Starting with the Federal Farm Loan Act of 1916, Congress established a cooperative system of Federal Land Banks
and farm loan associations.
The story continues through the Federal Land Banks
created in the same era to improve the flow of finance to small farmers and a variety of municipal enterprises providing everything from ice to schools.
1916: President Wilson signs law creating the Federal Land Banks (FLB) and Farm Loan Board, provides government start-up capital for cooperative ag lending agencies.
The System's Federal Land Banks and Federal Intermediate Banks were required to merge.
In fact, leading up to the 1980s ag economic crisis, there were Production Credit Associations for short and intermediate term lending and Federal Land Bank Associations for long term lending, each with an accompanying board of directors composed of area farmers in all 3,086 counties in the U.
He estimates a logit regression model that includes a state's farm foreclosure rate, percentage of farms mortgaged, and percentage of farm mortgages held by federal land banks as explanatory variables.
In the 1930s, most farm mortgages were issued by local commercial banks, private individuals, insurance companies, and federal land banks.
The FCS is composed of member lending institutions known as the federal land banks.
Diversification risk: Both the FCS's federal land banks of the 1980s and the present-day FHLBanks are restricted geographically in their lending portfolio, and both prevent member institutions from diversifying risk through multiple membership.
Those boards each govern three regional subsidiaries--the Banks for Cooperatives, as well as the Federal Land Banks and the Federal Intermediate Credit Banks, which oversee the Production Credit Associations (P.
Forty-four of forty-six Federal Land Bank Associations there pooled their funds for a legal battle against the imposition of joint management for the three banks in the state.