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We know there are many financing options available to you in the marketplace. So, why should you choose Farm Credit? Well, for starters, We Know Ag. A significant percentage of our team has either grown up in, worked in, or been otherwise associated with, farming, the agriculture industry, and rural living. That knowledge is invaluable when it comes to understanding your back story, as opposed to simply reading a loan application.

There are also a number of other differences— from the way we are set up, to the way decisions are made, to the solid backing we enjoy, that may influence your decision to choose Farm Credit.

Let’s Talk About the Strengths and Benefits of the Farm Credit System

Cooperative Structure

The Farm Credit System is a network of borrower-owned lending institutions and affiliated service organizations. Our cooperative structure and governance are designed to ensure that our lending and financially related services help to fulfill the needs of agriculture and rural America. As a cooperative, our Members have a vested interest in the System’s continued strength and financial success, ensuring mission focus. Our specialization has cultivated an unparalleled expertise in American agriculture and an understanding of the diverse needs of our customers.

Independent Federal Regulation

The System is regulated by the Farm Credit Administration (FCA), an independent Federal agency responsible for overseeing the safety and soundness of the Farm Credit System. The FCA regularly examines all Farm Credit institutions.

Conservatively Managed and Financially Strong

Farm Credit has enjoyed consistent profitability while preserving a conservative balance sheet, low leverage, and strong capital ratios. While the Farm Credit System’s financial strength is built upon our prudent financial management and business practices, our favorable financial results are also a reflection of the fundamentals of the agricultural economy we serve.

Solid Credit Quality

Farm Credit institutions adopt strict underwriting policies for prudent lending that follow commercial bank industry standards, with consideration given to borrowers’ cash flow, repayment capacity, collateral, capital, and intended use of funds. This rigorous credit review contributes to a solid credit profile and helps to minimize loan losses.

Broad Loan Diversification

The diversity of American agriculture is reflected in Farm Credit’s loan portfolio, which covers all 50 states, U.S. territories, and Puerto Rico. This diversification across geographic, agricultural commodity and industry categories minimizes the potential impact of significant stress in any one agricultural sector or region on the strength of the System.

Self-Funded Insurance Fund

Farm Credit System is the only GSE with a self-funded insurance fund, an additional level of protection for our investors. Administered by an independent federal government-controlled corporation, the Insurance Fund exists primarily to insure the timely payment of principal and interest on Farm Credit Systemwide Debt Securities, to the extent funds are available.

Patronage, Patronage, Patronage

And last, but certainly not least if you ask any Farm Credit Member, is the opportunity to receive an annual patronage check. As a cooperative, Farm Credit members are actually our owners/ investors. When Farm Credit Midsouth profits, as an investor, you receive a portion of the earnings back in the form of a Patronage Payout. All borrowers with loans and/or leases contributing to the Association’s net income are eligible. So, if you have a loan with Farm Credit Midsouth that contributes to our annual profits, we return a portion of those earnings to you in the following year.

Now that you’re up to speed on how we work, let’s talk about how we can accommodate your specific situation. Visit our website at for more information or stop by your nearest Farm Credit branch today.

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