A Federal Land Bank provides financial services that meet the needs of those who own or seek to purchase rural property, explains Investopedia. In 1988, the Federal Land Banks merged with Intermediate Credit Banks to create the Farm Credit System, according to America's Farm Credit Archive.
The Federal Farm Loan Act of 1916 created Federal Land Banks. The act divided the United States into 12 districts, each with its own Federal Land Bank that provided credit and specialized financial services to those living in rural areas. Since 1916, several other acts created similar government lending-assistance programs. In 1988, the government consolidated these programs to have a unified governing body and improve the efficiency of the system, reports the Farm Credit Archive.