We're Community Based

Work with who you know. Farm Credit borrowers have long enjoyed the benefits of doing business with local Farm Credit offices, where people know their business, their community, and their market. At the same time, Farm Credit borrowers enjoy the financial strength and stability of a nationwide system with assets exceeding $325 billion.

Unlike commercial banks, Farm Credit institutions do not take deposits. Instead, money is raised by selling system-wide bonds on Wall Street. The proceeds are then channeled through Farm Credit Associations to agricultural producers and cooperatives.

Our Funding is Strong

The Farm Credit System is one of six Government-sponsored enterprises (GSEs) created by Congress. GSEs are privately owned corporations that help finance important sectors of the nation’s economy. Farm Credit’s charter is to serve agriculture and rural America.

Farm Credit loans are financed from the sale of system securities in our nation’s money markets. The size and strength of the system, coupled with its federal charter, allow system institutions to obtain funds at favorable rates.

Farm Credit securities are sold to investors in the form of system-wide bonds and discount notes, and are the joint and several obligations of all system banks. Investors include commercial banks, thrifts, governments, investment funds, and individuals.

The Farm Credit Symbol Is Meaningful

We’re Safe and Sound

Associations of the Farm Credit System were established under federal charters to provide sound and constructive credit to farmers, ranchers, agricultural cooperatives and farm-related businesses. To assure that this mandate is carried out under law, the system is subject to rigorous regulation by the Farm Credit Administration (FCA), an independent regulatory agency of the federal government. The FCA requires all Farm Credit institutions to meet risk-based permanent capital standards.

In addition, the Farm Credit System Insurance Corporation (FCSIC) was created in 1987 to stand behind Farm Credit Institutions. The FCSIC Insurance Fund, which is financed by the system, ensures payment to holders of system securities in the event of future economic stress. Meanwhile, the Farm Credit Banks Funding Corporation manages the sale of system securities and provides financial and advisory services.

 

Our Structure is our Strength

A variety of Farm Credit institutions make loans to farmers, ranchers, co-ops, agribusinesses and rural home buyers. As part of the Farm Credit System, associations operate under a variety of trade names, including Production Credit Association (PCA), Federal Land Credit Association (FLCA), and Agricultural Credit Association (ACA).

Production Credit Associations (PCAs) provide short and intermediate-term loans for various purposes such as operating expenses, farm equipment, livestock, farm buildings, and other capital improvements. These loans normally have maturities of less than seven years.

Federal Land Credit Associations (FLCAs) provide long-term real estate and rural home mortgages, and also refinance existing mortgages and other debts.

Agricultural Credit Associations (ACAs) have been formed around the country through the merger of PCAs and FLCAs, and offer short, intermediate-term and long-term loans.

 

Our Borrowers are Owners

The Farm Credit System is the only major agricultural lender owned by its borrowers. This cooperative structure helps assure reasonable priced credit will be available during both good times and bad. Farm Credit System borrowers make a small stock investment in the Association before receiving financial services.

Voting stockholders have the right to participate in elections and have a voice in their Farm Credit institution. A board of directors elected by the institution’s stockholders governs every association.