Water scarcity represents a material risk factor for farms across Australia, with the potential for a reduction in yields and increasing the costs of farm production.
At present, the reality of water risk is not fully incorporated into the assessment of farm loan applications. Introducing water risk assessment processes into farm loan applications has the potential to reduce financial risks for farms.
National Australia Bank approached ISF to help develop a new method of calculating the water risk exposure for a farm. Working in partnership with AgTech company The Yield, ISF researchers examined the approach undertaken by financial officers in the Agribusiness sector and Australian farmers in Australia when assessing water risk.
The study allowed ISF to identify opportunities to improve the associated financial decision-making processes, and develop a new method to calculate the water risk exposure for a farm.
RESEARCH OUTPUTS
Water Scarcity Risk For Australian Farms & The Implications for the Financial Sector (2019) (Report)
Researcher contact
-
Adjunct Associate Professor -
Research Principal -
Adjunct Professor
Year
- 2016-2017
Location
- Australia-wide
Client
- National Australia Bank
Partner
- The Yield
