YBS

Young, beginning and small (YBS) farmers and ranchers

At Alabama Farm Credit, we recognize that the future of American agriculture depends on a new generation of producers. That’s why we are committed to supporting the young, beginning and small farmers in our territory.

Whether you’re a 4-H member buying a show heifer for a foundation herd, a young person taking over the family farm or an older couple investing your savings in a new agricultural venture, we applaud and support your efforts.

Definition of Young, Beginning and Small Borrowers

Young borrower – a farmer, rancher, producer or harvester of aquatic products who is age 35 or younger as of the loan transaction date.

Beginning borrower – a farmer, rancher, producer or harvester of aquatic products who has 10 years’ or less farming, ranching or aquatic experience as of the loan transaction date.

Small borrower – a farmer, rancher, producer or harvester of aquatic products who normally generates less than $250,000 in annual gross sales of agricultural or aquatic products.

New Generation II Loan Program

Through our New Generation II loan program, we offer competitive financing for young and beginning farmers to the full extent of their creditworthiness. We also sponsor or donate to organizations that contribute to the education of this important group.

The loan program offers a reduced start-up cost and underwriting standards to accommodate the financial needs of young and beginning farmers. Eligible borrowers must fit the definitions of a young and beginning farmer and be the sole owner or operator of the security. Borrowers requiring a co-signer as a credit enhancement also are eligible.

Without a guarantee, a borrower may finance up to $400,000. With a guarantee, the customer may borrow the maximum guarantee of the loan amount. To assist borrowers in obtaining additional down payment toward a purchase, consideration will be given to joint financing.