Asset Value Assessment in Biological Mortgage Loans for Biological Asset-Valuation Methods in Biological Asset Changes

As a new collateral financing model, biological asset mortgages broaden the scope of agricultural credit collateral and help enhance the convenience and accessibility of financing for farmers and agricultural enterprises. However, the difficulties in assessing the value of biological assets and risk control have restricted the application of this model. Based on the current situation of pig farming and the law of pig value, the study designed a biological asset collateral loan operation model of “borrower[Formula: see text]bank[Formula: see text]credit enhancement[Formula: see text](movable) property rights registration centre[Formula: see text]government industrial fund”. In order to solve the problem of biological asset value assessment, a dynamic pig biological asset value assessment model combining pig growth model and price prediction model was designed. The results of using the pig price forecasting model to forecast the price of live pigs from June 2018 to May 2019 showed that the average absolute error of the forecast was –1.03 kg, the maximum absolute error was –3.12 kg, and the minimum value was –0.24 kg. The average relative error of the model forecast was –7.29%, and the relative error of the forecast for the first nine periods did not exceed 9%. The results demonstrated that the price prediction model can be used for dynamic assessment of biological asset valuation and provide an application model for commercial banks to realise floating mortgage loans.