Farm Credit System: Luxury Housing Division

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Eight and a half miles south of Union Station, Denver’s central hub, sits a majestic mansion.

Stone statues in the classical style stand in a brick portico, guarding the entrance. Outside, sparse evergreens adorn the fringes of the property. No need to worry though: the pool table, full-sized bar, exercise room, and media center make up for the scant recreational activities available outdoors. All of this lies on just over one acre of land, in the suburbs of Denver, a twenty minute drive away. This palace, just outside Denver’s city limits, in an area the federal government considers urban, is on the market for $5.7 million.

So why is the Farm Credit System (FCS) attempting to find a buyer so it can finance its sale?

It’s as plain as day: the FCS is luring buyers for luxury properties so that they can finance the deals and reap a hefty profit. And they do all of this while maintaining tax-exempt status and leaving taxpayers to potentially pick up the check for a bailout worth billions.

The FCS was founded at the beginning of the 20th century to help farmers across rural America access credit. Since then, the FCS has strayed far from its true purpose. On top of financing golf courses, international corporations, and Hawaiian vacation homes, it seems the FCS’ “luxury homes division” has moved east, all throughout Colorado.

Meanwhile, young and beginning farmers across the nation languish without proper investment. How many small farmers have to go bankrupt before the FCS returns to its true mission? How many times will taxpayers have to bailout the FCS? One is too many. It’s time for Congress to keep the FCS in check.