Young, Beginning and Small
Farmers and Ranchers (YBS)
At Lone Star Ag Credit, we recognize young, beginning and small (YBS) producers as the future of Texas' proud agricultural industry. We know it is important to start off on the right foot, and we are committed to financing a new generation of farmers and ranchers to the full extent of their creditworthiness.
Lone Star not only finances this important group, but we also strive to make financing for the YBS market easier to find. That's why we try to be at every event that a young, beginning or small farmer or rancher might attend.
Additionally, Lone Star Ag Credit supports programs and events that promote agriculture through education.
What is a Young, Beginning or Small Farmer?
- Young Farmer—one who is 35 years of age or younger.
- Beginning Farmer—one who has 10 or fewer years farming, ranching or aquaculture experience.
- Small Farmer—one who generates less than $250,000 in annual gross agricultural or aquatic sales.
YBS Loan Programs
The board of directors supports making these types of loans as part of the overall loan portfolio.
Our AgFast program, a quick loan-scoring program that is designed specifically for smaller loans, that generally meet the credit needs of YBS customers. This allows our staff to make quick decisions on loan approval. Also, when possible, we use various government guarantee programs to further help young, beginning and small producers obtain the funding they need.
4-H and FFA Loan Programs
Our 4-H and FFA loan programs provide financing to young people who are involved in either 4-H or FFA livestock projects and need financing for the purchase of an animal and/or for feed expenses. The interest rates charged on these loans are lower than those normally charged on similar loans. Loans will be subject to certain qualifications.
Lone Star Ag Credit wants to provide the tools necessary to equip our future businessmen and businesswomen with the skills necessary to make sound financial decisions in their adult lives.
YBS Advisory Board
Lone Star Ag Credit now has a YBS Advisory Board. The innovative ideas generated by this group of talented agriculturists help us meet the needs of the YBS demographic. New practices will continually be put into place to improve our financing for this group, making our loan programs both more economical and informative.
New Generation Loan Program
The new generation loan program is designed to promote and encourage lifelong lending relationships with young and beginning farmers. This program includes reduced interest rates for certain loan types and loan terms. To accommodate the financial needs for this type of borrower, special underwriting standards have been developed. Eligibility is specific to the individuals liable, and all agricultural loan programs are available.
- Sole owner/operator of security; and
- Under the age of 35 (“Young Farmer"); and
- Has not assumed the control and risk of such operation for longer than 10 years.
- To purchase or refinance land acquisition and/or improvements
- To acquire equipment, cattle or operating funds