Quick Synopsis of Farm Credit Administration

What is the Farm Credit Administration?

The Farm Credit Administration is an independent agency of the United States Governments’ Executive branch. The Farm Credit Administration is responsible for examining and regulating the banking systems, associations and related entities of the Farm Credit System—a network of borrower-owned financial institutions that were created to provide liens of credit to farmers, ranchers and agricultural cooperatives. The Farm Credit Administration derives its authority from the passing of the Farm Credit Act of 1971.

The powers awarded to the Farm Credit Administration, although realigned and refurbished by the passing of the Farm Credit Act of 1971, has its roots in the Farm Credit Act of 1933. This originally legislation, which was part of President Franklin D. Roosevelt’s New Deal, helped farmers refinance their mortgages over a longer period of time at or blow market interest rates.

This system helped farmers recover from the Dustbowl; additionally, the Emergency Farm Mortgage Act loaned additional funds to farmers who were in danger of losing their lands. The legislation was established through an Executive order by Roosevelt and effectively placed all existing agricultural credit organizations under the direct supervision of the newly-formed agency.

Currently, the Farm Credit Administration is run by the Federal Farm Credit Board—a committee consisting of 13 members (one from each of the 12 agricultural districts of the United States and one appointed by the Secretary of Agriculture)—intended to develop policy and regulation for the Farm Credit Administration.

Farm Credit Administration Quick Facts

The following details outline the administration of the Farm Credit Administration:

The Farm Credit Administration was founded in 1933 under the New Deal
The headquarters of the Farm Credit Administration are located in Mclean, Virginia
The Farm Credit Administration is responsible for the jurisdiction over the Agricultural districts of the United States of America

What is an Independent Government Agency?

An independent agency of the United States Federal Government is a department or organization that exists outside of the federal executive departments or those headed by a Cabinet secretary. In a more specific sense, the term Independent Government Agency, is used to describe agencies that, while constitutionally operating within the executive branch, are free from presidential authority or control, as a result of the President’s limited membership within the agency.

Independent government agencies are established through separate statutes passed by the United States Congress; each respective statutory grant of authority will define the goals or mission that the agency must work towards, in addition to the substantive areas, if applicable, over which the Independent Agency may have the power of rulemaking. These agency regulations, when enforced, maintain the power of federal law.

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