RECOMMENDATIONS

Based on the provided data, I recommend approving the loan of 45999.00 with certain conditions. The farmer has a consistent yield per hectare and average selling price for rice, indicating a stable business operation. However, the yield per hectare has been decreasing over the years, which is a concern. To mitigate this risk, I suggest requiring the farmer to provide a crop insurance plan that covers at least 50% of the loan amount.

ANALYSIS

1. Crop Yields: The yield per hectare has been decreasing over the years, from 11 in 2020 to 9 in 2022. This trend may indicate soil degradation, inadequate farming practices, or climate change effects. Close monitoring of the farmer's yield management practices is necessary to ensure the loan repayment.
2. Estimated Profit: The estimated profit is 2300.00, which seems reasonable given the average selling price and yield per hectare. However, the decreasing yield per hectare may impact the actual profit, making it essential to review the farmer's profit projections regularly.
3. Crop Insurance: No information is provided about crop insurance. It is crucial to have a crop insurance plan in place to mitigate the risks associated with crop failure, natural disasters, or market fluctuations. I recommend requiring the farmer to provide a crop insurance plan that covers at least 50% of the loan amount.
4. Loss Data: No loss data is provided, making it challenging to assess the farmer's risk management practices. It is essential to review the farmer's loss history and risk management strategies to ensure that the loan is repaid.

ADDITIONAL REQUESTS

To further evaluate the loan application, I request the following additional information:

1. Crop insurance plan details, including coverage and premium amount.
2. Loss data for the past three years, including the type and amount of losses.
3. Yield management practices and strategies to address the decreasing yield per hectare.
4. Detailed profit and loss statements for the past three years.

By reviewing this additional information, we can make a more informed decision about the loan approval and ensure that the farmer has a viable business plan in place to repay the loan.