With equipment repair costs up 40% over the past few years, how farmers deploy expensive agricultural machinery is of top concern for ag bankers. With equipment increasingly complex and often software driven, many equipment manufacturers have limited the ability of operators to repair their equipment without voiding warranties — leading to delays and lost harvests as farmers wait for service amid a shortage.

While this trend has led to a "right to repair" movement in many states, the issue of equipment costs and lost revenue during breakdowns remains a factor in lending decisions, says Pat Kussman, president and CEO of Regional Missouri Bank and chairman of the Missouri Bankers Association. "There are many things that are eroding at our cash flow for our farmers," he notes, "not just input costs, but land rent costs and equipment repair costs."

Kussman also discusses the state of the used equipment market, how farmers are using drones to manage crops less invasively and the growing role of artificial intelligence tools in functions like disease identification

This episode is presented by Agri-Access.

• Register for the ABA Agricultural Bankers Conference, Nov. 12-14 in St. Louis