Farm Credit System - FCS

DEFINITION of 'Farm Credit System - FCS'

The Farm Credit System is a nationwide network of cooperative banks and associations that provide credit to farmers, agricultural concerns and related businesses. It was created by Congress in 1916 and was originally funded by the federal government to ensure American agriculture had a dependable source of credit. It is now self-funding and owned by its member-borrowers.

BREAKING DOWN 'Farm Credit System - FCS'

The FCS makes loans for a variety of purposes, including agricultural processing and marketing activities, rural housing initiatives, farm-related businesses, rural utilities and foreign and domestic companies involved in agricultural trade.

The FCS provides access to critically needed credit in rural areas where national and regional banks typically do not have a presence.

RELATED TERMS
  1. Production Credit Association - ...

    A federal instrumentality created by Congress through the Farm ...
  2. Banks For Cooperatives

    Established by the Farm Credit Act of 1933, these regional, privately-owned ...
  3. Agricultural Credit

    Any of several credit vehicles used to finance agricultural transactions, ...
  4. Farmer Mac - Federal Agricultural ...

    A publicly traded, shareholder-owned corporation that was federally ...
  5. Federal Farm Credit System - FFCS

    In the United States, a network of federally chartered financial ...
  6. USDA

    A department of the United States government that manages various ...
Related Articles
  1. Markets

    The Farmer's Grip on Japanese Politics

    If you live in Tokyo, Japan's biggest city, then your vote is cheap. If you want your voice to count, move out to the countryside and buy a farm.
  2. Markets

    How To Invest In Farming Without Owning a Farm

    Investors have a number of ways to get exposure to the agriculture and farming sector besides actually having to buy a farm.
  3. ETFs & Mutual Funds

    The Top 3 ETFs For Investing in Agriculture (DBA, MOO)

    Learn about some the best available exchange-traded funds for profiting from exposure to the agricultural sector through stocks and futures.
  4. ETFs & Mutual Funds

    A Primer For Investing In Agriculture

    In this article, we'll look at the agriculture sector and the different ways investors can approach it.
  5. ETFs & Mutual Funds

    DBA vs. USAG: Comparing Agriculture ETFs

    Read a comparison of USAG and DBA, and learn about the characteristics, strategies and performance statistics of these agriculture exchange-traded funds.
  6. Markets

    Three Agriculture Startups Disrupting Monsanto

    Even as technology startups have disrupted other industries, agriculture has remained immune to its effect. But that is about to change.
  7. Investing

    Smart Farming Technology Storms Silicon Valley

    Silicon Valley may be known for growing tech startups, but now the iconic region is welcoming an entirely new breed of residents, startups focusing on smart farming.
  8. ETFs & Mutual Funds

    Are These 3 Agricultural ETFs, ETNs a Good Bet? (DBA, RJA)

    Three top tier agriculture ETFs and ETNs to consider when the time is right.
  9. Investing

    How To Increase Your Appeal To Prospective Lenders

    Making a business eligible for loans/credit cards at the best possible rates requires crafting an excellent credit profile through the smart use of credit.
  10. ETFs & Mutual Funds

    DAG vs. AGA: Comparing Leveraged Agriculture ETFs

    Discover what makes the PowerShares DB Agriculture Fund superior to the DB Agriculture Double Short ETN and learn how you can profit from commodity prices.
RELATED FAQS
  1. What economic indicators do agriculture investors need to watch?

    Agriculture investors should keep an eye on land prices, interest rates, inflation, harvest performance and speculative investment ... Read Answer >>
  2. What is the point of agricultural subsidies?

    Read about the historical origins of agricultural subsidies, and find out why the government spends hundreds of billions ... Read Answer >>
  3. Is it possible to have a credit limit that's too high?

    Avoid these pitfalls when working with high credit limits, and learn how to increase your credit score by increasing your ... Read Answer >>
  4. What is the difference between bad credit and no credit?

    The answer to this question will depend on what information (if any) is found on your credit report, such as any bankruptcy ... Read Answer >>
  5. When do I need to file an IRS Schedule F form?

    If you are a farmer, your farming business may require you to file a Schedule F with the IRS. Read Answer >>
  6. What are some good alternatives to taking out a line of credit?

    Read more about how opening a line of credit might not be the best answer for you and determine available alternatives if ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center