Reform Farm Credit recaps the Senate Committee on Agriculture, Nutrition and Forestry’s oversight hearing of the Farm Credit System on May 19, 2016.
The Farm Credit System (FCS) has a well-documented history of operating out of the bounds of its charter to its advantage. The last time it over-expanded, it held its hand out expectantly, waiting for the Treasury to issue it a $4 billion bailout.
Last month the House Committee on Agriculture grilled the Farm Credit Administration (FCA) on its inability to keep the Farm Credit System (FCS) in check. And word has been getting out.
Since no one should have to sit through two and a half hours of testimony from the Farm Credit Administration (FCA), the Reform Farm Credit team has decided to give a rundown of the committee’s best questions and the FCA’s lackluster responses.
The Farm Credit Administration (FCA) likes to bury the truth under mountains of data and vague platitudes, but even still, we’ve found the answer to our question: how much of the Farm Credit System’s (FCS) lending is to young, small and beginning farmers?
If you thought CoBank had put a stop to their irresponsible mission creep, you’d be dead wrong. This time, CoBank, an affiliate bank of the Farm Credit System (FCS), has fallen back on one of its old standards: lending to huge telecoms.
Government-sponsored enterprises (GSEs) like the Farm Credit System (FCS), Fannie Mae and Freddie Mac are no strangers to huge federal bailouts. And while Congress has been willing, in the past, to bail them out when they’ve gone too far, Congress isn’t always willing to kowtow whenever Fannie, Freddie or the FCS make demands.
Government-sponsored enterprises (GSE) Fannie Mae, Freddie Mac and Farm Credit have a shared history of federal bailouts. They’re also predisposed to shower their senior leadership with staggering compensation packages. The saga continued this month as The Washington Times reported that the chief executives of Fannie Mae and Freddie Mac would receive monumental pay increases from $600,000 to $4 million.