Pub. 9 2020 Issue 3

Pub. 9 2020 Issue 3 9 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s PROBLEM LOAN MANAGEMENT IN TODAY’S AG ENVIRONMENT SEP T EMBER 16, 2020 - NEWTON SEPTE M BER 17, 2020 - TOPEKA The 2019 crop year can probably best be described as a roller coaster ride that would exceed anything you could ever find at an amusement park. Producers and their lenders experienced every emotion during the year from late to no planting to better-than- expected crop yields to genuine concern that commodity prices during the next year or so, and perhaps beyond, may not cover production costs. Furthermore, that overall assessment of produc- tion and commodity prices does not represent all producers, depending on production, marketing and leverage. Consequently, the financial impact will vary across producers and assessing that impact will require the ability to assess each indi- vidual operation. This program will focus on the preparation and use of financial statements, including an accrual-adjusted income statement, to calculate some of the most commonly used financial measures and how to compare those measures to industry averages. Also, a spreadsheet that is available at no cost, is used to illustrate how to prepare an accrual-adjusted income statement and then assess the impact of a variety of revenue, expense and interest rate scenarios on profitability and repayment capacity. What is ahead for 2020 and beyond? Who knows, but we better be ready to buckle up and hang on because that roller coaster car is about to leave the platform, and we better be prepared for some unexpected twists, turns, ups and downs. All aboard!  PREPARATION AND USE OF FINANCIAL STATEMENTS  BALANCE SHEET REVIEW  DEFERRED TAXES REVIEW  REPORTING SPECIAL ASSETS  ACCRUAL ADJUSTED INCOME STATEMENT  STATEMENT OF OWNER EQUITY  CASH FLOW STATEMENT  PROFITABILITY AND REPAYMENT CAPACITY KSBANKERS.COM 785-232-3444 Program Presenter Freddie Barnard, Professor Emeritus of agricultural economics at Purdue University, is a native of Ken- tucky and received both a B.S. and M.S. in agricultural economics from the University of Kentucky. He received a Ph.D. in agricultural economics from the University of Illinois.