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Farm Credit System

Breach of Duty

The Farm Credit System, the first government
sponsored enterprise (GSE), was created
almost a century ago to finance young,
beginning and small farmers.
Over the years, it has moved away from its intended purpose,
and Congress has responded by granting the FCS broader
lending powers, enabling it to become a nearly $300 billion
behemoth, larger than all but 7 banks in the U.S. The time has
come to rein in the FCS.

• If the FCS was a commercial banking company, it would be
the eighth-largest banking company in the U.S. – and it’s still
subsidized by taxpayers
• FCS not only is tax exempt, it’s exempt from the Dodd-Frank
Act and the Community Reinvestment Act

MONEY LOST

Substantial tax revenue could
be attributed to our federal,
state, and local governments. $100M*
Combined nationwide, the FCS
conservatively enjoyed a $2.3
billion taxpayer subsidy in 2014

• A $1.1 billion interest subsidy (based on average debt
outstanding during 2014 of $214 billion) plus a $1.2 billion
income-tax subsidy. This tax revenue could go a long way in
funding education, health programs and costly roadway repair.
*100 million is the estimated tax income Colorado would
receive if the FCS paid its fair share of taxes.

8TH BIGGEST
BANK

Even though the FCS is no longer needed, and certainly
would not be created today, it continues to grow as it pushes
further and further into non-agricultural lending.

And, it isn’t addressing the needs of the young, beginning and
small farmers for whom its funds are earmarked.