Data and analytics have been transforming how farmers make decisions for years—whether it's choosing which fields to plant, when to irrigate, or how to manage inputs. As technology continues to reshape agriculture, lenders are undergoing a parallel transformation in a rapidly evolving lending environment. Digital tools and data-driven technologies are not just improving efficiency; they are enabling smarter, more adaptive strategies for risk management, loan decisioning, collateral evaluation, and servicing. These capabilities can help lenders better serve their farm and ranch customers while providing better analytics on portfolio health.
One of the most significant developments in recent years is the growing role of data analytics. By tapping into tools that analyze historical yield data, weather patterns, commodity prices, and satellite imagery, agricultural lenders can more accurately assess the creditworthiness of borrowers and anticipate risks tied to specific operations.
AcreValue, for example, is a tool used by producers and lenders alike to gather insights and data on agricultural land. Farmer Mac’s ongoing strategic alliance with Ag-Analytics, the operator of the AcreValue platform, reflects our commitment to supporting innovation that strengthens visibility and decision-making across the agricultural finance landscape. The recent acquisition of Ag-Analytics by CoStar Group (which operates the Land.com platform) is serving to provide even more data and deeper insights for producers and lenders.
Banking regulators continue to emphasize that sound risk management practices are essential for critical insights into portfolio composition and analytics. Loan diversification and risk-based pricing remain vital tools at a lender’s disposal when building a resilient loan portfolio. Granular, real-time data and geospatial visibility on owned farmland help inform those decisions and enhance how efficiently capital can be provided to meet rural credit needs.
This is particularly relevant given the substantial value of farmland in the agricultural economy. Farmland real estate and structures accounted for $3.52 trillion, or 83.5%, of the total value of U.S. farm assets in 2024, according to the USDA Economic Research Service. Land is a vital part of the farming balance sheet, and being able to efficiently price, transact, and add debt capital to farmland is increasingly important for landowners to respond to heightened market volatility.
Another major shift is the digitalization of loan operations. Not long ago, closing an agricultural loan meant multiple physical touchpoints, including trips to the bank, the farm, and even the county courthouse. Today, that process can often be completed remotely, accelerating turnaround times and reducing barriers for borrowers. The “life of a loan” is being made shorter, easier, and cheaper through improved technology, data availability, and rapid integration of data-driven decision-making.
This evolution proved especially critical during the pandemic and is quickly becoming the new standard. Many farmers now expect real-time updates on their loans without needing to pick up the phone or sit at a desk. For lenders, that expectation may present a challenge, but it also offers an opportunity: Real-time transparency not only improves customer satisfaction, it also sharpens a lender’s ability to monitor credit exposure and respond to changing conditions quickly. Innovative loan platforms like Farmer Mac’s AgXpress scorecard product embody this right-sized approach to loan underwriting and distribution: Fast, easy, and transparent, with prudent and data-backed underwriting practices. As platforms like these mature and become more prevalent, the future of agricultural lending may begin to mirror the advances already seen in consumer finance, where streamlined digital experiences are commonplace. While agricultural lending will always require sector-specific expertise, the ability to simplify and accelerate the lending experience through technology is quickly becoming the new standard.
Ultimately, technology is enabling a shift from reactive to proactive product deployment and risk management in agricultural lending. Digital platforms and data analytics are no longer optional—they’re essential tools for today’s lenders to remain competitive, resilient, and responsive in a fast-moving market. And that’s why Farmer Mac is investing time and resources in lending technologies: to reduce time, effort, and costs for lenders to deliver the capital American farmers and ranchers depend on.