THE AGRICULTURAL LENDING INSTITUTE

THIS SEMINAR IS DESIGNED FOR Agricultural Lending Professionals and Accountants, Attorneys, Farm Managers, Rural Appraisers PRESENTED BY The Agricultural Lending Institute, Inc. Directors: Curt Covington & Roy Martin and the University Business Center at the Craig School of Business California State University, Fresno Photos Courtesy of Roy Martin

JUNE 20-24, 2016 UNIVERSITY BUSINESS CENTER AT THE CRAIG SCHOOL OF BUSINESS CALIFORNIA STATE UNIVERSITY, FRESNO

THE AGRICULTURAL LENDING INSTITUTE FIRST YEAR PROGRAM Monday, June 20

Tuesday, June 21

Wednesday, June 22

7:30 - 8:00 AM

8:00 – 10:00 AM A Framework for Business Analysis I

8:00 – 12:00 PM In the Field: Best Practices for Crop and farm Equipment Techniques

Registration and Breakfast

8:00 - 9:00 AM General Session US Agricultural Outlook 2016: Is the Tractor in the Ditch? John Blanchfield, Principal, Agricultural Banking Advisory Services and former Director of Center for Agricultural and Rural Banking, American Bankers Association, Damascus, Maryland Mr. Blanchfield, having endured 25 years of “living the Washington Beltway”, is considered both an advocate and expert in Agricultural finance and policy.

9:10 – 10:15 AM Integrated Approach to Financial Statement Analysis Curt Covington, Senior Vice President, Federal Agricultural Mortgage Corporation, Washington, DC Agriculture is consolidating. Small borrowers are getting bigger. Bigger borrowers are diversifying. Lenders are requiring better financial reporting. This session presents the key elements that bind quality financial statements with better financial reporting and analysis.

10:15 - 10:30 AM

Break

10:30 - 12:00 PM Integrated Approach to Financial Statement Analysis (cont.d) Curt Covington, Senior Vice President, Federal Agricultural Mortgage Corporation, Washington, DC

12:00 – 1:00 PM

Lunch

1:00 - 3:00 PM Good Use Of Good Financial Ratios Curt Covington, Senior Vice President, Federal Agricultural Mortgage Corporation, Washington, DC Any good banker can calculate a set of financial ratios! This session gets to the root of what the ratios mean to a borrower’s financial performance.

3:00 – 3:15 PM

Break

3:15 – 5:00 PM Good Use Of Good Financial Ratios (cont.d) Curt Covington, Senior Vice President, Federal Agricultural Mortgage Corporation, Washington, DC

5:00 PM – 6:00 PM General Session Is Millennial Spending Enough to Spark an AG Rebound Jason Henderson, Ph.D, Associate Dean of the Purdue University School of Agricultural and Director of Purdue Extension Brent Gloy, Ph.D, full time Nebraska farmer and Professor, Purdue University

6:00 – 7:30 PM

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Dean Duelke, President, Deannco Financial Enterprises, Irvine, CA This full day session will allow the student to develop and appreciate the analytical tools that are the foundation of the credit analysis process. Part 1: • Establishing the foundation for focusing on credit decisions • Determining basic operational cash flow – the adequacy of the source & the cash flow

10:00 – 10:15 AM

Break

10:15 – 12:00 PM Framework for Business Analysis (cont.d) Dean Duelke, President, Deannco Financial Enterprises, Irvine, CA

Roy Martin, Senior Vice President, Credit and Counterparty Risk, Bank of the West, Fresno, CA. Grady Woolsey, Vice President, Agricultural Field Office, Bank of the West, Fresno, CA. Half day tour of the Fresno State Farm Laboratory where students will learn proper crop inspection techniques from a team of experienced bank field officers. Tour will investigate: • A variety of field and permanent crops grown in California and other parts of the U.S. • Cultural, irrigation and pest management practices. • Proper evaluation of farm equipment. (Note: students should be prepared for hot weather and “in-field” conditions by wearing hats and close-toed shoes).

