Description
Find success in helping your borrowers manage risk involved with agriculture lending.Today’s agricultural producers are under financial stress due to low commodity prices. The result of this financial stress is increased credit risk. Many lenders are struggling to find the right way to deal with these borrowers. This material will focus on tools and methods to work with agricultural producers who are under financial stress. Topics will include dealing with low profit margins, helping your borrowers manage risk, transitioning to next generations, analyzing new technology investments, and managing the cycle of agriculture. This information is critical for agricultural lenders who want to find success in today’s agricultural economy.
Date: 2019-07-22 Start Time: End Time:
Learning Objectives
Dealing With Low Profit Margins
• Using Budgets to Track Costs
• Machinery Purchases and Asset Replacements
• Benchmarking Your Financial Position
• Educating Your Borrowers About Financial Position
Monitoring Collateral Values
• Trends in National Farmland Values
• Trends in Equipment and Machinery Values
• Stress Testing a Borrowers Balance Sheet
Helping Your Borrowers Manage Risk
• Identifying the Main Sources of Risk
• Helping Your Borrower Use Tools to Manage Risk
• Identify Marketing Windows
• Develop a Marketing Plan
• Is It Time to Outsource Some Management Responsibilities?
Analyzing New Technology Investments
• New Technology That Will Impact Agriculture
• Analyzing the Risk of Investment
• Help Your Borrower Understand the Pros and Cons of Investing in New Technology
Dealing With the Next Generation of Farmers
• Understanding the Different Priorities
• The Importance of a Transition Plan
Ryan Larsen, PhD-Utah State University
