WASHINGTON, D.C. – Farm Credit System institutions made 132,890 loans to young, beginning, or small U.S. producers in 2023, delivering on their critical mission to support rural communities and agriculture, according to a new Farm Credit Administration (FCA) report. The report underscores Farm Credit’s commitment to the next generation of agricultural producers through strategic lending and support initiatives.
“Supporting young, beginning, and small farmers is central to Farm Credit’s mission and is vital for the future of American agriculture,” said Todd Van Hoose, President and CEO of the Farm Credit Council. “As the farm economy became even more difficult in 2023, Farm Credit had nearly $113 billion in new loans to young, beginning, or small U.S. producers.”
“Farm Credit’s specialized programs offer educational opportunities, loans and other financial solutions tailored to the unique needs of young, beginning, and small farmers to help them navigate the challenging economic cycle confronting U.S. agriculture,” Van Hoose added.
2023 Highlights:
During 2023: Farm Credit System institutions made 132,890 loans to young, beginning, or small U.S. producers, totaling $27.8 billion. More than half (52.5%) of all loans made by Farm Credit lenders in 2023 were made to young, beginning, or small producers.
At Yearend 2023: Farm Credit had nearly $113 billion in loans outstanding to young (under age 35), beginning (less than 10 years ag production experience), or small (under $350,000 in gross ag sales) U.S. producers.
Young Producers: In 2023, Farm Credit institutions made 47,200 loans totaling $11.7 billion to young producers who are 35 years old or younger.
Beginning Producers: 65,900 loans were made to producers with 10 years or less of experience last year, totaling nearly $18.1 billion.
Small Producers: Nearly 102,000 loans were made to producers with less than $350,000 in annual farm sales.
NOTE: The individual numbers above for young, beginning, or small cannot be combined as producers can be classified in more than one of the categories.
The Farm Credit Administration is an independent federal regulatory agency charged with oversight of the Farm Credit System. It annually reviews Farm Credit’s performance on meeting the needs of YBS farmers and ranchers and reports findings to Congress. This year’s report is the first to incorporate the agency’s new YBS lending rule, which went into effect on February 1, 2024, and includes data on eight distinct YBS and non-YBS groups, ensuring that loans and shared credits are counted only once for accuracy. Due to FCA-mandated changes in methodology and parameters, results from 2023 cannot be directly compared to previous years.
The chart below, excerpted from the FCA report, details NEW loans made during 2023 by Farm Credit System lenders.
Farm Credit supports rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow. It has been fulfilling its mission of helping rural America grow and thrive for more than a century with the capital necessary to make businesses successful and by financing vital infrastructure and communication services. For more information visit farmcredit.com.
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