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 Banks and Associations |
The System provides credit and related services through the System Banks and related Associations. Currently, the System consists of five Banks and approximately 96 Associations. The System Banks and Associations are cooperatively owned, directly or indirectly, by their borrowers. A board of directors elected by its respective
borrower/stockholders governs each Bank and Association. The directors elected
by the borrower/stockholders elect or appoint at least one additional director
from outside the System.
Unlike commercial banks, System institutions do not take deposits. Instead, loanable
funds are raised through the issuance of Farm Credit Debt Securities on a worldwide basis
in the domestic and global capital markets by the Funding Corporation.
Typical products and services offered by System institutions include
real estate mortgage loans, production loans, intermediate-term loans, rural home mortgage loans, leases, credit-related
life insurance and crop insurance, and various financial services, such as,
record keeping and tax planning.
The Agricultural Credit Associations make both long-term loans for the purchase or improvement of real estate or refinancing of debt on real estate and short- and intermediate-term loans to finance expenses related to the production processing and marketing of our nation's food and fiber, as well as for equipment, facilities and livestock. The Federal Land Credit Associations make long-term loans for the purchase or improvement of real estate or refinancing of debt on real estate. System Banks and Associations also have the authority to participate in loans made
by commercial lenders to entities whose operations are functionally similar
to those of an eligible borrower. This authority is subject to various approval
requirements and quantitative restrictions as to the volume of the loan participations.
CoBank offers a complete line of credit and related financial services to
agricultural and aquatic cooperatives, rural utilities, and other eligible customers
nationwide. It finances a broad array of agribusinesses, including marketing
and processing cooperatives that add value to agricultural production and agricultural
exports. CoBank also finances specified international agricultural credit transactions
for eligible entities. The Farm Credit Services
Leasing Corporation, a wholly-owned subsidiary of CoBank, is
headquartered in Minneapolis, Minnesota and has other sales offices located
throughout the nation. The Leasing Corporation provides leasing and related
services to eligible System borrowers, including agricultural producers, cooperatives
and rural utilities.
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