Farm Credit System

Farm Credit System — As the leading lenders to the agriculture sector, the Farm Credit System and commercial banks compete aggressively to provide the capital necessary to fuel agriculture's production, processing, and marketing costs. This competition results in lower borrowing costs and better service for farmers, ranchers, cooperatives, and eligible agribusinesses. In addition, Farm Credit's presence in the market ensures the availability of credit through the inevitable good and bad cycles of agriculture.

NASDA supports the Congressionally-established mission of the Farm Credit System, recognizes the unique nature of agriculture sector financing, and supports a nationwide system. The Farm Credit System has a mission to serve the financial needs of agriculture and rural America by providing capital, expert advice and competitive financial services and products.

NASDA supports modernizing the Farm Credit charter to enable Farm Credit institutions to finance all of production agriculture including commercial fisheries and forestry and, to purchase entire farm loans from commercial banks on a voluntary basis. Leveraging Farm Credit to provide credit to all agricultural processing companies, rural businesses, rural homeowners, and others in rural America should also be considered.

NASDA opposes any efforts to restructure the Farm Credit System to the extent that farmers would be replaced on boards of directors with commercial bankers. As a cooperative owned and controlled by its customer-members, any governance structure changes to Farm Credit institutions should require stockholder approval. NASDA supports the continued cooperative ownership of the Farm Credit System and its status as a government sponsored enterprise; and supports maintaining the Farm Credit Administration as the System’s independent regulator and the agency’s focus on Farm Credit System safety and soundness and mission fulfillment.