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For more information,
contact: Stan Ray, Vice President of Marketing and Corporate Affairs (512) 465-0577 |
| Farm Credit System Marks 90 Years of Service to Rural America | |
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AUSTIN, Texas – Rural America’s customer-owned partner, the Farm Credit System, celebrates its 90th anniversary of service on July 17, the date when President Woodrow Wilson signed the Federal Farm Loan Act in 1916.
Today, with more than $106 billion in loans to agriculture, rural landowners, country homeowners and small community infrastructure, the Farm Credit System is the oldest and largest financial cooperative in the nation.
“For 90 years, the Farm Credit System has been rural America’s customer-owned partner, and we look forward to continuing our support of U.S. agriculture and America’s rural communities,” said Ralph W. “Buddy” Cortese, board chairman of the Farm Credit Bank of Texas.
The legislation President Wilson signed into law in 1916 created a system of 12 regional Federal Land Banks that would grant loans to farmer-owned cooperatives, allowing farmers to borrow from their local institution, using their land and improvements as collateral.
Today, the Farm Credit System is a network of 101 borrower-owned lending institutions and related service organizations serving U.S. agriculture and rural America. These institutions specialize in providing credit and related services to farmers, ranchers and producers or harvesters of aquatic products. In addition, the Farm Credit System provides financing for the processing and marketing activities of these borrowers as well as to rural homeowners, certain farm-related businesses, and agricultural, aquatic and public utility cooperatives.
Unlike commercial banks, Farm Credit institutions do not take deposits. The System raises its funds through the sale of bonds in the nation’s securities markets.
As the System’s customer-owners repay their loans, the bonds are retired and Farm Credit investors are repaid. The System’s lending institutions are subject to full examination and regulation by an independent federal agency, the Farm Credit Administration.
“America’s farmers, ranchers and rural communities have benefited greatly from the vision and foresight that went into establishing the customer-owned Farm Credit System,” said Cortese, who is a New Mexico farmer and rancher. “Today, Farm Credit celebrates its heritage as it continues its mission to serve U.S. agriculture and rural America.” The Farm Credit Bank of Texas and 21 affiliated rural lending cooperatives comprise the Tenth Farm Credit District, which serves Alabama, Louisiana, Mississippi, New Mexico and Texas. The Tenth District has $10.4 billion in loans outstanding. |
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