Agricultural Credit Act of 1987
Encyclopedia
The Agricultural Credit Act of 1987 was enacted in response to the severe financial crisis of the early- to mid-1980s, which affected both farmers and their lending institutions. The Act authorized a $4 billion financial assistance package for financially vulnerable institutions of the Farm Credit System
(FCS), protected the full value of FCS borrower stock when retired, established a permanent insurance mechanism to ensure the repayment of funds borrowed by the FCS for lending purposes, required the FCS and USDA’s Farmers Home Administration (now, the Farm Service Agency
) to restructure severely delinquent farm loans that met certain criteria, mandated FCS consolidation, and established a secondary market for farm real estate loans.
Farm Credit System
The Farm Credit System is a federally chartered network of cooperatives and related service organizations that lends to agricultural producers, rural homeowners, farm-related businesses, and agricultural, aquatic, and public utility cooperatives in the United States...
(FCS), protected the full value of FCS borrower stock when retired, established a permanent insurance mechanism to ensure the repayment of funds borrowed by the FCS for lending purposes, required the FCS and USDA’s Farmers Home Administration (now, the Farm Service Agency
Farm Service Agency
The Farm Service Agency is the USDA agency into which were merged several predecessor agencies, including the Agricultural Stabilization and Conservation Service . The ASCS was, as the FSA is now, primarily tasked with the implementation of farm conservation and regulation laws around the country...
) to restructure severely delinquent farm loans that met certain criteria, mandated FCS consolidation, and established a secondary market for farm real estate loans.