General information

The Farm Credit System Insurance Corporation — or FCSIC — was created by Congress to insure the timely payment of principal and interest on debt securities jointly issued by the Farm Credit System (FCS) banks (often referred to as “Systemwide” bonds). If a Farm Credit bank is unable to make a payment to investors on a Systemwide debt security, FCSIC will pay investors out of its Insurance Fund. Since FCSIC became operational in 1993, no FCS bank has defaulted on its insured debt obligations, and FCSIC has never paid an insurance claim.

FCSIC is an independent entity within the United States government and is organized as a government-controlled corporation.

As detailed in FCSIC’s Strategic Plan(PDF), FCSIC carries out its insurance program through three major areas: (1) Insurance Fund and financial management, (2) risk management, and (3) receivership, conservatorship, and assistance readiness.

FCSIC manages the Farm Credit Insurance Fund, established by Congress as:

A United States government fund

The Farm Credit Insurance Fund is identified on the Consolidated Financial Statements of the United States and the annual Budget of the United States as an asset of the United States government. Under current law, money in the Farm Credit Insurance Fund can only be used by FCSIC for the purposes specified in the Farm Credit Act. Full governmental ownership and control of the Farm Credit Insurance Fund protects the public interest and helps ensure that the Fund will only be used for its intended purposes.

Maintained for the benefit of investors and taxpayers

The direct beneficiaries of the Farm Credit Insurance Fund are investors in Farm Credit System debt obligations who would receive payment from the Insurance Fund in the event of System bank default. If a Farm Credit bank is unable to make a payment to investors on a Systemwide debt security, FCSIC will pay investors out of its Insurance Fund. Taxpayers benefit from the Farm Credit Insurance Fund by, among other ways, having a pool of available funds that would be used to support the Farm Credit System before the need to use any appropriated taxpayer money. FCSIC protects investors and taxpayers through sound administration of the Farm Credit Insurance Fund, ensuring that funds are available and employed to fulfill FCSIC’s primary purpose. Investors and taxpayers also benefit from FCSIC providing an independent federal ‘second set of eyes’ (in addition to the primary regulator) monitoring the Farm Credit System.

That helps ensure a stable and competitive source of credit for America’s farmers and ranchers.

The FCSIC government insurance program provides confidence and assurances to private investors (who provide the funds used in the operation of the Farm Credit System) and therefore enhances the FCS banks’ access to markets and their ability to borrow at very favorable rates - which in turn allows the System to provide a consistent and competitive source of credit for rural America.

For more information about FCSIC, the Farm Credit Insurance Fund, and the Farm Credit System, please visit our FAQs.

For Information on the financial performance of FCSIC and the Farm Credit Insurance Fund, please explore the Financials Page.

FCSIC is governed by a board of directors composed of the presidentially appointed, Senate-confirmed, members of the Farm Credit Administration (FCA) Board. The Chairman of FCSIC, however, must be a Board member other than the Chairman of the FCA Board. Jeffery S. Hall is the Chairman of the FCSIC Board of Directors.