At its monthly meeting today, the Farm Credit Administration board received FCA’s 2019 Annual Report on the Farm Credit System’s Young, Beginning, and Small (YBS) Farmer Mission Performance.
FCA defines young farmers as those who are 35 years old or younger, beginning farmers as those who have been farming for 10 years or less, and small farmers as those with gross annual sales of less than $250,000.
Both the dollar volume of the System’s total loans outstanding and the dollar volume of YBS loans outstanding increased in 2019. Total System loan dollar volume outstanding increased by 6.3%, and loan dollar volume outstanding to young farmers increased by 3.3%, to beginning farmers by 3.9%, and to small farmers by 4.6%.
However, the total number of loans outstanding both for the System as a whole and for YBS borrowers remained relatively flat in 2019. The number of total System loans outstanding increased by 0.5%. The number of loans outstanding to young farmers increased by 1.0%, to beginning farmers by 1.8%, and to small farmers by 0.6%.
From Dec. 31, 2018, to Dec. 31, 2019, the System’s overall new loan dollar volume increased by 5.4%. New loan dollar volume to young farmers increased by 7.3%, to beginning farmers by 8.0%, and to small farmers by 15.9%.
The number of loans made during the year also increased in 2019 for both total System lending and for all YBS categories. The number of total System loans made during the year increased by 4.8%. The number of loans to young farmers increased by 5.9%, to beginning farmers by 8.1%, and to small farmers by 7.8%.
System institutions are required by law and FCA regulation to maintain programs to provide sound and constructive credit and related services to YBS farmers and ranchers. They must report annually to FCA on their YBS lending activity.