This poster summarizes a project between Mississippi State University and the Federal Land Bank Association of South Mississippi. Farm financial records from farmers applying for loans were examined to determine the financial characteristics that might lead to a successful loan for the bank. Properly identifying the risk classification of a loan application benefits both lenders and borrowers. Lenders benefit because loan default rates should be lowered. Borrowers benefit because there should be reduced funding of bad projects and increased funding for good projects.
Funding was obtained from the Southern Center for Risk Management Education to support a graduate student during the summer of 2004. This student obtained the financial records from a large number of farms across Mississippi. These records are currently being examined for both benchmarking that fits into the traditional farm financial ratios and for other types of benchmarks that can be adapted from the data collected.
|Conference||2005 National Extension Risk Management Education Conference|