LOANS, LEASES, FINANCIAL AND BUSINESS SERVICES FREQUENTLY ASKED QUESTIONS Is Farm Credit East government financed? No. We are privately funded through the sale of bonds. As one of 70 U.S. financial institutions within the national Farm Credit System, Farm Credit East falls under the regulatory oversight of the Farm Credit Administration.
Is Farm Credit East a commercial bank or a credit union? Unlike commercial banks and other lenders, Farm Credit East is not a depository institution. We are owned by our member-customers. This cooperative structure is your best assurance that competitively-priced credit will always be available to farmers, fishermen, forest products producers and other agricultural businesses.
What is a cooperative? Cooperatives are structured so that customers are stockholders who are entitled to share in the earnings of the organization. Patronage dividends are a major advantage when you borrow from Farm Credit East. Being a cooperative also means that we are led by a member-elected Board of Directors.
Where does the money come from? Funds used in lending operations of the Farm Credit System are obtained chiefly from the sale of bonds to the public. Farm Credit East brings billions of dollars from investors to farm families and cooperatives that need credit.
Do you have to be a member to utilize Farm Credit East’s services? It depends on the services that you wish to use. For credit services, you must buy stock and therefore become a member. We provide financial services for anyone involved in an agricultural business, including owners, managers, employees and part-time farmers as well as commercial fishing and forest products businesses, and agricultural processing and and marketing businesses. Agricultural cooperatives borrow from Farm Credit through our affiliated lending institution, CoBank.
What does Farm Credit East do for young, beginning, small and veteran farmers? We have a number of programs to help support talented, hardworking individuals enter the agriculture, commercial fishing and forest products industry. Helping young people get started is one of our long-term commitments to Northeast agriculture. Programs include our young, beginning, small and veteran farmer incentives, FarmStart and GenerationNext.
7