To assure that the mandate of the Farm Credit System is carried out under the law, the System is subject to rigorous regulation by the Farm Credit Administration (FCA), an independent regulatory agency of the federal government. The FCA requires all Farm Credit System banks and associations to meet financial standards.
In addition, the Farm Credit System Insurance Corporation (FCSIC) was created in 1987 to stand behind Farm Credit institutions. The FCSIC Insurance Fund, which is financed by the System, is there to support System institutions and ensure payment to the holders of System securities in the event of future economic stress.
The majority of funds to finance Ag Credit loans come from the sale of System securities in the nation’s money markets.
Several key service entities provide national support for the Farm Credit System.
Safety & Soundness
The FCA requires all Farm Credit System banks and associations to meet financial standards.