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Food & Health Sustainability USDA

Opportunities for Next Generations in Agriculture

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July 26, 2023
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  • Young farmers face systemic barriers such as student loan debt, lack of access to capital, and lack of access to land, which hinder their ability to succeed in the profession.
  • The U.S. Department of Agriculture (USDA) provides some support to young farmers through programs like the Farm Service Agency (FSA), but limitations in implementation and resources make additional support necessary.
  • Programs that streamline the loan process, increase access to loans and land, and alleviate student loan debt should be considered in the 2023 Farm Bill to improve the prospects of farming as a profession for young farmers.

As Congress prepares for the 2023 Farm Bill, it is crucial to address the struggles of younger generations of farmers, who bring unique abilities and perspectives to the field. The National Young Farmers Coalition’s 2022 National Young Farmer Survey shows that 86% of young farmers practice regenerative farming, while 97% use other sustainable practices. However, systemic barriers hinder young farmers from reaching their full potential, including student loan debt and lack of access to capital and land. The U.S. Department of Agriculture (USDA) serves as the main institution for young farmers, providing programs such as livestock insurance, crop insurance, and support for farm management. However, these tools are not sufficient for many young farmers, as limitations in implementation, technical support, and general resources have created conditions where young farmers require additional support.

Student Loans and The Need for Credit

Student loan debt is a major concern for many young farmers, with over 78% holding a postsecondary degree. Universities can help fill knowledge gaps and provide farmers with the necessary information, but college studies may not be sufficient for many young farmers. The need for credit and capital is crucial for farmers, as farming requires high upfront payments and increased expenses. The Farm Service Agency (FSA) is the main alternative to private credit providers, providing loans to young and beginning farmers. However, only seven percent of the agricultural loan market receives FSA support.

Access to Land

Access to land is also a critical issue for many young farmers. The USDA has programs that assist in land purchases, such as the Conservation Reserve Program Transition Incentive Project, but these tools do not fully address the land access needs of young farmers. The USDA does not directly provide opportunities for renting or technical assistance in acquiring land to rent, leaving farmers to navigate the process of finding land to rent and applying for it. This burden often leaves the farmer to navigate the process of finding land to rent and applying for it, which is an investment of time that not all farmers can spare. Organizations such as the Vermont Land Trust and American Farmland Trust (AFT) often fill this gap in government support. The Vermont Land Trust purchases land, conserves it, and rents it to farmers on set-length leases that can transition into purchase opportunities. The AFT assists farmers nationwide by providing technical assistance and informational resources.

However, the USDA has not had programs that fund technical assistance, but the FSA has authorized $300 million in COVID relief dollars towards the new Increasing Land, Capital, and Market Access Program. This program recognizes the connection between land access challenges and access to capital and markets, channeling funding to organizations to provide farmers with much-needed technical assistance and other resources. The Regional Food Business Centers Program (RFBCP) is another key program through which USDA is helping farmers receive business technical assistance.

Equity For Young Farmers

Equity for young farmers is a significant challenge, as many young farmers report feeling that their race or farming practices have made working with the USDA more challenging. The Young Farmers Success Act (H.R.2728) would offer student loan forgiveness to farmers through the Public Service Loan Forgiveness Program, encouraging more young people to become farmers while allowing them a chance to pursue an advanced degree in the agricultural field. The Increasing Land Access, Security and Opportunities Act (H.R.3955) would roll the program into more permanent USDA programs and provide $100 million in funding for the next five years.

Looking Ahead

Revised provisions in the 2023 Farm Bill could further assist in helping young farmers. The NYFC calls for an expansion of funding to the USDA’s new Beginning Farmer and Rancher Coordinator positions, expanded outreach, training programs for USDA agents, pre-approval and pre-qualification for FSA loans, indexing loan limits to land prices, simplifying the FSA microloan process, and working with USDA Rural Development programs to improve land and credit access. Community-based programs, such as improved research and data collection into land tenure and farmland ownership transitions, and expansions of technical assistance opportunities for farmers looking for land and programs that incentivize farmland transitions to young farmers would help young farmers find land easier.

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