FCS Financial: One Hundred Years July 2016 | Page 73

The Farm Credit Amendments Act of 1985 was signed into law
on December 23, 1985. The act gave the Farm Credit Administration
increased oversight, regulatory, and enforcement powers and
provided for a full-time, three-member board to be appointed by the
president. The FCA would now be required to examine each directlending institution annually and was authorized to instill safe and
sound banking practices. Upon signing the bill, President Ronald
Reagan remarked:
This law enables the farm credit system to pool its considerable
resources in a self-help effort. It establishes a stronger and
more complete regulatory oversight system, and it authorizes
a backstop system of Federal assistance, although we believe
that it will never be necessary. This reform will ensure a steady
supply of credit to America’s farmers and assure the investors
of the safety and soundness of the system. What we do today
recognizes that the health of American agriculture is essential to
the well-being of the American economy. If things are not going
well down on the farm, things cannot continue to go well in our
cities and towns.

President Reagan signs the Farm Credit Amendments Act of 1985.

The Perfect Storm

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