Agricultural collateral monitoring that re-marks farmland, machinery and livestock every quarter — and shows which loans lost their cushion
Whole-book coverage refreshed every quarter, not at the next appraisal.
See one case, screen by screen ↓Keeping the value of the farmland, machinery and livestock behind an ag lender’s loans current between appraisals, and acting where coverage has thinned. Agricultural Collateral Monitoring re-values every pledged tract, unit and head each quarter, recomputes loan-to-value for every loan and drafts the re-appraisal orders, inspections, counts and alerts for a person to approve.
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An ag lender's book is secured by three kinds of collateral that move on different clocks. Farmland is appraised at origination and often not again for years. Machinery is valued when the operating line renews. Livestock is counted and priced when the borrower reports. When land turns, cattle run to records and used combines fall, the values in the loan files stop describing the book.
Three review appraisers cannot re-mark 1,630 tracts, 4,212 machinery units and 70,900 head every quarter. So the book gets a county average applied to everything — which hides that poorer soils fall first. The loans that lost their cushion surface at renewal or at default, a pledged planter is sold without a release and the proceeds never reach the line, and the board sees an average.
Estimated split for one quarterly review of the whole book, by hand and with the solution.
Six specialist agents re-value every tract, unit and head against the market; the Rural Appraisal Manager approves and orders.
Ridgefold Agricultural Credit holds 1,186 secured loans to 842 borrowers across central Iowa. The Q3 evidence is in. Here is what happens next, screen by screen, in the working solution.
Ingrid opens the book at the Q2 mark: $2,267.3M of pledged collateral, each tile sized by value and split by county — farmland $1,712.4M, machinery $412.6M, livestock $142.3M. Book loan-to-value 54.7%, 19 loans at or above the watch line, no borrower below 1.20x coverage.
Run log: “Q3 evidence is in: 214 recorded farmland sales (28 set aside), 9,860 dealer and auction results, 13 weeks of USDA prices and 402 head counts.”
Farmland is re-valued from county sales, machinery from auction results matched by serial, livestock from USDA market reports. The tiles re-colour pass by pass: land −2.9%, machinery −5.6%, livestock +6.3%. The book is now $2,203.5M, loan-to-value 56.3%, and 37 loans sit at or above their watch line.
“Re-marked 1,630 tracts, 4,212 units and 70,900 head · 1,186 loans recomputed.”
Nygaard Custom Harvest (EQ-3355, Hamilton County) pledges three combines, and combines fell hardest this quarter. Its 2022 Class 9 went from $572,000 to $498,000 and the two 2021 Class 8s fell 15.0% and 11.1%. Collateral $2.78M to $2.62M against $2.26M of exposure: coverage 1.23x to 1.16x, below the 1.20x floor.
“Separator hours not reported since January — values held at last inspected condition.” A machinery inspection is drafted to Jenna Ostby.
In Hardin County, Brekke Valley Farms’ six tracts re-mark from $13.33M to $12.40M, −7.0%. The biggest share is one tract: T4 South Creek, 320 acres of CSR2 61, from $9,250 to $7,950 an acre (−14.1%) on four arm’s-length sales within 12 miles. Relationship coverage moves from 1.48x to 1.40x.
The sales map and the comparable sales table show every sale used and every one set aside. Four sales at $7,640–8,310 an acre, adjusted for date, soil and size, indicate $7,950 × 320 acres = $2,544,000. A family transfer at $10,900 and a sale with a building site and grain bins at $11,400 are set aside. The 2023 appraisal rested on 2022 sales.
Values with fewer than three sales go to a review appraiser — three tracts this quarter.
4,166 of 4,212 pledged units match dealer and auction results by serial number. One of them is Brekke’s 24-row planter, serial ending 4471, on schedule A line 8 of EQ-3302 and valued at $164,000 in February. It sold on 22 Aug 2026 in Eldora, Pine Lake Auction Service lot 118, for $148,500. No release was asked for.
A conversion alert is drafted to the loan officer, Cody Brandt.
Exposure $12,845,000. Collateral value $17,945,424, down 5.5% from $18,983,440; relationship loan-to-value 67.7% to 71.6%. Farmland loan RE-4471 moves from 70.1% to 75.4% — above the 75% watch line, on an appraisal 43 months old. The cattle count matches: 110 head sold on 18 Sep tie to a $271,800 deposit.
Re-appraisal order drafted · Halvorsen Rural Appraisal · fee $3,400 · due 13 Nov.
Loans by loan-to-value band, last quarter against now, and the watch list: 37 loans, $90.7M of $1.24B exposure, 18 of them new this quarter — 11 farmland, 7 machinery and livestock. Each row says why it is there, when it was last valued and what is drafted for it.
14 re-appraisals proposed of 612 aged tracts — only where the cushion thinned.
Ingrid approves the Q3 values under her name, then the 31 drafted requests: 14 re-appraisal orders to five panel appraisers with $46,100 in fees, 9 machinery inspections and 6 livestock counts for the loan officers, and 2 conversion alerts. Nothing went out before she approved it.
“These are evaluations for monitoring — they do not replace an appraisal.”
The request drafter has written the Q3 2026 collateral coverage report: summary, collateral by class, loans at or above the watch line. Ingrid signs it with the meaning “Prepared and reviewed — values are evaluations, not appraisals”. Paul Vandermeer signs second, and the report goes to the board’s risk committee.
The same quarter, seen by the four people who carry it — what it looked like before, and what it looks like now.
Six specialist agents re-value every tract, unit and head against the market; the Rural Appraisal Manager approves and orders.
Reads recorded farmland sales, land value surveys, dealer and auction results, USDA price reports and borrower inventory reports, and flags sales that are not arm’s-length.
