Troubled Agricultural Borrowers: Identifying & Managing

After several good years for agriculture, profits declined significantly in 2023 from the prior year. Analysis of 2024 will likely show further declines in farm income, and 2025 will likely be weak as well. While many ag borrowers took advantage of good times and reduced their debt levels, not surprisingly, the bottom tier with high debt levels were not as successful. Fast forward through two years of weak results and the expectation for a third consecutive year of poor cash flow, now the bottom tier of ag borrowers shows signs of financial distress potentially increasing the level of classified and non-performing ag loans.

Often a common solution to a declining situation is to restructure a borrower’s debt. This can be effective, but not always, as many restructurings end up being short-term fixes. Learn how to best analyze a borrower for an effective, long-term restructuring. And since not all struggling borrowers perform as expected, you’ll discover how to effectively manage workouts, including how to effectively communicate with them.

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your institution is prohibited. Print materials may be copied for eligible participants only.