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1 1 (March 17, 2020)

handle is hein.crs/govcgwy0001 and id is 1 raw text is: 01;0i E.$~ & Updated March 17, 2020 Farm Credit Administration and Its Board Members The Farm Credit Administration (FCA) is an independent agency that is the federal regulator responsible for examining and ensuring the safety and soundness of all Farm Credit System (FCS) institutions and the Federal Agricultural Mortgage Corporation (Farmer Mac). FCA is directed by a three-member board of directors nominated by the President and confirmed by the Senate (12 U.S.C. §2242). Congressional oversight is provided by the House and Senate Agriculture Committees, which have primary jurisdiction for the FCS statutes. The most recent congressional hearings on the FCS were in the Senate on May 19, 2016, and in the House on March 29, 2017 (with FCA witnesses). The Senate Agriculture Committee most recently held a board member nomination hearing in November 2017. President Trump nominated Rodney Brown to be a board member in March 2020. The FCA sets the policies, regulations, charters, and examinations of the FCS and Farmer Mac. This includes compliance with statutes to serve eligible borrowers. Violations may result in supervisory and enforcement actions. FCA also protects the rights of borrowers and reports to Congress on the financial condition of the FCS. FCA has about 300 full- and part-time employees. It is located in McLean, VA, and conducts examinations from field offices in Colorado, Texas, Minnesota, and California. The current structure of the FCA and oversight of the FCS was created by the Farm Credit Amendments Act of 1985 (P.L. 99-205). Its statutory authority is in Title 12, Section 2241, of the United States Code, with regulations in Title 12, Section 600, of the Code of Federal Regulations. FCA's operating expenses are paid through assessments on FCS banks and associations. Even though FCA does not receive an appropriation from Congress, the annual Agriculture appropriations act places a limit on FCA's administrative expenses ($77 million in FY2020). The FCS is a privately owned, federally chartered, nationwide financial cooperative that lends to full- and part- time farmers, farming-related businesses, rural homeowners, farmer-owned cooperatives, and certain rural utilities. Borrowers must meet creditworthiness requirements. FCS is not a lender of last resort. Established in 1916 as a government-sponsored enterprise (GSE), FCS has a statutory mandate and limitation to serve agriculture. FCS is the only direct lender among the GSEs. It receives tax benefits, but FCS operates without any direct federal appropriations. FCS associations are owned by their borrowers, who are required to purchase stock as part of their loans. FCS banks and associations do not take deposits like commercial banks. Instead, FCS uses capital markets to sell bonds that become the joint and several liabilities of all FCS banks, meaning they collectively stand behind the obligations to repay those bonds. FCS is composed of four regional banks that provide funds and support services to 68 smaller credit associations that in turn provide loans to eligible borrowers. As of December 31, 2019, FCS had $287 billion in total loans outstanding. According to the U.S. Department of Agriculture, the FCS held 41% of the U.S. farm sector's total debt at the end of 2018. Statutory authority for FCS is in the Farm Credit Act of 1971 (12 U.S.C. §2001 et seq.), as amended notably by the Agricultural Credit Act of 1987. For more background, see CRS Report RS21278, Farm Credit System. As a regulator, FCA is directed by a three-member board of directors nominated by the President and confirmed by the Senate (12 U.S.C. §2242). Table 1 shows the current FCA board members and their terms. Table I. Farm Credit Administration Board Members Name Description Term ends Glen R. Confirmed on December 5, 2017. 5/21/2022 Smith Designated as Chairman and CEO on July 17, 2019. Jeffery S. Confirmed on March 9, 2015. Serving 10/13/2018 Hall until a successor is confirmed. Vacant Dallas P. Tonsager died on May 21, 5/21/2020 2019. Source: CRS, using data at FCA.gov, About FCA. Terms for board members are six years in length, fixed when they begin and staggered so that one term begins every two years regardless of whether a new member has been appointed and confirmed. Board members may not be reappointed after serving a full term or more than three years of an unexpired term. A board member may continue to serve beyond the end of his/her term until a replacement has been confirmed. This helps maintain a full three- member board if successors are delayed. Not more than two members of the board may be from the same political party. The President designates one member as chairman-not subject to further Senate confirmation if previously s !: N, _s. .o n : x> p\w -- , gnom goo mppm qq\ a , q 'S I 11LIANJILiN,

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