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Farm Credit Reports Increased Lending to Beginning Farmers

Farm Credit Reports Increased Lending to Beginning Farmers

Delivering credit to beginning farmers across the nation is a key component of Farm Credit’s mission of supporting rural communities and agriculture. Each year, Farm Credit reports on its support for this important agricultural sector, and these results are reviewed by the Farm Credit Administration and reported to Congress.

Today, the Farm Credit Administration reviewed Farm Credit’s 2015 results, which include significant increases across multiple metrics: the number of beginning farmers served, the number of new loans, the average size of loans, and the total amount of financing provided to this important agricultural sector. In particular:

  • Farm Credit made nearly 80,000 new loans to beginning farmers and ranchers in 2015 totaling nearly $13 billion.
  • The number of loans made to beginning producers increased by 12.2 percent – more than 5,000 loans – over 2014.
  • More than one in five Farm Credit loans was made to beginning farmers in 2015; over the past 10 years, new loans made by Farm Credit to beginning farmers increased by more than 45 percent.
  • On average, every hour of every day last year, Farm Credit made well over $1 million in loans to beginning farmers and ranchers.

“We are pleased to see the improvement in loans made to young, beginning, and small farmers in 2015,” said Farm Credit Administration Board Chair Kenneth A. Spearman in a statement.

The results represent a considerable increase in Farm Credit lending to beginning farmers and underscore its unparalleled understanding of the needs of these producers. Most beginning farmers start conservatively, borrowing smaller amounts and working to build equity in their operations over time. Making loans to these producers requires deep knowledge of local agricultural conditions and the ability to tailor financing programs to meet their unique needs, expertise possessed by Farm Credit’s dedicated loan officers who are focused on the ag industry.

Farm Credit’s commitment to its customers will be especially critical as we continue to help them establish, maintain and grow their businesses in the face of concerns about lower commodity prices pressuring farm profit margins. This ongoing commitment builds on Farm Credit’s 100 year history of providing the essential credit rural communities and agriculture, including beginning farmers, need to thrive.