Farmers Commission Co. history

With land values rising, the need for long-term fixed-rate credit became acute. It was then that most of the free land available in the West under the Homestead Act of 1862 was claimed, and farmers needed long-term credit to purchase land.

Only two years before Washington statehood in 1887, Northern Pacific Railroad had completed the first direct east-west service to Puget Sound.

By the time Washington was granted statehood in 1889, the state’s chaotic railroad development was continuing and the first east-west line had already reached Puget Sound.

By 1892, the Alliance was on the decline and soon ceased to exist altogether.

Drawing from his experience in the other two organizations, he began planning a new farmers’ organization in early 1900.

In late 1902, Judge A.L. Beckett of Warner, Indian Territory, traveled to Point, Texas, to obtain information about the Farmers Union that had been established earlier that year.

Early members were first served by Texas and national Farmers Union founder Newt Gresham's Password, the organization’s official mouthpiece which was created in 1903.

As the Farmers Union movement continued to grow, organizers were sent from place to place to create local bodies and, in 1904, they were recognized with a territorial charter.

Finally, in 1905 the first Washington Railroad Commission was created with jurisdiction limited to railroad and express companies.

In 1906, The Indiahoma Signal, the official publication of the Farmers Union, was moved to Shawnee.

As for the Indiahoma and Indian Territory Farmers Union, the two unions became one and were re-chartered as the Oklahoma State Union in 1907.

Starting in 1908 in the administration of President Theodore Roosevelt, the Country Life Commission and congressional committees studied the problems facing rural families, who constituted the majority of households in America at that time.

So, in 1911 the Washington Legislature changed the name of the agency to the Washington Public Service Commission, expanding its jurisdiction to include electric and gas service.

In its report (PDF), the commission recommended a nationalized extension service, which was formalized by the passage of the Smith-Lever Act in 1914.

What the 1916 Act lacked, however, was a provision for short-term loans.

In 1919, delegates to the Oklahoma Farmers Union (OFU) state convention directed the organization to form the Oklahoma Farmers Union Mutual Fire and Lightning Insurance Company to serve rural areas in covering farm buildings, household goods, farm implements, farm products and livestock.

During World War I, offices were established in Custer County and remained there until 1920 when the headquarters were transferred to Oklahoma City.

With only 284 policyholders, the company officially began in January 1922.

In 1926, an office building was constructed at 18 North Klein in Oklahoma City.

By 1933, nearly one-half of the NFLAs were failing, and farm foreclosures were common.

FCA also played a pivotal role in the federal credit union movement, when in 1934 it was given responsibility for chartering, examining, and supervising all federal credit unions.

In 1935, the insurance department reported $45 million in force and more than 13,000 policyholders.

A new and much larger office building was constructed at 4 North Klein in 1941 and later expanded as demands for space grew.

Before this oversight was turned over to the Federal Deposit Insurance Corporation in 1942, FCA had chartered more than 4,000 credit unions and examined them annually.

The company began writing automobile insurance in 1945 with the Farmers Union Automobile and Casualty Co., a national mutual company operated as a cooperative by the National Farmers Union.

FCA becomes an independent agency again under the Farm Credit Act of 1953.

Robert B. Tootell is the first governor appointed by the board (in 1954).

In 1964, a new Farmers Union store was opened at 1601 South Agnew in Oklahoma City.

A controlling majority was achieved in this company by 1966.

All government capital to the FCS was repaid by 1968, making FCS institutions wholly owned by their farmer-borrowers.

The Farm Credit Act of 1971, the outcome of recommendations of a commission established by the federal Farm Credit Board, gave the banks and associations more flexibility in lending to production agriculture, and authorized lending to commercial fishermen and rural homeowners.

In 1980, the law was amended to encourage lending to young, beginning, and small farmers.

The 1985 Act restructured FCA to give it increased oversight, regulatory, and enforcement powers similar to those of other federal financial regulatory institutions.

The Agricultural Credit Act of 1987 authorized up to $4 billion in federal assistance to troubled institutions, including up to $2.8 billion in Treasury-guaranteed 15-year bonds.

It was sold in 1988, but Farmers Union agents continued to write business for the company.

In 1989, Oklahoma Farmers Union acquired a modern structure and moved the corporate headquarters to 6200 N.W. 2nd St in Oklahoma City.

The Farm Credit System Reform Act of 1996 gave Farmer Mac further authority to purchase and pool loans and issue mortgage-backed securities with guaranteed payment of principal and interest, rather than just guarantee such securities issued by other retail lenders.

The company was reacquired in 2000 and brought back to Oklahoma where it continues to operate today.

At the 2007 OFU Convention, delegates approved changing the name from OFUMIC to American Farmers & Ranchers.