Reform Farm Credit is a campaign that is made up of voters, taxpayers, small farmers, good government organizations and local agricultural lenders. It has two primary missions:
- To educate Americans about how the Farm Credit System, a government-sponsored enterprise, no longer serves the people it was created to serve and puts American taxpayers at risk by making large, non-agricultural loans;
- To advocate for better oversight and significant reforms of the Farm Credit System by the US Congress.
Unless there is proper oversight and reform of the Farm Credit System, taxpayers will be on the hook for a bailout, farmers’ access to credit will be greatly reduced, and American agriculture will suffer. We can’t let that happen.
US TAXPAYERS AT RISK THROUGH FEDERAL BAILOUT
In 1987, the Farm Credit System was bailed out by US taxpayers to the tune of $4 billion. At the time, the FCS was worth $40 billion. Today, the Farm Credit System is worth $335 billion; if FCS needed another bailout, it would cost taxpayers $33.5 billion – an 837% increase from 1987.
- 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 US 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.
Check the Record – Farm Credit’s Systemic Risk
Farm Credit Insurance Corp. Lowers Premiums Despite Growing Debt
REGULATORY AND TAX ADVANTAGES CREATE UNEVEN PLAYING FIELD
If the Farm Credit System were a bank, it would be the 7th largest in the country – and nobody seems to notice. Its tax advantages, unparalleled access to taxpayer-backed credit, and lack of regulation often leave it as the only source of credit in rural areas.
- The FCS made $5.19 billion in profits in 2017 but paid only $38 million in federal, state and local taxes. That’s an effective tax rate of only .73 percent.
- The Farm Credit System is not supposed to be in the oil and gas business, but it makes hundreds of millions of dollars each year from mineral rights from foreclosed properties.
You pay your fair share of taxes. Why doesn’t Farm Credit?
GROWING LOANS TO BIG BUSINESS, SHRINKING LOANS TO SMALL FARMERS
Farm Credit System loans, far from their mission to support small local farmers, are being used to finance huge multinationals like Verizon, AT&T, Rayonier Inc., Cyrus One Inc. and more.
- A Farm Credit Bank issued a $725 million loan to telecom giant Verizon to finance its purchase of a European cellular company.
- The same Farm Credit Bank issues a $1.55 billion loan to an investor-owned company specializing in “server farmers” – data storage centers.
- The Farm Credit System isn’t adequately serving the young, beginning and small farmers it was created to serve. In 2017, the number of new Farm Credit System loans to young, beginning and small farmers dropped by more than 10 percent for each category.
- Of the total dollar value of loans doled out by the Farm Credit System in 2016, only 15.5% went to the small farmers that the FCS was created to serve.
CoBank Lends to Publicly-Traded REIT
Cobank props up foreign subsidiary of failing publicly-traded lumber company
2017 FCS LOANS TO FARMERS
- 2017 FCS LOANS TO SMALL FARMERS
- 2017 FCS LOANS NOT TO SMALL FARMERS
- 2017 FCS LOANS TO SMALL FARMERS
- 2017 FCS LOANS NOT TO SMALL FARMERS