Part 2:

12:00 – 1:00 PM

• Developing the tools for analyzing the operation • Reconstruction fixed assets, lont-term debt and the resulting Unfunded CapEx • Determining operational cash flow and identifying activities that impact it

1:00 – 3:00 PM Crop Budgeting Tools and Techniques

12:00 – 1:00 PM

Lunch

1:00 – 2:45 PM Framework for Business Analysis (cont.d) Dean Duelke, President, Deannco Financial Enterprises, Irvine, CA Part 3: • Examining the characteristics & credit issues of the two basic loan types • Addressing the practical issues relating to long-term loans and their repayment • Practical issues relating to short-term loansand the need for a ‘core’ equity

2:45 – 3:00 PM

Break

3:00 – 5:00 PM Framework for Business Analysis (cont.d) Dean Duelke, President, Deannco Financial Enterprises, Irvine, CA Part 4: • Production loans – the backbone of Agricultural lending • Extracting selected financial info from a cash budget for better understanding the risks. • Comparing cash budget lending to balancer sheet oriented loan structuring.

Welcome Reception

THE AGRICULTURAL LENDING INSTITUTE | JUNE 20-24, 2016

Lunch

Roy Martin, Senior Vice President, Credit and Counterparty Risk, Bank of the West, Fresno, CA. This session will explore best practices in the development and use of crop budgets for monitoring operating loan performance.

3:00–3:15 PM

Break

3:15 – 5:00 PM Trends in Agricultural Land Values. Are Precious Land Values Starting to Circle the Drain? Dave Snook, Consultant, Farmer Mac, Fairfield, CA. Eric Mueller, Real Estate Broker and Auctioneer, Farmers National Company, NE

As go commodity prices, so go land values! What are “on the ground” experts seeing, hearing and reporting on agriculture land values?

Thursday, June 23 8:00 – 10:15 AM Agricultural Credit Risk: Can’t Live with it, Can’t Lend without it! Clive Humphrey, Director, 360 Credit Training Limited, UK The day with Clive will involve a wide ranging discussion of the many risk factors facing the ag-lender in today’s complex agricultural credit markets and address a variety of risk mitigation tools available to the lender.

10:15 – 10:30 AM

Break

FIRST YEAR PROGRAM (cont.d)

10:30 – 12:00 PM Agricultural Credit Risk: Can’t Live with it, Can’t Lend without it! (cont.d) Clive Humphrey, Director, 360 Credit Training Limited, UK

12:00 – 1:00 PM

Lunch

1:00 – 3:00 PM Agricultural Credit Risk: Can’t Live with it, Can’t Lend without it! (cont.d) Clive Humphrey, Director, 360 Credit Training Limited, UK

3:00 – 3:15 PM

Break

3:15 – 5:00 PM Agricultural Credit Risk: Can’t Live with it, Can’t Lend without it! (cont.d) Clive Humphrey, Director, 360 Credit Training Limited, UK

Friday, June 24 8:00 – 10:15 AM Capstone Dave Hague, Retired Senior Credit Risk Officer Farm and Business, Planning Consultant, Murietta, CA Danny Odom, Vice President, Fresno Agribusiness & Commercial Banking Center, Bank of the West This closing session provides the student with the opportunity to apply credit risk principles discussed during the week. The students will be asked to prepare a credit presentation from a case study.

