NACTA/SERD 2010 Conference “Collaborate, Communicate, Celebrate”

Collaborating to Create an Ag Banking Degree in Partnership with Bankers

Ron Hanson

College of Agricultural Sciences and Natural Resources

University of Nebraska - Lincoln

• Six years ago the Nebraska Bankers Association approached the Department of Ag Economics at University of Nebraska with a two fold problem.

• There was an existing shortage of college graduates trained to be agricultural lenders.

• Few college graduates wanted to return back to smaller rural communities for career employment.

A collaboration between the Nebraska Bankers Association and the Department of Ag Economics at the University of Nebraska resulted in the creation of an Ag Banking and Finance Option to our existing Agribusiness Major degree program.

This collaboration has resulted in a joint working partnership between the Ag Economics Department and the Nebraska Bankers Association as an external stakeholder for this academic program of study for students interested in a career in agricultural lending.

Collaborating as Partners

The Department of Ag Economics is responsible for the recruitment of students

into this Ag Banking program of study and providing the necessary academic

training in their course work.

Collaborating as Partners

The Nebraska Bankers provides a four year student scholarship program and a

paid summer banking internship for students majoring in Agricultural

Banking and Finance.

NBA Student Scholarship Program

In order to recruit students into this Ag Banking program of study and then retain them through graduation, a four year student scholarship program was implemented by the Nebraska Bankers Association.

Nebraska Bankers Student Scholarship Program

• Freshmen Ag Banking majors receive a $1000 NBA Scholarship.

• Sophomores and Juniors majoring in Ag Banking receive a $1500 NBA Scholarship.

• Senior Ag Banking majors receive a $2000 NBA Scholarship upon the successful completion of their summer bank management internship training program.

Nebraska Bankers Student Scholarship Program

• Students can earn a total of $6000 from NBA Ag Banking Scholarships during their four years of college.

• Scholarships are paid directly to the students by the Nebraska Bankers. Students are still entitled to any other college scholarships they have earned or have been awarded from other organizations.

• Students must maintain a minimum 2.75 GPA and must remain in the Ag Banking program of study to remain eligible for their NBA Scholarship funding.

Nebraska Bankers Student Scholarship Funding for 2010-2011

• Ten (10) Freshmen Ag Banking Scholarships at $1000 each.

• Twenty (20) Upper-Class Ag Banking Scholarships for sophomores and juniors at $1500 each.

• Nine (9) Senior Ag Banking Scholarships at $2000 each.

Balanced Curriculum of Study

In addition to the University academic core course requirements for graduation, Ag Banking

students must complete courses in both the Department of Ag Economics (36 hours) and the Department of Finance (31 hours) in the College

of Business Administration.

Required Agricultural Sciences Courses

AECN 201 Farm and Ranch Management4

AECN 325 Marketing of Agricultural Commodities 3

AECN 256 Legal Aspects in Agriculture or BLAW 372 Legal Environment3

AECN 301 Farm Records and Income Tax Management 3

AEC 452 Agricultural Finance 3

Capstone Course - AECN 453 Agricultural and Rural Property Appraisal 3

AECN 395A Financial Management Internship or Related Work Experience

3

AECN Elective - 200 level or above (excluding AECN 388) 3

CASNR Electives - AGRO 153 or any 200 level or above (excluding AECN courses)

9

Required Supporting Courses from the College of Business Administration

ACCT 306 Survey of Accounting (4 cr) or ACCT 201 Intro to Accounting I (3 cr) & ACCT 202 Intro to Accounting II (3 cr) 6

ACCT 308 Managerial Accounting or ACCT 313 Intermediate Accounting

3

FINA 260 Personal Finance 3

FINA 365 Financial Institutions and Markets 3

MNGT 245 Elementary Quantitative Methods or MNGT 331 Operations and Resources Management

3

ECON 311 Intermediate Macroeconomics 3

ECON 312 Intermediate Microeconomics 3

MNGT 361 Personnel/Human Resources Management 3

FINA 461 Advanced Finance or FINA 465 Bank Management or FINA 463 Security Analysis

3

CBA Business Elective (300 or 400 level) 3

Ag Banking Degree Program of Study

A required student summer internship is part of their curriculum degree program for students majoring in Ag Banking and Finance.

Student Banking Summer Internship

• Summer internship is completed between the junior and senior years of college.

• Students earn 3 semester hours of credit.

• Both the student intern and bank must write an evaluation assessment report.

Potential Demand for Student Ag Banking Interns

The first year of the banking internship program 18 banks requested a student to hire with only 2 students eligible for the summer program.

Summer Internship Program Collaboration for a Successful Student Learning Experience

Summer Internship Collaboration

• Representatives from the Nebraska Bankers Association meet with prospective student interns during the Fall Semester to determine both bank and location preferences.

• An Agreement of Understanding outlines the expectations and training requirements for both the student and the host bank to complete during the summer. Both the student and bank sign this agreement.

• A bank management training schedule outlines the activities for the student during the minimum 10 week internship period.

• Each student intern is assigned a senior level bank officer who serves as the student’s mentor for the summer.

• Student interns and banks are visited during the summer by a faculty representative from the University.

Agricultural Banking and Finance Major

Advantages of Program Collaboration:

1. Students gain a stronger program of academic training especially in the area of agricultural finance, accounting, and bank management.

2. Students acquire actual agricultural banking work experience and lending management training to list on their college resume.

3. Graduates in Ag Banking are in demand for a wide range of career opportunities in the agricultural finance industry (i.e. agricultural banking, Farm Credit Services, Farm Service Agency, Federal Reserve System, Agribusiness Financial Manager).

4. Several banks have hired their student summer interns upon graduation.

Summary and Program Assessment

• Initial purpose was to attract students with an interest in agricultural banking and finance into this program of study.

• Create an incentive and opportunity for these Ag Banking college graduates to return back to their rural communities.

Summary and Program Results• Currently 45 students at the University of Nebraska

are majoring in Ag Banking and Finance. The original goal was to have 40 majors after five years of creating this degree program.

• Thirty-nine (39) Ag Banking majors will receive a scholarship from the Nebraska Bankers Association for the 2010-2011 academic year.

• Six of the 11 student graduates in this program have returned back to rural communities and are employed in agricultural lending.

Collaborating with External Stakeholders

• Get them involved in the initial planning process and then keep them actively involved.

• Keep them informed of any changes and new program developments.

• Allow them to have control and/or leadership for certain aspects of the program.

• Provide adequate recognition for their efforts and financial support of the program.

2009 Nebraska Bankers Student Recognition Dinner

2009 Nebraska Bankers Student Recognition Dinner

Student Photo and Press Release to Hometown Newspapers Announcing Scholarships

2009 Nebraska Bankers Student Summer Interns

And Host Banks

Collaborating to Create an Ag Banking Degree in Partnership with Bankers

Any Questions ??

NACTA/SERD 2010 Conference “Collaborate, Communicate, Celebrate”

Collaborating to Create an Ag Banking Degree in Partnership with Bankers

Ron Hanson

College of Agricultural Sciences and Natural Resources

University of Nebraska - Lincoln