Corporate Finance Institute – Agriculture Lending Fundamentals
Explore the fundamentals of farm financing and lending to agriculture operators, including aspects of capital, character, conditions, and collateral.
- Describe the cash cycle and capital expenditures of industries in the agriculture sector
- Consider qualitative factors in agriculture businesses, their management, and lenders’ risk
- Describe productive assets in agriculture, evaluation methods, and monitoring best practices
To meet the unique financing needs of agricultural producers, such as farmers and ranchers, lenders require a good understanding of the agriculture sector and industries involved. Although lending in agriculture may differ from other forms of commercial lending, lenders of all stripes can readily apply their skills and experience to seize opportunities and delight clients in this substantial market.
The learner will achieve a basic competency of general credit attributes useful for farm lending. Learners will describe and compare the variety of industries and working capital cycles, identify and assess industry, business, and management risks, and dive into typical productive assets (e.g., breeding inventory, farm equipment, and farmland assets) serving as collateral when financing farm operations.
This agriculture lending fundamental course is perfect for aspiring or beginning-level agriculture lenders, including general business and commercial bankers, credit analysts, equipment finance, loan & mortgage brokers, and sales and customer service staff who work with farm producers.
What You’ll Learn In Agriculture Lending Fundamentals?
- Describe the working capital cycle and capital expenditures of agriculture producers, their potential funding gaps, and other financing requirements.
- Identify and analyze the qualitative risk factors that craft the risk management picture for ag lending professionals.
- Highlight and evaluate the classes of productive farm assets that serve as collateral.
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