The Farm Credit System

1. The Farm Credit System

2. The Farm Credit System The Farm Credit System is a member-owned lending cooperative operated under the supervision of the Farm Credit Administration. The System has its roots in the establishment of the Federal Land Bank System in 1916.

3. The Farm Credit System The Farm Credit System, as we know it now, is made up of: • The Farm Land Bank System (1916) • The Production Credit System • The Federal Intermediate Credit Banks (1923) • The Production Credit Association (1933) • The Banks for Cooperatives (1933)

4. The Farm Credit Administration The Farm Credit Administration consists of: • the Federal Farm Credit Board; • the Governor; and • the Staff.

5. The Federal Farm Credit Board • The Federal Farm Credit Board is made up of 13 members, one from each of the 12 Farm Credit Districts in the U.S., and one appointed by the Secretary of Agriculture. The twelve district representatives are appointed for six-year terms by the President of the United States and approved by the Senate.

6. The Governor and Staff • The Board appoints a governor to direct the operations of the Farm Credit Administration and also to act on policy directives for the Farm Credit System as a whole. The governor of the Farm Credit Administration and staff are responsible for the examination and supervision of the system.

7. The Farm Land Bank System • With the help of “seed” capital provided by the federal government, which has since been repaid, the Farm Land Bank System was established in 1916. The Federal Land Banks make long-term real estate loans to farmers.

8. The Production Credit System • The Federal Intermediate Credit Banks were established in 1923 for the purpose of discounting short-term loans made by commercial banks. • The Production Credit Associations were established in 1933 to make short-term and intermediate-term loans to farmers.

9. The Banks for Cooperatives • The Banks for Cooperatives were established in 1933 to provide a source of loan funds to farmer-owned marketing, supply, and service cooperatives. The Central Bank for Cooperatives is located in Denver, CO, which acts as a clearinghouse on loan funds for those district Banks for Cooperatives experiencing temporary surpluses or shortages of funds.