Loans and Banks (Part I), Farmers are "prime

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 inancialreport 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. (Part I) 

Agtools participating at RevTech Labs Foundation 

Source: Federal Reserve Bank of Kansas City.