In light of recent developments in agricultural credit evaluations, this study employs a multiperiod simulation model that endogenizes farm investment decisions, credit evaluations, and loan pricing based on he credit scoring procedures of agricultural lenders. Model results show that credit-scored pricing procedures of agricultural performance, credit classifications, and interest rates that parallel the firm's investment, financing, and debt servicing activities.
Blog » Credit Scoring, Loan Pricing, and Farm Business Performance
Credit Scoring, Loan Pricing, and Farm Business Performance
In light of recent developments in agricultural credit evaluations, this study employs a multiperiod simulation model that endogenizes farm investment decisions, credit evaluations, and loan pricing based on he credit scoring procedures of agricultural lenders. Model results show that credit-scored pricing procedures of agricultural performance, credit classifications, and interest rates that parallel the firm's investment, financing, and debt servicing activities.