Young, Beginning and Small Farmers Program

 

Lending Options for Beginning Farmers Presentation

Our Mission

Our organization is dedicated to improving the future of agriculture and rural America by supporting and educating young, beginning and small farmers and ranchers. We have made it part of our mission to provide resources to young, beginning and small farmers and ranchers to help insure a strong future for agriculture.

Objectives

The objectives of our young, beginning and small farmer and rancher program are:

• To increase the number of young, beginning and small farmers and ranchers in the Association's loan portfolio.
• To provide managerial education and financial training opportunities to young, beginning and small farmers and ranchers.
• Build long-term relationships that develop this group of customers into a loyal and profitable customer base for the future.

What is a Young, Beginning, or Small Farmer?

A Young farmer or rancher is one who is 35 years of age or younger. A Beginning farmer or rancher is defined as in the process of establishing an agricultural operation and who has not assumed full control and risk of the operation for longer than ten (10) years. A Small farmer is one who generates less than $250,000 in annual gross sales

Unique Challenges

Young, beginning and small farmers and ranchers face unique challenges, including:

• A lack of equity.
• Little or no risk bearing capacity.
• Developing the management skills and experience needed to manage the business.

Unique Programs Offered by Farm Credit of Southern Colorado

• Special exceptions to credit underwriting standards.
• Special pricing considerations when personal guarantees are provided to reduce loan risk.
• $200 scholarships for continuing farm management education.
• Loan officer time devoted to doing financial analysis of past years and projections.
• Loan guarantee assistance.

Underwriting Standards

The Association has adopted special underwriting standards in the areas of owner equity and working capital ratios, capital debt repayment capacity, and collateral to address the needs of our Young, Beginning and/or Small Farmers. Each situation will be considered on an individual basis. Loan officers will look for a sound business plan.

Pricing Considerations

Rates are determined by your financial position. However, we have special pricing options available under certain limitations:

• For young and beginning farmer loans with a personal guarantee, we will provide a rate consistent with the added strength of the personal guarantee.
• Government guaranteed loans also have a specific pricing advantage.

Support for Continuing Education

Tuition scholarships of up to $200 each (limited to 25 annually) are offered to offset the cost of appropriate farm management education or self study materials.

Loan Guarantee Assistance

We can assist qualified farmers in obtaining loan guarantees available through the Farm Service Agency farm loan program. Our staff will assist qualified applicants with the necessary forms and paperwork to complete an FSA Guarantee request.

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