Highest level of lending to young, beginner and small farmers in 2020

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Highest level of lending to young, beginner and small farmers in 2020

Loans from Farm Credit lenders to young, budding and small farmers hit an all-time high in 2020 despite concerns over the COVID-19 pandemic.

President and CEO Todd Van Hoose told Brownfield that the company’s report shows growth in the sector. “You would expect young farmers to be very reluctant to take the lead last year, but our numbers look very different.” – says Van Hoose. “We’ve had a big increase in loans to young farmers, a big increase in loans to start-up farmers and a big increase in loans to small farmers, so this is good news.”

The report shows that nearly 220,000 loans worth nearly $ 59 billion have been disbursed, and many farmers have benefited from the Wage Protection Program.

He says the growth is driven in part by low interest rates. “If you were going to borrow some money, last year was a good time to do so because interest rates have been historically low,” he says. “We think this has led to a lot of refinancing and a lot of people taking out loans to do something new.”

Van Hoose also says the data could signal more young farmers will return to the farm, as well as higher costs. “Price inflation, land prices are rising in many places. Prices for materials, goods and the like that farmers use are definitely going up, which makes them borrow more. ”

A young farmer 35 years old or younger, a novice farmer has 10 years of agricultural experience, and a smallholder farmer has a gross annual farm sales of less than $ 250,000.



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