Credit Scoring, Loan Pricing, and Farm Business Performance

摘要: In light of recent developments in agricultural credit evaluations, this study employs a multiperiod simulation model that endogenizes farm investment decisions, and loan pricing based on the scoring procedures lenders. Model results show credit-scored yields time patterns performance, classifications, interest rates parallel firm's investment, financing, debt servicing activities. Moreover, lender's price responses dampen growth incentives as worthiness diminishes, stimulate improves, lead to similar capital structures over time. The combined effects financial stress agriculture, deregulation markets, improved information systems for lenders have brought significant changes risk assessment, policies lending. Loan evaluation at customer level is receiving greater emphasis increasingly tailored characteristics individual borrowers (Barry Calvert). It has become common, example, observe who categorize into several classes with higher associated (Schmiessing et al.; Lufburrow, Barry, Dixon). These scope assessment form response provide new setting evaluating relationships among evaluation, terms borrower's business performance. Our purpose paper identify evaluate linkages between performance financing modeling approach commercial A developed these