2013 Pork Management Conference Your Pork Industry Investment LOL Finance Company Dan Glienke CEO June 20, 2012.

Slides:



Advertisements
Similar presentations
Chapter 11 Sources of Capital McGraw-Hill/Irwin
Advertisements

Credit Score  650 or Greater  Debt to Income Ratio  45% or Less Net Worth  Is it Liquid  Are Assets Inflated.
Financing Niche Markets: Loan Programs to Assist Swine Producers.
Good case practices in lending and loan portfolio management Milan Dobeš Conference on Lending Standards January 31 st, 2014.
Fixed Income Fund. Benefits of the Fund The expected return considerably exceeds deposit rates Rietumu is directly involved in the Fund activity and shares.
2008 RESULTS 12 Feb 2009 PRESS CONFERENCE : Another satisfactory year in a troubled environment 2008 RESULTS.
FINANCIAL ACCOUNTING A USER PERSPECTIVE Hoskin Fizzell Davidson Second Canadian Edition.
COORDINATING CREDIT AND FINANCING FOR FARMERS Steve Kluemper, Vice President - Credit.
Entrepreneurship and SMEs Sergey Anokhin, Ph.D. Kent State University January 16, 2009.
Roles of Financial Intermediaries Pool savings  Extend credit Keep depositors savings safe –Accounting statements that track assets Provide liquidity.
CHAPTER FIFTEEN Lending Policies And Procedures The purpose of this chapter is to learn why sound lending policies are important to banks and other lenders.
Farm Management Chapter 19 Capital and the Use of Credit.
200 1 st Avenue NW Mandan, ND Phone Fax EDND 2015 Summer Conference June 25, 2015.
OPERATING SEGMENTS Grain and Ingredients. Gavilon manages the third largest grain merchandising operation and leading feed ingredient business in the United.
FORMING AND FINANCING A SMALL BUSINESS Veterans’ Entrepreneur Seminar Small Business Assistance Office November 3, 2010.
Financial Market Reference Financial decision-making is difficult because of future uncertainty and risk Risk involves possible outcomes Uncertainty involves.
Financial Statement Analysis
Michal Bodlák. Definition  An investment bank is a financial institution that assists: individuals, corporations and governments companies involved in.
Informal Risk Capital & Venture Capital. Financing the Business Stages for Financing Stages for Financing Early-stage financing Early-stage financing.
Career Tracks and Opportunities in Finance. Different Finance Career Tracks  Corporate Finance  Investments  Banking and Financial Services  Insurance.
Corporate Overview September Hannon Armstrong Sustainable Infrastructure Capital, Inc. (the "Company") makes forward-looking statements in this.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Financing. Types of Finance Debt Equity Debt Normally from Banks Amount loaned and interest rate – Depends on risk & developers standing – % of.
4.03 Bluff
Issues Relating to Construction Lending and the Construction Industry  Construction- Start to Finish- seek lender involvement early during the approval.
PREPARATION OF PROJECT REPORT
The Mardent Group Finance Overview for Presentation  Highlight the strategy financiers use to cross collateralise  Demonstrate strategy to increase.
Learning Objectives Explain the purpose and importance of financial analysis. Calculate and use a comprehensive set of measurements to evaluate a company’s.
Copyright © 2002 Pearson Education, Inc. Slide 12-1 Table 12.1 Financial Intermediaries in the United States.
Community Entrepreneurship Academy Federal Home Loan Bank of Des Moines October 20, 2004.
©2007, The McGraw-Hill Companies, All Rights Reserved 20-1 McGraw-Hill/Irwin Chapter Twenty Managing Credit Risk on the Balance Sheet.
Facets of the Bioeconomy Affecting the Small Towns of Iowa Bruce A. Babcock Center for Agricultural and Rural Development Iowa State University
CH.10 CREDIT ANALYSIS AND DISTRESS PREDICTION
Cooperatives in the food industry l Types of cooperatives l History and status l Relative importance l Coop problems.
Annual Report Wachovia Stephanie Cagnet 080. Executive Summary Wachovia consists of a diverse banking system designed to benefit its shareholders by operating.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter Sixteen Lending Policies and Procedures.
Ratio Analysis Ratio analysis is a particular type of financial statement analysis where the relationship between two or more items from the financial.
Southern Outlook Conference Agricultural Outlook Atlanta, Georgia September 28, 2009 Bill Melton Chief Lending Officer.
1 Banco Itaú S.A. Conference Call 2 nd Quarter of 2002.
The Monitor 100 tm … a 20 year History 1 Chart 1: Outstanding Assets Financed ($ billions) Total Monitor 100.
Your Own Home The benefits and pitfalls of renting versus owning Renting Owning Mortgage 3 C’s Pre – Qualification Shop for a Loan Pre-Approval On-Approval.
Copyright © 2002 Pearson Education, Inc. Slide 12-1.
 Venture Capital and Startups. What is VC?  Money provided by investors to startup firms and small businesses with perceived long-term growth potential.
SBA 504 Loan Program Long Term Fixed Asset Financing For Small Businesses.
Farm Service Agency (FSA) Direct Loans Annual Operating & Equipment - $300,000 limit Annual Operating – 1 year with 1.375% Interest Rate Equipment Loans.
Cooperatives in the Food Industry Chapter 13 “Either we stand together or we hang separately”
BRADLEY ASSOCIATES
Purposes Evaluation of loan applicant “Big” picture view Variety of information and sources to help in evaluation of applicant.
OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) An Agency of the United States Government.
Market Situation & Outlook l Interpret market factors that impact prices and resulting marketing and management decisions l Analyze changing supply and.
Economic Development Course December 6, 2016
Ag environment outside the pork industry
Drought 2012: Impact and Implications for Animal Agriculture
Central Bank of Iceland
Farm Business Analysis
Our Company Relationships with over 100 of the best A Rate Carriers and top Global Fortune 500 insurance and financial Companies & Since 1994 Over 20 Years.
Cooperatives in the food industry
Ratio Analysis - Gearing
FEI Professional Development Session September 21, 2017
Financial Statements in Financial Analysis
Technology and social impact investment
Ag Bank Sim the Bank Management Game
CHAPTER FIFTEEN Lending Policies And Procedures
Financing Your Livestock Farm Ames, Iowa January 17, 2018
Livestock Financing Perspectives
22 Investors and the Investment Process Bodie, Kane, and Marcus
Intro to Financial Management
Underwriting for Small Business and Consumer Digital Lending
22 Investors and the Investment Process Bodie, Kane, and Marcus
Community Bank Investor Conference
Presentation transcript:

