English (US)

Risk Management

  • Loan Loss Analysis
  • Portfolio Risk Analysis
  • Risk Management Evaluation

VisionAnalytics

  • Porfolio Vision
  • Loan Vision
  • Loan Vision (Producer Edition)

Allowance for loan loss

  • Asset Resolution
  • Professional Standards
  • Risk Driver Details

Risk Management

As an outgrowth of its initial consulting efforts, AgriLogic Consulting recognized the need to deliver up-to-date information to those making agriculture lending decisions. Specifically, AgriLogic targeted services towards those individuals in the farm credit industry to assist in credit and portfolio risk management decisions.

In addition to these services, AgriLogic Consulting has developed software that distribute updated regional projections of commodity prices, input costs, formland values, and other key market trends on a quarterly basis. This software helps loan officers and management to evaluate the risk associated with the dept repayment capacity of individual customers, as well as the credit and collateral risk inherent in agricultural loan portfolios.

VisionAnalytics

Northwest Farm Credit Services utilizes VisionAnalytics® to analyze their loan applications and portfolios. It is an integrated suite of user-friendly applications titled LoanVision and PortfolioVision (mentioned below).

In 1994, AgriLogic began the design and development of an innovative software package called VisionAnalytics. This was an integrated suite of credit risk management software for agricultural lending institutions, engineered to assist agricultural lenders in the underwriting of individual loans and agricultural loan portfolio management. This software consisted of several components including:

  • Portfolio Vision: Pro forma credit risk management tool for event stress testing at the portfolio segment and institution level. An ideal tool for management and boards to assess future risk exposure
  • LoanVision: Pro forma credit risk management tool for event stress testing at the account level. A tool that helps loan officers and chief credit managers assess the potential credit risk associated with a specific loan account
  • LoanVision (Producer Edition): A product designed specifically for farmers and ranchers to help them assess future trends in the economy and what that means for the profitability of their current operations and exposure to risk.
  • Allowance for Loan Loss

    The Allowance for Loan Loss analytical calculator (ALL) was developed for the Farm Credit Bank of Texas. ALL is an asset resolution program that utilizes AgriLogic’s econometric models to determine the loan loss allowance for 38 regional loan pools covering Alabama, Louisiana, Mississippi, New Mexico and Texas. Loan Loss Allowance represents each portfolio’s allowance for bad debt.

    AgriLogic developed the basic ALL system to comply with the professional standards of the Farm Financial Standards Committee (FFSC), a national committee charged with suggesting uniform financial records. FFSC recommends numerous measures, including the following financial measures and definitions: desirable ranges and guidelines vary substantially by type of farm, ownership pattern, time of year, and technology. Trends on each farm can identify management strengths and weaknesses. These measures fit into the following categories: Liquidity, Solvency, Profitability, Repayment Capacity, and Financial Efficiency. AgriLogic developed an econometric model to forecast the all of the FFSC measures to determine the value of each of the 38 regional loan pools’ overall asset portfolios and allowance for loan loss.

    Each quarter, AgriLogic provides not only the new risk drivers for each pool, but also a detailed description of the reasons why the drivers have increased or decreased. This information is used to manage the portfolio.