Agricultural Credit: Institutions and Issues

Description:

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 Credit System (FCS), which is a network of borrower-owned lending institutions operating as a government-sponsored enterprise, and 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. When loans cannot be repaid, special bankruptcy provisions help family farmers reorganize debts and continue farming (P.L. 109-8 made Chapter 12 permanent and expanded eligibility). S. 238 and H.R. 399 (the Rural Economic Investment Act) would exempt commercial banks from paying taxes on profits from farm real estate loans, thus providing similar benefits as to the Farm Credit System.

Creator(s):
Creation Date: November 23, 2005
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
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Place of Publication: Washington D.C., USA
Date(s):
  • Creation: November 23, 2005
Description:

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 Credit System (FCS), which is a network of borrower-owned lending institutions operating as a government-sponsored enterprise, and 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. When loans cannot be repaid, special bankruptcy provisions help family farmers reorganize debts and continue farming (P.L. 109-8 made Chapter 12 permanent and expanded eligibility). S. 238 and H.R. 399 (the Rural Economic Investment Act) would exempt commercial banks from paying taxes on profits from farm real estate loans, thus providing similar benefits as to the Farm Credit System.

Physical Description:

6 pages.

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Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
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Resource Type: Report
Format: Text
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Access: Public