How Ag Lenders Can Use Equipment Data to Strengthen Decision-Making
3/27/2025In an uncertain ag economy, lending institutions are put under greater pressure to make fast, accurate, and risk-conscious decisions. With commodity price swings, tariff concerns, rising interest rates, and tightening equipment inventories all coming to bear on the economy, the margin for error in loan structuring and collateral evaluation has narrowed significantly.
Ag lenders—especially those dealing in equipment-backed loans—need access to real-time, relevant, and regionalized equipment data. Whether you’re a loan officer, credit analyst, or chattel appraiser, leveraging equipment data is no longer a nice-to-have. It’s a necessity for minimizing risk, improving customer relationships, and increasing operational efficiency.
As viewers of our recent Market Trends and Leveraging Data webinar will already know, you don’t yet have a clear strategy for utilizing data, you’re likely losing efficiency and profitability to those who do.
Why data is a game-changer for ag lending
According to an article from the ABA Banking Journal, credit quality deterioration was lenders’ number one concern as of December 2024. This underscores the need for accurate valuation of equipment and explains why the days of relying on printed appraisal guides or lagging book values are gone. The most successful lending institutions are integrating real-time data tools directly into their lending workflows to make smarter decisions faster. A sound data strategy supports:
- Accurate chattel appraisals using real-time equipment comps
- Confidence in LTV ratios and risk assessment models
- Faster approvals and fewer delays in processing loans
- Stronger borrower relationships through smarter refinancing options
Data tools like Tractor Zoom Pro’s Equipment Search and Automated Equipment Lists give lending teams the accurate and real-time valuations they need to keep pace with the market.
Let’s look at three ways ag lenders are putting this data to work to enhance their processes.
1. Regional equipment values: Lending with local precision
Equipment obviously doesn’t hold the same value in every state or region. A John Deere 8R 370 might bring top dollar in Iowa during planting season, but that same unit may sit longer in the Southeast where there is somewhat lower demand for large row crop tractors.
Furthermore, in some regions, equipment makes up a much more significant portion of collateral value than land does. This makes accurate and up-to-date valuation data all the more crucial for lenders in regions where equipment is king.
By applying filters to Tractor Zoom Pro’s Equipment Search solution, lenders can narrow down comps based on region, sale type (auction or dealer), and even seasonality to create hyper-relevant valuations. This allows appraisers and loan officers to base their decisions on localized FMV, not just national averages.
How our partners are using this data:
A Nebraska-based Farm Credit institution noticed appraisal discrepancies across its branches. By using regional filters in Equipment Search, they standardized valuation practices and improved audit consistency. This helped reduce collateral disputes between underwriting and servicing teams by 25%.
2. Understanding seasonal pricing patterns to mitigate risk
Just as with crops, equipment values tend to fluctuate with the seasons. Late fall often sees a dip in values for harvesting equipment, while pre-planting months may drive up demand (and prices) for tractors and planters.
If a lender is able to identify these seasonal patterns, they can time their valuations accordingly – either adjusting LTV expectations or encouraging borrowers to lock in favorable terms when their equipment is worth more. This level of insight is crucial for risk-adjusted decision-making.
Tractor Zoom Pro’s Equipment Search tool offers historical pricing visibility that enables lenders to identify these patterns and track fluctuations by category and time of year.
How our partners are using this data:
A regional bank in Illinois used historical data from Tractor Zoom Pro to review five years of pricing trends for planters. They noticed a consistent 8–12% value dip in Q4. By integrating this data into their LTV models, they proactively adjusted loan terms and reduced seasonal risk exposure in their farm equipment portfolio.
3. Timing equipment valuations for refinancing opportunities
Whether due to market demand or good timing, when equipment appreciates it opens the door for refinancing or restructuring existing loans. Many ag lenders are using Tractor Zoom Pro’s Automated Equipment Lists as a resource to quickly reassess borrowers’ assets across their portfolios.
This proactive approach helps identify opportunities to refinance at better terms, extend operating credit, or improve loan-to-value ratios for high-performing borrowers. It’s a win-win: borrowers access new capital, and lenders strengthen their books with better-structured loans.
How our partners are using this data:
A loan officer at a co-op lending group ran Automated Equipment Lists across 60 mid-size borrower files. They uncovered that 14 borrowers owned equipment that had appreciated by more than 15% over the past year. Three of those borrowers refinanced, leading to increased yield and improved borrower satisfaction.
Final thoughts: A data strategy isn’t just about getting numbers—It involves using the right tools
Ag lending is all about balancing speed, service, and risk. With volatility in the ag equipment market showing no signs of slowing down, leveraging real-time, localized, and seasonal data is one of the most effective ways to maintain that balance.
By integrating tools like Equipment Search and Automated Equipment Lists from Tractor Zoom Pro into your lending process, you’re not just valuing equipment—you’re unlocking new opportunities, improving accuracy, and building stronger borrower relationships.
Want to see how data can make your lending process faster and more efficient? Schedule a demo today.