Bert Ely is a consultant specializing in banking issues. He writes ABA's Farm Credit Watch.
In its recently issued Annual Information Statement for 2018, the FCS reported after-tax profits for 2018 of $5.33 billion and $272 billion of loans outstanding at Dec. 31, 2018, up 5.1 percent from year-end 2017.
On Aug.1, Farm Credit Mid-America (MidAm), the second largest FCS association, announced at a PGA Tour event that it was rebranding its consumer lending division.
So far, the 2018 House and Senate Farm Bills now pending in Congress would have a minor impact on the Farm Credit System, which is good news for bankers.
Hopefully an unintended consequence of the major tax legislation enacted in December will be the triggering of a fundamental review of the taxation of the FCS and agricultural co-ops relative to banks and other investor-owned businesses.
One unintended effect of the wide-ranging tax legislation Congress enacted last month was a slight reduction in the competitive edge the FCS has long had for loans secured by real estate.