What does the state of financial credit look like for young or beginning farmers?
The House Ag Committee met today to discuss the state of financial credit for young or beginning farmers.
At the center of the discussion were high input and start-up costs for those just entering farming and ranching. Roughly 25 percent of all U.S. farm operations are run by new or beginning producers, and they account for more than $60 million worth of sales, but they cannot secure the funding for the high start-up costs. Congressman Glenn Thompson from Pennsylvania says the next Farm Bill must focus on lowering start-up costs and provide more affordable borrowing options.
“Many farmers and ranchers will borrow more in each growing season than the average American will borrow in their lifetime. 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 program, we can help our farmers feed and clothe both this nation and the world,” said Thompson.
In June, Thompson and nearly 100 other lawmakers sent a letter to President Biden outlining their solution for reducing costs.
You can read the full letter below.