Agricultural Credit Course

Lesson 1 • The Agricultural Lending Environment

Introduces external forces shaping credit availability, including commodity cycles and regulatory oversight. Frames the macro context for credit decisions made throughout the course.

Lesson 2 • Types of Agricultural Loans

Distinguishes short-term, intermediate, and long-term loan categories by purpose and repayment structure. Provides the classification framework used throughout the course.

Lesson 3 • Agricultural Credit Institutions

Surveys the major lender types serving farm borrowers, from commercial banks to government agencies. Students identify which institutions serve which borrower segments.

Lesson 1 • The Farm Balance Sheet

Covers asset classification, liability structure, and owner equity calculation specific to farm operations. Anchors the chapter's financial analysis framework.

Lesson 2 • Cash Flow Statement Fundamentals

Teaches construction of the farm cash flow statement and identification of cash surplus or deficit periods. Directly supports loan repayment scheduling covered later.

Lesson 3 • Statement of Owner Equity

Analyzes changes in net worth over time, separating earned equity from valuation changes. Provides a longitudinal view of farm financial health.

Lesson 4 • Integrated Financial Statement Review

Synthesizes all four statements into a unified picture of farm financial condition. Students practice identifying inconsistencies and red flags across statements.

Lesson 1 • Profitability Ratios

Quantifies returns on assets, equity, and revenue to gauge operational efficiency. Links income statement data to investment performance evaluation.

Lesson 2 • Financial Efficiency Ratios

Assesses how effectively a farm converts inputs and assets into revenue. Completes the five-dimension ratio framework introduced in this chapter.

Lesson 3 • Liquidity Ratios

Measures a farm's ability to meet short-term obligations using current assets. Establishes the first dimension of the five-part credit analysis framework.

Lesson 4 • Repayment Capacity Ratios

Calculates debt service coverage and capital replacement capacity to determine loan repayment ability. Directly informs loan structuring decisions in later chapters.

Lesson 1 • Conditions and Comprehensive Scoring

Analyzes external economic conditions affecting repayment and integrates all Five Cs into a scoring summary. Prepares students for structured loan approval decisions.

Lesson 2 • Character Assessment

Evaluates borrower integrity, credit history, and management reputation as predictors of repayment behavior. Introduces qualitative judgment as a complement to financial data.

Lesson 3 • Capacity Analysis

Measures the borrower's ability to generate sufficient cash flow to service debt obligations. Bridges ratio analysis from the previous chapter to loan decision-making.

Lesson 4 • Collateral Valuation

Covers identification, appraisal, and lien perfection of farm collateral including land, equipment, and crops. Establishes the lender's security interest in loan assets.

Lesson 1 • Scenario and Sensitivity Analysis

Applies stress testing and scenario modeling to quantify the impact of adverse conditions on loan repayment. Produces a risk-adjusted credit conclusion for the loan file.

Lesson 2 • Financial Risk Factors

Assesses interest rate exposure, leverage risk, and liquidity risk within the farm's financial structure. Reinforces ratio analysis by framing ratios as risk indicators.

Lesson 3 • Price and Market Risk

Examines commodity price volatility and marketing risk as drivers of farm revenue uncertainty. Connects market conditions to the capacity analysis from earlier chapters.

Lesson 4 • Crop Insurance and Risk Transfer

Reviews crop insurance products and other risk transfer tools that protect lender collateral and borrower income. Integrates risk mitigation into the loan structuring process.

Lesson 1 • Loan Documentation Requirements

Identifies the legal and administrative documents required to close and perfect an agricultural loan. Ensures students can assemble a complete loan file.

Lesson 2 • Loan Covenants and Conditions

Defines affirmative, negative, and financial covenants used to protect lender interests over the loan term. Introduces ongoing monitoring obligations tied to covenant compliance.

Lesson 3 • Loan Proposal Preparation

Guides students through assembling a complete written loan proposal for credit committee review. Synthesizes all structuring elements into a professional presentation.

Lesson 4 • Interest Rate Determination

Explains fixed vs. variable rate selection and the components of risk-based loan pricing. Connects borrower risk profile to the cost of credit.

Lesson 1 • Loan Workout and Resolution

Covers restructuring options, forbearance agreements, and liquidation strategies for problem loans. Completes the loan lifecycle management framework of this chapter.

Lesson 2 • Loan Loss Provisioning

Explains how lenders estimate and reserve for expected credit losses within the portfolio. Links risk ratings to allowance for loan loss calculations.

Lesson 3 • Loan Monitoring and Annual Review

Establishes a systematic process for tracking borrower financial performance after loan disbursement. Connects ongoing monitoring to early detection of credit deterioration.

Lesson 4 • Credit Risk Rating Systems

Introduces internal risk rating scales used to classify loan quality and trigger management actions. Provides the classification tool for portfolio-level analysis.

Lesson 1 • Credit Policy and Governance

Reviews the design and enforcement of institutional credit policies governing agricultural lending. Culminates the course by connecting individual decisions to institutional risk governance.

Lesson 2 • Complex Farm Entity Structures

Analyzes credit requests from multi-entity farm operations including partnerships, corporations, and trusts. Extends individual borrower analysis to consolidated enterprise evaluation.

Lesson 3 • Large and Syndicated Farm Loans

Covers the mechanics of large loan participations and syndications in agricultural lending. Introduces inter-lender coordination and lead lender responsibilities.

Lesson 4 • Agricultural Real Estate Lending

Addresses the unique underwriting requirements for farmland acquisition and long-term mortgage lending. Connects land valuation methods to long-term credit risk assessment.