Using Scenario Calculations for Loan Counseling in Agriculture
As part of a larger project on financial management in agriculture,
the Knowledge Centre for Agriculture SEGES asked us to devise a report on the use
of market value statements and scenario calculations for loan counseling.
Advising homeowners with the use of scenario calculations are described in Svend Jakobsen's report "Scenario Calculations for mortgages" for the Money and Pension Panel, 2013.
In contrast to private homeowners, agriculture is characterized by large and complex loan portfolios with a wide variety of loan products, including bank loans, mortgages, foreign currency, interest rate derivatives, and leasing contracts. The report illustrates how the market value statement and scenario calculations can provide a consistent summary of the farmer's solvency, liquidity, and interest rate risk across all products.
The report is in Danish and is published as agreed with SEGES.