Agricultural Lending will provide an overview of current trends in agricultural sectors and enhance skills in analyzing agricultural credits. Interactive case studies will be used to assist with analyzing agricultural credits, including cash flow, and identifying risk to the financial institution.
The class will address the cause of cash shortfalls as well as identifying the self-liquidating assets that will repay the debt. A global cash flow model is presented using tax returns and other sources of information. An agriculture operation case study supports practical application.
Course is designed to address the fundamentals of credit risk analysis of the agricultural entity or review of commercial agricultural operations for safety and soundness.
The length is two days.
| At-a-Glance | |
|---|---|
| Length | 2 days |
| Delivery | Virtual |
| Prerequisite/Pre-course | No |
| Continuing Education | No |
Objectives
Upon completion, participants should be able to:
- Identify the credit risk related to agricultural lending.
- Discuss appropriate loan structure to match cash flow and to minimize risk to financial institutions.
- Explain the financial information required to effectively assess the condition and repayment ability of the farm operation.
- Describe certain current agricultural market conditions that result in the most acute risks in agricultural lending.
- Use a management assessment tool to consider owner’s/operator’s talent, expertise and experience to effectively manage the farm.
Target Audience
The course is intended for examiners who have limited experience with reviewing agricultural loans. Experienced examiners can use this offering as a review of the skills they may already have. Those who have attended Agricultural Lending Hot Topics should also consider attending this class, as the content differs.