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Arnan

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Arnan

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

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