Omaha, Nebraska, –( April 10, 2008) We've all seen the headlines about our nation's economy and we wanted you to know the Farm Credit System (System), has handily weathered the significant stress in the financial markets over the past year. System loans are backed by debt securities that are considered to be of very high credit quality. In fact, the markets generally perceive System debt securities as one of the next best alternatives to debt securities directly issued by the United States Government, like Treasury Bonds.
Buyers of System debt securities include pension funds, mutual funds, hedge funds, insurance companies, foundations, other corporations, state and local governments, foreign central banks, institutional investors and individual investors. The System is a disciplined issuer of bonds and takes a conservative approach to ensure market access.
As you know, volatile commodity prices, weather and a variety of market conditions are inherent risks of the agriculture industry. Recognizing these risks, the System’s mission is to continue to supply a reliable source of credit for the agriculture industry.