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Financial Management:

Module 5: Debt Service Analysis

Preparation

Read "Measuring and Analyzing Farm Financial Performance" (EC-712).

Read “Can I Repay? Managing Farm Debt Repayment Capacity.”

Review MBC Farms case study.

Purpose of Lecture

The ability to measure and manage the amount of debt a business can safely handle is key to managing the risk a farm faces. This lecture shows how to calculate repayment capacity measures.

Structure of Presentation

Methods for measuring debt repayment are reviewed, and then sample calculations of each are shown.

Other References

“The Borrower-Lender Relationship: A Two-Way Street.” Dave Kohl and Troy Wilson. Northwest Farm Credit Services, Spokane, WA.

“How Lending Decisions Are Made.” Dave Kohl and Troy Wilson. Northwest Farm Credit Services. Spokane, WA.

Phone the marketing department at 509-340-5400 to order.


Strategic Management
Financial Management

Thinking Like a CFO

Financial Basics

Measuring Performance

Assessing Performance

Debt Service Analysis

Improving Performance

Farm Size

Investment Analysis

Value Creation

Risk and Risk Balancing

Alternative Financial/
Organization Structures



Marketing & Risk Management



Agricultural Economics

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