9 Class Hours
Instructor: Tim Ohlde
The saying “The world is a small place” is more relevant now than ever in U.S. agriculture! This course will take a global view of critical economic factors, with a focus on the energy sector, and demonstrate the interconnection between them and the agriculture industry. Students will learn how to apply international economic knowledge to their loan portfolio.
Key learning objectives for this course include:
- Understanding the relationship between the agricultural industry and the energy industry and being able to apply that knowledge to an agricultural loan portfolio,
- Grasping the aspects of international economics that directly impact agriculture credits and being able to interpret the impact they will have on individual borrowers and the portfolio,
- Identifying key players in the energy economy,
- Identifying opportunities and challenges for agriculture producers and lenders with the move toward green energy,
- Developing a base of knowledge on the history of the Federal Reserve and the tools at their disposal,
- Applying knowledge of the Federal Reserve to manage an agriculture portfolio during various rate cycles including times of inflation,
- Learning how to communicate the borrower’s story in an effective loan presentation, and
- Applying global and domestic economic factors to projected cash flows.
This class will take a world view of the opportunities and challenges in the energy industry, and what it means for ag producers, communities, and portfolios. Participants will explore energy and monetary policy tools and look at demographics in developed and developing countries and their impact on GDP.
Students will learn about the history and current international drivers of energy economics and the significance of major world-wide energy players. This includes reviewing the Paris Accord and the evolving dynamics between agriculture and the finance industry.
We will review 40 years of Federal Reserve history and how evolving monetary policy tools have impacted the national economy and how different cycles have affected agriculture and rural communities.
Bank leadership and lenders continue to be challenged to produce and effectively implement a loan presentation system that results in well written loan narratives that are concise yet informative. You’ll learn how to weave overall economic data into a solid loan write-up, which is more critical today with electronic and offsite exams.
Inflation is in the news every day and has impacted agriculture operating expenses and working capital. For many ag lenders this is the first time working in an inflationary environment. Understanding the power and importance of projected cash flow and communicating the projections with customers across the portfolio is critical to improving and monitoring credit quality for the balance of the decade.
Annual School Session
Third Year Elective Course
Competency: Lending