by Cassie Bable, Texas Farm Service Agency
Callie Perry shared her love of agriculture with the United States Department of Agriculture (USDA) Farm Service Agency (FSA) eight years ago, at the age of 13, in an article written about her beef cattle operation — a business venture that started with a $5,000 FSA rural youth loan. As a result of that loan, Perry, now a Texas A&M University graduate has more than doubled the size of her original herd of cattle.
Perry’s passion for agriculture began on the family ranch in Lovelady, Texas. Even as a child, she enjoyed working on the family ranch, so much so, that she applied for an FSA rural youth loan because, as she expressed eight years ago, “If I had my own cows, I would be able to work more.” Perry still enjoys the family ranch and still doesn’t shy from a hard day’s work.
Younger generations raised in rural communities are often reluctant to take over the family farm or ranch because of the amount of work and financial volatility associated with the industry. The rural youth loan program teaches young, first-time borrowers about finance and the importance of developing a business plan and equips young entrepreneurs with the knowledge needed to run an agricultural operation thereby insuring the future of family farms.
The FSA rural youth loan program allows youth from ages 10 through 20 to apply for a $5,000 loan to start an agricultural, income-producing project. The loan can be used to purchase livestock, seed, equipment and supplies, buy rent or repair needed tools and equipment or pay operating expenses for the project.
Perry’s interest in starting an agriculture operation began when her dad heard about the FSA rural youth loan program on the radio and realized that it would be perfect for his daughter.
Perry jumped at the opportunity and qualified for a $5,000 loan. She owned four cows prior to the youth loan and expanded to a total of 10 with capital provided by FSA. She no longer has the original cattle that she purchased with the youth loan, but she still has some of their offspring. As a recent college graduate, she now has 30 head of registered Angus cattle.
“I did keep a few daughters so I do have prodigy out of my original herd, and now they are some of my best producers,” said Perry.
The entrepreneur graduated from Texas A&M University in May with a Bachelor of Science in animal science. The profit Perry made from her operation helped pay for her college education.
“I’m in better financial shape than a lot of my friends,” said Perry.
She recently transitioned from raising commercial cattle to raising registered cattle for the show industry. Perry’s dad owns 20 heads and her brother has five heads, making a family herd of 55. Perry’s brother, Dustin also used the rural youth loan program to build his herd of cattle.
Like any loan, there were terms and obligations that Perry agreed to, the most important being to pay the loan back with interest.
Starting a business venture as a teenager provides many life lessons. The hardest lesson for Perry was learning to deal with loss. If a calf dies, the owner not only loses that calf, but loses capital as well. Cattle owners have input costs just like any other business including feed, water, minerals, vaccinations and veterinarian bills.
“There was a time when I lost a lot of show calves and anything that could go wrong did go wrong,” said Perry. “Learning that loss is part of the business, was the hardest thing to learn,” she said.
Of course there are also good lessons to offset the bad. Youth loans are meant to develop life skills and prepare young borrowers for their future by establishing a good credit history, developing a sound business plan and reaping the rewards of exceptional fiscal responsibility.
“Using an FSA youth loan introduced me to the real world of loans and financial responsibility,” said Perry. “It also helped me get my foot in the door of the cattle industry and build a herd faster than I could on my own,” she said.
Perry is starting her post-graduate, professional career in a data analysis and customer relations position with Hewlett Packard that will allow her to continue living in College Station and close to the family ranch. Perry will have her hands full with a new career, but will remain involved in the cattle industry.
“Although Callie’s success with our youth loan program is outstanding, most of our young borrowers have done very well with their projects,” said Jennifer Stegall, farm loan specialist. “It’s rewarding to help young borrowers like Callie make a good start in a tough industry,” she said.
Stegall added, “Young adults like Perry who demonstrate the passion, willingness and ability to take over the family farm or ranch will continue to provide American consumers with the abundant and affordable food, fiber and fuel supply they enjoy today.”
