The Ag Network increases ICBM’s involvement in Minnesota agricultural issues, provides more opportunities for bank members to get involved, and offers education sessions focusing on key ag lending issues. Like our other networks, the new Ag Network will provide a forum for ag lenders to learn from guest presenters, tackle challenging industry issues, and share best practices.
Presentation: Effectively Navigating the Legal Challenges Associated with Volatile Crop and Input Prices
Presented by Matthew J. Bialick, Esq., MJB Law
Overview: Recent increases in commodities prices has been a wonderful boon to farmers and ag banks, but the question remains how much of these increases are really due to inflation. If inflation is responsible for the price increases, is five dollar corn really the same thing as three dollar corn? This volatility presents a scenario where the economic outlook may look rosy for 2022, but things may tighten in a hurry if input costs skyrocket between now and planting season. This presentation will examine some of the legal and practical challenges associated with volatility in crop and input prices.
Key Takeaways Include:
- Learning how to effectively assess financial statements and make corresponding workout decisions in an inflationary environment.
- Learning how to structural loan renewals and corresponding documentation to address inflationary risks.
- Learning how to deal with competing creditors who emerge to extract excess profits in a high price environment.
- Learning how to identify signs that the borrower previously committed fraud, but is using high prices to temporarily cover their tracks.
Pricing: Complimentary for Bank Members only