Introduction
Running a farm or ranch often involves seizing opportunities to grow—whether it’s expanding acreage, upgrading equipment, or investing in infrastructure. These improvements, however, can come with significant costs. While some producers may have the cash on hand to fund these investments, many will need external financing. Fortunately, a variety of agricultural lenders are available, including the Farm Service Agency (FSA), commercial banks, insurance companies, equipment financing firms, and more.
This publication—first in the Knowing Your Agricultural Lenders series—introduces the Farm Credit System (FCS), a unique cooperative lending network dedicated to serving agriculture and rural communities.
Establishment of FCS and Recent Developments
FCS was created by Congress in 1916 to provide American farmers with a stable and dependable source of credit. As the nation’s oldest government-sponsored enterprise, FCS consists of a network of federally chartered, cooperatively owned lending institutions.
FCS is regulated and supervised by the Farm Credit Administration (FCA), while the Farm Credit System Insurance Corporation (FCSIC) ensures timely payment of debt securities issued systemwide. These securities, managed by the Federal Farm Credit Banks Funding Corporation, help raise capital for FCS lending activities. Additional funds are raised through the issuance of common and preferred stock.
Source : msstate.edu