The Farm Credit System

The Farm Credit System was created in 1916 by the U.S. Congress to fill a need for long-term agricultural credit. For the past 90 years, this network of lending institutions has provided America's farmers, ranchers and other rural enterprises with the capital they need to operate their businesses.

The Farm Credit Administration, an agency of the federal government created in 1933, provides regulatory oversight for the System.  The funds for loans made by CoBank and other entities in the System come from the sale of Farm Credit securities through the Federal Farm Credit Banks Funding Corporation. 

Within the Farm Credit System are more than 90 local Agricultural Credit Associations (ACAs) that work directly with farmers, ranchers, rural homeowners and rural businesses.  These ACAs are each affiliated with one of five banks that serve as the primary lender to the association.  Four of these banks are Farm Credit Banks; CoBank is the only Agricultural Credit Bank, a distinction arising out of a past merger between a Farm Credit Bank and a Bank for Cooperatives.