Proof & methodology

How the bankability score and profit math are actually computed.

Every formula, weight, and assumption behind the BAU Bankability Score and ROI calculator, with the USDA, NRCS, and lender sources each input is drawn from. Nothing on this page is a black box: the weights, the normalization curves, and the multipliers are all published below so a lender, an investor, or a grant reviewer can reproduce any number we show.

1. The Bankability Score

The score is a weighted sum of nine underwriting factors, each normalized to a 0–1 quality value and multiplied by its weight. Weights total 100, so the output is a 0–100 index:

score = Σ  clamp(normalize(factor_value), 0, 1) × factor_weight
FactorWeightNormalizationBasis
Years of operating history
Years in continuous operation
15min(1, years ÷ 7)FSA direct/guaranteed operating-loan eligibility guidance; farms under 3 years are underwritten as beginning farmers. Source
Trailing 12-month revenue
Gross farm revenue, last 12 months
15min(1, revenue ÷ $1,000,000)USDA ERS farm-typology revenue classes; $1M gross is the top of the 'small family farm' band. Source
3-year revenue stability
Inverse coefficient of variation across 3 years
10value ÷ 100Standard repayment-capacity analysis; ag lenders stress-test against historical revenue variance. Source
Contracted acreage / offtake
% of production under signed contract or forward sale
15value ÷ 100Contracted volume is treated as committed cash flow in repayment-capacity worksheets.
Digital recordkeeping depth
% of yield, cost, and traceability records kept digitally
15value ÷ 100Records requirements under FSMA Produce Safety Rule and USDA GAP audit checklists. Source
Crop insurance coverage
% of acreage covered by RMA or private policy
10value ÷ 100USDA RMA coverage is routinely required as loan collateral protection. Source
Debt-to-asset ratio
Total debt ÷ total assets
10max(0, 1 − ratio ÷ 70)Farm Financial Standards Council solvency benchmarks; above ~60% is a common lender red flag. Source
Crop / buyer diversification
Distinct crops × distinct buyers
5min(1, count ÷ 6)Concentration risk adjustment — a single buyer is treated as a revenue-continuity risk.
Climate & irrigation resilience
Irrigation coverage, water rights, soil-health composite
5value ÷ 100NRCS soil-health and irrigation-water-management practice standards. Source

Score bands

Prime80–100

Conventional operating lines and equipment loans at best available rates.

Standard65–79

Bankable on typical FSA or community-bank terms; some collateral tightening.

Watch50–64

Approvable with guarantees or higher rates. Records depth is usually the fastest lever.

Sub-bankablebelow 50

Needs a structured improvement plan before lenders will engage.

The score is a readiness index, not a credit decision. It does not query credit bureaus, does not produce a FICO or FSA determination, and no lender is obligated to act on it.

2. The profitability math

The ROI calculator takes four farm inputs — acres, revenue per acre, variable inputs per acre, and the share of harvest that goes unsold — and applies three independent benefit terms. Each multiplier is set at the low end of its published range so the output understates rather than overstates.

TermFormulaWhy this number
Yield upliftrevenue_per_acre × 15%Conservative low end of published diversified-rotation and cover-crop trial results.
Fertilizer savingsinputs_per_acre × 25% × 30%Fertilizer is modeled at 25% of variable input spend; soil-test-driven N-P-K targeting saves 30% of that line (low end of the 30–50% range).
Recovered salesrevenue_per_acre × unsold% × 60%Pre-season contracting recovers the low end of the 60–80% unsold-harvest reduction range.
Annual benefit(sum of the three above) × acresNo compounding, no price escalation, no labor savings included.
Payback (months)annual_subscription_cost ÷ (annual_benefit ÷ 12)Simple payback. No discount rate is applied.

The three benefit terms are treated as additive and independent. On farms where they overlap — for example, where recovered sales are themselves part of the yield uplift — the real figure will be lower than the modeled one.

3. Cited sources for each multiplier

4. What is modeled vs. measured

Measured. Everything on the live traction page — farms onboarded, acres under management, application logs, certifications — is queried directly from the production database at request time.

Modeled. The bankability score and ROI figures are calculations over inputs you supply. They are decision-support estimates, not audited results, and they carry no guarantee of loan approval, yield, price, or margin.

Pending validation. Payback periods drawn from BAU pilot economics are illustrative until multi-season pilot data closes out. Those figures are labeled as such wherever they appear.

Found an assumption you would underwrite differently? We would rather correct it than defend it — the weights above are versioned and change in public.