Agricultural Finance Risk Management Training Course

Participants can assess borrower capacity, character, operations and governance using agricultural lending evidence.

• Farm business models: smallholder, commercial, cooperative, trader, and processor
• Five Cs of Credit adapted for agricultural borrower assessment
• Analysing management capacity, records quality, household income, and governance
• Land tenure, water access, and input supply as repayment factors
• Borrower site visits using structured interview guides and verification evidence
• Related-party exposures and informal debts identified through cash-flow reconciliation
• Cooperative governance review: membership, side-selling, arrears, and buyer contracts

Participants can test technical production assumptions and assess climate-related repayment risks.

• Yield risk assessment using crop calendars, agronomy data, and field observations
• Enterprise budgets for crops, livestock, aquaculture, and mixed farming systems
• Weather, pest, disease, and input disruption scenarios quantified
• Technical assumptions challenged through extension records, supplier data, and benchmarks
• Production risk mitigants: irrigation, diversification, contracts, and husbandry controls
• Climate hazard screening using location, season, exposure, and sensitivity
• Satellite imagery and remote sensing used within credit verification controls

Participants can evaluate market access, commodity-price exposure and value-chain dependencies affecting repayment.

• Value-chain mapping from input suppliers through processors, buyers, and exporters
• Buyer concentration, contract enforceability, and payment terms assessed systematically
• Commodity price risk measured using historical ranges and downside scenarios
• Basis risk explained for hedging, warehouse receipts, and insurance products
• Warehouse receipt finance assessed through storage controls and title verification
• Side-selling incentives analysed within outgrower schemes and cooperative structures
• Foreign exchange exposure traced through imported inputs and export receivables

Participants can construct seasonal cash-flow forecasts and determine sustainable debt service capacity.

• Seasonal cash-flow forecasts align production cycles, sales windows, and repayments
• Enterprise budgets converted into monthly receipts, costs, and debt service
• Debt service capacity measured using DSCR and repayment sensitivity tests
• Working capital needs estimated from inventory days, payables, and receivables
• Loan tenor and grace periods matched to crop and livestock cycles
• Household and farm cash flows separated for repayment analysis
• IFRS 9 staging signals linked to agricultural cash-flow deterioration

Participants can assess collateral quality, security enforceability and risk-transfer arrangements for agricultural facilities.

• Collateral eligibility assessed for land, equipment, livestock, crops, and receivables
• Perfection steps: registration, valuation, insurance assignment, and legal enforceability
• Loan-to-value ratios adjusted for liquidity, volatility, and realization costs
• Warehouse controls tested through stock inspection, reconciliation, and collateral management
• Index insurance evaluated for trigger design, basis risk, and claims timing
• Guarantee schemes analysed for coverage, exclusions, claims process, and moral hazard
• Security shortfalls documented with covenants, pricing, and monitoring actions

Participants can monitor agricultural portfolio concentrations and test resilience under adverse scenarios.

• Portfolio segmentation by commodity, geography, borrower type, and loan purpose
• Concentration limits set using exposure, correlation, and loss tolerance
• Stress tests combine drought, yield decline, price falls, and currency shocks
• Expected credit loss inputs: PD, LGD, EAD, and forward-looking scenarios
• Vintage analysis identifies deterioration patterns by origination cohort and commodity
• Early warning indicators track arrears, yield reports, prices, and weather
• Management information dashboards report exceptions, concentrations, and limit breaches

Participants can identify and manage environmental, social and climate risks in agricultural finance decisions.

• IFC Performance Standards screened for agricultural lending and agribusiness projects
• Environmental and social due diligence identifies land, labour, and community risks
• Deforestation, water stewardship, and agrochemical controls assessed in supply chains
• Child labour and forced labour red flags investigated through supplier evidence
• Climate physical and transition risks integrated into borrower risk ratings
• Corrective action plans assign owners, deadlines, evidence, and escalation routes
• Grievance mechanisms and stakeholder engagement assessed for project finance

Participants can structure, monitor and remediate agricultural facilities using risk-based controls.

• Risk-based pricing reflects expected loss, capital use, operating cost, and margin
• Facility structures combine tranches, covenants, conditions, and disbursement controls
• Repayment schedules align instalments with harvest, livestock sales, and contracts
• Credit memoranda document assumptions, mitigants, exceptions, and approval rationale
• Monitoring plans specify field visits, financial reporting, and trigger thresholds
• Restructuring options assessed before arrears escalate into distressed debt
• Collections strategies balance relationship preservation, legal remedies, and asset recovery

Participants can strengthen agricultural risk governance and define practical improvements for their work setting.

• Risk appetite metrics translated into agricultural portfolio operating limits
• Three lines model clarifies business, risk, and internal audit accountabilities
• Credit policy exceptions governed through delegated authorities and escalation records
• Key risk indicators linked to management actions and committee reporting
• Loan file quality reviewed against underwriting and monitoring checklists
• Risk-adjusted return measures compare products, segments, and distribution channels
• Personal application plans prioritise controls, reporting improvements, and stakeholder commitments