Hay Lending Guide
Average farmer gets this many cuttings per year?
What is 8-10 cuttings (every 4-6 weeks)?
What is the intention of the new credit memo instruction?
What is more consistency between regions?
What is the threshold for small vs large construction?
What is $2MM?
Provide a summary of Change of Purpose Procedure.
If you have a loan where the funds end up being used for something that is different than the original intent of the loan, that you need to process a change of purpose action.
Really don't want to see extensions over _____ days.
What is 180?
On accountant prepared FS use the (book or market adjusted based on cost study) value for CIGC and Stand Establishment Cost.
What is book?
Name 3 of the 9 items to be discussed in due diligence section
What are: title insurance, CBRs, courthouse record searched, D&B reports, customer visits, financial verifications, flood insurance, lien searches, and property insurance?- Note: specifics will be followed up on by management as this is new to our region
Is Permanent Planting Developments covered in this procedure?
What is yes?
This lending guide addresses considerations specific to grain, farm supply, and food hub cooperatives.
What is the Cooperative Lending Guide?
Extensions of Maturity should be limited to ?
Extensions of Commitment should be limited to ?
Extensions of Maturity in a delinquency Resolution scenario should be limited to ?
30-60 days
30-60 days
30-90 days
On member prepared FS use the lessor of which two values for the stand cost?
On Member prepared FS use the lessor of which two values for CIGC?
What is member provided stand cost or market adjusted value based on cost studies?
What is member provided CIGC or 1/8th to 1/10th of the cost study annual cultural and harvest costs?
CUC consensus was they want to see signers listed in the ______________ section?
Bonus: What should not be duplicated when discussing multiple loans?
What is recommendation section?
Bonus: The same signing group
Projects over this dollar amount will need to involve the Project Finance Group.
What is $15MM?
Historically AgWest has been both beneficiary and trustee on DOT. Going forward the ________ will be the trustee.
What is the title comapany?
These meetings are crucial for meeting the Extensions procedure.
What are 120 day meetings?
What percentage of stand costs should be downshifted if financed through an AgWest LOC?
What is 65%?
There is a combined section discussing PD, __________, and Hold Strategy.
What is Exposure?
Existing development loans (do/ do not) need to go to the Project Finance Group.
What is do not? Procedure only applies to new loans.
PCA title insurance is the discretion of ____________?
What is lending/ credit?
If the line is not revolving as expected consider this procedure and adding borrower to this log.
What is criminal referral?
How should amortization be treated on the ES with regards to EBITDA?
Bonus Question: Should establishment costs be included in unfunded CapEx?
What is not spread in depreciation/ amortization COA so as to not be added back to EBITDA?
What is no?
Name 2 of the 7 facets of management to be discussed in the Management Assessment section
What are: Production, Processing, Marketing, Financial, Risk, Key Management/ Succession, and Water Management?
Per Matt-"Most common construction we'll see is a ~$100K hay barn or maybe north of that for new dairy shades. Typically have ran these through an interim EFA loan that then converts to a term loan at the end. Draws are submitted through EFA group during the interim period. At this dollar amount, will it require us to follow the construction policy?"
What is no- "The integration of construction and development lending procedures does not impact the EFA loan program or its established processes. Any construction loan managed through the EFA framework will continue to adhere to the current requirements without change."
Long term oral leases where the tenant has improved the leased property may be enforceable as written leases and will require a ______________?
What is subordination?
Non-revolvement of line, late payments, delinquent RE taxes, red flags on credit report may be signs that the credit is ?
What is deteriorating, distressed, etc.