||President Theodore Roosevelt’s Country Life Commission recommended a cooperative credit system that would provide credit to farmers and ranchers
||Spring: President William Howard Taft’s committee and its trip to Europe to explore agricultural credit systems there and its “Preliminary Report on land and Agricultural Credit in Europe (published Oct 1912)
Summer: Statements in favor of rural credit legislation appear on all three party platforms
||Spring: Congress authorized the appointment by the President of a Rural Credits Commission to study the problem of agricultural credit and make their recommendation. Plan was written up by Senator Duncan U. Fletcher, and it recommended a system of privately controlled land banks, operating under federal charter
President Woodrow Wilson appointed a Rural Credits Commission to investigate the state of rural credit in the U. S.
In his State of the Union Address on December 2, President Wilson endorses a system of rural credits
||Sen. Hollis and Rep. Bulkley introduce rural credits legislation in Congress, with federal provision of $500,000 in capital to 12 land banks, and guaranteed federal purchase of bank bonds
||Dick T. Morgan publishes "Land Credits: A Plea for the American Farmer"
December 7: President Wilson, in his third annual message to congress, proposes that Congress “should put into early operation some provisions for rural credits.”
||May: Average interest rates in NYC 4.5%. On farm mortgages: 10%, Montana and Wyoming; 9.6%, Arkansas and Florida; 9%, Utah and Texas; 8.7%, Georgia, North Dakota, Washington; 8 - 8.6%, Louisiana, Mississippi, Oklahoma, South Carolina, South Dakota, Oregon
May 4: Federal Farm Loan Act passes in the Senate
May 15: Federal Farm Loan Act passes in the House of Representatives
July 17: President Wilson signs the Federal Farm Loan Act which creates the Federal Land Banks and Federal Farm Loan Board, and “provided government start-up capital for cooperative agricultural lending agencies.”
August: Within three weeks, Wilson appointed the members of the Federal Farm Loan Board.
August 7: First meeting of the Federal Farm Loan Board. The board found thousands of letters inquiring about how to apply for loans from the new land banks. Consequently, they began to hold hearings in farm country to determine the national need—held 53 hearings in 44 states over 9 weeks.
October 12: President Wilson addresses farmers, Tomlinson Hall, Indianapolis, IN
October 21: President Wilson makes a campaign address at Farmers Day, Shadow Lawn, New Jersey.
November 14: President Wilson speaks before the National Grange, Raleigh Hotel, Washington, DC
||By November 30: farmers had organized 1,839 National Farm Loan Associations, and 1,985 more were in process. 18,000 farmers had received a total of $30 million in loans (out of $200 million in requests)
||4018 National Farm Loan Associations had been created nationwide
||74,000 farmers had borrowed a total of $234 million in current loans from the Federal Land Banks
||Agricultural Credits Act, March 3, 1923 [S.4280, 5 January 1923]: created 12 Federal Intermediate Credit Banks, providing loans at discounted rates to agricultural cooperatives, commercial banks, and other lenders.
||February 8: New legislation amended the Agricultural Credits Act of 1923 by authorizing national agricultural credit corporations to make loans on farm crops being grown for market
||Agricultural Depression slows the rate of borrowing, and by 1929 only 17,000 farmers had outstanding loans from the FLBs, for a total of $64 billion
||Nearly half of all National Farm Loan Associations were failing, and farm foreclosures were common.
March 26: President Franklin Roosevelt appoints Henry Morgenthau Jr. as Chairman, Federal Farm Board.
March 27: President Roosevelt issues Executive Order 6084 creating the Farm Credit Administration, to be effective in 60 days.
May 12: Congress passes Emergency Farm Mortgage Act, which sought to save farmers delinquent on mortgage payments, and “purchased farm mortgages from lenders or from the receivers of insolvent banks at discounted prices, pursuant to an application by the lender and the borrower, scaled them down, and refinanced them over longer terms and with lower interest rates.”
May 27: Creation of Farm Credit Administration according to the terms of Roosevelt's March 27 Executive Order. Roosevelt names Henry Morgenthau first Governor of the Farm Credit Administration, serves from May 27 to November 16, 1933
June 16: Congress passes the Farm Credit Act, authorizing farmer-owned Production Credit Associations to make short- and intermediate-term loans. Within eighteen months, the Farm Credit Administration, a merger of government farm loan agencies, would refinance a fifth of all farm mortgages.
