Session Descriptions

Similar Entity and "Other" Borrowers: Not-So Indecent Exposure (If Done Right)

Wednesday, August 27, 2025

8:00 a.m. to 9:00 a.m.

It is said that without a farmer, we all would be “naked, homeless, and hungry”. However, agricultural components utilized in keeping us clothed, sheltered, and fed do not always find an end-user without added processing, marketing, and distribution by someone other than a “farmer”. These “similar entities” or “other” enterprises are crucial to agriculture and serving rural Americans, which is why Farm Credit was given the authority to provide financing for these borrowers. While there may be some added risks associated with these borrowers due their relationship to agriculture not being readily apparent, these risks can be mitigated with the appropriate policies and analysis in place.

Learner Outcomes:

1. Discuss the potential reputation risks associated with Similar Entity and “Essentially Other than Farming” borrowers and what documentation/factors may help mitigate these risks.
2. Learn about the analysis process when contemplating participation in similar entity transactions, from adequately supporting scope and eligibility to quantitative metrics to reference in the approval.
3. Hear about best practices used at large and small Associations, including policy guidelines to consider and how exposure to “other” borrowers is monitored/controlled.