Farm Credit Celebrates 90 Years of Service to Rural America

We have met some big challenges since 1916. Can we respond again? HORIZONS points the way.

In July of this year, we celebrated the Farm Credit System’s 90th anniversary. As we enter our tenth decade, it’s a good time to reflect upon the organization’s extraordinary history … and to look ahead as well.

Back in 1916, it was often very difficult for America’s farmers to secure credit necessary to purchase land, supplies, livestock and equipment. Fortunately, legislators and their constituents recognized that agriculture was essential for the continued growth of the nation and the health of the population, and Congress passed the Federal Farm Loan Act.

President Woodrow Wilson signed the bill on July 17, 1916, thus creating a system of 12 regional Farm Loan Banks that would grant loans to farm cooperative associations. The legislation also allowed farmers to borrow from their local institution, using their land as collateral.

90 years later

In 2006, with more than $108 billion in loans financing agriculture, agribusiness and rural America, the Farm Credit System is the oldest and largest financial cooperative in the nation. Today’s Farm Credit is a network of 101 borrower-owned lending institutions and related service organizations serving U.S. agriculture and rural America.

In recognizing this historic milestone, Gary Dyer, Farm Credit Services Southwest president and CEO, noted, “For 90 years, the Farm Credit System has served agriculture and rural America as a dedicated, reliable, competitive and customer-owned source of credit and related services. We look forward to a bright future for U.S. agriculture and America’s rural communities.

“Here in America’s Southwest, Farm Credit Services Southwest serves farmers and ranchers across Arizona and California’s Imperial Valley. Our farmers, ranchers and rural communities have benefited greatly from the vision and foresight that went into establishing the customer-owned Farm Credit System,” Dyer added.

Then and now (Click here)

America’s farmers faced some significant challenges a century ago, and Farm Credit stepped in to fill the breach as far as dependable financing was concerned. Yet despite our tremendous success in fueling the explosive growth of U.S. agriculture, American agriculture has again reached a point where action is required. Farm Credit has responded with the development of the HORIZONS initiative.

A brief look back ...

To set the stage for HORIZONS, consider that during the past 90 years average farm size has nearly tripled — from 150 acres in 1916 to about 440 acres today. Back then, most rural communities depended on agriculture to survive. Today, less than 10 percent of all farms remain “farming-only” businesses. The overwhelming majority of farmers, especially those who manage small operations, rely on off-farm employment to stay in agriculture.

Consider, too, that in 1916, 35 percent of the nation’s population lived on farms and another 60 percent lived in rural communities. Today, only about 2 percent of Americans live on farms, and the rural population represents just 21 percent of the total U.S. population.

Need for broader support

To maintain relevance in today’s world, Farm Credit must serve the rural population more broadly than we do right now. We will in no way shift our main focus from serving our core business of production agriculture; however, we must also find appropriate ways to serve the needs of a broader rural America.

Farm Credit: Still your reliable source

For 90 years, the customer-owned Farm Credit System has dedicated its resources and expertise to the singular mission of maintaining the quality of life in rural America and on the farm. In order to meet the needs of the changing agricultural environment, Farm Credit offers the HORIZONS initiative (see sidebar on page 3) to help ensure that essential national policy discussion about agriculture will continue.

Through HORIZONS, we are working to ensure that current Farm Credit customers and future generations of farmers and rural Americans will always have access to a specialized lender dedicated to supporting their business, financial and lifestyle objectives.

We want your input

By proactively addressing customers’ future needs with HORIZONS, Farm Credit promises to play an even more active role in helping strengthen agriculture and rural America for the next 90 years and beyond.

But we need your help. For more information and to read the HORIZONS report, go to the Farm Credit Council Web site at www.fccouncil.com and then share your thoughts with your local Farm Credit representative.

Another Reason to celebrate (click here)

Equal Housing Lender - Equal Credit Opportunity Lender - Equal Opportunity Employer.

© 2000-2007 Farm Credit Services Southwest, ACA, PCA, and FLCA. All rights reserved.