Argos Agricola Analyser: a tool for agri-lending

The Argos Agricola Analyser or AAA is an online tool that determines the risk associated with a farmer and his farming activities. The tool uses the incoming and outgoing predicted cashflows as indicators of financial health. The Argos Agricola Analyser uses standardized FAO crop yield data and market prices to determine the income. We only need to know the farmer’s crops and the surface of the land to estimate the annual income. A similar approach is used to determine the expenses. The AAA works for standardized expenses for an age group. So, knowing the family composition is enough to gauge the farmer’s expenses.
The Argos Agricola Analyser uses probability distributions to model the risk and uncertainty surrounding the inputs. Using a Monte Carlo simulation the AAA reveals the anticipated cashflow margin. The Monte Carlo simulation provides interesting and superior insights into the anticipated cashflow and the risk. It helps the financial institution to make lending decisions in line with he institution’s risk policy and shows the most important risk drivers.
The AAA helps Financial Institutions to get a grip on the agricultural lending market. The Analyser prepares smart insights in the cashflows and the risks associated. The standardized inputs lift the administrative burden off the famers.
The AAA can be integrated with any loan originations system and is based on open-source data and technologies.

tags:
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