For the past 70 years, farmers and ranchers
have depended on the Farm Credit System to
serve their credit needs at all times, in all areas
of the country, and with whatever amounts of
financing were needed. This record of service has
been threatened recently as the agricultural
recession worsened in 1985.
Today’s agricultural economy didn’t get where
it is overnight. And the problems won’t be solved
overnight. Although financial stress has been
building to crisis proportions for more than half a
decade, the new Farm Credit law enacted in late
1985 reassures farmers and ranchers that their
cooperatively owned credit system will continue to
be a dependable source of credit in the future.
New Farm Credit law enacted
On December 23, 1985, the President signed
the Farm Credit Amendments'Act of 1985
perhaps the most significaht piece of Farm Credit
legislation since the 19305. Only three months
earlier, the combined Farm Credit banks reported
the first loss in their nearly 70 years of service to
agriculture. The depressed farm economy had
finally taken its toll on the nation’s largest
agricultural lender.
System funding ensured
The Farm Credit Amendments Act is designed
to strengthen the Farm Credit System and renew
the system’s Congressional mandate to serve
American agriculture.
It also reaffirms the government’s support of
the system and its importance to American
HERE TODAY.
HERE TOMORROW.
Farmers and Farm Credit.
You Can Depend On It.
• BERKSLEHIGH VALLEY FARM CREDIT SERVICE
Fogelsville • 215/395-6831
• BUTLER FARM CREDIT SERVICE
Butler • 412/482-2161
• HEADWATERS FARM CREDIT SERVICE
Wellsboro • 717/724-1961
• LANCASTER FARM CREDIT SERVICE
Lancaster • 717/291-1855
• MEADVILLE FARM CREDIT SERVICE
Meadville • 814/336-3149
The Farm Credit System
agriculture. This strengthens investor confidence in
the system and ensures it will be able to obtain
funding at competitive rates in the nation’s money
markets.
New Capital Corporation created
Most importantly, the new law stabilizes the
Farm Credit System by providing a more effective
mechanism for mobilizing capital and supporting its
financially troubled banks. This mechanism is called
the Farm Credit System Capital Corporation.
In addition, the law creates a process for
receiving government financial assistance, if the
system’s own resources are insufficient to carry
out its mandate.
Borrower rights protected
Other provisions of the new act will help
protect borrower rights and their stock
investments in the system. They also strengthen
borrower control by providing for the seventh
member of the district director boards to be
elected by borrowers, rather than appointed by the
Farm Credit Administration,
With the passage of the Farm Credit
Amendments Act of 1985, the system now has the
tools and the support it needs to deal more
effectively with the current financial stress. It
won’t be easy. But the Farm Credit System is
working hard today and will be working hard
tomorrow stronger and better equipped to
serve American agriculture.
You can depend on it.
• NORTHEASTERN FARM CREDIT SERVICE
Leuisburg • 717/523-1201
• SOUTHEAST FARM CREDIT SERVICE
West Chester • 215/431-1257
• WEST CENTRAL FARM CREDIT SERVICE
Uniontown • 412/437 2825
• YORK FARM CREDIT SERVICE
York • 717/792 2641
Lancaster Farming, Saturday, November 8,1986-
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