1916
The first banks in the Farm Credit System are
created by Congress to fill a need for long-term
agricultural credit. Twelve Federal Land Banks are
established and later Federal Land Bank Associations
operate in small towns nationwide.
1923
Congress creates 12 Federal Intermediate Credit
Banks to provide short- and intermediate-term
agricultural financing.
1933
The Farm Credit Act of 1933 allows for local
Production Credit Associations (PCAs) to expand
short- and intermediate-term agricultural credit
availability. The act also creates 13 Banks for
Cooperatives (BCs). While 12 BCs serve district
territories, the 13th bank, called the Central Bank
for Cooperatives, serves large accounts and those
that cross district lines.
1947
Federal Land Banks pay off the last of the
government seed money provided to them in 1916.
1955
The Central Bank for Cooperatives reorganizes as a
bank of participation serving district BCs.
1966
The BCs make their first utility loan to an electric
distribution cooperative under farmer-owned
cooperative eligibility rules.
1968
The last of the government seed money used to
capitalize the PCAs and BCs is repaid. All Farm
Credit Banks are now completely owned by their
borrowing stockholders.
1971
The Farm Credit Act of 1971 broadens the scope of
Farm Credit services to include rural home mortgages
and leasing and BC financing of rural electric and
telephone cooperatives.
1980
The 1980 Farm Credit Act authorizes the Central Bank
for Cooperatives to finance agricultural exports.
1985
Noncooperative rural electric and telephone systems
become eligible for BC financing.
1987
The Farm Credit Act of 1987 gives the System greater
flexibility to change its structure. Two results:
long- and short-term loan services may be
consolidated under one roof as Agricultural Credit
Associations (ACAs); and Farm Credit Banks and BCs
may merge to form Agricultural Credit Banks. BCs
begin financing subsidiaries of eligible borrowers
and, on a limited basis, joint ventures and
partnerships involving an eligible borrower.
1989
CoBank-National Bank for Cooperatives begins
operations with $12 billion in assets, $9 billion in
loans outstanding and $807 million in capital, the
result of the consolidation of 11 of the 13 BCs. Two
other BCs are located in Springfield, Mass., and St.
Paul, Minn.
1990
Through the 1990 Farm Bill, Congress authorizes the
BCs to finance water and waste disposal systems
serving rural areas and communities. Farm Credit associations are
authorized to make marketing and processing loans.
1991
CoBank gains limited authority to finance the export
of non-cooperative-sourced agricultural products.
Also, the bank introduces an electronic trade tool,
CoTradesm.
1992
Congress increases BC authority to participate in
loans with other financial institutions, when the
loans involve customers that are not eligible to
borrow from CoBank directly, but are similar to
CoBank’s existing agribusiness and rural utility
customers. In 1991 and again in 1992, Congress
clarifies BC authority to finance all aspects of
water and waste disposal system operations,
including refinancing.
1994
The 1994 Farm Credit Agricultural Export and Risk
Management Act expands CoBank's international
banking authorities to serve agricultural
cooperative customers involved in joint ventures and
partnerships with noncooperatives in U.S. and
international markets and to finance the export of
any U.S. agricultural product, regardless of its
source. The law also expands the bank's authority to
buy and sell loan participations and syndications.
1995
CoBank, ACB begins operations. The result of the
consolidation of CoBank, the Farm Credit Bank of
Springfield (Mass.) and the Springfield Bank for
Cooperatives, this Agricultural Credit Bank is the
first-ever consolidation of a Farm Credit Bank and a
Bank for Cooperatives. As a result, CoBank begins
providing funding for Agricultural Credit
Associations in New England, New York and New
Jersey.
1996
The Farm Credit System Reform Act of 1996 ensures
that agriculture co-op customers remain eligible to
borrow from CoBank as long as voting control of the
co-op remains in the hands of farmers, ranchers or
commercial fishermen.
1997
CoBank forms strategic alliances to broaden its financial
services, including equity and debt financing,
private placements, tax-exempt bonds and asset
securitization. CoBank also offers online financial
solutions to customers for the first time through
its own CoLink® delivery channel.
1999
CoBank completes the merger with St. Paul Bank for
Cooperatives and its acquisition of majority
interest in Farm Credit Leasing Services Corp.
2001
For the first time, CoBank issues preferred stock.
The $300 million sale of preferred stock to outside
investors is approved by more than 97 percent of
voting stockholders. Also for the first time, CoBank
pays a special, one-time cash patronage distribution
of $15 million in addition to the regular patronage
refund.
2002
Stockholders of CoBank and AgAmerica, FCB, vote to
have Northwest Farm Credit Services (NWFCS) of
Spokane, Wash., reaffiliate with CoBank effective
Jan. 1, 2003. NWFCS, a farmer-owned financial
cooperative serving the Northwestern U.S., will
obtain all of its funding from CoBank. On the
international front, CoBank signs a cooperation
agreement with the Mexican Agricultural Ministry.
The Mexican government views the U.S. Farm Credit
System as a model for its own rural credit delivery
system.
2003
The bank increases its capital base by issuing
preferred stock for the second time in its history.
The first issuance, in 2001, totals $300 million. In
2003, we sell $200 million, bringing us to the total
of $500 million authorized by stockholders. More
than 95 percent of bank stockholders approve the
2003 sale.
2004
CoBank increases its ownership stake in Farm Credit
Leasing Services Corporation (FCL) from 82 percent
to 100 percent. FCL provides leasing services to a
variety of customers, including
agricultural cooperatives, Farm Credit associations,
rural communications, energy and water systems, and
agricultural producers nationwide, many of whom are
customers of Farm Credit associations. In addition,
CoBank stockholders approve a board-restructuring
proposal to further strengthen the bank’s governance
process. The bylaw changes include reducing the size
of the board, combining existing board districts
into three regions, and extending director terms
from three to four years. The new structure will be
implemented over a three-year transition period.
2005
The Farm Credit System completed the HORIZONS
project, a historic research and planning initiative
that analyzed the future financing needs of
agriculture and rural America. Key findings of the
report emphasized the need for policy solutions that
will help farmers, rural businesses and rural
communities succeed in the emerging marketplace.
CoBank took a leadership role in this comprehensive,
System-wide effort.
2006
The Farm Credit System celebrated its 90th year of
providing financial services to U.S. agriculture and
rural America. To commemorate the event, receptions
were held in Washington, D.C. with members of
Congress and at the Woodrow Wilson Presidential
Library in Virginia. President Woodrow Wilson signed
the Federal Farm Credit Loan Act of 1916, creating
the System. With $108 billion in loans to 455,000
customer-owners, the System is the largest and
oldest U.S. financial cooperative dedicated
exclusively to serving rural America.
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