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.
APPENDIX Variable Definitions and Data Source Information Variable name Definition Moratorium Dummy variable equal to 1 for states with mortgage moratorium in 1933-34 Farm foreclosure rate Farm foreclosures per 1,000 mortgages in 1932 Mortgaged farms Percentage of farms mortgaged (percent) in 1930, calculated as (mortgaged farms/all owned farms) Federally held Percent of mortgage debt held farm debt by federal land banks, calculated as (sum of amount of loans closed 1917 to 1932/ total farm mortgage debt in 1932) Owner-occupied nonfarm Percentage of owned nonfarm homes (percent) homes in 1930, calculated as (sum of owned nonfarm homes/total nonfarm homes) Farm population Percentage of population on farms in 1930 Variable name Source Moratorium Skilton, Robert H.
16) The Federal Farm Loan Act of 1916 established 12 regional federal land banks to increase the supply of farm mortgage loans.
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.
The act established 12 federal land banks to enhance liquidity in the market for agricultural mortgages through advances from the banks to local farm credit associations.
The FHLBanks, like the federal land banks of the FCS, received additional explicit and implicit advantages from their public charter that persist today.
a senior analyst with the Federal Land Banks
and an actuarial trainee for Bankers Life Insurance Company.