Federal Farm Credit System
Definition - What does Federal Farm Credit System mean?
Federal Farm Credit System is an organization of banks that is designed to provide financing to farmers for mortgages, feed & grain, and equipment
Testopedia explains Federal Farm Credit System
the Federal Farm Credit System is disgned to provide finaning to famers who need capital to operate their farms. The Federal Farm Credit System is a group of privately owned lenders that provide different types of financing for farmers. The FFCS sells off Farm Credit Securities in order to obtain the funds to provide to the farmers. The securities are the obligations of all the lenders in the system and are not backed by the US Government. The securities pay interest every six months and are only available in book entry form. There are several lenders:
- The Federal Land Bank: That provides mortgage money
- The Bank of the Cooperatives: That provides money for feed and grain
- The Federal Intermediate Credit Bank: That provides money for tractors and equipment