FCA issues report on small, beginning, young farmer lending
From 2015 to 2016, the dollar volume of new loans the Farm Credit System made to small farmers rose 3.3 percent, while the dollar volume of new loans to young and beginning farmers declined by 1.9 percent and 0.3 percent, respectively, the Farm Credit Administration said in a report issued Thursday.
Because the dollar volume of the Farm Credit System’s overall farm lending declined by 5.4 percent in 2016, the proportion of the system’s dollar volume going to the young, beginning and small (YBS) categories actually increased slightly, the report said.
All three categories — young, beginning and small farmers — experienced slight declines in the number of loans made in 2016. The number of loans to young farmers declined by 0.2 percent, to beginning farmers by 0.6 percent, and to small farmers by 0.2 percent.
By contrast, the system’s overall number of new farm loans grew by 0.5 percent. For loans outstanding, the dollar volume increased in all three categories. Loan volume to young farmers increased by 2.6 percent, to beginning farmers by 3.2 percent, and to small farmers by 2.1 percent.
The system’s overall farm loan volume grew by 2.8 percent.
The number of YBS loans outstanding presented mixed results. The number of loans outstanding to young farmers grew by 1.2 percent and to beginning farmers by 1.5 percent, while the system’s overall number of farm loans grew by only 0.1 percent. However, the number of loans outstanding to small farmers decreased by 0.1 percent.