2016 Results: 

FCA’s Annual Report on The Farm Credit System’s

Young, Beginning and Small Farmer

Mission Performance

FCA Board Meeting

June 8, 2017

Salvatore Iannetta, Policy Analyst

Jessica Potter, Policy Analyst 1
Outline

Review the System’s YBS Mission 

YBS Numbers and Trends

Attributes of YBS Programs

2
YBS Mission

3

Farm Credit Act - 1980 Amendments

– FCS institutions must have programs to serve YBS Customers.

– Requires the reporting of YBS activities.

Regulation - 614.4165 (2004)

– Sets minimum YBS program components, reporting and 

disclosure requirements for associations.

Bookletters

– 040 (2007) Provides flexibility on lending opportunities for 

YBS farmers and ranchers.

– 066 (2012) Provides guidance for serving farmers who market 

their agricultural products through local or regional food 

systems.

Informational Memo - (2014) 

– Provides information on opportunities to coordinate lending, 

training, and outreach with the Farm Service Agency.
YBS Definitions

4

Definitions for FCA Reporting:

 Young Farmer: age 35 or younger

 Beginning Farmer: 10 years or less farming experience

 Small Farmer: gross annual farm sales of $250,000 or less

Important Data Clarifications:

 Data are reported separately for each category

 Borrowers may qualify under more than one category; one 

should not add Y, B, and S data together

 Dollar volumes include advances and commitments

 Counts are for loans, not for borrowers
YBS Results 

5

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

YBS Loans Outstanding Number Percentage Dollar volume Percentage

As of December 31, 2016 of of total of loans of total

loans number in millions* volume

Young farmers/ranchers 190,995 18.3 $27,784 11.0

Beginning farmers/ranchers 279,019 26.7 $42,817 17.0

Small farmers/ranchers 501,874 48.1 $47,699 18.9

YBS Loans Made During 2016 Number Percentage Dollar volume Percentage

As of December 31, 2016 of of total of loans of total

loans number in millions* volume

Young farmers/ranchers 62,000 17.0 $9,247 11.7

Beginning farmers/ranchers 79,166 21.7 $12,707 16.0

Small farmers/ranchers 149,691 41.1 $12,207 15.4

Green numbers indicate measures that increased in 2016 relative to those in 2015.

* Totals include loans, advancements, and commitments made to farmers, ranchers, and aquatic producers by the associations, and excludes

rural home and Title III loans, and the Leasing Corporation activity.

Note: Because the three (young, beginning, and small) categories are not mutually exclusive, one should not add across the categories to count

total YBS lending activity.
New YBS 

Loan Volume 

6

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

3.1

3.8

4.4 4.4

5.0 5.5

6.3

7.7

6.6

7.1 7.5

8.8

8.3 8.7

9.4 9.2

4.2

5.4

6.5

6.8

8.2

9.3

10.4

12.0

9.5

10.2

9.6

11.5

11.0

11.4

12.7 12.7

7.6

9.5

11.0

9.8

10.9

11.6

13.0

14.2

11.9 12.5

11.2

13.2

11.3

10.7

11.8 12.2

0

2

4

6

8

10

12

14

16

2001 2004 2007 2010 2013 2016

Dollars in Billions

Young Beginning Small
YBS Shares 

Total New Loan Volume

7

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

10.3

11.6 12.0 11.2 11.2 10.5 10.7 11.1 11.3 11.1 10.5

11.7 11.0 11.3 11.3 11.7

14.2

16.6

17.8 17.2

18.3 17.8 17.8 17.3

16.2 15.9

13.5

15.2 14.6

14.8 15.2 16.0

25.8

28.9

30.3

25.0

24.2

22.2 22.2

20.6 20.3 19.5

15.7

17.5

15.0

13.9 14.1

15.4

0

5

10

15

20

25

30

35

2001 2004 2007 2010 2013 2016

Percent of Total New Loan Volume

Young Beginning Small
New YBS 

Loan Counts 

8

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

33 36 39 40 42 46 51 53 51 54 53 57 58 59 62 62 37

44

51 50 55 58

64 67 61 66 62

69 73 74 80 79

114

130

150 148 148 148

155 151 146 150

138 143 143 141

150 150

0

20

40

60

80

100

120

140

160

180

2001 2004 2007 2010 2013 2016

Loan counts, (1,000s)

Young Beginning Small
YBS Shares 

Total New Loan Counts

9

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

15.6 15.7 15.3 16.0 16.5 17.0 16.6 16.7 16.4 16.2 15.8 16.5 16.3 16.9 17.2 17.0

17.7 19.3 19.8 20.0 21.3 21.2 21.1 21.1 19.9 19.9 18.6 20.2 20.5 21.2 22.0 21.7

54.5

57.2 58.7 59.6 57.6

54.3

51.0

47.7 47.2 45.3

41.2 41.7 40.1 40.2 41.4 41.1

0

10

20

30

40

50

60

70

2001 2004 2007 2010 2013 2016

Percent of total new farm loan counts

Young Beginning Small
Conclusions – The Numbers

10

 Most Systemwide YBS results either increased or kept pace 

to the levels achieved in 2015.

