The Farm Credit System celebrated its 90th anniversary on July 17, 2006. It was on July 17, 1916, that President Woodrow Wilson signed the Federal Farm Loan Act into law. The legislation created a system of 12 regional Farm Loan Banks that would grant loans to farm cooperative associations, allowing farmers to borrow from their local institution, using their land and improvements as collateral.

As part of an ongoing initiative, the Farm Credit Council issued its “Horizons” report, which identified key findings about the future of agriculture and rural America, and detailing the need for new forms of investment.

According to the report, 59 million people, 21% of the U.S. population, live in rural America, occupying 80% of the land. Small towns and rural America have changed along with agriculture. The differences between the farm business and other lines of business and industry have narrowed. Due to increased competition, new technology and more sophisticated consumer demands, successful farming today requires many of the same business skills that other businesses require.

The study states that more than six million farm families worked the land in 1916, on an average farm of about 150 acres. Today’s 2.1 million farm operations average about 440 acres.

The principal agents of change include technology, globalization, government policies and the rising influence and shifting demands of the consumer.

Biotechnology has improved crop yields and reduced the need for labor, energy and chemicals. It also promises new markets for agriculture, including pharmaceuticals and industrial products.

Ethanol and bio-diesel technology fulfill a need for cleaner, alternative fuel sources and, at the same time, create new markets for farmers. Technological improvements have contributed to the trend towards fewer but more efficient processing plants in almost every industry, from dairy to fruit to grain.

The Farm Credit Council report concludes that collaboration and new financing are essential to address the issues of education, unemployment, housing and health care. The complete report is available online at www.fchorizons.com.