FSA-2375 Agreement to conduct production financial training

Form Approved - OMB No. 0560-0237

This form is available electronically.

FSA-2375
(12-31-07)

(See Page 2 for Privacy Act and Public Burden Statements)

U.S. DEPARTMENT OF AGRICULTURE
Farm Service Agency

AGREEMENT TO CONDUCT PRODUCTION AND/OR FINANCIAL MANAGEMENT
TRAINING FOR FARM SERVICE AGENCY BORROWERS
PART A - AGREEMENT

1.

This agreement is between vendor and the Farm Service Agency (FSA). FSA has determined that, based on a review of the
information submitted to the State Executive Director (SED), the vendor meets the minimum regulatory standards in course
content and instructor qualifications to conduct production and/or financial management training for FSA borrowers.

2.

The goals of borrower training are to improve the borrower's understanding of production and/or financial management
techniques, and enable borrowers to better analyze and manage their farming operations. Specifically, the borrower will be
expected to do the following upon completion of the training (Check Applicable Boxes):
A. Describe the specific goals of the business, describe the changes required to attain the goals, and outline how these changes
will occur using present and projected budgets.
B. Maintain and utilize a financial management information system which includes financial and production records, a
household budget, a statement of financial condition, and an accrual adjusted income statement. The borrower shall also be
able to use the system to make financial and production decisions.
C. Understand and utilize an income statement. Specifically, the borrower must understand the structure and major components
of an income statement and its role in analyzing the performance of a business, be familiar with the cash and accrual methods
of determining net farm income, and understand the relationship between a balance sheet and an income statement.
D. Understand and utilize a balance sheet. Specifically, the borrower must understand the major components of a balance sheet
and its role in analyzing the business, be familiar with the categories of assets and liabilities and be able to provide examples
of entries under each, and be familiar with the cost and market methods of valuing assets and liabilities and advantages of
each method.
E. Understand and utilize a cash flow budget. Specifically, the borrower must be able to explain and justify estimates for
production and expenses, and analyze the cash flow to identify potential problems.
F. Use production records and other production information, be able to identify problems, evaluate alternatives, and make
corrections to present production practices to achieve greater efficiency and profitability.

3.

Vendor's responsibilities:
A. The vendor will be responsible for making any necessary training arrangements such as scheduling class, preparing materials,
obtaining equipment, and arranging for a meeting location. All costs will be paid by the vendor.
B. The vendor will be responsible for the collection of fees from the borrowers. FSA will not be responsible for any training
costs incurred by the borrower. The fees shall be $
.
C. Any modification in the above fees must be approved by SED.
D. The vendor will provide or make available all necessary materials, books, and case studies to the borrower.
E. The vendor will provide FSA with periodic progress reports on each borrower receiving training. The reports will indicate
whether the borrower is attending training sessions, completing assignments, and demonstrating an understanding of the
course material.
F. The vendor will prepare and administer a final examination to test the borrower's knowledge of the course material.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where
applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's
income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for
communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of
discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or (202)
720-6382 (TDD). USDA is an equal opportunity provider and employer.

FSA-2375 (12-31-07) Page 2

PART A - AGREEMENT (CONTINUED)

G. Upon completion of the training, the vendor will evaluate the borrower's knowledge of the course material and assign a
score as follows:
Score
1
2
3

Criteria
The borrower attended sessions as agreed, satisfactorily completed all assignments,
and demonstrated an understanding of the course material.
The borrower attended sessions as agreed and attempted to complete all assignments;
however, the borrower does not demonstrate an understanding of the course material.
The borrower did not attend sessions as agreed and/or did not attempt to complete
assignments. In general, the borrower did not make a good faith effort to complete the
training.

H. The vendor shall provide FSA with a list of the names of the instructors. The vendor shall notify SED of changes in
instructors and include the reason for the change, the qualifications of the substitutes, and any additional information
requested by SED. Substitutes must meet the qualifications described in the vendor's application.
I.

The vendor must provide for the needs of borrowers with disabilities (physical and/or mental conditions).

J.

The vendor must provide for the needs of any borrowers for whom English is not their primary language.

K. Training should be offered within a reasonable distance of the borrower's residence.
L. The vendor will have the borrower complete Form FSA-2376, "Borrower Training Course Evaluation," and return it
to SED.
4.

This agreement shall be in affect for a period of 3 years from the date signed unless revoked by SED or the vendor in writing
giving 30 days notice. The SED may revoke this agreement if the vendor does not comply with the responsibilities in Item 3 of
this agreement.

PART B - AGENCY OFFICIAL'S SIGNATURE
1A. Name of FSA State Executive Director

1D. State Office Name and Address

1B. Signature
1C. Date

PART C - VENDOR OR REPRESENTATIVE'S SIGNATURE
1A. Name of Vendor's Representative

1D. Address of Vendor

1B. Signature
1C. Date
NOTE:

The following statements are made in accordance with the Privacy Act of 1974 (5 USC 552a): the Farm Service Agency (FSA) is authorized by the Consolidated Farm and Rural
Development Act, as amended (7 USC 1921 et seq.), or other Acts, and the regulations promulgated thereunder, to solicit the information requested on its application forms. The information
requested is necessary for FSA to determine eligibility for credit or other financial assistance, service the loan, and conduct statistical analyses. Supplied information may be furnished to
other Department of Agriculture agencies, the Internal Revenue Service, the Department of Justice or other law enforcement agencies, the Department of Defense, the Department of
Housing and Urban Development, the Department of Labor, the United States Postal Service, or other Federal, State, or local agencies as required or permitted by law. In addition,
information may be referred to interested parties under the Freedom of Information Act, to financial consultants, advisors, lending institutions, packagers, agents, and private or commercial
credit sources, to collection or servicing contractors, to credit reporting agencies, to private attorneys under contract with FSA or the Department of Justice, to business firms in the trade area
that buy chattel or crops or sell them for commission, to Members of Congress or Congressional staff members, or to courts or adjudicative bodies. Disclosure of the information requested is
voluntary. However, failure to disclose certain items of information requested, including Social Security Number or Federal Tax Identification Number, may result in a delay in the processing
of an application or its rejection.
According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid
OMB control number. The valid OMB control number for this information collection is 0560-0237. The time required to complete this information collection is estimated to average 10
minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection
of information. RETURN THIS COMPLETED FORM TO THE FSA STATE OFFICE.