Pub. 1 2012 Issue 7

Oct/Nov 2012 25 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s BERT ELY’S FARM CREDIT WATCH ® SHEDDING LIGHT ON THE FARM CREDIT SYSTEM, AMERICA’S LEAST KNOWN GSE ©2012 Bert Ely F ARM CREDIT SERVICES OF AMERICA (FCSA), HEAD- quartered in Omaha and the second-largest FCS associa- tion, has a deal for you – a once-in-a-lifetime chance to buy “a custom built 6,500+ sq. ft. log, one level home... This NEW, never been occupied residence, was built with only the finest materials and features 12 to 18 [foot] ceilings, a great room with custom copper fireplace & mantle, an enormous master suite with 360 [degree] fireplace & copper soaking tub, an elaborate gourmet kitchen, garage for 3+ vehicles and so much more . . . certain to impress and envelop you with warmth and beauty!” Also on these 55 Black Hills acres, near Custer, South Dakota – “THE ULTIMATE HORSE PROPERTY” – is a 2,100 square foot guest house, a Barnmaster Equestrian facility, a quality Morton shop building, and much, much more. This property will be sold at absolute auction on October 11. Go to: http://www.sdauctions.com/index. php?cmd=prevauction&id=7939 to find out more about this property. Click on “Click here for a Video Tour” in the yellow box for a 9 ½ minute video tour of this property to gain a full appreciation of what FCSA financed, and then foreclosed on. The backstory. According to well-placed sources, FCSA financed the construction of this “cabin” for a Hollywood TV producer. Reportedly the borrower was “not fun to work with” but nonetheless was wined and dined by FCSA to snare this estimated $3 million lending opportunity. For whatever reason, the borrower quit making payments before occupying it so the property reverted to FCSA. A future issue of FCW will report on the auction results and FCSA’s likely loss. The FCSA had absolutely no business making this loan. Though it has a horse barn and possibly some pasturage, this loan certainly was not a loan to a genuine farmer or rancher. Instead, it was like so many loans the FCS makes today – to the rich and famous who are least in need of taxpayer-subsidized FCS credit. For Sale by Owner: Black Hills “Cabin” continued on page 26