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Updated October 18, 2019
Farm Credit Administration and Its Board Members
Overview
serve agriculture. FCS is the only direct lender among the
The Farm Credit Administration (FCA) is an independent
GSEs. It receives tax benefits, but FCS operates without
agency that is the federal regulator responsible for
any direct federal appropriations.
examining and ensuring the safety and soundness of all
Farm Credit System (FCS) institutions and the Federal
FCS associations are owned by their borrowers, who are
Agricultural Mortgage Corporation (Farmer Mac).
required to purchase stock as part of their loans. FCS banks
and associations do not take deposits like commercial
FCA is directed by a three-member board of directors
banks. Instead, FCS uses capital markets to sell bonds that
nominated by the President and confirmed by the Senate
become the joint and several liabilities of all FCS banks,
(12 U.S.C. §2242). Congressional oversight is provided by
meaning they collectively stand behind the obligations to
the House and Senate Agriculture Committees, which have
repay those bonds. FCS is composed of four regional banks
primary jurisdiction for the FCS statutes.
that provide funds and support services to 68 smaller credit
associations that in turn provide loans to eligible borrowers.
The most recent congressional hearings on the FCS were in
the Senate on May 19, 2016, and in the House on March 29,
As of June 30, 2019, FCS had $276 billion in total loans
2017 (with FCA witnesses). The Senate Agriculture
outstanding. According to the U.S. Department of
Committee most recently held a nomination hearing for a
Agriculture, the FCS held 41% of the U.S. farm sector’s
board member in November 2017. In February 2019,
total debt in 2018.
President Trump nominated Rodney Brown to be a board
member, but no congressional action has occurred.
Statutory authority for FCS is in the Farm Credit Act of
1971 (12 U.S.C. §2001 et seq.), as amended notably by the
Farm Credit Administration
Agricultural Credit Act of 1987. For more background, see
The FCA sets the policies, regulations, charters, and
CRS Report RS21278, Farm Credit System.
examinations of the FCS and Farmer Mac. This includes
compliance with statutes to serve eligible borrowers.
Board Members
Violations may result in supervisory and enforcement
As a regulator, FCA is directed by a three-member board of
actions. FCA also protects the rights of borrowers and
directors nominated by the President and confirmed by the
reports to Congress on the financial condition of the FCS.
Senate (12 U.S.C. §2242). Table 1 shows the current FCA
FCA has about 300 full- and part-time employees. It is
board members and their terms.
located in McLean, VA, and conducts examinations from
field offices in Colorado, Texas, Minnesota, and California.
Table 1. Farm Credit Administration Board Members
The current structure of the FCA and oversight of the FCS
Name
Description
Term ends
was created by the Farm Credit Amendments Act of 1985
Glen R.
Confirmed on December 5, 2017.
5/21/2022
(P.L. 99-205). Its statutory authority is in Title 12, Section
Smith
Designated as Chairman and CEO on
2241 et seq., of the United States Code, with regulations in
July 17, 2019.
Title 12, Section 600 et seq., of the Code of Federal
Regulations.
Jeffery S.
Confirmed on March 9, 2015. Serving
10/13/2018
Hall
until a successor is confirmed.
FCA’s operating expenses are paid through assessments on
Vacant
Dallas P. Tonsager died on May 21,
5/21/2020
FCS banks and associations. Even though FCA does not
2019.
receive an appropriation from Congress, the annual
Agriculture appropriations act places a limit on FCA’s
Source: CRS, using data at FCA.gov, “About FCA.”
administrative expenses ($75 million in FY2019).
Terms for board members are six years in length, fixed
Farm Credit System
when they begin and staggered so that one term begins
every two years regardless of whether a new member has
The FCS is a privately owned, federally chartered,
been appointed and confirmed. Board members may not be
nationwide financial cooperative that lends to full- and part-
reappointed after serving a full term or more than three
time farmers, farming-related businesses, rural
years of an unexpired term. A board member may continue
homeowners, farmer-owned cooperatives, and certain rural
to serve beyond the end of his/her term until a replacement
utilities. Borrowers must meet creditworthiness
has been confirmed. This helps maintain a full three-
requirements. FCS is not a lender of last resort.
member board if successors are delayed. Not more than two
members of the board may be from the same political party.
Established in 1916 as a government-sponsored enterprise
(GSE), FCS has a statutory mandate—and limitation—to
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Farm Credit Administration and Its Board Members
The President designates one member as chairman—not
The timeline illustrates that the terms of board members are
subject to further Senate confirmation if previously
for six years with a fixed and staggered beginning so that
confirmed as a board member—who has historically served
one term begins every two years whether or not an
until the end of that member’s term. The chairman is also
individual fills the vacancy (blue line). A board member’s
the chief executive officer of the FCA (12 U.S.C. §2244).
service date depends on presidential appointment and
Current Board Members
Senate confirmation and may extend beyond the end of a
The current FCA board has two members and one vacancy
term until a successor is in place (orange line). Service as
(Table 1). Glen Smith was confirmed in 2017 for a term
chairman depends on presidential appointment and is not
that expires in May 2022; he was designated as chairman in
subject to further Senate confirmation (green line on top of
July 2019. Jeffrey Hall was confirmed in 2015 for a term
orange line).
that expired on October 13, 2018; he may continue to serve
FCA has generally maintained a three-member board since
until a successor is confirmed. The vacancy was created
2002—except for the present since May 2019 (upon the
when former chairman Dallas Tonsager died in May 2019.
death of Tonsager), about eight months in 2017 (after the
death of Spearman), and five months in 2009 (when
Both Smith and Hall are Republicans. A nominee—Rodney
Tonsager became a USDA undersecretary). This has been
Brown, a Republican—was submitted to the Senate
possible since board members have continued to serve until
Agriculture Committee in February 2019 to replace Hall,
their successors are confirmed. Prior to August 2002,
but no action has occurred. A Democratic nominee would
several longer periods existed with only two board
be needed to fill the board.
members. For about 11 months in 1989, the FCA had only
one board member.
History of Board Members
Figure 1 is a timeline showing the service of the 20 FCA
board members and 12 chairmen of the FCA over 33 years.
Figure 1. Farm Credit Administration Board Members and Chairmen
Source: CRS, using data at FCA.gov, “About FCA.”
Notes: Terms (in blue) for board members are six years with a fixed and staggered beginning so that one term begins every two years
whether or not an individual fil s the vacancy. Service as a board member (in orange) depends on appointment and confirmation and may
extend beyond the end of a term until a successor is in place. Appointments as chairman (in green) are named by the President.
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Farm Credit Administration and Its Board Members
IF10767
Jim Monke, Specialist in Agricultural Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
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