This course explains Asset Depreciation & Residual Value Risk and how factors such as asset ageing, usage intensity, and market demand influence the long-term value of tractors and farm equipment. It covers key valuation approaches including comparable sales, depreciated replacement cost, income capitalisation, and forced sale value benchmarks used to assess collateral protection. The course also highlights how understanding depreciation and residual value risks supports informed credit decisions, ensuring appropriate loan structuring and collateral coverage.