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Glossary term

Farm Credit System

Definition

The Farm Credit System is a nationwide network of lending cooperatives that specialize in loans to farmers, ranchers, and rural businesses.

Technical definition

The Farm Credit System is a federally chartered network of borrower-owned cooperative lending institutions that provide credit and related services to agriculture and rural America.

Why it matters

It's a major source of agricultural credit alongside banks and government programs, so it's worth including when comparing lenders.

Example

A farmer might compare a Farm Credit institution's terms against a local bank's before choosing.

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