Farm Credit Supports YBS Farmers and Ranchers
FOR IMMEDIATE RELEASE
Farm Credit Continues Strong Support for
WASHINGTON, D.C. –
Farm Credit continued its strong support last year for young, beginning, and small farmers across the country, according to figures released by the Farm Credit Administration today. By the end of 2016, Farm Credit had increased outstanding loan volume to all three categories, despite the current difficult economic cycle affecting U.S. farmers and ranchers.
"I compliment them [Farm Credit] on their work. Part of it is making loans, but more important is that YBS customers are supported after the loan is made," said FCA Board Member Jeff Hall today when the FCA Board reviewed the figures at its monthly meeting.
According to FCA, Farm Credit loans outstanding to young farmers (age 35 and younger) increased 2.6% over 2015 levels, to $27.8 billion. Loans outstanding to beginning farmers (10 years or less in farming) rose 3.2%, to $42.8 billion, and loans outstanding to small farmers (gross sales of less than $250,000) rose 2.1%, to $47.7 billion.
“Young and beginning farmers have unique financing needs and face real challenges in launching their businesses, especially during tough economic cycles like we’re experiencing today,” said Farm Credit Council president and CEO Todd Van Hoose. “The numbers released today by FCA demonstrate that Farm Credit is leaning in to this cycle and delivering on our commitment to young and beginning producers.”
“Small farm operations remain a core part of Farm Credit’s mission and we continued to meet their needs last year in the face of low farm commodity prices,” said Van Hoose. FCA figures revealed that at the end of 2016, Farm Credit had more than 500,000 loans outstanding to small farmers, which accounted for just over 48% of all Farm Credit farm loans outstanding.
Somewhat reflecting the difficult conditions in the farm economy, the number of new loans made to young, beginning, and small farmers remained largely flat compared to 2015, with slight decreases of 0.2%, 0.6%, and 0.2%, respectively, according to FCA’s figures.
The Farm Credit Administration (FCA) 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 beginning farmers and ranchers and reports its findings to Congress.
KEY FACTS: FARM CREDIT LENDING TO YOUNG, BEGINNING, AND SMALL FARMERS AND RANCHERS
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 www.farmcredit.com.