Agrograph, a Midwest agricultural technology company leading the industry in commercially viable and highly scalable data solutions, today released Reimagine Ag Lending - New Principles for Risk Assessment , a report examining modern concepts to assess the creditworthiness of farmers and support banks managing risk across their agricultural lending portfolios.
"Farmers don't farm like they did 50 years ago. Lenders shouldn't bank the same either," said Jim O'Brien, CEO of Agrograph. "This report explores many of the new challenges in the agricultural industry today."
Industry trends reveal a surge of new farmers and ranchers, an increasing digital divide, and heightened risk across a number of commodity markets. The report summarizes modern concepts to assess risk across agricultural lending portfolios, challenging the long-respected 'Five C's of Lending' and revealing principles that every agricultural lender should know.
"We need to strive to ensure farmers have access to flexible and risk-adjusted financial resources that better match their need for short-term credit and long term investment, and to give lenders the tools and insight to invest confidently in the industry," said O'Brien.
The free report is available for download here.