Among its historic accomplishments, the Farm Credit System qualified for the first-ever federal taxpayer bailout in 1987, a $4 billion golden parachute.
The System has ballooned into a $315 billion government-sponsored banking behemoth, lending hundreds of millions of dollars to large businesses while denying loan applications from small farmers.
- Following an investigatory hearing by the House Committee on Agriculture, the Farm Credit System’s regulator, the Farm Credit Administration, revealed that the Farm Credit System was “vulnerable to a market crisis.”
- On September 24, 2013, the U.S. Treasury approved an additional $10 billion line of credit for the Farm Credit System – with no questions asked. In October 2014, the System asked for even wider loan-making authority.
The FCS made $4.85 billion in profits in 2016 but paid only $175 million in federal, state and local taxes. That’s an effective tax rate of only 3.61 percent.
- The Farm Credit System is not supposed to be in the mining business, yet they make hundreds of millions of dollars each year from mineral rights from foreclosed properties.