(McLean, Virginia) The Farm Credit Administration Board approves a final rule governing the Farm Credit System’s Service to young, beginning, and small farmers and ranchers. The final rule is effective February 1, 2024.
Glen Smith of Atlantic, a Farm Credit System Board member appointed by the Trump administration six years ago, says the average age of the nation’s farmers is 59 1/2, and with the 2024 census coming out soon, that average age is expected to rise to 60.
He says the board-approved rule reinforces the congressional mandate to Farm Credit institutions to have active and robust young and beginning and small farmer and rancher programs. The Farm Credit System is the nation’s largest single financing provider to American agriculture. Smith says the Farm Credit System is best equipped to meet this challenge.
The rule has several objectives: to expand the YBS activities of direct-lender associations to diverse borrowers. To reinforce the supervisory responsibilities of the banks that fund the direct-lender associations, and requires the banks to review and approve the associations’ YBS programs annually. Smith says the rule requires each direct-lender association to enhance the strategic plan for its YBS program.
The Farm Credit System is based in every state in the Union, has thousands of branch offices, and is the country’s largest provider of agriculture financing. Smith says the new rule requires every final institution to submit a plan for the young and beginning small farmer.
The Farm Credit System, which provides around 45 percent of the nation’s total farm debt, made $13.1 billion in loans to young farmers in 2022, $21.5 billion to beginning farmers, and $19.1 billion to small farmers.
