The Farm Credit Administration has approved a final rule that governs the provision of services to young, beginning, and small (YBS) farmers and ranchers within the Farm Credit System.
The rule becomes effective Feb. 1, 2024, and revises certain YBS regulations to meet several goals, including expanding YBS activities to a diverse population of borrowers, reinforcing the supervisory responsibility of banks and requiring them to annually review and approve the YBS programs of director-lender associations, and requiring each of those associations to enhance its YBS strategic plan.
“I’m especially pleased to see the emphasis this rule places on outreach to and engagement with all populations of YBS farmers and ranchers,” Board Chairman and CEO Vincent Logan said. “The System was created to serve as a safe, sound, and dependable source of credit for all creditworthy and eligible persons in agriculture and rural America.”
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FCA’s current definition of YBS is “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.” Because of inflation, the figure will be raised to $350,000 beginning next year.
Board member Glen Smith says he finds the final rule exciting because it is a “rule of opportunity.”
“With time and accumulated data analysis, it will represent a valuable tool in helping Farm Credit boards direct their resources to best serve YBS producers in their individual territories,” he said. “It gives Farm Credit institutions an opportunity to build a strong borrower base for tomorrow's customers.”
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