Farm Credit Administration

Donald E. Wilkinson

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Kenneth J. Auberger

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Frank W. Naylor

Marvin Duncan

Harold B. Steele

Farm Credit Administration (FCA) is an independent federal agency in the United States responsible for regulating and examining banks, associations, and related entities within the Farm Credit System (FCS), including the Federal Agricultural Mortgage Corporation (Farmer Mac). The FCA's mission is to ensure a reliable source of credit and related services to agriculture and rural America, promoting the well-being of the agricultural economy and the effective delivery of financial services to rural communities.

History

The Farm Credit Administration was established by an Executive Order of President Franklin D. Roosevelt in 1933, in response to the dire financial conditions affecting agriculture during the Great Depression. The creation of the FCA was part of a broader effort to stabilize the agricultural sector, which included measures to raise farm incomes and provide credit facilities to farmers at risk of foreclosure. The FCA was initially tasked with overseeing the Federal Farm Loan Board and was later given expanded authority to regulate the entire Farm Credit System.

Structure and Functions

The FCA is headed by a Board of Directors, consisting of members appointed by the President of the United States with the advice and consent of the Senate. The Board sets policy, adopts regulations, and provides overall direction to the agency.

The primary functions of the FCA include:

• Regulating and examining the institutions within the Farm Credit System to ensure their safety, soundness, and adherence to federal laws and regulations.
• Ensuring that the FCS fulfills its mission to provide reliable access to credit for agriculture and rural America.
• Promoting diversity, inclusion, and the well-being of young, beginning, and small farmers and ranchers.

Farm Credit System

The Farm Credit System is a nationwide network of borrower-owned lending institutions and specialized service organizations. The FCS provides more than $300 billion in loans, leases, and related services to farmers, ranchers, rural homeowners, agricultural cooperatives, and other eligible borrowers. The System is unique among financial institutions because it is owned and controlled by its borrowers, who also serve as its customers.

Regulatory Oversight

The FCA's regulatory oversight includes ensuring that FCS institutions comply with the law, adhere to safe and sound banking practices, and operate in a manner that serves the long-term interests of their borrowers and the agricultural community at large. This oversight is critical in maintaining the integrity and reliability of the credit system that supports American agriculture.

Challenges and Future Directions

The FCA and the Farm Credit System face ongoing challenges, including adapting to the changing needs of the agricultural sector, addressing the impacts of climate change on farming, and ensuring that credit is accessible to all segments of the rural population, including underserved communities. The FCA continues to evolve its policies and practices to meet these challenges while fulfilling its mission to support a robust and sustainable agricultural economy.