Introduction to Agricultural Lending


Description: Introduction to Agricultural Lending will provide participants with the basic skills needed to begin to undertake credit analysis, loan structuring, and monitoring, as well as provide guidance on dealing with problem loans for agricultural customers. This course was developed in conjunction with the Schools of Banking, Inc., a jointly-owned subsidiary of the Kansas and Nebraska Bankers Associations.

Audience: Those new to agricultural lending or with limited experience.

Learning 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
  • Describe the purpose of the Farm Financial Standards Council (FFSC) and the impact of the FFSC recommendations on agricultural lending
  • Recognize and identify the key financial statements as recommended by the FFSC
  • Define the classification of assets and liabilities for two category and three category balance sheets
  • 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
  • Have a working knowledge of accrual income statements and their impact on proper financial analysis and lender decision making
  • Understand the statement of owner equity
  • Understand the role of cash flow analysis in an agriculture operation and in making lending decisions
  • Have a working knowledge of the “Sweet Sixteen” ratios, specifically: Repayment, Liquidity and Solvency Analysis
  • Describe the importance and purpose of a loan policy in your bank

8 weeks
Member: $475
Non-Member: ​$575

ABA Credit: 1

Locator Number Start Date End Date
24874 – IAGL31 02/27/2017 04/21/2017
24875 – IAGL32 07/17/2017 09/08/2017

There is no separate textbook for this course. All reading materials are posted online in the Learning Community of your course.