AIB Introduction to Agricultural Lending
Course Code: 6916
Length: 8 Weeks
Audience: This course is designed for those new to agricultural lending or with limited experience..
Description: Designed for individuals who are new to Ag Lending or who have limited experience, Introduction to Ag Lending will provide participants with the basic skills needed to begin to undertake credit analysis, loan structuring, monitoring, and provide guidance on dealing with problem loans. This course was developed in conjunction with the Schools of Banking, Inc., a jointly-owned subsidiary of the Kansas and Nebraska Bankers Associations.
Objectives: After successfully completing this program, you will be able to:
- Describe the size and scope of U.S. agriculture and the characteristics of the four main classifications of farm size
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Describe the purpose of the Farm Financial Standards Council (FFSC) and the impact of the FFSC recommendations on agricultural lending
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Recognize and identify the key financial statements as recommended by the FFSC
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Define the classification of assets and liabilities for two category and three category balance sheets
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Calculate deferred taxes and the impact of such taxes on agriculture financial analysis and lender decisions
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Understand the differences between cash and accrual income statements
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Have a working knowledge of accrual income statements and their impact on proper financial analysis and lender decision making
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Understand the statement of owner equity
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Understand the role of cash flow analysis in an agriculture operation and in making lending decisions
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Have a working knowledge of the "Sweet Sixteen" ratios, specifically: Repayment, Liquidity and Solvency Analysis
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Describe the importance and purpose of a loan policy in your bank.
Text Book: All reading materials are delivered online.
Recommended Course Credits: AIB: 1.0
Prerequisites: None
Enrollment: To enroll in this course, please click on the link below for the registration form. Print and complete the form and submit it to your supervisor for approval. Then submit the approved form to your human resources department for processing.