The Farm Credit System: Some Opportunities for Improvement

A review was made of the operations of the Farm Credit Administration (FCA) and the banks and associations which make up the Farm Credit System. FCA is an independent Federal agency which provides credit to ranchers, rural homeowners, and farm-related businesses through three separate banking systems. The System obtains its funds through the sale of bonds and discount notes, and the borrowers/owners pay all expenses necessary to operate the System. In addition, the System enjoys some benefits not available to other institutions, such as usury and income tax law exemptions. The Federal Farm Credit Board (FFCB) is the policymaking body for FCA.