Fact Sheet Farm Credit Administration

1501 Farm Credit Drive

McLean, Virginia 22102-5090

June 10, 2010 Contact: Michael Stokke or Christine Quinn,

703-883-4056

E-mail: info-line@fca.gov

Website: www.fca.gov

Fact Sheet on Farm Credit System 

Young, Beginning, and Small (YBS) Farmer Lending Results for 2009

The following information summarizes 2009 lending for each of the three YBS categories.1

Small

Young—The System’s extension of credit to young farmers, those aged 35 or younger, 

consisted of 157,708 loans and totaled $20.4 billion at year-end 2009, up 4.7 percent from yearend 2008. During 2009, 50,689 loans totaling $6.6 billion were made to young borrowers. These 

loans made represented 16.4 percent of all loans made to farmers by System associations 

during the year and 11.3 percent of the dollar volume of all loans made. The average loan size 

made to young farmers was $130,915. The number of loans made to young farmers during 

2009 was 4.1 percent lower than in 2008, and the volume of loans made was 13.4 percent 

lower.

Beginning—Loans to beginning farmers, defined as those with 10 or fewer years of farming 

experience, numbered 223,311 and totaled $34.1 billion outstanding as of year-end 2009, up 

3.4 percent from year-end 2009. During 2009, 61,387 loans, totaling $9.5 billion, were made to 

beginning borrowers. Loans made to beginning farmers represented 19.9 percent of all loans

made and 16.2 percent of the dollar volume of all loans made. The average size of the loans 

made to beginning farmers was $154,169. The number of loans made to beginning farmers 

during 2009 was 7.8 percent lower than in 2008, and the volume of loans made was 20.9 

percent lower.

2

 1 Not all System loans are subject to YBS reporting; most association lending is included. The main 

exceptions are rural home loans and certain leases and participations in loans made under the 

cooperative lending authority of banks. YBS volumes include actual advances as well as loan 

commitments.

2 Since the small farmer definition is not indexed to inflation, rising farm commodity prices have pushed 

some small farmers to sales levels above the small category.

-more-

—At the end of 2009, FCS institutions had 474,762 loans outstanding totaling $42.8

billion to small farmers, defined as those with gross annual sales of less than $250,000; this 

figure was up 0.2 percent from 2008. During 2009, 145,618 loans were made to small borrowers 

for a total of $11.9 billion. Loans made to small farmers represented 47.2 percent of all loans
2

made and 20.3 percent of the dollar volume of all loans made. The average size of loans made 

to small farmers was $81,713. The number of small loans made during 2009 was down 3.4 

percent from 2008, and the volume of small loans made decreased 16.4 percent.

YBS Loans Outstanding

As of December 31, 2009

Number 

of loans

Percentage of 

total number

Dollar 

volume of 

loans

in millions*

Percentage of 

total volume

Average 

loan size

Young 

Farmers/Ranchers 157,708 18.4 $20,424 11.7 $129,507

Beginning 

Farmers/Ranchers 223,311 26.0 $34,109 19.5 $152,743

Small 

Farmers/Ranchers 474,762 55.3 42,756 24.4 $90,057

YBS Loans Made During 2009

As of December 31

Number 

of loans

Percentage of 

total number

Dollar 

volume of 

loans

in millions*

Percentage of 

total volume

Average 

loan size

Young 

Farmers/Ranchers 50,689 16.4 $6,636 11.3 $130,915

Beginning 

Farmers/Ranchers 61,387 19.9 $9,464 16.2 $154,169

Small 

Farmers/Ranchers 145,618 47.2 $11,899 20.3 $81,713

Sources: Annual Young, Beginning, and Small Farmer Reports submitted by each System lender through the Farm 

Credit banks.

Note: Since the totals are not mutually exclusive, one cannot add across young, beginning, and small categories to 

count total YBS lending.

* The volume figures for loans made and loans outstanding include both advances and commitments.

Trends in YBS Lending, 2001–2009

The YBS definitions and reporting requirements we currently use became mandatory in 2001, 

so we now have a nine-year trend of performance data for the young, beginning, and small 

farmer loan categories on the FCA website for the System as well as for individual associations. 

The results show a continual upward trend over the period in dollars of loans outstanding for 

each category at each year end. The trend is similar for loans made, except for the dip in 2009, 

which was in step with the 15.2 percent decline in volume of overall lending to farmers.

Comments on the YBS Market

The YBS target market, that is, the potential population of YBS farm loan customers, has been 

shrinking. Demographic and economic trends have led to a declining percentage of young, 

beginning, and small farmers in the general farmer population as a comparison of USDA 

Census of Agriculture data over the past decade shows. 

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