New field-level credit score provides accurate benchmarks and instant risk scoring for agricultural lenders, removing the guesswork and biases of previous methods.
Agrograph, a Midwest agricultural technology company, announced the launch of its newest product, the AgRiskScore (AGRO™ Score), a risk management solution aimed to help lenders assess the creditworthiness of farmers.
The AGRO™ Score provides a standardized farm-to-farm creditworthiness rating ranging from one to five. Creditworthiness is determined by analyzing field-level data including land use, crop yields, and market demand among many other scientifically validated environmental factors.
Agrograph’s breakthrough risk management solution addresses a modern challenge facing agricultural lenders, how to streamline the credit assessment process from field to financing. The AGRO™ Score measures both the risk and spatial distribution of a client’s productivity, which a lender can utilize for pricing and portfolio management. In addition, lenders have confidence in the solution as it removes the risk of self-reporting application errors, and accurately compares farm-to-farm values that allow for local, regional, and global benchmarking.
“Historically, few lenders had analytical tools to understand the various factors impacting on-farm profitability and even those that do are limited to a small geography,” said Mutlu Ozdogan, founder at Agrograph, who holds a PhD in Remote Sensing and Crop Modeling. “Now, with our AGRO™ Score standardized metrics scale operational loans, giving financial institutions the ability of to serve farmers across the globe.”
The AGRO™ Score is good for lenders and it’s good for farmers, according to Agrograph co-founder Jim O’Brien.
“Farmers need access to reliable and consistent financial resources, and the AGRO™ Score broadens the financial tools available to farmers by providing institutions with the confidence needed to invest in agriculture.”