Digital Credit Scoring in Agriculture: Best Practices of Assessing Credit Risks in Value Chains

Dean Caire
Sponsored by: Grow Asia and SAFIRA

This guide reviews many types of digital data lenders can use to assess the creditworthiness of small holder farmers in cash crop value chains. It is written to be accessible to any reader, with its two main target audiences being: agribusinesses working with networks of small-holder farmers in structured value chains and financial institutions interested in lending to small-holder farmers at scale.

This report also looks at how agribusinesses, financial institutions, ‘fintechs’, and other interested stakeholders can partner to explore what is needed—from the data itself, loan product design, potential risks and data privacy concerns—to begin using some of this data in credit scoring tools aimed at financing credit-worthy farmers.