10:15 – 10:30 AM

Break

10:30 – 12:00 PM Capstone (cont.d) Dave Hague, Retired Senior Credit Risk Officer Farm and Business, Planning Consultant, Murietta, CA Danny Odom, Vice President, Fresno Agribusiness & Commercial Banking Center, Bank of the West

12:00 – 1:00 PM Lunch and Closing Comments

University Business Center at the Craig School of Business - California State University, Fresno

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THE AGRICULTURAL LENDING INSTITUTE SECOND YEAR PROGRAM Monday, June 20 7:30 - 8:00 AM

Registration and Breakfast

8:00 - 9:00 AM General Session US Agricultural Outlook 2016: Is the Tractor in the Ditch? John Blanchfield, Principal, Agricultural Banking Advisory Services and former Director of the Center for Agricultural and Rural Banking, American Bankers Association, Damascus, Maryland Mr. Blanchfield, having endured 25 years of “living the Washington Beltway”, is considered both an advocate and expert in Agricultural finance and policy.

9:00 – 10:00 AM Framework of Business Analysis II Dean Duelke, President, Deannco Financial Enterprises, Irvine, CA

3:00 – 5:00 PM Framework of Business Analysis II (cont.d)

Wednesday, June 22

Dean Duelke, President, Deannco Financial Enterprises, Irvine, CA

8:00 – 10:15 AM Red Sky in the Morning, Banker Take Warning

Part 4:

Clive Humphrey, Director, 360 Credit Training Limited, UK

• Prudent loan structuring provides a model for establishing key financial covenants • An overal view of the components that contribute to sustainably growing revenue

5:00 PM – 6:00 PM General Session Is Millennial Spending Enough to Spark an AG Rebound Jason Henderson, Ph.D, Associate Dean of the Purdue University School of Agricultural and Director of Purdue Extension Brent Gloy, Ph.D, full time Nebraska farmer and Professor, Purdue University

This full day session is a continuation of the first year’s credit session dealing with analytical tools and concepts.

6:00 – 7:30 PM

Part 1:

Tuesday, June 21

• Gaining a perspective of the “financial boundaries” for a borrower • Reinforce the critical linkage ‘core’ working capital & debt servicing

10:00 – 10:15 AM

Break

10:15 – 12:00 PM Framework of Business Analysis II (cont.d) Dean Duelke, President, Deannco Financial Enterprises, Irvine, CA Part 2: • Practical exercises in determining and analyzing selected financial issues • Identifying operational cash flow for an accrual borrower and activites that impact it

12:00 – 1:00 PM

Lunch

1:00 – 2:45 PM Framework of Business Analysis II (cont.d) Dean Duelke, President, Deannco Financial Enterprises, Irvine, CA Part 3: • Continuing practical exercises where the focus is on identify working capital needs • A quick way to estimate the funds needed to increase sales – focus on asset levels

2:45 – 3:00 PM

Break

Welcome Reception

8:00 – 12:00 PM In the Field: Best Practices for Crop and Dairy Inspection Techniques Roy Martin, Senior Vice President, Credit and Counterparty Risk, Bank of the West, Fresno, CA Grady Woolsey, Vice President, Agricultural Field Office, Bank of the West, Fresno, CA. Half day tour of the Fresno State Farm Laboratory where students will learn proper crop and dairy inspection techniques from a team of experienced agricultural band field officers.

Good guys always pay, right? Not always. In a case study format, this session will focus on credit risk identification and risk mitigation tools available to the lender before the loan circles the drain.

10:15 – 10:30 AM

10:30 – 12:00 PM Red Sky in the Morning, Banker Take Warning (cont.d) Clive Humphrey, Director, 360 Credit Training Limited, UK

12:00 – 1:00 PM

Lunch

1:00 – 3:00 PM Red Sky in the Morning, Banker Take Warning (cont.d) Clive Humphrey, Director, 360 Credit Training Limited, UK

3:00 – 3:15 PM

Break

3:15 – 5:00 PM Loan Structure a Bankers Delight! Clive Humphrey, Director, 360 Credit Training Limited, UK Steve Turner, Partner, Baird Holm LLP Identifying Credit Risk and Risk Mitigation Tools are only as good as the paper they are written on. Drawing on the expertise of a seasoned business lawyer, students will discover the common successes and pitfalls in drafting credit agreement.

(Note: students should be prepared for hot weather and “in-field” conditions by wearing hates and close-toed shoes).

