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. Agricultural Credit

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

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

    A department of the United States government that manages various ...
  5. Federal Farm Credit System - FFCS

    In the United States, a network of federally chartered financial ...
  6. Commodity Credit Corporation - ...

    An agency of the U.S. Department of Agriculture. The Commodity ...
Related Articles
  1. Insights

    OPEN

    Agriculture
  2. Insights

    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.
  3. Investing

    A Primer For Investing In Agriculture

    In this article, we'll look at the agriculture sector and the different ways investors can approach it.
  4. Small Business

    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.
  5. Trading

    Traders Remain Bearish on Agriculture (DBA, WEAT)

    Weakening global demand means agriculture looks poised for a continued move lower.
  6. Investing

    5 Agriculture Stocks With Dividends

    Food prices will likely continue to rise as our population grows and biofuel development gains popularity. As a result, the companies mentioned in this article could be a good addition to any ...
  7. Investing

    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.
  8. Investing

    Top 5 Farming Stocks of 2016 (MON, DE)

    The agricultural industry is likely to experience long-term growth as the world’s population increases. These top farming stocks are poised to benefit.
  9. Personal Finance

    The Basics Of Lines Of Credit

    Lines of credit are potentially useful hybrids of credit cards and normal loans. Learn how a line of credit can help (and hurt) your finances, and how to find the best one to suit your needs. ...
  10. Personal Finance

    6 Ways To Build Credit Without A Credit Card

    It's definitely possible – if a bit more complicated – to build a credit history without traditional credit cards. Just follow these steps.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. How will accepting a higher credit card limit affect my credit score?

    Find out if accepting a higher limit on a credit card impacts credit score and how that impact affects one's overall credit ... Read Answer >>
  4. 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 >>
  5. What is the difference between a loan and a line of credit?

    Learn to differentiate between lines of credit and standard loans, and determine when you are likely to use each method of ... Read Answer >>
  6. How does scarcity affect global agriculture stocks?

    Explore how scarcity affects the price of agricultural stocks. Learn how the price of agricultural commodities is closely ... Read Answer >>
Hot Definitions
  1. Straddle

    An options strategy in which the investor holds a position in both a call and put with the same strike price and expiration ...
  2. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  3. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  4. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  5. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  6. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
Trading Center