Schedule

Mid-South School for Advanced

Agricultural Lending

216 Business Administration

Martin, TN 38238

Ph:

(731) 881-7350

Em:

Dr. Tom H. Payne


Schedule

Print Schedule

Sunday, August 3 - Thursday, August 7, 2014

Led by a premier faculty consisting of industry experts and analysts, the Mid-South School of Advanced Agricultural Lending is designed specifically for professionals with two or more years of experience in Ag or related lending. The curriculum provides the most up-to-date and relevant skills needed to assess risk, improve profitability, and serve customers in today’s highly competitive market. The School’s purpose is to provide Ag lenders across the Mid-South with the comprehensive tools and analytical methods needed to make the best loan decisions for their institution and its customers. Held on the picturesque campus of the University of Tennessee at Martin, the MSAAL focuses on high-quality and interactive instruction for a select group of students.

Faculty and Featured Speakers:

Dr. Freddie Barnard, Professor of Agricultural Economics, Purdue University

Dr. David M. Kohl, Professor Emeritus, Virginia Tech University

Dr. Thomas Payne, Dunagan Chair of Excellence in Banking and Professor of Finance, The University of Tennessee at Martin

Mr. Richard Brock, Owner and President, Brock Associates

Mr. Michael (MJ) Anderson, Regional Manager – Grain Group, The Andersons Incorporated

Dr. Scott Parrott, Associate Professor of Agricultural Economics, The University of Tennessee at Martin

Mr. Clay Sydnor, Owner, Ag Safe Crop Insurance

Dr. Steve Isaacs, Extension Professor, University of Kentucky

Sunday, August 3, 2014

3:00 – 4:00 p.m. Check-in and Registration (Hampton Inn; Martin, Tennessee)

4:00 – 4:20 p.m. Shuttle to UT Martin Recreation Center Meeting Rooms

4:30 – 4:50 p.m. Welcome and Program Orientation Session

5:00 – 6:00 p.m.

Course: Financial Analysis and Agribusiness Simulation

Instructor: Dr. Freddie Bernard, Purdue University

This case and simulation-based course is designed to provide experienced lenders with the tools needed to perform in-depth credit analysis and make sound lending decisions. Specific topics for discussion include market-value balance sheets, cash basis income statements, and annual cash flow statements. Differences in net farm income calculated using cash basis income statements (Schedule F) and accrual-adjusted income statements will be discussed. Spreadsheet templates will be used to convert a cash basis income statement (Schedule F) to an accrual adjusted income statement. Income statement, financial ratio, repayment capacity, profitability, and breakeven information will be analyzed. Key financial ratios recommended by the Farm Financial Standards Council, including comparative data, will be provided.

Financial analysis and decision-making skills are sharpened through the competitive Agribusiness Simulation. Participants will be assigned to management teams and make a series of four product pricing, inventory control, cash flow management, credit utilization, and related management decisions for a retail feed and fertilizer agribusiness.

6:15 – 7:45 p.m. Mix and Mingle Dinner

7:45 – 8:00 p.m. Shuttle to Hampton Inn

Monday, August 4, 2014

6:00 – 7:30 a.m. Breakfast (Hampton Inn)

8:00 a.m. – Noon

Financial Analysis and Agribusiness Simulation (Continued- UTM Legislative Chamber)

Dr. Freddie Barnard, Purdue University

12:15 – 1:00 p.m. Lunch (UTM University Center)

1:15 - 3:15 p.m.

Agricultural Marketing: Dimensions of Risk Management (UTM Legislative Chamber)

Dr. Thomas Payne, Dunagan Chair of Excellence in Banking and Professor of Finance; and,

Dr. Scott Parrott, Assistant Professor of Agricultural Economics, The University of Tennessee at Martin;

Mr. MJ Anderson, Regional Manager – Grain Group, Andersons Incorporated;

Mr. Clay Sydnor, Owner, Ag Safe Crop Insurance

New this year, this multifaceted course provides both conceptual understanding and practical knowledge of risk management tools. If your customers are not managing risk they are taking it – and so are you. MSAAL students will gain knowledge of how futures and other derivatives instruments and contracts are used to manage risk. An understanding of these markets is critical to the ability of lenders to make informed credit decisions. Also, since risk management must be viewed from a total operational perspective, this session includes an integrated discussion of crop insurance and other issues vital to the sustained success of the producer-lender team.

3:30 – 5:30 p.m.

Financial Analysis and Agribusiness Simulation (Continued - UTM Legislative Chamber)

Dr. Freddie Barnard, Professor of Agricultural Economics, Purdue University

6:30 – 8:00 p.m. BBQ Dinner (UT Martin Alumni Center)

Tuesday, August 5, 2014

6:00 – 7:30 a.m. Breakfast (Hampton Inn)

8:00 – 9:50 a.m.

