Community banks have long struggled to grow roots in the agriculture lending business due to the strength of the Farm Credit System, a national network of borrower-owned lenders, an article in National Mortgage News reports.

The Farm Credit System is a government-sponsored enterprise that can provide lower rates than the community banks, making it hard for the banks to keep up, the article said.

As a result, the article says banks have turned to the Federal Agricultural Mortgage Corporation, which helps the banks provide lower interest rates that can compete in the market. 

According to the article, the entity was created to make a secondary market for agricultural mortgages and rural utilities loans.