Farm Credit System - FCS

AAA

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.

INVESTOPEDIA EXPLAINS '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. Crop Yield

    A measurement of the amount of a crop that was harvested per ...
  3. Farmer Mac - Federal Agricultural ...

    A publicly traded, shareholder-owned corporation that was federally ...
  4. Financial Cooperative

    A financial institution that is owned and operated by its members. ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Credit

    1. A contractual agreement in which a borrower receives something ...
Related Articles
  1. Analyzing A Bank's Financial Statements
    Fundamental Analysis

    Analyzing A Bank's Financial Statements

  2. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  3. In Small Business, Success Is Spelled ...
    Entrepreneurship

    In Small Business, Success Is Spelled ...

  4. Small Business: It's All About Relationships
    Entrepreneurship

    Small Business: It's All About Relationships

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center