How FarmRaise Helps Lenders Reduce Risk and Improve Decision-Making

In agriculture, lending is about more than numbers. It’s about trust, timing, and clear information. When loan officers understand their borrowers’ operations, they can structure agricultural loans that fit real-world conditions. The challenge is that many producers still rely on manual spreadsheets, receipts, or inconsistent record keeping, which can make it difficult for lenders to gauge credit risk and repayment potential.

That’s where FarmRaise comes in.

FarmRaise has developed tools that make financial tracking easier for farmers while helping lenders make faster, more informed decisions. Through its farm accounting software, educational hub, and direct integrations with banks, FarmRaise helps reduce loan processing time, strengthen relationships between lenders and borrowers, and improve long-term profitability across U.S. agriculture.

A Partnership Supporting Farmers and Lenders

As a proud cooperative partner with the USDA Farm Service Agency (FSA), FarmRaise has helped improve access to credit and supported responsible financial management for farmers and ranchers. Through this cooperative agreement, FarmRaise offers FSA-approved educational resources and free memberships to farmers who want to manage their farm finances more effectively and prepare for farm loan applications.

This initiative benefits both sides of the lending equation. Producers gain confidence when applying for operating loans, real estate loans, or a line of credit because their financial records are already accurate and organized. For agricultural lenders, that means fewer incomplete applications, faster processing, and a clear view of each borrower’s financial health.

When borrowers can produce clear income statements, balance sheets, and forecasts through the FarmRaise app, lenders save valuable time and gain the insight they need to make sound, data-driven loan decisions.

Streamlining the Loan Application Process

Applying for a farm loan can be overwhelming, especially for a new farm operation. Traditional loan applications often require months of documentation, including tax returns, business plans, and multi-year financial statements. With FarmRaise Tracks, borrowers can track income, expenses, assets, and liabilities throughout the year, keeping everything in one place.

Because FarmRaise syncs directly with bank accounts, farmers can pull in up to two years of historical transactions and get real-time updates. This helps lenders see a more accurate picture of cash flow and liquidity, reducing guesswork during underwriting and loan reviews.

Instead of waiting until tax time to organize receipts, borrowers can share ready-to-review financial reports that help lenders determine loan eligibility, structure better loan terms, and verify repayment capacity. This efficiency not only saves time but also minimizes the chance of human error.

Better Data Means Better Decision-Making

For ag lenders, reliable data drives better decision-making. FarmRaise enables farmers to categorize transactions using IRS Schedule F line items or custom categories that mirror real agricultural operations. The result is cleaner, standardized data that can easily be analyzed by loan officers or uploaded into existing financial systems.

When a lender reviews a FarmRaise-generated report, they can immediately assess profitability, operating expenses, and farm income without sorting through inconsistent paperwork. This transparency builds trust and reduces credit risk for both sides.

Even for seasoned farm credit professionals, a clearer picture of seasonal trends, like changes in commodity prices or crop insurance payouts, helps improve lending strategies and reduce exposure. By using FarmRaise, lenders gain a reliable window into their borrowers’ short-term and long-term financial positions, helping them make more informed decisions about interest rates and loan programs.

Reducing Risk Through Real-Time Insight

Every lender knows that risk management starts with understanding the numbers behind an operation. When borrowers use FarmRaise, those numbers are always current. Farmers can track expenses, adjust budgets, and forecast upcoming costs like fertilizer, feed, or repairs.

That level of real-time awareness gives lenders confidence that borrowers can handle loan payments responsibly and make sound choices if conditions change. When commodity prices fall or input costs rise, FarmRaise helps farmers visualize how those shifts affect cash flow and liquidity, giving both the borrower and lender time to plan.

For lenders managing large portfolios, this kind of transparency across clients can support healthier lending practices and improve repayment performance across entire regions.

Empowering Lenders with Education and Technology

The FarmRaise platform isn’t just about software; it’s about financial education. The FarmRaise FSA Educational Hub provides producers with access to hundreds of easy-to-understand guides, videos, and checklists on topics such as business planning, record-keeping, and USDA funding opportunities.

When borrowers have access to these tools, they come to the bank better prepared. They understand their operating expenses, can discuss realistic loan terms, and have confidence in their business plan. For lenders, this means fewer delays, fewer corrections, and smoother communication throughout the entire application process, from initial submission to final approval.

As one FarmRaise partner bank shared, the system “saves time for both the farmer and the lender by providing clean, organized financial data that counts.” This is what makes FarmRaise unique. It’s not just about digitizing numbers but about empowering people with the confidence and clarity they need to succeed.

Strengthening Profitability and Sustainability

Healthy farm finances lead to stronger communities. When farmers can easily manage accounting software, track expenses, and plan for repayment, they are better positioned to grow sustainably. That stability translates into reduced credit risk and increased profitability for both borrowers and lenders.

The ability to forecast cash flow and model different loan terms or interest rates helps borrowers plan ahead and make adjustments before small problems become major ones. For lenders, it means better loan performance, stronger client relationships, and a portfolio built on transparency and trust.

By streamlining record keeping and financial reporting, FarmRaise supports risk management and reinforces the sustainability of local farm businesses and ranchers who depend on steady access to capital.

Why Agricultural Lenders Choose FarmRaise

FarmRaise is trusted by more than 20,000 producers nationwide, including those working directly with community banks and credit unions. Through partnerships with institutions like BTC Bank, FarmRaise delivers the best of both worlds: modern financial technology and human-centered service rooted in agriculture.

Lenders choose FarmRaise because it:

• Streamlines the loan application and approval process.
• Provides accurate financial reports, including balance sheets and income statements.
• Reduces credit risk through real-time, verified data.
• Enhances decision-making with up-to-date forecasts and clear financial visibility.
• Improves communication between loan officers and producers.

The result is more consistent lending, better compliance with USDA loan programs, and stronger customer relationships that support long-term success.

Building the Future of Ag Lending

The future of agriculture depends on collaboration between farmers, lenders, and technology providers. As a cooperative partner of the Farm Service Agency, FarmRaise is proud to help both sides of the equation: empowering producers to strengthen their businesses and enabling lenders to make confident, informed choices.

For banks, credit unions, and ag lenders seeking to improve efficiency and manage risk, FarmRaise offers a proven, easy-to-use solution that fits seamlessly into existing workflows. With better data, stronger borrowers, and faster approvals, lenders can focus on what matters most: supporting the growth and sustainability of American agriculture.

To learn more about FarmRaise’s partnerships or explore integration opportunities, visit farmraise.com.