The Ohio Senate recognized Farm Credit System members that serve Ohio farmers, agribusiness and rural homeowners with a resolution honoring and recognizing the 100th anniversary of the signing of the Federal Farm Loan Act of 1916 on May 25.
The legislation set the stage for the first Farm Credit system.
“Today, the more than 75 Farm Credit associations located throughout the country — which includes AgCredit and Farm Credit Mid-America — continue to function in a very similar manner,” said Brian Ricker, AgCredit CEO and president. “Agricultural and political leadership that helped create the System should indeed be praised for their intuition, as well as various changes that have been made since 1916 that have allowed Farm Credit System members to better serve their customers who are also their member borrowers.”
State Senator Cliff Hite (R-Findlay) presented leaders representing AgCredit, which serves 18 counties in northwest and northern Ohio, and Farm Credit Mid-America, which serves 79 counties, with the resolution. Joining Senator Hite in co-sponsoring the resolution were state senators Keith Faber (R-Celina), Kevin Bacon (R-Columbus), Bob Hackett (R-London), Bob Peterson (R-Washington Court House), David Burke (R-Marysville) and Randy Gardner (R-Bowling Green).
The Senate resolution — as well as a proclamation from the Director of the Ohio Department of Agriculture — praised the Federal Farm Loan Act of 1916 for creating the Farm Credit System, which has served as a means for rural communities and agricultural producers to obtain financing. The resolution and proclamation also applauded and commended those associated with the passage of the Act for their foresight.
Congress designed the Farm Credit System, created through the original Act, as a network of cooperatives, independently owned and controlled by their borrowers, responsive to their individual needs for credit and financial services and continually adapting to meet the changing needs of rural communities and agriculture.
The Act was originally passed by Congress and signed into law by President Woodrow Wilson to address problems farmers were having in obtaining loans from banks to purchase farmland. In the midst of the Great Depression the Farm Credit System was expanded through the Farm Credit Act of 1933 that addressed challenges farmers were facing in obtaining short-term loans timed to agricultural cycles (operating loans). These two respective Acts of Congress created what were originally known as federal land banks and production credit associations.
Through the various services they provide to farmers, agribusiness and rural homeowners, the combination of AgCredit and Farm Credit Mid-America currently provide more than $7 billion in loans to more than 34,000 customers in Ohio.