Summary: The number of new farmers has declined considerably in recent years, largely because of unfavorable economic conditions in the agricultural sector. Also, people interested in farming often encounter problems in obtaining financing to cover the costs of acquiring and operating a farm. The Farmers Home Administration (FmHA), "lender of last resort" for the nation's farmers, has not targeted loan funds to beginning farmers, but such individuals can get loans if they are able to meet the agency's relatively lenient loan-making standards. FmHA has given beginning farmers priority in leasing or purchasing from its inventory of farm properties, but the suitability of these properties for beginning farmers is often questionable. Additionally, some states sponsor programs that target loan assistance to beginning farmers. Beginning farmers may have difficulty, however, in qualifying for credit through these programs or at FmHA. FmHA has yet to fully implement the beginning farmer provisions of the 1990 Farm Bill, such as establishing innovative programs for financing and for assisting in land transfers between generations of farmers. In October 1992, Congress mandated that the agency establish programs targeting farm ownership and farm operating loans to beginning farmers.
