News
Groups defend the Farm Credit System
The American Farm Bureau, American Agri-Women, dozens of commodity groups and related groups are pushing back because of comments made by the president of the American Bankers Association who wants the Farm Credit System eliminated.
In their letter to Frank Keating, the groups say that his effort “to reduce competition is not supported” by the groups “whose members live, work and form the economic foundation in rural areas.”
Rather than calling for the elimination of the FCS, they say it makes more sense to find better ways to work together between Farm Credit and rural banks “to the benefit of farmers, ranchers and rural communities.”
Banking group criticizes Farm Credit System
-
-
The Farm Credit System is entirely owned by the farmers and ranchers that borrow from it. What could be better than that for the farmers and ranchers. Why should farmers need to pay higher rates to banks satisfy Wall Street investors. In addition, the Farm Credit System keeps all of the income earned from loans under the supervision of farmers and ranchers, who are committed to provide funding for the long haul. All banks are fair weather lenders and will avoid lending to Agriculture as soon as times on the farm get tough and that risks putting farmers and ranchers out of business in recessions. The banks should not be complaining about a lending organization that is owned by the farmers that borrow from it. The System was set up many years ago because banks were not reliable lenders.
Pay taxes at the same rate as banks and everyone will get along just fine.
The Farm Credit System is free loading on the backs of working Americans.
There is nothing fair about it.