coming next from Washington, D.C., as the featured speaker for The Gazette's May 11 Business Breakfast.

Despite the agriculture market downturn, Sorensen said Iowa is in a better place than it was during the 1980s farm crisis.

'One thing, agriculture is coming off of about five record years, so there's a good deal of equity built up by our farm producers that can now be tapped if need be,' he said.

As for how the new presidential administration will affect Iowa, Sorensen said more time needs to pass.

'There's been a lot of statements made and analysis of those statements. As with all of the Trump agenda, we will not truly know until Congress passes some of these things or moves forward on these initiatives,' he said.

Sorensen does hope Congress takes another look at regulations passed following the financial crisis to relieve some burden on smaller banks. Regulations are necessary, he said, but 'they've just got to be done in a smart way and the regulations have to be tailored to the business model of the financial institution.'

[naviga:h3 style="padding-left: 30px;"]IF YOU GO

Who: John Sorenson, president and CEO of the Iowa Bankers Association and treasurer of the Iowa Business Council

What: Gazette Business Breakfast

When: Networking 7 a.m. to 7:45 a.m., presentation and question-and-answer session 7:45 a.m. to 9 a.m., Thursday, May 11

Where: Cedar Rapids Public Library, 450 Fifth Ave. SE, Cedar Rapids

Tickets: Free and can be reserved at TheGazette.com/tickets or by calling 319-398-8345

l Comments: (319) 398-8366; matthew.patane@thegazette.com