Audience
- Lenders new to Ag Lending
- Senior credit officers who need to train ag lenders
Schedule
Each Module is 2.5 hours worth of instruction
- Module 1: Agricultural Financial Statements
- Module 2: Agricultural Financial Statements and Ratio Analysis
- Module 3: Problem Loans in Ag Lending
- Module 4: Effective Loan Structuring and Class Exercise.
Price
- Full Access to Ag 101: $350
Learning Objectives
- Learn the impact of the Farm Financial Standards Council recommendations on agriculture lending, including recommended key financial statements and how they interact in the lending process
- Calculate deferred taxes and their impact on agriculture financial analysis and credit decisioning
- Understand the differences between cash and accrual income statements for the agricultural customer and begin developing a working knowledge of accrual income statements.
- Understand cash flow analysis in agricultural lending decisioning, and implement the “Sweet Sixteen” ratios into your underwriting regimen, specifically: Repayment, Liquidity and Solvency Analysis
- Learn the purpose of loan policy in ag lending, including the importance of loan structure and its relationship to problem loans as well as ag loan workouts.
Barret School of Banking’s Ag 101 Course will convey “must haves” for successful Ag lenders in today’s Ag Economy; to not only survive but to thrive!
And if you are looking for more ag lending content, be sure to check out our quarterly Roundtable or our Ag Lending 201 course.
Ag Lending 101 will cover...
Farm Financial Standards Guidelines and how they set the stage for more accurate financial analysis for the agriculture industry.
Utilizing this knowledge, leads to a discussion about effective and efficient approaches to balance sheets and income statements. Focus will be on the importance of properly defining/categorizing assets and liabilities. The Cost and Market approaches will be compared as well as pointers on how to obtain full and accurate information from customers. Utilizing trend analysis effectively to spot issues with credits is a key part of this discussion.
Cash Flow Analysis with Schedule F tax returns
Ag farm customer’s cash flow is difficult and more so in cases where a farmer carries production over to the next year and sells two crops in one year. You’ll learn how best to analyze these types of operations by employing accrual analysis; an efficient approach to true net profit analysis that takes less time than analyzing a cash tax return.
“Five Powerful Ratios” for effectively analyzing farmer’s operations.
They are a great start (or refresher) if you are increasing ratio analysis in your lending arsenal. Attendees will not only learn how to calculate these ratios but how these ratios can be used to become a more effective lender.
Proper Loan Structuring
Loan structuring do’s and don’ts will be shared, and key structuring tools will be discussed. Tools include term, financing methods/types, repayment, collateral, covenants and monitoring. Attendees will learn how to evaluate loan structure for effectiveness and feasibility; specific techniques for stressed credits; how loan structure impacts an operation’s performance; techniques for monitoring structure implementation; how portfolio performance is impacted by loan structure; and specific mistakes to avoid in the structuring process.
Problem Ag Loan Resolutions
Recognizing and dealing with a problem credit earlier rather than later is key to success. Not all problem loans turn into losses – successful resolution of a problem loan can lead to an excellent customer for life. Learn what has led to problem loans in the past, signs of problem loans, and the problem loan cycle. This is an unpleasant, but realistic part of lending. This session will help you be prepared when it happens.
About the Instructor
Tim Ohlde, CEO of Country Banker Systems
Tim has 36 years of experience in community banking, including extensive agriculture lending and as a rural bank president. He has served on the ABA Ag Committee, The board of Bankers Bank of Kansas and on the Kansas Banker’s Association Ag Committee. Tim brings a love of education to his perspective as a banker. He has taught for 20 years for the Kansas and Nebraska Schools of Banking, the North Dakota School of Banking and the Graduate School of Banking in Boulder Colorado. Tim is a graduate of Kansas State University with a de-gree in Agricultural Education. Tim is married to Deb, who went from an ownership interest to consultant for Country Banker in 2015. He has instilled his love of agriculture in his three boys, Will (also a part time Country Banker staff member), Eli and Nathan. They spend time hunting, tinkering with an antique John Deere, and gardening.
Also, thank you to our sponsors that make all of our ag content possible...
