Start Date: 4/25/2019 1:00 PM MDT
End Date: 10/25/2019 2:30 PM MDT
Independent Bankers of Colorado
Advanced Credit & Risk Management in Agricultural Lending
1:00 pm – 2:30 pm MT
The agriculture industry is now in its seventh year of an economic reset. This has placed a higher premium on the ability of ag lenders to identify credit risk and potential business development opportunities. Nationwide, there appear to be three buckets of agricultural lending. The first is comprised of 30% to 40% of customers who are positioning for profits, positive cash flow, and growth and/or expansion. The second bucket with 30% to 40% of customers is poised for restructuring and refinance of losses to term debt utilizing excess equity in land. This is often caused by microeconomic challenges and internal management obstacles in the business. The third bucket of approximately 20% of customers is in partial or total liquidation. Will you continue to refinance these customers?
What are the domestic and global economic challenges that will increase risk to these three groups of customers? How will land values and US economic conditions influence currency and interest rate risk? What are the characteristics of customers with a high business IQ? Is this a necessary condition for economic prosperity? This webinar will address the latest ratios and variables that identify character and nonfinancial factors that are important when analyzing agricultural credits. Participants will receive a troubleshooting matrix, a proven tool that was used in the 1980s farm crisis for credit analysis and problem loan workouts. Learn the dos and don'ts of working with stressed agricultural credits.
- Latest on global and domestic economics that will impact the health of your agriculture portfolio
- Land values, interest rates, and the state of the agricultural and general economy for 2019 and beyond
- Megatrends that will be key influencers in the 2020 decade
- Latest tools and techniques in credit analysis, including financial ratios and quantifying character
- The bridge and pier concept and burn rates on liquidity and core equity that can be used to assess customers under financial stress
- Answers to the most common questions in agriculture credit and lending
WHO SHOULD ATTEND?
- TAKE-AWAY TOOLKIT
- New business management IQ scorecard to assess customers’ management ability
- Troubleshooting matrix for working with customers for financial improvement
- Case examples illustrating key ratios and other concepts used in credit analysis
- Dashboard of economic and financial indicators
- Employee training log
- Quiz to measure staff learning and a separate answer key
This session will benefit new and experienced lenders who want to improve their agricultural lending acumen, as well as loan administrators, credit risk officers, chief credit officers, and chief lending officers.
Attendance verification for CE credits upon request.
NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your financial institution is prohibited. Print materials may be copied for eligible participants only.
MEET THE PRESENTER
David Kohl, Ph.D.
Professor Emeritus, Virginia Tech
Dr. Kohl is Professor Emeritus of Agricultural Finance and Small Business Management and Entrepreneurship at Virginia Tech, Blacksburg, VA. He taught in the Agricultural and Applied Economics Department for 25 years.
Dr. Kohl currently energizes agricultural lenders, producers, and business people with his keen insight into the agricultural industry gained through extensive travel, research, and exposure during his career. He has traveled over 9 million miles in his career; conducted more than 6,000 workshops and seminars for agricultural audiences; published more than 2,100 articles; writes for leading publications; and has been inducted into the Virginia Tech College of Agriculture and Life Sciences Hall of Fame. Dr. Kohl’s personal involvement with agriculture and interaction with key industry players provide a unique perspective into future trends of the agricultural industry and economy.