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What is the Farm Credit Advantage?

Our Mission

Other lenders may lend to agriculture and rural America only when it is profitable to do so, but at Farm Credit, financing rural America is all we do. When Congress created the Farm Credit System in 1916, it gave the System a mission to be a competitive, reliable source of funds for eligible borrowers in agriculture and rural America. Because we specialize in these areas, we have expertise that is unparalleled among other lenders.

Our Funding

As part of the Farm Credit System, the largest rural lender in the nation, we benefit from having a dependable source of funding — AAA-rated Farm Credit bonds and notes, which are sold in the nation’s capital markets.

Our Cooperative Structure

Farm Credit’s enduring strength lies in its cooperative structure. The Farm Credit Bank of Texas is a federated cooperative, which is a co-op that is owned by a group of cooperatives — in our case, 14 local lending co-ops to which we provide funds and services. These co-ops, in turn, are owned by their borrowers: farmers, ranchers, agribusinesses, rural homeowners and other rural landowners. This cooperative structure gives our customers — and their customers — a vested interest and a voice in our business:

  • Cooperative Ownership. As a co-op, we are owned by our customers — the people who buy the goods or use the services of the cooperative. All customer-members have an equal voice in the business, regardless of their equity share: One member, one vote.
  • Shared Earnings. We return our earnings to our customer-stockholders in the form of patronage. The more we earn, the more patronage we pay. This lowers our customers’ cost of borrowing.
  • Transparent Governance. Our policies are set by our board members, who are Farm Credit customers elected by their fellow customers. This form of governance provides transparency to our owners.
  • Tax Advantages. Certain Farm Credit cooperatives qualify for single tax treatment of income that they distribute as qualified patronage distributions to their borrowers. Under Subchapter T of the IRS Code, the cooperative is not taxed on this income; only the member-stockholders are taxed.