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Privatizing the Farm Credit System (December 1998)

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  • Ely, Bert

Abstract

The long-run solution to the Farm Credit System (FCS) problem is privatizing the FCS while developing a more even-handed way to deliver its financing subsidies to farmers. The challenge for commercial bankers as well as entrepreneurs within the FCS is to figure out how to privatize the FCS, including transitioning the FCS away from its present GSE status. Interestingly, the Farm Credit Act, which created the FCS, already authorizes the privatization of individual FCS institutions in a section called termination of system institutions status. These termination provisions are so punitive, though, that only one production credit association actually has left the FCS.

Suggested Citation

  • Ely, Bert, 1999. "Privatizing the Farm Credit System (December 1998)," American Bankers Association, American Bankers Association > Journal of Agricultural Lending, vol. 12(2).
    • Handle: RePEc:ags:abajal:336462
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    File URL: https://ageconsearch.umn.edu/record/336462/files/ers2022-23-0418.pdf
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