Page 14 - Membership Guide

1.88% at the end of 2012, to 1.95% at the end of
• The profits it generates from its real estate 2013, and to 2.25% at December 31, 2014
lending activities are exempt from all corporate
income taxes • Even after adding in agricultural lending
in Colorado by banks headquartered outside
• Profits from its non-real-estate lending the state, the FCS clearly is the largest single
activities are generally exempt from state and agricultural lender in Colorado and most likely
local income taxes provides over half the agricultural credit for
Colorado farmers and ranchers
• Many states have exempted the FCS from lien
recordation fees and other fees and charges The FCS plays by its own rules – and there are
associated with lending far fewer of them.

• Combined, the FCS conservatively enjoyed a • FCS is exempt from the Dodd-Frank Act and
$2.3 billion taxpayer subsidy in 2014 – a $1.07 the Community Reinvestment Act
billion interest subsidy (based on average debt • FCS is exempt from laws governing the
outstanding during 2014 of $214 billion) plus a issuance of debt securities
$1.2 billion income-tax subsidy
• FCS’ regulator, the Farm Credit
• As a GSE, the FCS can borrow at very Administration (FCA) is not enforcing
favorable interest rates – slightly higher than congressionally imposed limitations on who the
rates at which the U.S. Treasury borrows and at FCS can lend to and for what purpose
rates lower than what AAA-rated corporations
can borrow • FCA sees its mission as being supportive of
the FCS - It is not unfair to characterize the
The FCS is expanding its reach in Colorado – FCA as a “captured regulator,” in part because
at your expense. over time many of the members of its board of
directors have come from FCS institutions
• Total FCS lending in Colorado has grown in
recent years, from $3.61 billion December 31,
2012, to $3.92 billion at the end of 2013, and to
$4.89 billion at the end of 2014

• FCS lending in Colorado, as a portion of total
FCS lending, has grown in recent years, from

QUESTIONS? PLEASE CONTACT US TODAY.
Colorado Bankers Association
One Sherman Place, 140 East 19th Avenue, Suite 400, Denver, CO 80203
P 303.825.1575 | info@coloradobankers.org