What banks for cooperatives
Banks for cooperatives are regional, private and government banks that make loans for farm marketing, supply and service cooperatives, and rural utilities.
Breaking down the banks for cooperatives
Banks for cooperatives are part of the Federal system of lending to farms and are subject to the regulation of credit administration farm. Credit system the farm provides short, medium and long-term loans for agriculture. The Federal system of lending to farms is a nationwide cooperative system of banks and associations providing credit to farmers, agricultural concerns and related businesses. The credit system provides more than 304 billion dollars in loans, rent and provision of services to farmers, farmers, rural homeowners, aquatic producers, timber harvesters, agricultural enterprises, agricultural and rural utility cooperatives. This is about one third of the credit needed by those who live and work in rural America. The Agency kapitaliserede by issuing bonds whose interest is free from state and local income taxes. Loans are mainly financed through the sale of debt securities issued by the Federal farm Credit Bank.
This Cooperative system contains a Bank for cooperatives, farm credit banks and Federal farm credit banks funding Corp. in January 2006, the U.S. government signed a law stating that every farm credit district must have a Bank for cooperatives. The Bank for cooperatives will include in its name the name of the city in which it is located or other geographical designation. When the authorized credit administration, the farm, each Bank for cooperatives may establish such branches or other offices on the effective functioning of your business.
Banks for cooperatives have the right to make loans and commitments and extend other technical and financial assistance, including but not limited to, storage of the Deposit, notes, bills and other obligations, guarantees, and currency exchanges necessary to service transactions. The Bank for cooperatives is also authorized to Finance U.S. agricultural exports and provide international banking services for farmer cooperatives.
History of banks for cooperatives
Banks for cooperatives were established by the law on credit farms in 1933, which was signed to improve access to credit for farmers. The law is formally in charge of the operation country of the Federal land banks, intermediary banks, loans, agricultural credit institutions and the Central Bank for cooperatives. This law was part of the “new deal” of President Franklin D. Roosevelt, to help farmers refinance mortgages over a longer time at below market interest rates at regional and national banks. This initiative has helped farmers recover from the dust storms.