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Farm Report Card was developed by an agricultural credit analyst and lender. The credit analyst saw the value in analyzing the credit risk while the lender saw immense value in providing a concise assessment of a crop producer's financial position that is neutral and unbiased. The assigned score and corresponding grade are used by creditors of crop producers to predict future delinquency and assign risk ratings. Farm Report Card is also able to shock entire loan portfolios to test susceptibility to changes in commodity prices, yields, and/or interest rates. Please contact us for more information regarding portfolio shock testing.The major factor in the standardized algorithm is accrual debt service coverage. Other factors incorporated include leverage and working capital.Farm Report Card adheres to FDIC's advisory guidance that stated "Agricultural lenders should maintain prudent risk management practices that focus on a borrower's cash flow and repayment capacity. Lenders should also carefully consider, but not overly rely on, collateral positions and credit enhancements."
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