At its monthly meeting , the Farm Credit Administration (FCA) Board received an annual report on the Farm Credit System's (System's) lending to young, beginning, and small (YBS) farmers and ranchers.
According to the report, the System continues to finance the next generation of agricultural producers. The System made 52,800 loans to young farmers, 61,955 loans to beginning farmers, and 137,529 loans to small farmers and ranchers. Overall, the System made 333,932 farm loans during 2011.
System associations are required to develop programs to provide sound and constructive credit and related services to YBS farmers and ranchers. These programs include annual quantitative goals for YBS lending and methods to provide credit to YBS farmers in a safe and sound manner.
Associations employed YBS-specific tools in 2011 to make safe and sound loans to YBS farmers and used government loan guarantees to mitigate loan risk when appropriate.
Tools employed include lower interest rates, reduced loan fees, and YBS-specific underwriting standards that take into account the financial and managerial strengths of YBS farmers.
System institutions are also engaged in providing YBS farmers with the financial and managerial education and training needed to operate a successful farm.