AGRICULTURAL LENDING INSTITUTIONS COMMERCIAL BANKS FARM CREDIT SYSTEM FARM SERVICES ADM. INSURANCE COMPANIES INDIVIDUALS INPUT SUPPLIERS

COMMERCIAL BANKS IN 2002, FARM BUSINESS DEBT PROVIDED BY COMMERCIAL BANKS ACCOUNTED FOR 17.6% OF REAL ESTATE DEBT AND 21.8% OF NON REAL ESTATE DEBT.

AGRICULTURAL BANKS 1987 ==> 4480 AG. BANKS 1999==> 2942 AG. BANKS 1994 ==> 3548 AG. BANKS 2001==> 2744 AG. BANKS 1995 ==> 3363 AG. BANKS 2002==> 2644 AG. BANKS WHAT IS AN AG. BANK? FEDERAL RESERVE DEF. A BANK THAT HAS AN AG. LOAN RATIO GREATER THAN THE AVERAGE FOR ALL COMMERCIAL BANKS. ON 6/30/ %

FARM CREDIT SYSTEM THE FARM CREDIT SYSTEM (FCS) IS MADE UP OF FOUR REGIONAL FARM CREDIT BANKS. THESE BANKS PROVIDE FUNDS FOR PRODUCTION CREDIT ASSNS. (PCAs), FEDERAL LAND BANKS ASSNS. (FLBAS), AGRICULTURAL CREDIT ASSNS. (ACAs), AND FEDERAL LAND CREDIT ASSNS. (FLCAs). REGULATED BY THE FARM CREDIT ADM., WHICH IS AN INDEPENDENT AGENCY OF THE FEDERAL GOVT.

n As of July 1, 2004, the System was composed of the following lending institutions: n Four Farm Credit Banks (FCBs) that provide loan funds to 79 Agricultural Credit Association (ACAs), and 11 Federal Land Credit Associations (FLCAs). ACAS make short-, intermediate-, and long-term loans and FLCAs make long-term loans. n One Agricultural Credit Bank (ACB), which has the authority of an FCB and provides loan funds to 5 ACAs. In addition, the ACB makes loans of all kinds to agricultural, aquatic, and public utility cooperatives and is authorized to finance U.S. agricultural exports and provide international banking services for farmer- owned cooperatives.

THE FARM CREDIT SYSTEM ACCOUNTS FOR 20.0% OF REAL ESTATE LOANS AND 10.3% OF NON REAL ESTATE LOANS. FUNDING IS OBTAINED BY SELLING BONDS IN THE MONEY MARKETS.

TEXAS BANK 13 Ag Credit Assns. TOTAL LOANS AS OF SEPT. 30, 2014 ==> $ BILLION THERE HAS BEEN CONSIDERABLE CONSOLIDATION OF PCAs AND FLBAs IN THE PAST FEW YEARS

FARM SERVICES ADM. THE FARM SERVICES ADM. (FSA) WAS FORMERLY THE FARMERS HOME ADM. (FmHA). ACCOUNTS FOR 1.7% OF REAL ESTATE LOANS AND 1.8% OF NON REAL ESTATE LOANS. HAS BEEN DECREASING IN AMOUNT OF CREDIT PROVIDED.

DEBT (MIL $) DIRECTGUARANTEED

DELINQUENT LOANS (%) DIRECTGUARANTEED

LIFE INSURANCE COMPANIES ACCOUNTS FOR 6.1% OF REAL ESTATE LOANS. ONCE WERE MAJOR LENDERS IN THE AGRICULTURAL REAL ESTATE MARKETS.

INSURANCE COMPAYIES CURRENTLY ACTIVE IN AGRICULTURAL LENDING ARE: AEGON-USA CItigroup Investments AgriFinance Lend Lease Agri-Business Metropolitan Life MONY Life Insurance Prudential

INDIVIDUALS AND OTHERS ACCOUNTS FOR 9.6% OF REAL ESTATE LOANS AND 11.2% OF NON REAL ESTATE LOANS. NON-TRADITIONAL LENDERS --JOHN DEERE --FORD NEW HOLLAND --PIONEER HI-BREEDS LEASING AND FINANCING OF EQUIPMENT AND SUPPLIES.

FARMER MAC FEDERAL AGRICULTURAL MORTGAGE CORP. PROVIDES A SECONDARY MARKET FOR AGRICULTURAL LOANS. POOLS FARM MORTGAGE LOANS AND SELLS THEM TO INVESTORS. SIMILAR TO THE GNMA MARKET.