What is the course syllabus?
The following topics will be covered in the course
- Lesson 1 – Agribusiness Entities describes different Canadian legal structures for agricultural entities and discusses the comparative tax advantages and disadvantages of each. Marketing Boards are also introduced providing an overview of what they are and their impact on lending practices.
- Lesson 2 – Borrowing Needs helps provide answers to two critical questions: Why do farms need to borrow money? For what purpose will the money actually be used?
- Lesson 3 – The Credit Decision Process provides a framework for the credit risk analysis process, with a focus on the borrower’s financial performance.
- Lesson 4 – Agribusiness Accounting focuses on how financial statements are constructed in the agricultural sector and the general rules of construction they follow.
- Lesson 5 – Financial Risk Assessment addresses financial data and what it says about a farm’s condition and direction – and ultimately about its ability to service debt.
- Lesson 6 – Cash Budgeting and Expansion Planning addresses the budgeting, how cash budgets are used to determine the process and how cash resources will be acquired and allocated over time by the agribusiness entity.
- Lesson 7 – Sensitivity Analysis provides insight into the description, role, and value of sensitivity analysis in the credit risk assessment process as it applies to agribusiness loans.
INSPECTIONS AND APPRAISALS
- Lesson 8 – Field Inspection addresses the factors to be looked for while making a field inspection and discusses the importance of building inspections in a regular, objective risk monitoring plan.
- Lesson 9 – Equipment/Machinery Appraisals discusses appraisals and their role in assessing the sufficiency of such assets for security purposes, as well as the role of these critical assets in the ongoing operational success of the enterprise.
- Lesson 10 – Agribusiness Real Estate Appraisals provides insights into considerations and techniques involved in the real estate appraisal process for agricultural properties.
QUALITATIVE RISK ASSESSMENT
- Lesson 11 – Market Risk Assessment and the Competitive Marketplace explores trends in the competitive marketplace, their impact on farms, and the implications they have for credit risk.
- Lesson 12 – Economic, Environmental and Business Cyclicality discusses the impact of economic, environmental and general business cycles on the success of the agricultural enterprise.
- Lesson 13 – Management Risk Assessment explores management tasks and capabilities as they relate to farm operations, together with management integrity and the critical role well-conceived succession plans play in ongoing enterprise success.
CREDIT RISK MITIGATION
- Lesson 14 – Repayment Sources highlights key sources of repayment, issues affecting repayment, and the ability of the agricultural borrower to service debt in a timely way.
- Lesson 15 – Credit Enhancements and Risk Mitigation focuses on additional support and/or credit enhancement techniques that can be considered as part of the overall loan structure.
How will you learn?
The program is composed of 5 modules representing the topics of study. Each module consists of:
- A diagnostic test to help you identify areas where you should focus your studies.
- Several interactive lessons, each estimated to take 20 to 30 minutes. Each lesson ends with a quiz to help reinforce the concepts reviewed in the lesson.
- An end-of-module online exam to test your mastery of the principles in the module.