The corporation will be set up with a corpus of $1.12 billion.
The decision to set up FEC was taken by the Andhra Pradesh chief minister, Chandrababu Naidu along with bank officials.
However, the bankers told Naidu that the bankers’ sub-committee will discuss the proposals of the state government and take a decision.
FEC will also be linked to various other state corporations relating to the farm sector.
AP state resources mobilisation committee president, YS Chowdary said that farmers will get fresh loans from October, and the corporation will be set up within three days.
The corporation will repay the crop loans taken by farmers from the bankers, issue certificates which can be used in banks and also augment additional resources.
Chowdary said that the corporation will work for the welfare of the farmers and to solve their problems in future.
As soon as the bankers have taken a decision on the proposals of the state government they will work out the modalities on payment of farm loans.
He said if the government will pay $2500 for each family 96 per cent farmers will covered in the state.