Thursday, June 23

12:00 – 1:00 PM

8:00 – 10:15 AM Building Projections and Pro Formas on Rock Not Sand

Lunch

1:00 – 3:00 PM Dairy Budgeting Tools and Techniques Roy Martin, Senior Vice President, Credit and Counterparty Risk, Bank of the West, Fresno, CA. This session will explore best practices in the development and use of dairy cash flow budgets for monitoring loan performance.

3:00 – 3:15 PM

Break

Curt Covington, Senior Vice President, Federal Agricultural Mortgage Corporation. Washington, DC

10:15 – 10:30 AM

Break

10:30 – 12:00 PM Who’s On First? – Moneyball For Title Insurance Requirements

3:15 – 5:00 PM Assessing Cash Flow for the Agribusiness Firm

Larry Krittenbrink, Partner,Baird Holm LLP

Curt Covington, Senior Vice President, Federal Agricultural Mortgage Corporation. Washington, DC

Larry and Tony will use prototype title reports to illustrate what matters in title insurance protection for your lender, from the initial title review through closing and funding your loan.

Tony Todero, Partner, Baird Holm LLP

12:00 – 1:00 PM

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Break

THE AGRICULTURAL LENDING INSTITUTE | JUNE 20-24, 2016

Lunch

SECOND YEAR PROGRAM

(cont.d)

1:00 – 3:00 PM Clause and Effect: Anatomy of a Good Deal Gone Bad Moderator: Hal Bolen, Partner, Bolen Fransen & Sawyers, LLP Avis Gaffrey, Vice President, Rabobank, N.A. Gary W. Sawyers, Partner, Bolen Fransen & Sawyers, LLP Steve Turner, Attorney at Law, Baird Holm LLP Riley Walter, Esq., Walter Law Group This session brings together the best legal minds and bank workout specialist as role players to look at several case examples of loans where mistakes were made in due dilligence, loan structure, deal points, securitization, documentation and client management. This will be an interactive and facilitative session involving the students and the experts.

3:00 – 3:15 PM

Break

3:15 – 5:00 PM Clause and Effect: Anatomy of a Good Deal Gone Bad. (cont.d) Moderator: Hal Bolen, Partner, Bolen Fransen & Sawyers, LLP Avis Gaffrey, Vice President, Rabobank, N.A. Gary W. Sawyers, Partner, Bolen Fransen & Sawyers, LLP Steve Turner, Attorney at Law, Baird Holm LLP Riley Walter, Esq., Walter Law Group

Friday, June 24 8:00 – 10:15 AM Capstone Peter Nutz, Chief Credit Officer, SunCrest Bank, Visailia, California Robert Finkbohner, SVP and Regional Credit Officer, Rabobank, N.A. This closing session provides the student with the opportunity to apply credit risk principles discussed during the week. The students will be asked to prepare a credit presentation from a case study.

10:15 – 10:30 AM

Break

10:30 – 12:00 PM Capstone (cont.d) Peter Nutz, Chief Credit Officer, SunCrest Bank, Visailia, California Robert Finkbohner, SVP and Regional Credit Officer, Rabobank, N.A.

12:00 – 1:00 PM Lunch and Closing Comments

University Business Center at the Craig School of Business - California State University, Fresno

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THE AGRICULTURAL LENDING INSTITUTE The ever-changing face of agribusiness poses increasing challenges for lenders, appraisers, farm managers and agricultural consultants. These challenges bring opportunities for professionals who seek to reach a distinguished level of competency and leadership. It is ALI’s goal to develop effective leaders in agricultural finance. The Agricultural Lending Institute (ALI) provides in-depth training that industry professionals need to succeed in agricultural finance. ALI offers a rigorous competencybased curriculum, presented by distinguished faculty with professional expertise in all aspects of agricultural finance. The program involves two one-week sessions; the courses are designed to be completed over a two-year period. Classes are conducted in a facilitative style employing a case study format as a means of enhancing the principles taught during the week, culminating in the analysis and presentation of a loan request based on facts found in the case study and utilizing the skills acquired in the classroom. Successful participants will be awarded a Certificate of Completion from California State University, Fresno and the Agricultural Lending Institute, Inc.

