Course Outline

Module 1: Fundamentals of Agricultural Credit

• Overview of agricultural finance

• Characteristics of agricultural lending

• Agricultural value chains and financing needs

• Role of financial institutions in agriculture

• Exercise: Identifying financing needs across different agricultural value chains

Module 2: Farm and Agribusiness Financial Analysis

• Farm income statements and balance sheets

• Cost of production analysis

• Profitability and efficiency ratios

• Interpreting farm financial performance

• Practical Exercise: Analyzing financial statements of a farm or agribusiness

Module 3: Cash Flow and Repayment Capacity

• Seasonal cash flows in agriculture

• Production cycles and income timing

• Loan repayment capacity assessment

• Stress testing cash flows

• Case Study: Evaluating cash flow and repayment ability for a crop or livestock enterprise

Module 4: Agricultural Credit Risk and Loan Structuring

• Types of risks in agricultural lending

• Climate, market, and operational risks

• Collateral, guarantees, and risk mitigation tools

• Loan structuring and pricing

• Scenario Exercise: Assessing credit risk and structuring an agricultural loan

Module 5: Loan Monitoring and Portfolio Management

• Credit appraisal and approval processes

• Loan monitoring and early warning signs

• Managing delinquency and defaults

• Building a sustainable agricultural loan portfolio

• Final Exercise: Conducting a full credit analysis and making a lending recommendation