Farmers Are Low-Risk, Yet 73% Remain Underbanked

25% of farmers are considered “prime,” (meaning the borrowers with the least likelihood of default) are the very best farmers with access to the best financial services, and 2% of farmers default, that leaves 73% of farmers either underbanked or unbanked.

Data shows that farmers are not inherently riskier than other businesses. A financial report on the state of the agricultural industry in 2022 found that agricultural loan delinquency rates in commercial banks were less than 1%.

The 10-year US Ag Loan default rate hovers around 2% - similar to the default in the general commercial lending sector.