Nationwide cooperative system of banks and associations providing credit to farmers, agricultural concerns, and related businesses. The system is comprised of the Banks for Cooperatives, which makes loans to farmer-owned marketing, supply, and service cooperatives, and rural utilities; the Farm Credit Banks, which make short and intermediate term farm loans secured by real estate; and the Federal Farm Credit Banks Funding Corp., which acts as a conduit through which the FCS issues debt in the credit markets. The Farm Credit Banks were created by merger of the old Federal Intermediate Credit Banks, making intermediate term farm loans, and the Federal Land Banks. A new agency, the Federal Agricultural Mortgage Corporation (Farmer Mac) was established by the Agricultural Credit Act of 1987 to create a secondary market for farm credit. Bonds, notes, and other obligations issued by Farm System institutions, other than the FAC, are insured by the Farm Credit System Insurance Corporation. Another federal agency, the Farm Credit Financial Assistance Corporation, provides capital assistance by issuing government guaranteed bonds. The Farm Credit System, originally capitalized by the federal government, is now self-funding and owned by its member-borrowers.
Farm Credit System
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The Farm Credit System is a federally chartered network of cooperatives and related service organizations that lends to agricultural producers, rural homeowners, farm-related businesses, and agricultural, aquatic, and public utility cooperatives in the United States. Federal oversight by the Farm Credit Administration is designed to provide for the safety and soundness of FCS institutions.
Farm Credit institutions are chartered by the federal government and must operate within limits established by the Farm Credit Act. Farm Credit is a government-sponsored enterprise.
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Authorization
Congress established FCS as a government sponsored enterprise when it enacted the Federal Farm Loan Act in 1916. Current authority is in the Farm Credit Act of 1971 (P.L. 92-181, as amended; 12 U.S.C. 1200 et seq.).
Mission
Its mission is to provide a permanent, reliable source of credit to American farmers, ranchers, producers or harvesters of aquatic products, their cooperatives, and farm-related businesses. It does so by making appropriately structured loans to qualified individuals and businesses at competitive rates and providing financial services and advice to those persons and businesses.
Consistent with this of serving rural America, it also make loans for the purchase of rural homes, to finance rural communication, energy and water infrastructures, to support agricultural exports, and to finance other eligible entities.
Member farm credit banks
FCS is composed of six regional Farm Credit Banks (FCB) and one Agricultural Credit Bank. These banks provide funds and support services to Federal Land Bank Associations (FLBA), Federal Land Credit Associations (FLCA), Production Credit Associations (PCA), and Agricultural Credit Associations (ACA). These associations in turn, provide loans to eligible borrowers. Lending associations are governed by boards of directors elected from FCS borrowers. Funds are raised through the sale of bonds and notes.
Five Member Farm Credit Banks:
See also
External links
- Federal Farm Credit Banks Funding Corporation - detailed information on the System's financial performance.
- MidAtlantic Farm Credit website
- AgFirst Farm Credit Bank website
- AgriBank website
- Farm Credit Bank of Texas website
- CoBank ACB website
- Farm Credit Administration
- History of Farm Credit System
- American AgCredit website
- Farm Credit News - Information about the Farm Credit System
- RSS Feed for Farm Credit System Insurance Corporation Meeting Notices and Rule Changes from The Federal Register
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
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 | Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Farm Credit System". Read more |
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Mentioned in
- Federal Farm Credit Bank (business term)
- Cooperative Bank (in banking)
- Money Market (business term)
- Federal Land Banks
- Federal Farm Credit System (finance term)
- Federal Intermediate Credit Bank (finance term)
- Farm Credit Administration (legal term)
- Agricultural Credit (in banking)
- AgriBank, FCB (Private - Cooperative Company)
- Agency Securities (finance term)
- Federal Agric Mtg Corp
- Intermediate Credit Banks (American history)
- Farmers Home Administration Act (1946)
- Farm Credit Act of 1933
