Fact Sheet Farm Credit Administration

 1501 Farm Credit Drive

 McLean, Virginia 22102-5090

 

June 22, 2012 Contact: Michael Stokke or Christine Quinn,

703-883-4056

E-mail: info-line@fca.gov

Website: www.fca.gov

Fact Sheet of Farm Credit System 

Young, Beginning, and Small Farmer Lending Results for 2011 

The following information summarizes Farm Credit System 2011 lending activity to young (Y), 

beginning (B), and small (S) borrower categories.1 In 2011, lending to the three YBS categories 

did not keep pace with the trends in overall System lending to farmers. In general, the number 

of new YBS loans made and the dollar volume of new YBS loans made declined in 2011 from

that of 2010.2 The volume of YBS loans outstanding rose slightly in 2011.

Young—In 2011, the System made 52,800 loans to young farmers—that is, to those who are 

35 years old or younger. The volume of total new loans to young farmers amounted to $7.5 

billion. During 2010, the System made 53,546 loans to young borrowers, totaling $7.1 billion. 

The loans made to young borrowers in 2011 represented 15.8 percent of all farm loans the 

System made during the year and 10.5 percent of the dollar volume of loans made. The 

average size of loans made to young farmers in 2011 increased to $141,360. At the end of 

2011, the System had $21.3 billion in loans outstanding to young farmers as compared with 

$20.5 billion at the end of 2010.3

Beginning—The System made 61,995 loans to beginning farmers—that is, to those who have 

been farming for 10 years or less. The volume of total new loans to beginning farmers 

amounted to $9.6 billion in 2011. During 2010, the System made 65,792 loans, totaling $10.2 

billion, to beginning borrowers. The loans made to beginning farmers in 2011 represented 18.6 

percent of all farm loans made during the year and 13.5 percent of the dollar volume of loans 

made. The average size of loans made increased to $155,406 in 2011. At the end of 2011, the

System had $34.1 billion in outstanding loans to beginning farmers as compared with $34.0 

billion at the end of 2010.

 

1 Because the totals for the categories are not mutually exclusive, you cannot add young, beginning, and 

small totals to count total YBS lending. 2 Not all System loans are subject to YBS reporting. The main exceptions are certain leases and 

participations in loans made under the System’s cooperative lending authority. YBS volumes include 

actual advances as well as loan commitments. 3 We have adjusted 2010 YBS loan numbers and dollar volume to reflect revised data that the System 

submitted to us in 2012.
Small—FCS institutions made 137,529 loans, totaling $11.2 billion, to small farms (those with 

gross annual sales of less than $250,000) in 2011. By comparison, the System made 150,140

loans, totaling $12.5 billion, to small farmers in 2010. The loans made in 2011 to farmers in this 

category represented 41.2 percent of all farm loans made during the year and 15.7 percent of 

the dollar volume of all farm loans made. The average size of loans made declined to $81,413 

in 2011. At the end of 2011, the System had $42.9 billion in loans outstanding to small farmers 

as compared with $42.6 billion at the end of 2010.

The YBS information is reported separately for each of the three YBS borrower categories 

because the YBS mission is focused on each borrower group separately. Also, loans cannot be 

added across categories because some loans belong in more than one category. If, for 

example, a borrower is less than 35 years old, sells less than $250,000 in farm products per 

year, and has farmed for less than 10 years, the borrower’s loan would be included in every 

category. Therefore, adding the categories together would produce a misleading measurement 

of the System’s YBS lending involvement.

YBS Loans Outstanding as of December 31, 2011

Number of 

loans

Percentage 

of total 

number of 

System farm 

loans

Dollar 

volume of 

loans in 

millions

Percentage 

of total 

volume of 

System farm 

loans

Average 

loan size

Young 

farmers/ranchers 165,605 18.1 $21,290 11.2 $128,559

Beginning 

farmers/ranchers 236,033 25.7 $34,113 18.0 $144,525

Small 

farmers/ranchers 475,310 51.8 $42,850 22.6 $90,152

YBS Loans Made During 2011

Number of 

loans

Percentage 

of total 

number of 

System farm 

loans

Dollar 

volume of 

loans in 

millions

Percentage 

of total 

volume of 

System farm 

loans

Average 

loan size

Young 

farmers/ranchers 52,800 15.8 $7,464 10.5 $141,360

Beginning 

farmers/ranchers 61,995 18.6 $9,634 13.5 $155,406

Small 

farmers/ranchers 137,529 41.2 $11,197 15.7 $81,413

Source: Annual Young, Beginning, and Small Farmer Reports submitted by each System lender through the Farm Credit Banks. 

Note: A “young” farmer/rancher is defined as 35 years old or younger when the loan is made; a “beginning” famer/rancher has been 

operating for not more than 10 years; and a “small” farmer/rancher generates less than $250,000 in annual sales of agricultural or 

aquatic products. Because the totals are not mutually exclusive, you cannot add across young, beginning, and small categories to 

count total YBS lending.

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