Young, Beginning and Small Farmers and Ranchers

An Historic Mission and Mandate

The Farm Credit System has an historic mission to serve U.S. agriculture and rural America. In support of that mission, Farm Credit institutions are leading providers of credit to young, beginning and small farmers and ranchers. The Farm Credit Act requires that Farm Credit lenders have programs specially focused on meeting the needs of young, beginning and small farmers and ranchers, and Farm Credit lenders annually report their lending activity in these areas to the Farm Credit Administration, the independent federal regulatory agency that oversees the Farm Credit System.

Farm Credit’s Lending Activity to Young, Beginning and Small Farmers in 2012*:

  • Young farmers are defined as those 35 years of age or younger. In 2012, Farm Credit made 55,561 new loans totaling $8.865 billion to young borrowers, up from 52,800 loans totaling $7.464 billion in 2011.  In 2012, these loans represented 16.4 percent of new loans made by Farm Credit during the year and 11.3 percent of the dollar volume of all loans made. At year-end 2012 Farm Credit had $23.265 billion in outstanding loans to young farmers.
  • Beginning farmers are defined as those having 10 years or less of experience. In 2012, Farm Credit made 68,227 new loans totaling $11.515 billion to beginning farmers, up from 61,995 loans totaling $9.634 billion in 2011. In 2012, these loans represented 20.1 percent of new loans made by Farm Credit during the year and 14.7 percent of the dollar volume of all loans made. At year-end 2012, Farm Credit had $34.595 billion in outstanding loans to beginning borrowers.
  • Small farmers are defined as those having annual gross agricultural sales of $250,000 or less.  In 2012, Farm Credit made 141,287 new loans totaling $13.279 billion to small farmers, up from 137,529 loans totaling $11.197 billion in 2011. In 2012, these loans represented 41.6 percent of new loans made by Farm Credit during the year and 16.9 percent of the dollar volume of all loans made. At year-end 2012, Farm Credit had $44.653 billion in outstanding loans to small farmers and ranchers.

Supporting the Future of U.S. Agriculture

Because Farm Credit System institutions are guided by boards of directors composed of agricultural producers, many of whom have sons and daughters involved in agriculture, they are highly sensitive and responsive to the needs of young, beginning and small farmers. And since Farm Credit’s institutions are cooperatives, their earnings are either retained to help capitalize additional lending to agriculture or they are paid out in the form of patronage dividends to the farmers and cooperatives who own the Farm Credit System.

In addition to direct lending activities, Farm Credit System institutions serve young, beginning and small farmers through contributions and volunteer efforts in support of organizations such as FFA and 4-H, by conducting training programs, management seminars and educational retreats for young farmers, and by supporting scholarship programs for farm youth entering college.

 

* NOTE: Since the categories are not mutually exclusive, it would be incorrect to add across the young, beginning and small categories to count total lending to young, beginning and small farmers and ranchers.