In addition to understanding the analytical techniques, agricultural lending requires the understanding and management of uncontrollable risks like weather: crop damage due to freezing, droughts, hail, floods, and winds. There are always risks in lending, but without knowledge about the industry, both farmers and lenders are unsure how to mitigate them. Georgian farmers also lack farm financial management skills, accounting records, budgets, and financial statements, which when combined with the specialized lending techniques of the industry, become the tools needed to properly evaluate credit risks. .
