Reform Farm Credit

Expanding Again Beyond Serving Farmers, Farm Credit Partners with Quicken on Mortgage Loans

Farm Credit System (FCS) lenders have a knack for expanding the scope of the FCS’s mission, extending some questionable loans and striking some strange partnerships. One need only look at Farm Credit’s ties to global packaging firm Greif, Inc., to PacifiCorp powering a Facebook data center, and to any number of telecommunications firms like Frontier or Verizon.

What’s just one more on the heap?

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Shocking Merger Between Yankee Farm Credit & Farm Credit East Reveals FCA’s Lack of Disclosure & Consideration of Harmful Effects on Farmers, Ranchers & Producers

It comes as a shock to hear that Yankee Farm Credit, serving Vermont and parts of New York and New Hampshire, will soon be merged with Farm Credit East, which covers New Jersey all the way to Maine. Yankee Farm Credit holds $586 million in total loans to Farm Credit East’s $8.2 billion. Though it’s dubbed a “strategic merger,” it’s better characterized as outright consolidation – Yankee Farm Credit and Farm Credit East are barely in the same league.

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FCA Board Let Farm Credit Get Away with Serious Violations in First Quarter, American Farmers & Taxpayers to Pay the Price

 

As a government-sponsored enterprise (GSE), the Farm Credit System (FCS) answers to a regulator, the Farm Credit Administration (FCA). With nominal oversight from the FCA, the FCS often gets away with a lot. It can’t get everything that it wants, but what it gets is bad enough for America’s farmers and taxpayers.

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FCS Escapes Scrutiny of its Failures to Support YBS and SD Farmers

On March 24, Farm Credit lucked out at a key congressional hearing.  The House Appropriations Committee’s Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies held an oversight hearing featuring the Farm Credit Administration (FCA), the Farm Credit System’s (FCS) regulator.

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Farm Credit Needs Independent Regulators to Watch the Watchmen

Farm Credit System (FCS) institutions span the country, extending questionable loans, raking in gobs of cash, and doing so with only light regulation by the Farm Credit Administration (FCA), an independent agency within the executive branch. Congress, in turn, oversees the FCA’s regulatory program.

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Farm Credit Consolidations Leave Farmers with Less Local Control

The Farm Credit System (FCS) primarily serves its customers through individual associations. For the most part, each association has a defined territory, and this patchwork of different territories covers the entire country. But over the past few decades, the number of associations has dropped considerably – the result of a wave of consolidations – resulting in a loss of local control.

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High Profits, Low Taxes: How Farm Credit Cashes in on Tax Breaks While Failing Farmers

Imagine a sprawling, nationwide network of businesses with $365 billion in assets, paying only a minuscule amount of taxes, undercutting its competition, and not receiving the congressional oversight it deserves. 

Imagine no more – this is the Farm Credit System’s reality (FCS). 

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New Year’s Resolutions for Farm Credit and the FCA

The end of 2020 and the beginning of 2021 brings us a time-honored tradition – New Year’s resolutions! Reform Farm Credit has a few to share with the Farm Credit System (FCS) and its regulator, the Farm Credit Administration (FCA).

First, and this shouldn’t come as any surprise, the FCS needs to stop any sort of “lending for nonagricultural purchases.” Farmers need credit for more than just farming, but Farm Credit shouldn’t be extending loans for any purpose other than to sustain agriculture. This is on the FCA too: enforce the spirit of the Farm Credit Act, and stop FCS lenders from lending outside of their mission.

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Year in Review: Reform Farm Credit

It’s the end of 2020, and with 2021 fast approaching, many are looking in the rearview mirror at this year’s most memorable events. Reform Farm Credit is no exception. For the Farm Credit System (FCS), 2020 has been a year packed with memorable news. 

Earlier this year, Farm Credit acknowledged that Farm Credit Services of Hawaii was defunct – it was absorbed by American AgCredit based in California. While the number of associations dwindles, the overall size of the System grows larger and larger, ballooning from $353 billion in September 2019 to nearly $385 billion in September 2020

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Farm Credit Loans Help Global Packaging Firm Refinance Euro Senior Notes

The Farm Credit System (FCS), a nationwide network of lenders backed by the federal government to support farmers, has a knack for finding clients right on the edge of what constitutes “agriculture.” These clients are just close enough to net Farm Credit a steady profit, but they’re taken on at the expense of the young, beginning and small farmers that Farm Credit was created to serve.

This time, Farm Credit has extended financing to Ohio-based Greif, Inc., a “global leader in industrial packaging products and services.” CoBank, the largest FCS institution, will lead other System lenders in a syndicated deal for $225 million, on which Greif estimates it will pay less than three percent in interest.

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