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Farm Credit Administrations makes improvements for young, beginning, & small farm borrowers

The Farm Credit Administration has made rule changes to benefit young, beginning, & small farm borrowers.

Board member and Iowa farmer Glen Smith tells Brownfield interest rates have more than doubled in the last year and a half and he’s concerned what kind of impact that has on the next generation.

“It makes it very difficult for beginning farmers to move into an ownership category with that degree of debt represented by higher land values,” he says.  “Farm machinery is also high. I can’t think of anything that’s not consistently higher.”

The changes reinforce at congressional mandate to Farm Credit institutions to have strong young, beginning, and small farmer and rancher programs. 

Smith says updates will require lenders to develop strategic plans annually to help increase lending to those applicants.  

“It’s a way for us to more closely monitor the progress of the young, beginning, and small farmer programs, but probably the biggest thing in undertaking this was to make sure the data is accurate,” he says.

The administration is creating a new reporting system in next year to better analyze the effectiveness of young, beginning, and small (YBS) farm and ranch loan programs.

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