Farm Credit Administration

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Farm Credit Administration

The Farm Credit Administration (FCA) is an independent agency of the Executive Branch of the federal government. It supervises and coordinates the Farm Credit System, which is a centralized banking system designed to serve U.S. agricultural interests by granting short- and long-term credit through regional banks and local associations. Although initially capitalized by the federal government, the banks and associations that make up the Farm Credit System are now financed entirely through stock that is owned by members, borrowers, or the associations. The FCA ensures the safe operation of these lending institutions and protects the interests of their borrowers.

The Farm Credit System was established in 1916 in response to the unique credit needs of farmers. Federal land banks were established to provide adequate and dependable credit to farmers, ranchers, producers or harvesters of aquatic products, providers of farm services, rural homeowners, and agricultural associations. During the 1930s, the Depression and falling farm prices increased debt delinquencies and led to a serious decline in farm values. Many loan companies and credit institutions failed. In 1933, President franklin d. roosevelt directed Congress to create the FCA to oversee the entities that grant credit to farmers and ranchers. All government farm credit programs, including the land banks and intermediate credit banks, were unified under the new agency, which was established by the Farm Credit Act of 1933 (U.S. Pub. Law 73-76, 48 Stat. 257).

The modern FCA derives its authority from the Farm Credit Act of 1971 (12 U.S.C.A. § 2241 et seq.), which superseded all prior authorizing legislation. The FCA examines the lending institutions that constitute the Farm Credit System to certify that they are sound. It also ensures compliance with the regulations under which the Farm Credit institutions operate. To that end, it is authorized to issue cease-and-desist orders, levy civil monetary penalties, remove officers and directors, and impose financial and operating reporting requirements. It may directly intervene in the management of an institution whose practices violate the Farm Credit Act or its regulations. It also may step in to correct an unsafe practice or to assume formal conservatorship over an institution.

The FCA is managed by the Farm Credit Administration Board, whose three full-time members are appointed to six-year terms by the President of the United States, with the advice and consent of the Senate. The board meets monthly to set policy objectives and to approve the rules and regulations that govern the FCA's responsibilities.

The FCA also manages the Federal Agricultural Mortgage Corporation, known as Farmer Mac. According the FCA web site, Farmer Mac provides a secondary market for agricultural real estate and rural housing mortgages. It guarantees prompt payment of principal and interest on Securities representing interests in, or obligations backed by, mortgage loans secured by first liens on agricultural real estate or rural housing. It also guarantees securities backed by the guaranteed portions of farm ownership and operating loans, rural business and community development loans, and certain other loans guaranteed by the u.s. department of agriculture.

As of January 1, 2003, according to the FCA web site, the Farm Credit System was composed of Five Farm Credit Banks that provide loan funds to 81 Agricultural Credit Associations (ACAs), and 13 Federal Land Credit Associations (FLCAs). ACAs make short-, intermediate-, and long-term loans, and FLCAs make long-term loans. The Farm Credit System also had one Agricultural Credit Bank (ACB), which has the authority of an FCB and provides loan funds to five ACAs. In addition, the ACB makes loans of all kinds to agricultural, aquatic, and public utility cooperatives and is authorized to finance U.S. agricultural exports and provide international banking services for farmer-owned cooperatives.

The Farm Credit Administration web site offers extensive information about its roles and duties at


Agricultural Law.

References in periodicals archive ?
He also will serve as a member of the Farm Credit System Insurance Corporation board.
FCC Services provides numerous resources, programs and services for the Farm Credit System, agricultural cooperatives and other public and private businesses.
The Farm Credit System is a cooperative system owned by its member/borrower associations.
The subscribers to the captive are the Farm Credit banks and associations, which are part of the Farm Credit System established by Congress in 1916 to provide American agriculture with a dependable and dedicated source of credit.
He also serves as chairman of the Farm Credit System Insurance Corporation.
After 95 years of supporting agriculture and rural America, Farm Credit is proud to introduce America's hardworking farmers and ranchers--such as the Freemans and Kasbergs--to consumers as we celebrate this important milestone," says Joy Upchurch, a Farm Credit System employee for more than 30 years and vice president of AgFirst Farm Credit Bank, one of the wholesale banks within the Farm Credit System.
April 30, 2014 /PRNewswire/ -- Two members of the Farm Credit System, GreenStone Farm Credit Services and AgriBank, have taken a significant step in their commitment to non-traditional urban agriculture through a newly announced partnership with Hantz Farms in Detroit.
The Farm Credit System is a federally chartered network of borrower-owned lending institutions comprised of cooperatives and related service organizations.
Retiring president and CEO Roger Shaffer has been with the Farm Credit System for 28 years and served in his current capacity for the past eight years.
Farm Credit Retail Bonds are a type of Consolidated Systemwide Bonds issued by the Banks of the Farm Credit System that will be issued in denominations of $1,000 for fixed rate bonds and $100,000 for floating rate bonds with maturities ranging from 1 to 30 years.
6, 2013 /PRNewswire/ -- GreenStone Farm Credit Services, the sixth largest association in the Farm Credit System, continued to produce very strong financial results in the second quarter of 2013.
Visitors to the website can: find local Farm Credit System associations; research and apply for Farm Credit career opportunities; apply for grants or sponsorships through Farm Credit's $2 million national contributions program, and access photos and videos about Farm Credit, among other features of the website.

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