 Young and Beginning Farmer loans increased as a percent of 

overall loans outstanding. Small farmer loans kept pace.

 Young, Beginning, and Small all increased as a percent of 

loan volume made in 2016.
2016 YBS

Qualitative Results

11
Tools Used to 

Extend Credit

Source: YBS Questionnaire 12

72

64

61

59

45

36

15

5

74

62

59 58

43

41

16

5

70

54 55

53

41

35

15

5

0

10

20

30

40

50

60

70

80

Federal State

Loan Guarantees

Concessionary

Interest Rates

YBS Specific LUS Personal

Guarantors / CoSigners

Government

Loan

Particpations

Concessionary

Loan Fees

Differential Loan

Covenants

Other

Percent of Associations

Guarantees, Reduced Rates and Customized Standards Most Used to Extend 

Credit to YBS 

Young Beginning Small
Tools Used to 

Extend Credit

Source: YBS Questionnaire 13

Percent of Associations Who Used Tools to Extend Credit

Tool Young Beginning Small

Federal or State Loan Guarantee 72 74 70

Concessionary Interest Rates 64 62 54

YBS Specific Standards 61 59 55

Personal Guarantors / Co-Signers 59 58 53

Government Loan Participations 45 43 41

Concessionary Loan Fees 36 41 35

Differential Loan Covenants 15 16 15

Other 5 5 5
Continued Coordination to 

Extend Credit and Services

14 Source: YBS Questionnaire 

Organization 2015 2016

Farm Service Agency (FSA) 99% 99%

Other FCS Associations 80% 88%

District Farm Credit Bank 72% 85%

Producer Groups & Organizations 71% 82%

Ext nse ion Service 68% 81%

State/Local Government 68% 76%

Non-Profit Organizations 55% 70%

Natural Resources Conservation Service (NRCS) 47% 54%

US A D Outreach Staff 32% 46%

Commercial Lenders 28% 39%

Farmer Mac 25% 31%

Small Business Administration (SBA) 24% 31%

Agricultural Marketing Service (AMS) 17% 8%

Other 5% 7%
YBS Program Management

15 Source: YBS Questionnaire 

Best practices continue to be implemented resulting in 

more service of YBS needs.

– Advisory committees continue to provide valuable 

input to the Board and management.

– Performance standards for management and staff 

helped implement business plan objectives.

– Staff training increased in 2016. 
Associations Actively Study 

Their YBS Marketplace

16 Source: YBS Questionnaire 

 Associations identified new markets and developed 

actions to market to these YBS farmers and ranchers. 

 Research was conducted by a combination of internal 

and external sources. 

 Example of results from marketplace study: 

– Used current study to identify the unique characteristics of our 

market segmentation and identified underserved areas within 

our territory to market to. Efforts to reach those under-served 

areas, including YBS potential borrowers, include a new branch 

location, sponsorships and increased marketing efforts.
Training, Outreach, and 

Education

17 Source: YBS Questionnaire 

 The System continues to customize training to address the needs 

of YBS farmers, including new entrants to agriculture. 

 Outreach and training efforts include YBS farmers involved in local 

and regional food systems, as well as veterans, women and 

members of minority groups.

 Associations use both their internal experts and hire outside 

professionals to develop and present educational opportunities. 

 Educational resources include a variety of learning options such 

as: online libraries, courses, seminars, and speakers. 
Conclusions – Qualitative Data

18 Source: YBS Questionnaire 

 Increase in the amount of services and tools used to serve YBS 

borrowers.

 System coordination with third parties enhances credit delivery to 

YBS borrowers.

 Advisory committees, marketplace studies, and staff training 

improve knowledge of the YBS population.

 YBS training, outreach, and educational opportunities increased and 

are beneficial to current and potential borrowers. 
YBS Farm Lending Outperformed 

Systemwide Farm Lending

19

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

2015 2016

Change

(% pts.)

Volume of FCS Loans Made 8.8% -5.4% -14.2

Number of FCS Loans Made 3.7% 0.5% -3.2

Young Percent of FCS Loan Volume 11.3% 11.7% 0.4

Beginning Percent of FCS Loan Volume 15.2% 16.0% 0.8

Small Percent of FCS Loan Volume 14.1% 15.4% 1.3

Farm lending includes loans and commitments for real estate mortgages, production and intermediate loans, processing 

and marketing operations, and leases, but does not include rural home loans. Farm lending is a subset of total Farm Credit 

System lending.