Farm Credit Private Control Restoration Act of 1985

Farm Credit Private Control Restoration Act of 1985 - Amends the Farm Credit Act of 1971 to provide that each Federal land bank, Federal intermediate credit bank, and district bank for cooperatives shall have a separate board of directors. Sets forth the composition of such boards. Provides that the eligibility requirements, terms, and compensation of directors and the election of officers by the directors shall be the same as provided for farm credit district boards.

Authorizes the Farm Credit Administration to modify the charters or organization certificates of such banks only as necessary for compliance with such Act. Restricts the Administration's authority over the salaries of bank employees and chief executive officers. Prohibits Administration regulations from preventing such banks from exercising any powers granted under Federal statute.

Increases: (1) by four the number of members of the board of directors of each farm credit district; and (2) by one the number of such directors appointed by the Governor of the Administration and the number of directors elected by the Federal land bank associations, the production credit associations, and the borrowers from, or subscribers to, the guaranty fund of the bank for cooperatives for the district. Limits the powers of such district boards to: (1) coordinating joint undertakings and joint properties of the district banks; (2) advising the boards of district banks on coordination of policies; and (3) formulating broad policies concerning the funding operations of the district banks and furnishing long-range policy guidelines for funding the Farm Credit System.

Sets forth transitional provisions.