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Farm Credit Administration

Farm Credit Administration (FCA), an independent agency of the executive branch of the federal government that supervises and regulates the Farm Credit System (FCS) for American agriculture. The Farm Credit Act of 1971, which superseded all previous legislation, authorizes the FCS to provide long-term and short-term credit to farmers and their cooperatives. Long-term mortgage loans help farmers acquire property or refinance existing debts; short-term loans are needed to finance crop and livestock production and marketing. In addition, the FCS makes emergency crop and feed loans to farmers who cannot obtain funds from other sources. Legislation in 1985 separated the FCA from the FCS and made the FCA a regulatory body with respect to the FCS.

Credit used by farmers and cooperatives is provided in the FCS through a network of farm credit banks, federal land bank associations, production credit associations, and banks for cooperatives. The farm credit banks make loans to agricultural cooperatives for periods ranging from six months to three years. The loans are secured by warehouse receipts for crops or by liens on livestock. The land banks function as credit wholesalers, raising funds in the investment markets through the sale of bonds and lending the money to farmers at low interest rates. Production credit associations finance short-term credit associations, and banks for cooperatives finance cooperative marketing. Other components of the FCS include the Agricultural Credit Bank, agricultural credit associations, and federal land credit associations.

History

The origins of FCA and FCS date to 1916, when the Federal Farm Loan Bureau, the Federal Farm Loan Board, and Federal Land Banks were established in response to farmer requests for liberal credit facilities and low interest rates. A system for mortgage credit was created; 12 regional farm land banks were set up, with most of the original capital supplied by the government. It was intended that the farmer-borrowers should ultimately own the banks. An act of 1923 further extended federal aid to farmers, establishing 12 intermediate credit banks (one in the district of each land bank), with capital supplied by the government.

Six years later the whole structure of the land banks was severely hit by the Great Depression , with falling prices of farm products, increased debt delinquencies, and decline in the value of farms. In 1932 the government invested $125 million in the bonds of the land banks to bolster them and thus again became the majority stockholder. All then existing federal agricultural-credit organizations were unified into one agency, the FCA, by executive order in 1933. Congress authorized that agency to extend the system of farm-mortgage credit. Funds were made available for loans on easy terms for first or second mortgages—the so-called land bank commissioner loans—to debtors whose collateral was so low in value or so encumbered by debt as to make refinancing by the land banks unfeasible. The FCA was also authorized to establish 12 production credit corporations and banks for cooperatives. The result was a centralized source of farm credit.

A part of the Dept. of Agriculture after 1939, the FCA again became an independent agency in 1953. During the farm crisis of the 1980s, the Farm Credit Amendments Act (1985) gave the FCA more regulatory authority over the farm credit system and established a full-time FCA board of three persons, who are appointed for six-year terms. The Agricultural Credit Act (1987) established the Farm Credit System Insurance Corporation, the Federal Agricultural Mortgage Corporation (Farmer Mac), and other institutions to strengthen the FCS.

Related newspaper, magazine, and trade journal articles from HighBeam Research

(Including press releases, facts, information, and biographies)

