A system for detecting degradation of a servo valve; having a controller, a servo valve, a position sensor, and a rate monitor. The controller receives inputs and transmits command data. The servo valve has an actuator and is conductively coupled to the controller to receive command data from the controller and move the actuator in response to the command data. The position sensor operably associated with the servo valve for measuring movement of the actuator and transmits corresponding movement data to the controller. The rate monitor coupled to the controller and position sensor for receiving the command data and the movement data as inputs respectively. The rate monitor processes the inputs to produce a steady state rate error signal. The rate monitor compares the steady state rate error signal to selected operational limits and produces a telemetry output when the operational limits are exceeded.