The Farm Credit Act of 1971 () recodified all previous acts governing the

Farm Credit System The Farm Credit System (FCS) in the United States is a nationwide network of borrower-owned lending institutions and specialized service organizations. The Farm Credit System provides more than $304 billion in loans, leases, and related services t ...

(FCS), a cooperatively owned

government-sponsored enterprise A government-sponsored enterprise (GSE) is a type of financial services corporation created by the United States Congress. Their intended function is to enhance the flow of credit to targeted sectors of the economy, to make those segments of th ...

(GSE) that provides credit primarily to farmers and ranchers.

Background

The legislation was enacted by the

United States government The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a feder ...

to ''"further provide for the farmer-owned cooperative system of making credit available to farmers and ranchers and their cooperatives, for rural residences, and to associations and other entities upon which farming operations are dependent, to provide for an adequate and flexible flow of money into rural areas, and to modernize and consolidate existing farm credit law to meet current and future rural credit needs, and for other purposes."'' The

Farm Credit Act of 1933 The Farm Credit Act of 1933 () established the Farm Credit System (FCS) as a group of cooperative lending institutions to provide short-, intermediate-, and long-term loans for agricultural purposes. Specifically, it authorized the Farm Credit Ad ...

() was first passed on June 16, 1933, the last day of President

Franklin D. Roosevelt Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...

's "Hundred Days" initiative, an effort by his administration to quickly put in place measures to fight the Great Depression. The Act eliminated earlier provisions relating to government capitalization of the System, and expanded the lending authorities of many System institutions.

Amendments

The

Agricultural Credit Act of 1987 In United States federal agriculture legislation, the Agricultural Credit Act of 1987 () was enacted in response to the severe financial crisis of the early- to mid-1980s, which affected both farmers and their lending institutions. The Act auth ...

, a major piece of legislation modifying the 1971 Act, authorized up to $4 billion in federal financial assistance to FCS institutions to assist in their recovery from the agricultural credit crisis of the 1980s. The Act created a System entity to issue up to $4 billion in federally guaranteed bonds, required the U.S. Treasury to pay a portion of the interest on these bonds, and also required the FCS to ultimately repay the Treasury for this assistance. The Act also mandated the merger of certain System banks within each farm credit district and expanded other merger authorities, and gave delinquent FCS borrowers certain rights. A separate System institution was established by the Act to insure the timely repayment of principal and interest on consolidated Systemwide debt issues. Farm Credit Banks and Associations Safety and Soundness Act of 1992 () was designed to enhance the financial safety and soundness of FCS banks and associations by establishing new mechanisms to ensure repayment of Farm Credit System debt resulting from federal financial assistance provided to the System under the 1987 Act. The Farm Credit System Reform Act of 1996 () included numerous provisions to provide regulatory relief for the FCS.

References

External links

Farm Credit Act of 1971PDFdetails
as amended in the GPObr>Statute Compilations collection
{{DEFAULTSORT:Farm Credit Act Of 1971 United States federal agriculture legislation United States federal banking legislation Farm Credit System 1971 in American law 92nd United States Congress

Background

Amendments

See also

References

Further reading

External links