	Cooperative Farm Credit loans total $36.7 billion.(30 Years Ago ... From the May & June 1977 issues of Farmer Cooperatives) Magazine article from: Rural Cooperatives; 5/1/2007; 124 words ; The Farm Credit System's loans outstanding on Dec. 31, 1976, totaled...total of $34.6 billion through the lending units of the Farm Credit System during 1976, a 15-percent increase from the $30...borrowed in 1975, according to figures released by the Farm Credit Administration. Federal ... Read more
	USA: MOODY'S ASSIGNS AA3 ISSUER RATING TO FARM CREDIT BANK OF TEXAS. Newspaper article from: IPR Strategic Business Information Database; 7/17/2008; 307 words ; ...issuer rating and A2 preferred stock rating with a stable outlook to the Farm Credit Bank of Texas. The Farm Credit Bank of Texas is part of the Federal Farm Credit System. The Farm Credit Bank of Texas' Aa3 issuer rating reflects a Baseline... Read more
	Relationship of chance: an award-winning relationship begins in the pages of Agri Marketing. Magazine article from: Agri Marketing; 9/1/2004; 700+ words ; ...management team of Champaign, Ill.-based Farm Credit Services of Illinois was searching for...communications firm to help re-energize the Farm Credit brand. After 85 years in business, the...other lending institutions. As a result, Farm Credit found itself losing market share among... Read more
	Farm Credit System celebrates 90th. Magazine article from: Rural Cooperatives; 9/1/2006; 348 words ; ...customer-owned financial partner, the Farm Credit System, celebrated its 90th anniversary...export of U.S. farm commodities, the Farm Credit System is the oldest and largest financial...cooperative in the nation. For 90 years, the Farm Credit System has been rural America's ... Read more
	Renewable institutions.(Commentary)(Farm Credit) Magazine article from: Arkansas Business; 10/8/2007; ; 648 words ; ...evolve. So do our institutions. The Farm Credit System is a great example of an organization...the past. For 91 years, since 1916, Farm Credit has been a reliable provider of financial...industry and rural America. Indeed, Farm Credit deserves much of the credit for providing... Read more
	Statement on the Death of Marsha Pyle Martin. Newspaper article from: Weekly Compilation of Presidential Documents; 1/17/2000; 151 words ; ...Martin, the Chairman and CEO of the Farm Credit Administration. Marsha Martin was...finance. As vice president of the Farm Credit Bank of Texas, she was the first woman senior executive in the Farm Credit System. She was also the first woman... Read more
	Farm Credit Administration.(AT CLOSING NEWS) Magazine article from: Agri Marketing; 7/1/2008; 26 words ; William J. Hoffman is promoted to COO for the Farm Credit Administration He has been with the Office of Secondary Market Oversight and the Louisville Farm Credit District. Read more
	Engel to succeed Sims as CoBank CEO.(NEWSLINE) Magazine article from: Rural Cooperatives; 1/1/2006; 427 words ; ...and has 37 years of service with the Farm Credit System, of which CoBank is a part. He...into the bank. Sims is chairman of the Farm Credit System's Presidents Planning Committee...the board of directors for the Federal Farm Credit Banks Funding Corporation, Farm ... Read more
	The Farm Credit Administration (FCA) allows Farm Credit Services, Grand Forks, ND, and AgCountry Farm Credit Services to consolidate their assets and charter a new association, AgCountry Farm Credit Services, ACA.(AT CLOSING NEWS)(Brief article) Magazine article from: Agri Marketing; 9/1/2007; 63 words ; The Farm Credit Administration (FCA) allows Farm Credit Services, Grand Forks, ND, and AgCountry Farm Credit Services to consolidate their assets and charter a new association, AgCountry Farm Credit Services, ACA. It will be located in Fargo... Read more
	USA: MOODY'S ASSIGNS A1 SUBORDINATED DEBT RATING TO THE FARM CREDIT BANK OF TEXAS. Newspaper article from: IPR Strategic Business Information Database; 8/31/2008; 350 words ; ...an A1 subordinated debt rating to the Farm Credit Bank of Texas (the Bank). In addition...All ratings have stable outlooks. The Farm Credit Bank of Texas is part of the Federal Farm Credit System. The Farm Credit Bank of Texas... Read more

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Related entries from encyclopedias, dictionaries, and thesauruses

	Farm Credit Administration Encyclopedia entry from: West's Encyclopedia of American Law FARM CREDIT ADMINISTRATION The Farm Credit Administration (FCA) is an independent agency of the executive branch...conservatorship over an institution. The FCA is managed by the Farm Credit Administration Board, whose three full-time members are appointed... Read more
	Farm Credit Act of 1933 Book article from: Major Acts of Congress ...Act The Governor of the Farm Credit Administration, herein after in this Act...organizations within the Farm Credit Administration to make loans for the production...Roosevelt officially formed the Farm Credit Administration to oversee the day-to-day... Read more
	Farm Credit System Book article from: The Columbia Encyclopedia, Sixth Edition see Farm Credit Administration . Read more
	Farmers Home Administration Act (1946) Book article from: Major Acts of Congress ...Ross Rosenfeld T he Farmers Home Administration Act (FHAA) of 1946 grew out of...controls, surplus destruction, and farm loans. The Farmers' Home Administration (FHA) became part of what is known as the Farm Credit System. The FHA was preceded by the Farm Security ... Read more
	Intermediate Credit Banks Dictionary entry from: Dictionary of American History ...the federal farm credit system; it created twelve production credit associations to...from the Federal Farm Loan Board to the Farm Credit Administration (FCA).Despite...Institute of Banking. Farm Credit Administration. New York: American...Benedict, Murray ... Read more

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