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.

  1. Credit Union

    Member-owned financial co-operative. These institutions are created ...
  2. Production Credit Association - ...

    A federal instrumentality created by Congress through the Farm ...
  3. Crop Yield

    A measurement of the amount of a crop that was harvested per ...
  4. Credit

    1. A contractual agreement in which a borrower receives something ...
  5. Investment Farm

    An agricultural business operation that is purchased and operated ...
  6. RHS Loan

    A loan made by or guaranteed by the United States Department ...
Related Articles
  1. Fundamental Analysis

    Analyzing A Bank's Financial Statements

    A careful review of a bank's financial statements can help you identify key factors in a potential investment.
  2. Savings

    Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  3. Entrepreneurship

    In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
  4. Entrepreneurship

    Small Business: It's All About Relationships

    Rather than be a jack-of-all-trades, an owner should rely on a network of trusted experts.
  5. Investing Basics

    When Will it Be Safe to Buy Commodities?

    When will it be safe to buy commodities (and which ones)? A closer look at the commodities markets and how they move.
  6. Investing News

    Farmers Markets—Gaining Ground in Grocery Sector

    Farmers markets have gained a solid foothold in the grocery sector, but it seems that large retailers will retain the lion's share of the industry.
  7. Chart Advisor

    Agriculture Commodities Are In The Bear's Sights

    Agriculture stocks have experienced strong moves higher over recent weeks, but chart patterns on sugar, corn and wheat are suggesting the moves could be short lived.
  8. Economics

    The 4 Countries That Produce the Most Food

    Learn about the four food superpowers -- China, India, the United States and Brazil -- and what sets them apart from the rest of the world.
  9. Investing

    The Quinoa Quandary for Bolivian Farmers

    Growing global demand for quinoa has impacted Bolivian farmers' way of life. Should the American consumer be wary of buying this product?
  10. Investing Basics

    Why You Should Invest Like a Pig Farmer

    Want to increase your long term returns? Consider buying stocks like a farmer, not like a trader.
  1. What countries are driving most of the growth of the food and beverage sector?

    The countries driving most of the growth of the food and beverage sector are the primary emerging market economies of China ... Read Full Answer >>
  2. What is the point of agricultural subsidies?

    Every five years, new legislation is introduced and passed through the U.S. Congress to subsidize farmers and agricultural ... Read Full Answer >>
  3. What are tradable commodities?

    Tradable commodities consist of basic goods used in commerce that are often interchangeable with other goods of the same ... Read Full Answer >>
  4. What country produces the most coffee?

    According to the 2014-2015 forecast provided by the U.S. Department of Agriculture's Foreign Agriculture Service, Brazil ... Read Full Answer >>
  5. What percentage of the global economy is comprised of the forest products sector?

    The forest products sector is comprised of companies that plant, grow, harvest, and process wood and wood-related products ... Read Full Answer >>
  6. How does scarcity affect global agriculture stocks?

    Agricultural products are a commodity and their prices are related to other commodities, particularly crude oil. Crops including ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  2. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  3. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  4. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  5. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  6. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
Trading Center