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.

A BC is also authorized to finance U.S. agricultural exports and provide international banking services for farmer-owned cooperatives.

An Agricultural Credit Association (ACA) is the result of the merger of a FLBA or a FLCA and a PCA and has the combined authority of the two institutions.

An ACA obtains funds from a FCB or an ACB to provide short-, intermediate-, and long-term credit to farmers, ranchers, producers and harvesters of aquatic products, and to rural residents for housing.

An ACA also makes loans to these borrowers for basic processing and marketing activities, and to farm-related businesses.

An FLCA obtains funds from an FCS bank to make and service long-term mortgage loans to farmers and ranchers, and to rural residents for housing.

An FLCA also makes loans to these borrowers for basic processing and marketing activities, and to farm-related businesses.

The Assistance Corporation provided approximately $1.26 billion before its authority to raise additional funds expired on December 31, 1992.

Following statutory requirements, the Assistance Corporation repaid its obligations in June 2005 and received a final audit in September 2005.

FLBAs originated and serviced long-term mortgage loans to farmers and ranchers, and to rural residents for housing.

A PCA also makes loans to these borrowers for basic processing and marketing activities, and to farm-related businesses.

With low crop prices, and the value of farm land falling, many farmers were unable to service their debts.