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Growth in loans for young/beginning/small farmers

The Farm Credit System reports growth in loan numbers for Young, Beginning and Small Farmers in outstanding and new loans in 2016.

Gary Van Meter, director of the Farm Credit Administration office of regulatory policy, says in the Corn Belt lower corn and soybean prices have made it more challenging for young, beginning and small farmers, “The capital needs, et cetera, they may not have the expected income, the margins they would expect to have. Several years ago the corn prices were very high, and whatnot, but nowadays they’re trending down. I think USDA is indicating that this type of income for commodities such as corn and soybeans may even trend down further.”

But, associate director Mark Johannson tells Brownfield they ARE seeing the next generation of farmers coming onto the farm, “They’re part of the operation. They are on the note which is required for the loan to be counted as a young/beginning/small loan.”

Johannson says they’re seeing beginning farmers breaking into the business, in some regions, in a particular way, “One of the things that we’re seeing, particularly young and beginning, is we see a number of them entering farming through poultry.”

Both say the concerted effort by Farm Credit System associations to market and educate Young, Beginning and Small Farmers about available loans is another reason for the growth.

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