Farm Credit System Preservation and Reorganization Act of 1985

Farm Credit System Preservation and Reorganization Act of 1985 - Directs the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) to: (1) conduct a complete audit of the Farm Credit System within 90 days; and (2) determine the ratio of the aggregate assets to the aggregate liabilities of such System, treating any stock in a System unit which is held by any agricultural producer as a liability.

Establishes the Emergency Farm Credit Authority (EFCA) within FDIC. Abolishes the Farm Credit Administration (FCA) and the Federal Farm Credit Board. Transfers the powers and duties of: (1) the Board to the Board of Directors of FDIC; (2) the FCA to EFCA; and (3) the Governor of the Administration to the Administrator of EFCA.

Directs the FDIC Board to: (1) order an examination of each institution of the System and each agent of any such institution whenever necessary, but not less than once each year; and (2) report the results of such examinations to the Congress annually.

Directs the EFCA Administrator to offer to replace any System obligation issued before enactment of this Act with an obligation containing the same terms, conditions, and maturity period, except that the face amount of the replacement obligation shall not exceed the product of: (1) the face amount of the obligation it replaces; and (2) the assets-to-liabilities ratio of the System. Requires the Administrator to guarantee payment of the face amount of such replacement obligations, with interest, at maturity. Permits the Administrator to guarantee payment at maturity of the face amount of any obligation issued by the System during the five-year period following enactment of this Act, with specified exceptions.

Authorizes the FDIC Board to establish a Federal Cooperative Stock Insurance Program to insure up to $100,000 in shares of stock in any System institution held by any agricultural producer. Provides that each System institution may be required to become insured under the program.

Expresses the sense of the Congress that the President should establish a Presidential Commission on Farm Credit to review the entire agricultural credit system and make recommendations to the Congress on improving the system and increasing the profitability of agricultural production.

Expresses the sense of the Congress that no System institution should foreclose on any loan or take possession of, or dispose of, any property securing such loan: (1) for 90 days after enactment of this Act; and (2) after such 90-day period if the debtor is an agricultural producer whose farming operations would be profitable if the amount of the principal of such loan were the product of the actual loan amount and the assets-to-liabilities ratio of the System.