Canadian Credit Union Association

Agriculture Financial Fluency



Note:CCUA Campus login is required to register. To request a login contact

This three-part webinar/eClass series will give lenders a strong foundational understanding of reading and interpreting agriculture financial statements. Participants will learn ag-specific financial statement concepts and terms from an expert, understand the inter-relationships between items to solidify understanding of key financial risks. The third and final session will be interpretation of the case study and application of a specific farm situation to a lending decision.

Learners should have a solid understanding of reading and interpreting financial statements and may want to complete the eLearning course Reading and Interpreting Financial Statements (CCUA Campus login required) before attending this eClass.

Session 1 – Ag Financial Fluency Part 1 (90 minutes)

March 1, 2021 (3:00 pm – 4:30 pm ET)

In Part 1 of the series, we focus on introducing agriculture financial reporting, the users of the reporting, and help participants understand different business structures, along with the basis of accounting used to prepare agricultural financial statements. In this session, we walk through the different types of financial information available and key differences between the types, providing insight on what to watch for when relying on the different types of information.

We finish off Part 1 by discussing the balance sheet portion of ag financial statements in detail focusing on ag specific assets and liabilities, understanding new Accounting Standards for Private Enterprises (ASPE) that impact presentation and disclosure of financial statement items, including biological assets and retractable or mandatorily redeemable shares issued in tax planning arrangements. Our final portion of Part 1 will cover additional ag-specific assets, liabilities, future income taxes, equity and net worth ‘bump’ calculations.

Session 2 – Ag Financial Fluency Part 2 (90 minutes)

March 2, 2021 (3:00 pm – 4:30 pm ET)

In Part 2 of the series, we move into analysis of the income statement portion of the ag financial statements, focusing on understanding gross margin, internal feed transfers, along with understanding agricultural specific expenses (such as labour, power and machinery, land, building and finance expenses). We review the statement of cash flows, targeting the information you can pull from both this statement and the financial statement notes. We discuss owner remuneration and the strategies involved resulting in different types of remuneration.

In the last half of Part 2, we focus on financial ratios, discussing how they are calculated and interrelated, and the importance of each to your members. We illustrate how to use these ratios to analyse risk prior to making your lending decision. We will finish off Part 2 looking at sector specific metrics and ratios (grain, dairy, feedlot, cow/calf, horticulture, hogs, vineyards and wineries) and what they tell us about the business, including an assessment of management’s understanding and past success/failure.

Prior to completion of Part 2, we end with a brief overview of ag risk management and how this impacts the financial ratios discussed previously.

Session 3 – Ag Financial Fluency Case Study (60 minutes)

March 3, 2021 (3:00 pm – 4:00 pm ET) 

The case study will be chosen based on participant focus areas, with an option for grain, dairy or a mixed farming operation and demonstrate the application of a specific farm situation to a lending decision.

Note: CCUA Campus login is required to register. To request a login contact