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  • 1. AGRICULTURAL LENDING INSTITUTIONS
    • COMMERCIAL BANKS
    • FARM CREDIT SYSTEM
    • FARM SERVICES ADM.
    • INSURANCE COMPANIES
    • INDIVIDUALS
    • INPUT SUPPLIERS
  • 2. COMMERCIAL BANKS
    • IN 2002, FARM BUSINESS DEBT PROVIDED BY COMMERCIAL BANKS ACCOUNTED FOR 17.6% OF REAL ESTATE DEBT AND 21.8% OF NON REAL ESTATE DEBT.
  • 3. AGRICULTURAL BANKS
    • 1987 ==> 4480 AG. BANKS 1999==> 2942 AG. BANKS
    • 1994 ==> 3548 AG. BANKS 2001==> 2744 AG. BANKS
    • 1995 ==> 3363 AG. BANKS 2002==> 2644 AG. BANKS
    • WHAT IS AN AG. BANK?
    • FEDERAL RESERVE DEF.
    • A BANK THAT HAS AN AG. LOAN RATIO GREATER THAN THE AVERAGE FOR ALL COMMERCIAL BANKS.
    • ON 6/30/02 14.97%
  • 4.  
  • 5.  
  • 6. FARM CREDIT SYSTEM
    • THE FARM CREDIT SYSTEM (FCS) IS MADE UP OF FOUR REGIONAL FARM CREDIT BANKS.
    • THESE BANKS PROVIDE FUNDS FOR PRODUCTION CREDIT ASSNS. (PCAs), FEDERAL LAND BANKS ASSNS. (FLBAS), AGRICULTURAL CREDIT ASSNS. (ACAs), AND FEDERAL LAND CREDIT ASSNS. (FLCAs).
    • REGULATED BY THE FARM CREDIT ADM., WHICH IS AN INDEPENDENT AGENCY OF THE FEDERAL GOVT.
  • 7.  
  • 8.
    • As of July 1, 2004, the System was composed of the following lending institutions:
    • Four Farm Credit Banks (FCBs) that provide loan funds to 79 Agricultural Credit Association (ACAs), and 11 Federal Land Credit Associations (FLCAs). ACAS make short-, intermediate-, and long-term loans and FLCAs make long-term loans.
    • One Agricultural Credit Bank (ACB), which has the authority of an FCB and provides loan funds to 5 ACAs. In addition, the ACB makes loans of all kinds to agricultural, aquatic, and public utility cooperatives and is authorized to finance U.S. agricultural exports and provide international banking services for farmer-owned cooperatives.
  • 9.
    • THE FARM CREDIT SYSTEM ACCOUNTS FOR 20.0% OF REAL ESTATE LOANS AND 10.3% OF NON REAL ESTATE LOANS.
    • FUNDING IS OBTAINED BY SELLING BONDS IN THE MONEY MARKETS.
  • 10. TEXAS BANK
    • 8 Federal Land Credit Assns.
    • 13 Ag Credit Assns.
    • TOTAL LOANS AS OF SEPT. 30, 2001 ==> $5.214 BILLION
    • THERE HAS BEEN CONSIDERABLE CONSOLIDATION OF PCAs AND FLBAs IN THE PAST FEW YEARS
  • 11. FARM SERVICES ADM.
    • THE FARM SERVICES ADM. (FSA) WAS FORMERLY THE FARMERS HOME ADM. (FmHA).
    • ACCOUNTS FOR 1.7% OF REAL ESTATE LOANS AND 1.8% OF NON REAL ESTATE LOANS.
    • HAS BEEN DECREASING IN AMOUNT OF CREDIT PROVIDED.
  • 12.
    • DEBT (MIL $)
    • DIRECT GUARANTEED
    • 1986 2807.9 1569.1
    • 1990 921.3 1271.9
    • 1995 563.6 1938.3
    • 1999 1288.9 2550.4
    • 2000 1048.1 2674.1
    • 2001 943.6 2314.9
    • 2002 903.6 2650.9
  • 13.
    • DELINQUENT LOANS (%)
    • DIRECT GUARANTEED
    • 1986 31.9 5.6
    • 1990 26.9 4.6
    • 1995 27.1 3.9
    • 2000 15.5 4.5
    • 2001 15.2 4.6
    • 2002 15.9 5.9
  • 14. LIFE INSURANCE COMPANIES
    • ACCOUNTS FOR 6.1% OF REAL ESTATE LOANS.
    • ONCE WERE MAJOR LENDERS IN THE AGRICULTURAL REAL ESTATE MARKETS.
  • 15. INSURANCE COMPAYIES CURRENTLY ACTIVE IN AGRICULTURAL LENDING ARE:
    • AEGON-USA
    • CItigroup Investments
    • AgriFinance
    • Lend Lease Agri-Business
    • Metropolitan Life
    • MONY Life Insurance
    • Prudential
  • 16. INDIVIDUALS AND OTHERS
    • ACCOUNTS FOR 9.6% OF REAL ESTATE LOANS AND 11.2% OF NON REAL ESTATE LOANS.
    • NON-TRADITIONAL LENDERS
    • -- JOHN DEERE
    • -- FORD NEW HOLLAND
    • -- PIONEER HI-BREEDS
    • LEASING AND FINANCING OF
    • EQUIPMENT AND SUPPLIES.
  • 17. FARMER MAC
    • FEDERAL AGRICULTURAL MORTGAGE CORP.
    • PROVIDES A SECONDARY MARKET FOR AGRICULTURAL LOANS.
    • POOLS FARM MORTGAGE LOANS AND SELLS THEM TO INVESTORS.
    • SIMILAR TO THE GNMA MARKET.

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