McLEAN, Va., Aug. 11, 2022 — At its monthly meeting today, the Farm Credit Administration board received FCA’s 2021 Annual Report on the Farm Credit System’s Young, Beginning, and Small (YBS) Farmer Mission Performance.
FCA defines young farmers as those who are 35 years old or younger, beginning farmers as those who have been farming for 10 years or less, and small farmers as those with gross annual sales of less than $250,000.
Outstanding loans
Both the dollar volume of the System’s total loans outstanding and the dollar volume of YBS loans outstanding increased in 2021. Total System loan dollar volume outstanding increased by 10.9% and loan dollar volume outstanding to young farmers increased by 10.3%, to beginning farmers by 18.1%, and to small farmers by 14.2%.
The total number of loans outstanding both for the System as a whole and for YBS borrowers also grew in 2021. The number of total System loans outstanding increased by 1.8%. The number of loans outstanding to young farmers increased by 2.9%, to beginning farmers by 4.8%, and to small farmers by 1.7%.
New loans
The dollar volume of loans made in 2021 increased for the System as a whole and for the YBS categories. From Dec. 31, 2020, to Dec. 31, 2021, the System’s overall new loan dollar volume increased by 12.7%. New loan dollar volume to young farmers increased by 8.3%, to beginning farmers by 16.7%, and to small farmers by 9.3%.
The number of loans made during the year also increased in 2021 for total System lending and for all YBS categories. The number of total System loans made during the year increased by 2.1%. The number of loans to young farmers increased by 2.8%, to beginning farmers by 3.0%, and to small farmers by 0.8%.
System institutions are required by law and FCA regulation to maintain programs to provide sound and constructive credit and related services to YBS farmers and ranchers. They must report annually to FCA on their YBS lending activity.
For more information about the System’s YBS farmer lending in 2021, see the related fact sheet (PDF). Also, see the PowerPoint presentation (PDF) used at the FCA board meeting.
Notational votes
Since the July 14 FCA board meeting, two notational votes have occurred. Notational votes are actions the FCA board takes between board meetings.
On July 19, the FCA board approved the reallocation of budget funds within the Office of Secondary Market Oversight.
On Aug. 8, the board voted to approve a request from a System institution to redeem certain stock included in its regulatory capital.
