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Sound analysis of the current and future
financial performance of a farm business requires an understanding of
the business climate faced by the firm and the industry, within the
context of the operating and financial characteristics (risks and
returns) of the business. From a lender's perspective this assessment of
the business climate and financial characteristics must be combined with
the underwriting policies and procedures of the financial institution to
properly evaluate the creditworthiness of an individual agricultural
credit and the risk exposure in the portfolio.
The purpose of these courses is to provide
the background and concepts that are needed to:
- Assess financial performance
- Evaluate risks in production agriculture
This information will provide a sound
basis for assessing the prospects of financial performance of farm
businesses as well as the risks of extending credit to farm businesses.
The formats of the materials are in either notebook or CD versions. Both
versions contain practice and review exercises and a copy of the
"Financial Guidelines for Agricultural Producers" developed by the Farm
Financial Standards Council.
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