Introduction to Agricultural Lending
Course Number: ABA
Course Code: ABA
The Introduction to Agricultural Lending course has been designed to provide students with a basic overview of the agricultural lending function. Updated to reflect the current challenges facing agricultural lenders, this course will help students have a fundamental understanding of the role of agriculture and agricultural lending in the financial services industry.
Produced by the Schools of Banking, Inc., a jointly-owned subsidiary of the Kansas and Nebraska Bankers Associations.
- Gain an understanding of the impact of the Farm Financial Standards Council recommendations on agriculture lending, including recommended key financial statements
- Understand how to calculate deferred taxes, and the impact of such taxes on agriculture financial analysis and lender decisions
- Understand the differences between cash and accrual income statements, and begin developing a working knowledge of accrual income statements and their place in proper financial analysis and lender decision making
- Understand the role of cash flow analysis in in making agricultural lending decisions, and begin developing a working knowledge of the “Sweet Sixteen” ratios, specifically: Repayment, Liquidity and Solvency Analysis
- Develop an appreciation for the purpose of loan policy, including an overview of loan structure and its relationship to problem loans as well as problem loan workout.
Audience: Those new to agricultural lending or with limited experience