ALI is a joint project of the Agricultural Lending Institute, Inc. and the University Business Center at California State University, Fresno.

WE WOULD LIKE TO THANK THE FOLLOWING SPONSORS FOR THEIR SUPPORT: SILV ER CONT RI BUTORS

BRONZE CONT RI BUTORS

FOR MORE DETAILS PLEASE CALL (559) 278-2352 OR VISIT WWW.AGLENDINGINSTITUE .ORG

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THE AGRICULTURAL LENDING INSTITUTE | JUNE 20-24, 2016

REGISTRATION INFORMATION FOR FIRST AND SECOND YEAR PROGRAMS Location

Hotel Information

The Institute’s courses will be held on the Fresno State Campus at the University Business

The Agricultural Lending Institute has contracted with the following

Center, located at 5245 N. Backer Ave, Fresno CA, 93740.

4 hotels for our participants.

How to Register

Please check this link on our website: http://www.aglendinginstitute.org/lodging for special room rates and other details.

Complete the attached form and make your check payable to Ag Lending Institute, Inc. Your check and registration form must be postmarked no later than June 6, 2016. You can also register online at www.aglendinginstitute.org and pay with Visa or Mastercard.

Hampton Inn - Fresno Riverpark 327 E. Fir Avenue Fresno, CA 93720 Phone: (559) 447-5900 Hampton Inn & Suites Clovis – Airport North 855 Gettysburg Avenue Clovis, CA 93612 Phone: (559) 348-0000

The registration fee for 2016 is $1,750.

Cancellation Policy Participants who cancel in writing by June 6, 2016 will receive a refund less a $25

Holiday Inn Express Clovis 650 W. Shaw Ave Clovis, CA 93612 Phone: (559) 297-0555

handling fee. Registration fees are non-refundable after June 6, 2016. Participant substitutions can be made through a written request.

Courtyard Fresno Marriott 140 E. Shaw Avenue Fresno, CA 93710 Phone: 559-221-6000 Residence Inn by Marriott 5322 N. Diana Street Fresno, CA 93710 Phone: 559-222-8900

REGISTRATION FORM Registration form and payment must be postmarked no later than June 6, 2016. Each attendee must complete a separate registration form; photocopies are acceptable. You can also register online at: www.aglendinginstitute.org Please print clearly or type. The information on this form will be used to generate name badges.

FIRST NAME

LAST NAME

POSITION

ORGANIZATION

MAILING ADDRESS CITY

STATE

PHONE

EMAIL

SPECIAL DIETARY REQUESTS

ZIP

Return to:

University Business Center-ALI California State University, Fresno 5245 N. Backer PB5 Fresno, CA 93740-8001

Phone: Fax:

559-278-2352 559-278-6964

www.aglendinginstitute.org

University Business Center at the Craig School of Business - California State University, Fresno

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University Business Center California State University, Fresno 5245 N. Backer PB5 Fresno, CA 93740-8001 www.aglendinginstitute.org Address Service Requested

MARK YOUR CALENDAR AND PLAN TO ATTEND

THE AGRICULTURAL LENDING INSTITUTE JUNE 20-24, 2016

THE AGRICULTURAL LENDING INSTITUTE PROGRAM HIGHLIGHTS • Facility Case Study Format

• Mastering Accounting Principles

• Taught by Banking Industry Experts

• Business Development

• Timely and In-Depth Subject Matter

• Loan Presentation

• Essentials of Field Inspections

• Develop Solid Credit Risk Management Skills

• Real Estate Appraisal & Title Insurance

• Develop and Retain Lasting Client Relationships