The Farm Credit System: A Nationwide Network of Cooperative Lenders
CoBank is a proud member of the Farm Credit System, a nationwide network of cooperative lending institutions and specialized service organizations. Congress established the System in 1916 to provide a reliable source of credit for the nation's farmers and ranchers. Today, the System provides more than one-third of the credit to businesses and individuals in rural America.
The Farm Credit Administration is the agency of the federal government that provides regulatory oversight for the System. The funds for loans made by CoBank and other entities in the System come from the sale of Farm Credit securities through the Federal Farm Credit Banks Funding Corporation.
Within the Farm Credit System are more than 90 local Agricultural Credit Associations (ACAs) that work directly with farmers, ranchers, rural homeowners and rural businesses. These ACAs are each affiliated with one of five banks that serve as the primary lender to the association. Four of these banks are Farm Credit Banks; CoBank is the only Agricultural Credit Bank, a distinction arising out of a past merger between a Farm Credit Bank and a Bank for Cooperatives.