What Is the Federal Land Bank (FLB)?

The Federal Land Bank is a system of banks that was established by President Woodrow Wilson in 1916 to aid farmers in rural communities. In the 2000s, the 12 banks that comprised the Federal Land Bank merged into what's called the Farm Credit System today.

There are over 70 banks in the Farm Credit System located throughout the United States that specialize in loans and financing for rural property such as farms, forestry, timber, parks, and recreational services.

How the FLB Came About, and What It Does Today

The Federal Land Bank had been expanded over the years during the Great Depression and in the 1980s to address the economic challenges of rural communities and farms at those times. By 2005, all of the Federally-borrowed funds had been repaid to the Federal Land Bank making the bank borrower-owned.

Today the Farm Credit System, also called the Farm Credit Bank, remains in existence as a network of banks that provide lending services to beginning farmers, rural homebuyers, agricultural producers, and rural infrastructure providers.

In addition to providing credit for the commercial aspects of rural land, banks within the Farm Credit Bank also deal with the refinancing, restructuring, rebuilding, and repurchase of rural real estate for personal use.