Farm lenders must now prove their books are clean, just like real banks

The Farm Credit Administration wants to require some farm lenders to get an annual audit of their internal financial controls. This means these lenders will have to prove their accounting systems are reliable, a standard already common for public companies.

For years, many farm lenders operated with less scrutiny over their internal financial controls than other financial institutions. This change means they will now face the same level of external review. It shifts the burden of proof onto the lenders to show their financial reporting is sound, rather than relying solely on regulators to find problems.