Training for Other Ag Lenders

Orientation Courses

Ag 101: Industry Snapshots

Target Audience: New hires and all employees

Instructor: Online

Description: The Ag 101 Series is designed for any employee who is looking for an overview of the basics of agriculture, and the industries and commodities that Farm Credit finances. The series includes the basics of Dairy, Equine, Grains, Mushrooms, Nurseries and Greenhouses, Pork and Beef Production, Poultry, Sustainable Agriculture and Organic Farming, Tobacco, Tree Fruit Production, and Vegetables and Melons.

Objective: Gain awareness of basic industry information, terminology, equipment, and business practices for various commodities.

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Credit Academy Courses

Commercial Ag Lender

New Updated Curriculum for Fall 2023!

Target Audience: Lenders with one to five years of experience, who are working on larger, commercial ag accounts.

Training Type: Blended

Instructors:

• Dr. David Kohl, Virginia Tech
• Ronnie Hucks, FCU Learning Liaison
• Association & external experts

Commercial Ag Lender focuses on all facets of differential credit analysis for commercial agricultural loans. Presented in the same format as the Lifestyle Lender Course featuring Dr. David Kohl as subject matter expert, the content for this curriculum has been reviewed and approved by experienced ag lenders and academics who served on the Farm Financial Standards Council. Training is presented in easily digestible OnDemand modules that include self-paced, interactive online presentations by Dr. David Kohl, objective tests, working with a local mentor, and peer interaction via discussion forum. The curriculum includes two live webinars and a final face-to-face session and is offered in the spring and fall each year.

Objectives:

• Learn how to construct and analyze basic financial statements for an agricultural business to evaluate risk and creditworthiness.
• Use tools such as burn rates on working capital and core equity, quickness to cash and liquidity, and true working capital, which are integrated into vignettes. 
• Explore issues related to expansion of businesses.
• Learn to properly structure different types of loans for ag businesses.
• Examine the Business IQ, which provides a format that can be used in the assessment of management and as a communication tool internally with regulators and externally with customers.
• Successfully identify distressed credits and learn processes to work with them.
• Learn to consolidate balance sheets of various business entities for analysis.
• Write an effective loan narrative, negotiate terms of a loan, and do so while maintaining integrity.
• A special emphasis on the art and science of agricultural lending based upon decades of institutional memory is integrated throughout the curriculum.

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Lifestyle Lender

Target Audience: New to intermediate lenders who will be making loans of $500,000 or less, and/or loans with non-farm income as a primary repayment source.

Training Type: Blended

Instructors:

• Dr. David Kohl
• Dr. Alex White
• Ronnie Hucks
• Elizabeth Benefield
• Dr. Iwana Ridgill

Description: The Lifestyle Lender Course focuses on customer and financial product knowledge, portfolio segmentation, sales and marketing, tax return analysis, small loan analysis and much more. This eight-month training is presented in 10 online modules that include self- paced, interactive presentations by Dr. David Kohl, a live kickoff webinar, “halftime session” and a comprehensive final project.

Two weeks are allocated for each module and a halftime face-to-face training session will be held in Charlotte, NC. Offered spring and fall of each year.

Objectives:

• Learn basic, foundational principles needed as a new agricultural lender.
• Understand the difference between eligibility and scope of lending and eligibility requirements for different groups of borrowers.
• Learn characteristics of the lifestyle segment of borrowers, and details on analyzing loans to these borrowers.
• Evaluate tax returns to find valuable information and ask informed questions.
• Discover the basics of a sales call and prospecting for new business.

Online Modules:

1. Lending to Lifestyle Borrowers: Eligibility, Scope of Lending, and Customer Knowledge
2. Lifestyle Portfolio Segmentation and Layering of Risk
3. Small Loan Analysis & Credit Evaluation
4. Tax Return Analysis
5. Legal Topics
6. Technology, Alliances in Marketing & Loan Pricing  
7. Sales & Marketing: Consultative Marketing
8. Sales & Marketing: Strategic Prospecting
9. Sales & Marketing: Call Preparation 10. Sales & Marketing: Sales Call Process

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Credit Analyst Workshop: Basic

Target Audience: Commercial ag lenders and credit analysts with at least six months of credit analysis experience.

