agriculture review

Farm Credit System Of America: History & Scope

by aditya abhishek

It is a lending network of cooperative banks & associations spread throughout America which deals with farm capital requirements of  rural communities & individuals.

Farm Credit System

In the year 1916, U.S. Congress created Farm Credit System of America to solve financial problems of the rural population. 

Establishment

At present, customer-owned financial institutions of this system is present in every state of America in which The Funding Corporation plays a crucial role. It connects more than 600,000 customers.

Captal flows to FCS Banks via funds inveested by individual investors, dealers, & funding corportations. Banks give loans to farm credit associations. 

Working

Borrowers get loan from these farm credit associations. At present, there are 72 independent and customer-owned financial institutions connected with this sytem. 

Farm credit helps rural population to build their economy, infrastructure, farm, export, machinery, etc. You can even get benefitted if there is no regional or national bank in your region. 

Benefits

Small family farms to large corporative farms can get benefit of this farm credit service. One can also get financial products such as credit life insurance, crop insurance, etc.

Taking loan or farm credit from this system is much safer than traditional lenders. Farm Credit System is also the largest single lender to United States agriculture.

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