BETTING THE FARM
The FARM CREDIT SYSTEM’S 105-year deviation from its mission to serve farmers.
Conceived as a government-sponsored enterprise (GSE) that would support small American farmers, the Farm Credit System (FCS) now plays the role of a major investment bank, funding luxury vacation homes, publicly-traded companies and telecom acquisitions, and competing unfairly for loans because of its lower tax rates and government sponsorship. Today’s FCS is a bloated economic liability with an insatiable appetite for growth.
Take a look back on how the Farm Credit System lost its way...
Congress creates the FCS to serve farmers. FDR establishes the Farm Credit Administration as its regulator 17 years later.
FDR establishes the Farm Credit Administration as the official regulator of the FCS.
Congress grants the FCS a $4 Billion bailout, setting a precedent for the future of taxpayer-funded bailouts of Fannie and Freddie.
FCS lends upwards of $8 Million to a developer building a golf course - just one of many built with taxpayer-backed FCS funds.
FCS enters into a $750 Million credit agreement with Cracker Barrel restaurant.
FCS enters into a $750 Million credit agreement with Cracker Barrel restaurant.
FCS’s net income from 2002-2017 nearly tripled, spiking from $1.3 billion to $3.7 billion. At the same time, loans to small farmers decreased 14 percent.
FCS extends $550 million to Rayonier Inc., a timber company, to build out a debt-ridden venture in New Zealand.
Verizon receives a $725 Million loan from the FCS to finance the purchase of a European cellular company.
FCS decreases its new loans to Young, Beginning, and Small (YBS) farmers by about 10% across all categories.
The FCS's total YBS loans decrease by 10%+ while total assets increase by 25%+.
The FCS makes $6 billion in profits and pays $172 million in taxes, a rate of 2.8 percent.
FCS institutions join in a $550 million loan to publicly traded Louisiana-Pacific, a building materials manufacturer.
FCS participates in $175 million loan to Growve, which acquires health, wellness and beauty brands.
FCS advertises multi-million dollar luxury beach homes for sale.
