; Farmer and Rancher Credit Usage by Operator Age and Socially Disadvantaged Status | Conferences | AgRisk Library


Conference Name Farmer and Rancher Credit Usage by Operator Age and Socially Disadvantaged Status

Bruce Ahrendsen and Ronald Rainey


This presentation examines credit usage by farmer and rancher age, with a focus on young operators (YFR). Farmer and rancher credit usage is stratified by operator age (less than 35, 35-64, and 65 or older), by location (state), and by socially disadvantaged farmer and rancher (SDFR, also known as historically underserved) status. SDFR groups are defined to include women; individuals with Hispanic, Latino or Spanish Origin; individuals who identify as American Indian or Alaskan Native, Black or African American, Asian, Native Hawaiian or other Pacific Islander. Non-SDFR is defined as individuals who identify as non-Hispanic, White men.

The U.S. Department of Agriculture’s Census of Agriculture data for 2012 and 2017 are used to provide information on population changes in total farms and YFR operations from 2012 to 2017, which are compared by SDFR status. The Census data are also used to estimate shares of YFR operations using agricultural credit by SDFR status.

Results reveal differences among YFR operations by SDFR status and state. YFR were more common among Pacific Islander, non-SDFR, Asian, American Indian, and Hispanic producers than Women and Black producers. Relatively large shares of farms with a YFR are in the Northern Plains, Midwest, and Ohio River Valley. Among YFR, non-SDFR are more likely to utilize credit than SDFR, such that it may be important to target educational and outreach programs to young SDFR on how to access and use agricultural credit.

The results are timely and of keen interest to educators, industry, and policymakers and are expected to assist in developing and adjusting policies and educational programs to effectively target, promote, and improve YFR success in general and for young SDFR groups.