Training Type: Instructor-led

Instructors: 

• Ronnie Hucks, FCU Learning Liaison
• Dr. David Kohl, Virginia Tech
• Cole Heizer, Farm Credit of the Virginias
• Lisa Storm, AgGeorgia Farm Credit
• Harlan Hill, Hill Financial Education

Description: This three-day class focuses on basic credit analysis techniques relating to commercial agricultural and small agri-business lending. This is very much a “numbers crunching” workshop, and features AgFirst, Association, and outside presenters. Employees that have credit analysis duties as a major part of their job responsibilities will benefit most from this hands-on class. The session is held annually in September.

Topics:

• Economic update and lending risk case studies (Dr. David Kohl)
• Basics of balance sheet consolidation (Ronnie Hucks)
• Best practices in credit analysis (Lisa Storm & Cole Heizer)
• Income tax return analysis (Cole Heizer)
• Non-financial credit factors
• Cash flow and business risk analysis (Harlan Hill)
• Other topics and group exercises

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Credit Analysis: Fundamentals

Target Audience: Credit Analysts, Reviewers and Loan Officers

Training Type: Instructor-led

Instructor: Harlan Hill, Hill Financial Education, Inc.

Description: Utilizing two days of instruction, the session exposes participants to a rigorous course of study designed to improve an attendee’s credit risk identification and credit decision skills, consistent with Farm Credit lending principles. The program is designed to serve as a prequel to the more advanced Credit Analysis: Intermediate training. The session will establish fundamental principles encompassing the behavior, beliefs, philosophy, organization and policies as it pertains to fundamental credit risk management and embraces the most important fundamentals in credit risk and financial analysis training.

Topics:

• Credit Risk: General Overview
• Business Risk Analysis
• Income Statement Analysis
• Balance Sheet Analysis
• Working Capital Analysis
• Seasonal, Medium and Long Term Exposure in Credit Risk Analysis
• Secured Borrowing Base Underwriting
• Covenants
• Collateral & Guarantor Evaluation

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Credit Analysis: Intermediate

Target Audience: Credit Analysts, Reviewers and Loan Officers

Training Type: Instructor-led

Instructor: Harlan Hill, Hill Financial Education, Inc

Description: This session is designed specifically for Farm Credit, and delivers important credit risk management training in credit analytics, loan structuring and cash flow analysis. This course of study is designed for those possessing a fundamental credit background consisting of a minimum of 2 years of on the job credit experience as Credit Analysts, Reviewers, and Loan Officers with underwriting responsibilities, and who have completed Credit Analysis: Fundamentals training.

Objectives: Participants will:

• Understand the qualitative factors that can influence a borrower’s ability to repay.
• Grasp the art of “getting behind the numbers” in financial data point analysis, derived from accrual accounting based financial presentations.
• Gain an ability to understand how changes in liquidity, leverage, profitability, cash flow and asset management can impact credit risk management via a “DuPont” type analysis.
• Link ratio and cash flow analysis to management decisions regarding business events.
• Appreciate important loan structuring issues for credits more than $5 million in exposure.
• Learn to streamline “club” and/or “syndication” deal underwriting and appreciate the need for revised structures allowing a deal to be placed in the bank debt market.

Topics:

• Credit Risk: Overview of Industry, Business and Management Analysis
• Accrual Based Accounting: Cash Flow Analysis
• Credit Risk and Loan Structuring: General Principles
• Covenants and Intermediate Loan Structure: Specific Complex Principles
• Capital Structure
• Participation and Syndication Issues 

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Credit Analysis & Corporate Finance: Advanced

Target Audience: Credit Analysts, Reviewers and Loan Officers

Training Type: Instructor-led

Instructor: Harlan Hill, Hill Financial Education, Inc.

Description: This newly-designed program provides Farm Credit experienced senior professionals with an overview of the key elements of corporate finance disciplines experienced in the world of corporate finance and capital markets. This training is targeted to capital market officers, chief credit lending officers, and other agribusiness leaders.

Objectives:

• Understand the basics of time value of money and how these concepts underlie corporate finance principles.
• Gain a general knowledge of different corporate finance and capital markets instruments available to participants in the capital markets, including mezzanine finance, private equity and senior bank debt.
• Grasp the dynamics of the purchase and sale of a business.

Topics:

• Business Valuation Techniques
• Capital Structure
• Capital Markets Products
• Transfer of Ownership 

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