2013 Pork Management Conference Your Pork Industry Investment LOL Finance Company Dan Glienke CEO June 20, 2012

Who are we…. Subsidiary of Land O’Lakes, Inc. Focus on the livestock industry and projects for the benefit of Land O’Lakes and its members. Lend to swine, cattle, dairy and poultry producers. Loan funded in 27 states. Six loan officers: –Iowa (2), Minnesota, Nebraska, North Dakota and South Dakota loan approvals 120% increase over 2011.

Loan types Type% Swine57 Cattle25 Real Estate16 Other2

Lending Perspective Financial Criteria Equity to Asset Ratio30% to 50% Current Ratio1:1 to 1.75:1 Repayment Capacity110% to 120% Loan to Value65% to 85% Criteria based on amount of retained production, marketing and input cost risk. Lend to successful livestock systems. Proven production history. Competitive production costs. Sound marketing plan. –Margin management. Processor relationship.

Margin Risk Quarter03/13/201207/26/2012ISU returnVariance 2 nd 2012$23.98-$8.03$(15.95) 3 rd 2012$23.46-$(17.44)$(40.90) 4 th 2012$12.84$(35.99)$(33.83)$(47.23) 1 st 2013$12.84$(24.73)$(32.96)$(45.46) Average$18.42$(18.96)$(37.38) “Corn was supposed to go down” No one can predict where to market is going. Loan covenant: Marketing plan with the objective to actively monitor and manage forward margins in an effort to reduce or eliminate the effect of adverse commodity prices.

Thank you!