The House Agriculture Committee recently held a hearing titled “A 2022 Review of the Farm Bill: The State of Credit for Young, Beginning, and Underserved Producers.”
During his opening statement, chairman David Scott of Georgia said those producers face difficulties in obtaining credit that our more seasoned and established producers may not encounter.
“Historically, these groups of producers tend to have financial positions that are less desirable to lenders. Their financial position may be linked to a very limited production history that has not allowed for much equity to be gained in their operations or the smaller scale of production that they are engaged in, among other factors,” he said. “It should be noted that the average age of our farmers and ranchers in this country is approaching 60 years of age. We must ensure that the next generation of men and women who take the place of those retiring from this grand occupation have the tools necessary to continue to produce the food and fiber that we rely on for our existence.”
He said agriculture is a capital-intensive industry, and credit serves as a tool to support producers, rural economies, and the American people.
Ranking member Glenn G.T. Thompson of Pennsylvania agreed it was an important issue, but he wants to see programs in place to make credit less necessary.
“FSA’s credit programs can play a role in helping farm operations transition to the next generation, but we cannot examine them in a vacuum. Rather than simply pushing programs that allow producers to borrow more, the Committee should also be seeking solutions that help things cost less and reduce the reliance of young and beginning farmers on government loans,” he said. “Many farmers and ranchers will borrow more in each growing season than the average American will borrow in their lifetime. But year in and year out, our producers take this huge financial risk because they believe in the work they are doing, they believe in living and raising a family in rural America, and with the right combination of policies—including our credit programs—we can help our farmers feed and clothe this nation and the world.”
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Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.