Comments on the Recent Effects of the Financial Markets on the Farm Credit System

Our nation is facing unprecedented turmoil in the financial sector at a time when demand for credit in agriculture will undoubtedly increase due to dramatically escalating input costs. Despite the turmoil, Farm Credit System institutions continue to provide a steady supply of credit to farmers, ranchers, their cooperatives and others in rural America.

A key strength of Farm Credit's cooperative structure is that customer-elected directors keep these institutions focused on serving their mission and maintaining the financial strength necessary to continue to serve agriculture during difficult times. Agriculture enjoys substantial benefits from this cooperatively structured government-sponsored enterprise. Profits are returned to borrowers through patronage distributions, or they are retained to ensure that their institution has the capital necessary to meet growing credit demands. Moreover, members and non-members alike benefit from the existence of a competitive source of credit committed to serving agriculture.

As this situation continues to unfold, please don't hesitate to contact us if we can provide you with additional information regarding the Farm Credit System and how our institutions are meeting members' needs for credit and related financial services.