William I. (Bill) Myers appointed Governor, November 17, 1933, to September 20, 1938
December: Land Banks were loaning more money per month than they had during the entire year of 1932. The FCA staff jumped, with appraisal staff alone growing from 200-5,000 appraisers in 1933.
Between 1933 and 1939, Federal land banks loand a total of $2.5 billion, and 71% of that went to refinance mortgages that had initially been held by private credit agencies.
||By the end of 1935, Land Banks held 48% of the nation’s farm mortgage debt
||FCA held 40% of the U. S. farm-mortgage indebtedness
||Forrest F. “Frosty” Hill, Governor, September 21, 1938, to March 26, 1940
||Albert G. Black, Governor, March 27, 1940, to June 21, 1944
April 27: Henry Wallace speech on farm credit in St. Paul, attendance 15,000
||Ivy W. Duggan, Governor, June 22, 1944, to June 30, 1953
||Farm Credit Act made FCA independent of USDA, set course for farmer-ownership
Carl R. (Cap) Arnold, Governor, July 16, 1953, to March 31, 1954
||Robert B. Tootell, Governor, April 1, 1954, to February 28, 1969
||Farm Credit System paid off federal loans in all branches of the system.
||Edwin A. Jaenke, Governor, March 1, 1969, to October 31, 1974
May: Governor Jaenke appoints the Commission on Agricultural Credit, a 27-member commission charged with evaluating the status of the Farm Credit System, its strengths, and ways in which it can grow and prosper
||Total farm debt was $54 billion
Farm Credit Act of 1971 liberalized the rules for FCS lending, allowing loans to fishermen, rural homeowners, and greater support for production agriculture
||W. Malcolm Harding, Governor, November 1, 1974, to February 28, 1977
||Donald E. Wilkinson, Governor/Acting Chairman, March 1, 1977, to March 28, 1986
||FCS held $69.8 billion in outstanding loans
National farm debt: $212 billion
During 1985, the Farm Credit System lost $2.7 billion—largest one-year loss of any financial institution in U.S. history
Farm Credit Act of 1985: Separated FCA from the FCS, making FCA an “arm’s-length” regulator. It also provided for a full-time, presidentially appointed three-member Board of Directors, on which one Board member serves as Chairman and Chief Executive Officer of FCA. The Act restructured FCA to give it increased oversight, regulatory, and enforcement powers similar to those of other Federal financial regulatory institutions. FCA was required to examine each direct-lending institution at least annually and could use its new enforcement authority to instill safe and sound banking practices on troubled institutions and to correct any regulatory violations.
||Kenneth J. Auberger, Acting Chairman, March 29 to May 21, 1986
Frank W. Naylor Jr., Chairman and Chief Executive Officer, May 22, 1986, to November 11, 1988
Marvin Duncan, Acting Chairman and Chief Executive Officer, May 22, 1986, to September 18, 1990
||Agricultural Credit Act reorganized the Farm Credit System: authorized up to $4 billion in federal assistance to troubled institutions. Strengthened borrowers’ rights and created an insurance corporation to protect bank assets. Federal Land Banks and Federal Intermediate Credit Banks within each district were merged.
||Harold B. Steele, Chairman and Chief Executive Officer, October 10, 1989, to September 8, 1993
||Billy Ross Brown, Chairman and Chief Executive Officer, October 30, 1990, to October 17, 1994
||Marsha Pyle Martin, Chairman and Chief Executive Officer, October 17, 1994, to January 9, 2000
||Michael M. Reyna, Chairman and Chief Executive Officer, October 22, 1998, to December 1, 2004
||Nancy C. Pellett, Chairman and Chief Executive Officer, May 22, 2004 to May 21, 2008
Proposed Rabobank buyout overruled
||Farm Credit System payoff of federal loans--the institutions of the Farm Credit System once again become entirely farmer-owned
||Leland A. Strom, Chairman and Chief Executive Officer, May 22, 2008 to October 13, 2012