LUBBOCK, TEXAS (RFD NEWS) — Agricultural lenders are rapidly adopting automation technology and artificial intelligence (AI) tools as farm financial risks grow more complex, signaling changes in how producers access credit and manage borrowing relationships.
New analysis from Moody’s shows lenders are shifting toward data-driven decision tools to better evaluate risk as margins tighten across agriculture.
Higher interest rates, volatile commodity markets, and rising production costs are increasing pressure on farm borrowers. Moody’s reports lenders are using automation to streamline loan processing, analyze repayment capacity, and monitor portfolios more closely as global trade uncertainty and input volatility complicate farm financial outlooks.
Farm-Level Takeaway: Technology-driven lending decisions may shape future availability of farm credit.
Tony St. James, RFD NEWS Markets Specialist
For producers, the shift means lenders are increasingly acting as financial advisors rather than only credit providers. Digital tools allow banks to better match loan structures with seasonal cash flows and evaluate large capital investments tied to precision agriculture and automation equipment.
Generational turnover and farm consolidation are also reshaping lending strategies. Fewer operators and larger operations require more sophisticated financing, pushing rural banks to modernize while maintaining relationship-based lending models.
Looking ahead, lenders adopting technology and advanced analytics are expected to manage risk more effectively, potentially improving credit access for producers as they navigate tighter profitability cycles.
The distinction between co-tenancy and joint tenancy and why it matters — is the topic of today’s Firm to Farm blog post by RFD-TV Agri-Legal Expert Roger McEowen.
December 11, 2023 02:13 PM
·
As the USDA tracks how Plant Hardiness Zones are slowly shifting across the country, they are also adjusting their recommendations for gardeners when it comes to perennial plants. The data is also used the by Risk Management Agency to determine crop insurance rates.
November 28, 2023 02:28 PM
·
As I try to catch up on my writing after being on the road for a lengthy time, I have several recurring themes in my legal work. Another potpourri of random ag law and tax issues — that is the topic of today’s Firm to Farm blog post by RFD-TV Agrilegal Expert Roger McEowen.
October 31, 2023 02:21 PM
·
Many turn to the online resale market when economic times are uncertain, buying items for cheaper prices or selling quality items for extra money. Reselling secondhand items is also an efficient way to declutter and get some cash back for valuable items you no longer need.
October 13, 2023 04:57 PM
·
With 2023 projected to be a difficult year for agricultural producers, Chapter 12 filings may increase. One of the requirements to get a Chapter 12 reorganization plan approved is that be filed in “good faith.” In this blog post, RFD-TV Legal Contributor Roger A. McEowen explains exactly what farmers need to know about the process.
October 04, 2023 02:57 PM
·
The failure of a grain elevator can cause large problems for farmers and for the local community it serves. A farmer who knows their rights and where they stand if an elevator fails can be in a better position than those farmers who aren’t as well informed. That is the topic of today’s blog post by RFD-TV Legal Contributor Roger A. McEowen.
October 04, 2023 02:46 PM
·