Financial Analysis and Agribusiness Simulation (Continued - UTM Legislative Chamber)

Dr. Freddie Barnard, Professor of Agricultural Economics, Purdue University

10:15 - 11:50 p.m.

Course: Lending to Large Commercial Agribusinesses (UTM University Center – Room 206)

Instructor: Dr. David Kohl, Professor Emeritus, Virginia Tech University

This course provides experienced lenders with important tools for benchmarking and analyzing large agribusiness loans and portfolios. Specific emphasis is given to early warning red flags, problem loans, and business cycles. Dr. Kohl will provide a top-level overview and integrate tools provided from MSAAL courses focusing on credit analysis and marketing.

12:00 – 12:50 p.m. Lunch (University Center Ballroom)

1:00 – 3:15 p.m.

Lending to Large Commercial Agribusinesses (Continued – UC Room 206)

Instructor: Dr. David Kohl, Agrivisions, LLC

3:30 – 5:30 p.m.

Financial Analysis and Agribusiness Simulation (Continued - UTM Legislative Chamber)

Dr. Freddie Barnard, Professor of Agricultural Economics, Purdue University

Wednesday, August 6, 2014

Note: Wednesday MSAAL sessions are held in conjunction with the highly acclaimed Mid-South Agricultural Finance Conference

6:00 – 7:30 a.m. Breakfast (Hampton Inn)

8:00 – 10:20 a.m.

Positioning Mid-South Agriculture for the Global Economy (University Center Watkins Auditorium)

Dr. David Kohl, Professor Emeritus, Virginia Tech University

2014 is a year of major economic transition and the producer/lender team must be aware of the factors that will affect interest rates, impact farm profitability, and determine creditworthiness during the next 12-18 months. Presented by one of the most knowledgeable and dynamic experts of our time, this opening session provides producers and lenders with an overview of the global trends and domestic policies that will affect the agricultural bottom line. Dr. Kohl will provide his famous and ever-changing global economic indicator dashboard for making sound management and lending decisions. This year, Dave will discuss the latest trends in real estate values, changes in farm family finances, and a new “business equation for success.” This interactive session will provide participants with the latest tools and information needed to effectively manage farm operations and loan portfolios.

10:30 – 11:45 p.m.

The Lender's Role in Farm Transition Planning (University Center Watkins Auditorium)

Dr. Steve Isaacs, University of Kentucky

Passing the farm from one generation to the next is a major issue faced by farm operators and their lenders. A variety of family, life-style, business-related factors affect producers’ ability to sustain their operations. Even in the best scenarios, changes will occur that can affect operating cash flows and borrowing decisions. Changes may already be occurring and you need to be proactive in helping your customers get ahead of the curve. The conference is an opportunity for the farmer-lender team to discuss these changes. You will not want to miss Dr. Isaacs practical tools for success and pitfalls to avoid during the transition planning process.

12:00 – 12:50 p.m. Agricultural Finance Luncheon (University Center Ballroom)

1:00 – 2:15 p.m.

Commodity Prices and Marketing Outlook: Major Trends Affecting Your Bottom Line

Richard Brock, President, Brock Associates

Continued uncertainty in the domestic and global economies associated with input costs, developing nation demand, and government policies are shaking up the commodity markets. Richard Brock’s straight-forward analysis will help get lenders and producers on the same page as they manage risk and make operational and financial decisions. Mr. Brock’s up-to-date analysis of corn, soybean, and cotton price trends will provide a basis for decision making in the coming year.

2:15 – 2:45 p.m.

Expert Panel Q&A and Adjourn

Dr. David M. Kohl, Professor Emeritus, Virginia Tech University

Mr. Richard Brock, Owner and President, Brock Associates

Dr. Steve Isaacs, Extension Professor, University of Kentucky

3:00 – 5:00 p.m.

Financial Analysis and Agribusiness Simulation (Continued - UTM Legislative Chamber)

Dr. Freddie Barnard, Professor of Agricultural Economics, Purdue University

6:30 – 9:00 p.m.

Tour and Dinner - Discovery Park of America (Union City, Tennessee)

Thursday, August 7, 2014

6:00 – 7:30 a.m. Breakfast (Hampton Inn)

8:00 – 9:50 a.m.

Course: Changing Demographics, Financial Performance, and Land Valuation

Instructor: Dr. Steve Isaacs, University of Kentucky

This course focuses on the macroeconomic issues and changing demographics in rural communities that can affect your bottom line. As the farm population ages and the economies of rural communities change, lenders need to adjust their loan portfolios and target markets. This course will provide tools to identify the best and most sustainable lending opportunities. The course also addresses the question of whether land can be expected to “pay for itself” in the long run. Analytical techniques and pitfalls associated with land valuation will be discussed.

10:00 – 11:15 a.m. Final Examination

11:30 Graduation

Mid-South School for Advanced

Agricultural Lending

216 Business Administration

Martin, TN 38238

Ph:

(731) 881-7350

Em:

Dr. Tom H. Payne