Agricultural Credit: Institutions and Issues

Publication Date: March 2007

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Agriculture, forestry and fishing; Banking and finance

Type:

Abstract:

The federal government has a long history of providing credit assistance to farmers by issuing direct loans and guarantees, and creating rural lending institutions. These institutions include the Farm Service Agency (FSA) of the U.S. Department of Agriculture (USDA), which makes or guarantees loans to farmers who cannot qualify at other lenders, and the Farm Credit System (FCS), which is a network of borrowerowned lending institutions operating as a government-sponsored enterprise. The 110th Congress is expected to address agricultural credit through both appropriations and authorizations bills. Appropriators will consider funding for FSA's farm loan programs, and the agriculture committees may consider changes to FSA and FCS lending programs. The 2007 farm bill is expected to be the venue for many of the authorizing issues, although stand-alone legislation may be used for extensive reforms. This report will be updated.