Farm Credit System

Farm Credit System, network of cooperatively owned banks regulated by the Farm Credit Administration (FCA). Originally established with capital from the government (1923), this system enables farm and fishing cooperatives to obtain loans from borrower-owned banks and credit associations. There are 12 U.S. Farm Credit districts each with a Federal Land Bank, Federal Intermediate Credit Bank, and a Bank for Cooperatives. A participating cooperative can obtain monies through various financial transactions that take place within the system. The Farm Credit System Capital Corporation administers the system, of which 3 members are selected by district banks, 2 are appointed by the FCA, 1 is elected by the corporation members, and 1 is selected by the secretary of agriculture if federal funds are added to the system.