Farm Credit System (FCS)

What is ‘Farm Credit System – FCS’

The Farm Credit System is a nationwide network of cooperative banks and associations that provide credit to farmers, agricultural concerns and related businesses. It was created by Congress in 1916 and was originally funded by the federal government to ensure American agriculture had a dependable source of credit. It is now self-funding and owned by its member-borrowers.

Explaining ‘Farm Credit System – FCS’

The FCS makes loans for a variety of purposes, including agricultural processing and marketing activities, rural housing initiatives, farm-related businesses, rural utilities and foreign and domestic companies involved in agricultural trade.

The FCS provides access to critically needed credit in rural areas where national and regional banks typically do not have a presence.

Further Reading

  • Feeding the fad: The Federal Land Banks, land market efficiency, and the farm credit crisis. – [PDF]
  • Historical developments in agricultural finance and the genesis of America's farm credit system – [PDF]
  • Agricultural credit and economic growth in rural areas – [PDF]
  • Measuring the efficiency of the Farm Credit System – [PDF]
  • Agency status for the cooperative farm credit system – [PDF]
  • Is a revised mandate for the US farm credit system needed? – [PDF]
  • Farm income and output and lending by the farm credit system – [PDF]
  • The farm credit system as a government-sponsored enterprise – [PDF]