Farm Credit System

The Farm Credit System (FCS) in the United States is a nationwide network of borrower-owned lending institutions and specialized service organizations. The Farm Credit System provides more than $304 billion in loans, leases, and related services to farmers, ranchers, rural homeowners, aquatic producers, timber harvesters, agribusinesses, and agricultural and rural utility cooperatives.

Congress established the Farm Credit System in 1916 to provide a reliable source of credit for farmers and ranchers. Today, the Farm Credit System provides more than one-third of the credit needed by those who live and work in rural America.

The Farm Credit System function is to provide a source of credit for American agriculture by making loans to qualified borrowers at competitive rates and providing insurance and related services.

Congress established the Farm Credit System as a government-sponsored enterprise when it enacted the Federal Farm Loan Act of 1916. Current authority is granted by the Farm Credit Act of 1971. The Farm Credit System is considered the first GSE chartered by the United States.

The Farm Credit Administration (FCA), an agency of the federal government created in 1933, provides regulatory oversight for the Farm Credit System. The Farm Credit System Insurance Corporation (FCSIC), established by the Agricultural Credit Act of 1987, insures the timely repayment of principal and interest on FCS debt securities.

Three Farm Credit Banks (FCBs) provide loan funds to 50 Agricultural Credit Associations (ACAs) and one Federal Land Credit Association (FLCA). In turn, ACAs make short-, intermediate-, and long-term loans, while FLCAs make long-term loans, to farmers, ranchers, producers and harvesters of aquatic products, rural residents for housing, and certain farm-related businesses.

There are three FCBs:

There is also one Agricultural Credit Bank, with the authority of a FCB (and a Bank for Cooperatives):

FCBs were created on July 6, 1988, in 11 of the 12 then-existing FCS Districts when the FLB and FICB in each district merged. The mergers were required by the Agricultural Credit Act of 1987.

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