Re-marks every pledged tract by sales comparison, adjusted for soil, size, drainage and date, and shows the sales behind each value.
Matches every pledged unit to dealer and auction results by make, model, year, hours and serial, and spots pledged serials that have been sold.
Prices each borrower’s head count by class and weight at USDA weekly prices, and matches sales to deposits.
Recomputes loan-to-value for every loan and relationship on current values, tests the watch lines and ranks the watch list.
Drafts re-appraisal orders, inspection and count requests, conversion alerts and the quarterly coverage report.
Approves; the Chief Credit Officer signs the report. The agents propose; a named person decides.
The Rural Appraisal Manager can ask in plain words — or tell it what to order. Every answer points to its evidence.
Why did South Creek fall 14%?
South Creek (T4) is 320 acres of CSR2 61 creek-bottom ground, part of it not tiled. The 2023 appraisal valued it at $9,250 an acre on three 2022 sales. This quarter four arm’s-length sales within 12 miles of similar soil sold at $7,640–8,310; adjusted for date, soil and size they indicate $7,950, down 14.1%. Two higher sales were set aside: a family transfer at $10,900 and a farm with a building site and bins at $11,400.
Where is Brekke’s pledged planter?
It was sold. The 24-row planter on Brekke’s security agreement, line 8, serial ending 4471, appears in Pine Lake Auction Service’s results: lot 118, Eldora, 22 Aug 2026, $148,500. No release was asked for and no payment reached the line. A conversion alert to Cody Brandt is drafted; the line stays inside policy at 63.1%.
Why did Nygaard Custom Harvest turn amber?
Nygaard Custom Harvest pledges three combines, and combines fell hardest this quarter, −9.8% across the book. Its 2022 Class 9 is now $498,000 (Q2 mark $572,000) and its two 2021 Class 8s $379,000 and $383,000. Collateral fell from $2.78M to $2.62M against $2.26M of exposure, so coverage went from 1.23x to 1.16x, below the 1.20x floor. Separator hours have not been reported since January, so an inspection is drafted for Jenna Ostby.
Order the Brekke re-appraisal and alert Cody Brandt
Done. Order RA-2026-0418 went to Halvorsen Rural Appraisal — 6 tracts, 1,180 acres, fee $3,400, due Fri 13 Nov — with a note to look hard at South Creek. Cody Brandt has the conversion alert for the $148,500 planter sale and a call to Owen Brekke on his list. Both are on the audit trail under your name.
13 screens from the working solution, on its sample data. Pick one to see it large.
Watch lines, re-appraisal triggers, the evidence rules and who signs are settings every quarterly re-mark follows.
| Setting | Default | Choose from |
|---|---|---|
| Farmland watch line | 75% loan-to-value | Set up or down in steps |
| Machinery and livestock watch line | 80% loan-to-value | 75% · 80% · 85% |
| Re-appraisal when the appraisal is older than | 36 months, and the loan is at or above its watch line | 24 · 36 · 48 months |
| Re-appraisal when value is down | 10% or more | 7.5% · 10% · 15% or more |
| Coverage floor on the book map | 1.20x | 1.15x · 1.20x · 1.25x |
| Comparable farmland sales | 15 miles · 12 months · at least 3 | Or 10 miles · 12 months · at least 3; or 20 miles · 18 months · at least 4 |
| Re-mark schedule | Quarterly · 8th business day | Monthly · 5th business day, or Quarterly · 15th business day |
| Re-appraisal fee cap | $4,000 | $3,500 · $4,000 · $5,000 |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample loan book · “typical” = published figures (Federal Reserve Bank of Chicago, AgLetter, May 2026 — 56% of District lenders considered farmland overvalued in Q1 2026) · “estimated” = our estimate. People, lenders and borrowers named on this page are fictional — characters and sample data in the working solution.
Keeping the value of the farmland, machinery and livestock behind an ag lender’s loans current between appraisals, and acting where coverage has thinned. Agricultural Collateral Monitoring re-values every pledged tract, unit and head each quarter, recomputes loan-to-value for every loan and drafts the re-appraisal orders, inspections, counts and alerts for a person to approve.
By sales comparison on recorded, arm’s-length sales: within 15 miles, the last 12 months and ±10 CSR2 points of the tract by default, adjusted for date, soil and size. It shows the sales used and the ones set aside, and a value with fewer than three sales goes to a review appraiser.
No. Its values are evaluations for monitoring. When a loan is at or above its watch line on an appraisal older than 36 months, or the value is down 10% or more, it drafts a re-appraisal order for the Rural Appraisal Manager to approve.
Machinery is matched to dealer and auction results from the last six months by make, model, year, hours and serial number, and never valued above its last inspected condition. Livestock is priced by class and weight at USDA weekly prices against each borrower’s latest inventory report; a report older than 90 days triggers a count request.
It looks for every pledged serial number in dealer and auction sale results. When one appears, it raises a conversion alert to the loan officer with the sale, the amount and the schedule line. In the sample book it found two pledged units sold at auction with no release asked for.
Yes. The Rural Appraisal Manager approves the re-mark and every order, nothing is sent without her approval, and the Chief Credit Officer signs the coverage report. The agents never change a risk rating or a loan’s terms, and every step is on the audit trail.
Yes. The watch lines, re-appraisal triggers, coverage floor, comparable-sale rules, price sources, the re-mark schedule, approvers and the re-appraisal fee cap are all settings, versioned on the audit trail.
The Agentic Solution Engine builds and deploys it from your requirements — your collateral policy, security agreement schedules and a sample of your book — and it goes live once every quality gate has passed. We will walk you through it on your own collateral first.
We’ll run Agricultural Collateral Monitoring on a sample of your own pledged collateral.