Agricultural Credit Analysis and Risk Management

Objectives
• Understand the principles of agricultural credit and its importance in the agricultural sector.
• Analyze credit risks associated with agricultural financing.
• Learn tools and techniques for assessing the financial health of agricultural businesses.
• Explore risk management strategies to mitigate potential losses in agricultural lending.

Introduction to Agricultural Credit
• Overview of agricultural credit: Importance and role in the agricultural economy
• Types of agricultural loans and financing options
• Creditworthiness assessment in agriculture
• The role of financial institutions in agricultural credit
• Government policies and programs supporting agricultural credit

Credit Risk in Agriculture
• Understanding the unique risks in agricultural lending
• Factors influencing credit risk in agriculture: Weather, market volatility, and production cycles
• Identifying and assessing credit risk in agricultural businesses
• Case studies of credit risk failures in the agricultural sector
• Tools for evaluating risk exposure in agricultural lending

Financial Analysis for Agricultural Credit
• Key financial statements for agricultural businesses: Balance sheet, income statement, and cash flow statement
• Ratio analysis for agricultural businesses: Profitability, liquidity, and solvency ratios
• Understanding farm and agribusiness financial performance
• Assessing the borrower’s ability to repay: Debt service coverage ratio and working capital
• The role of financial projections in credit analysis

Risk Management Strategies in Agricultural Lending
• Risk identification and assessment in agricultural credit
• Mitigating risks through collateral and insurance options
• Diversification strategies for lenders in agricultural finance
• Hedging against commodity price fluctuations
• Developing risk management policies for agricultural lending institutions
• Case studies of successful risk management in agricultural finance

DATE:
1ST BATCH: 22nd – 25th Apr, 2025
2ND BATCH: 12th – 15th Aug, 2025
3RD BATCH: 9th – 12th Dec, 2025