Having endured rough economic times and substantial transformations of the agricultural industry, the Farm Credit System -- the farmer-owned banking system created by Congress to serve farmers -- marks its 90th anniversary this year.
President Woodrow Wilson signed the Federal Farm Loan Act in 1916 that created a system of 12 national Federal Land Banks, including one in Baltimore.
The Baltimore bank, in a six-story structure at St. Paul and 24th streets, welcomed its first customer in 1924. At the time, it served five states -- Maryland, Delaware, Pennsylvania, Virginia, West Virginia -- and Puerto Rico.
The location was selected because it was close to farmers. Milk was being delivered in horse-drawn wagons from nearby dairy farms.
Agriculture has changed significantly over the years, and the Farm Credit System has worked to follow suit. Where 25 percent of the nation's population lived on farms when the system was beginning, less than 2 percent live on farms today. The percentage of farmers with off-farm work or income has risen from 30 percent to 93 percent in the same period.
In 1930, 13 percent of farms had electricity. In 1940, one-quarter had a telephone, and farmers who did usually shared a party line with neighbors; the phone number was usually something like "7R."
One thing has not changed. MidAtlantic Farm Credit, the Westminster-based cooperative institution that traces its roots to the original bank on St. Paul Street, remains Maryland's largest agriculture lender. It serves customers in Maryland, Pennsylvania and Delaware.
"We have in excess of 10,000 customers, and we continue to grow," said J. Robert Frazee, president and chief executive officer of MidAtlantic Farm Credit. "We have been growing an average of 600 customers a year since 2000."
One measure of growth is loans outstanding, which have risen from $1 billion in 2000 to more than $1.7 billion.
Phil Johnson, 68, a fruit and vegetable farmer near Elkton in Cecil County, credits MidAtlantic's success to its familiarity with the customers.
"They understand and know how to talk to farmers," he said. "Other banks are not agriculture-oriented."
Johnson said he has been a MidAtlantic customer since 1980.
"Farming is becoming more sophisticated," he said. "When you need to buy a piece of sophisticated equipment, you need to talk to someone who understands what you are talking about."
