Credit Introduction

Sound analysis of the current and future financial performance of a farm business requires an understanding of the business climate faced by the firm and the industry, within the context of the operating and financial characteristics (risks and returns) of the business. From a lender’s perspective this assessment of the business climate and financial characteristics must be combined with the underwriting policies and procedures of the financial institution to properly evaluate the creditworthiness of an individual agricultural credit and the risk exposure in the portfolio.

Farm financial performance assessment is the focus of this educational program, which is divided into four sections.

  • Credit 1-4 provides an overview of the agricultural production sector and the financial institutions and financing arrangements used by the sector.

  • Credit 5-12 focuses on financial analysis and documentation of the financial performance of farm businesses by emphasizing the unique problems of assessing risk, returns, and repayment of farm businesses with standard documents and information sources used in the industry.

  • Credit 13-16 emphasizes the critical considerations in capital investment and business organization decisions, including the different leasing arrangements used by farmers.

  • Credit 17-19 offers the perspective of the lender as he or she attempts to structure a loan arrangement to match the customer’s needs and the financial institutions policies and procedures, to assess the risk of specific credits, and to price a loan.

Pre-test (Credit)
Credit 1 - Overview of AgricultureInformation
Credit 2 - The New AgricultureInformation
Credit 3 - Types of CreditInformation
Credit 4 - Financial Institutions Serving AgricultureInformation
Credit 5 - Financial Statements as a SystemInformation
Credit 6 - The Balance SheetInformation
Credit 7 - The Income StatementInformation
Credit 8 - The Statement of Cash Flows and Cash Flow BudgetInformation
Credit 9 - The Statement of Owner Equity and Repayment CapacityInformation
Credit 10 - Financial Statement AnalysisInformation
Credit 11 - Working with Incomplete InformationInformation
Credit 12 - Integrated Production UnitsInformation
Credit 13 - Capital Budgeting and Time Value of MoneyInformation
Credit 14 - Agricultural LeasingInformation
Credit 15 - Business and Asset ValuationInformation
Credit 16 - Business EntitiesInformation
Credit 17 - Loan Structuring IssuesInformation
Credit 18 - Risk Analysis and Credit Risk AssessmentInformation
Credit 19 - Loan Pricing and Customer Profitability AnalysisInformation
Credit Final ExamInformation
Credit Resources
Credit Exams
Credit Final Exam-No Credit 19Information