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.
Nebraska, the heartland of America, where corn and wheat grow tall and cattle grow fat. An outside observer would think that in Nebraska, of all places, there would be a lot of support for the Farm Credit System (FCS), right? Take another guess.
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.
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.