Updated September 29, 2022
Farm Credit Administration and Its Board Members
Overview
GSEs. It receives tax benefits, but FCS operates without
Congress oversees the Farm Credit Administration (FCA),
any direct federal appropriations.
which is the federal financial regulator responsible for
ensuring the safety and soundness of Farm Credit System
FCS associations are owned by their borrowers, who are
(FCS) institutions and the Federal Agricultural Mortgage
required to purchase stock as part of their loans. FCS banks
Corporation (Farmer Mac). FCA is directed by a three-
and associations do not take deposits like commercial
member board of directors nominated by the President and
banks. Instead, FCS uses capital markets to sell bonds that
confirmed by the Senate (12 U.S.C. §2242). Presently, one
become the joint and several liabilities of all FCS banks,
board member position is vacant, and two members are
meaning they collectively stand behind the obligations to
serving after their terms expired. One nominee awaits
repay those bonds. FCS is composed of four regional banks
confirmation, and two positions await nominees.
that provide funds and support services to 64 smaller credit
associations that in turn provide loans to eligible borrowers.
Congressional oversight is provided by the House and
Senate Agriculture Committees. The most recent
As of December 31, 2021, FCS had $344 billion in total
authorizing committee hearings on FCS were in the Senate
loans outstanding to agriculture, agribusiness, rural utility,
on May 19, 2016, and in the House on November 19, 2019
and other borrowers. Agriculture loans are the largest
(with FCA witnesses). The Senate Agriculture Committee
portion ($210 billion) and provided 44% of loans on the
most recently held a nomination hearing for a board
sector-wide farm balance sheet at the end of 2020,
member in September 2022. This In Focus summarizes
according to the U.S. Department of Agriculture.
FCA and FCS and provides context for current and past
terms of FCA board members.
Statutory authority for FCS is in the Farm Credit Act of
1971 (12 U.S.C. §§2001 et seq.), as amended.
Farm Credit Administration
FCA sets the policies, regulations, charters, and
Farmer Mac
examinations of FCS and Farmer Mac entities. This
Farmer Mac is a secondary market for agricultural
includes compliance with laws concerning eligibility and
mortgages. It purchases loans from originating lenders and
regulations protecting the rights of borrowers in default.
provides other risk management tools. Farmer Mac was
FCA is an independent agency that has about 300
created by Congress in 1987 as a privately funded GSE and
employees. It is located in McLean, VA, and conducts
is an investor-owned corporation that is financially and
examinations from several field offices. FCA reports to
corporately separate from FCS.
Congress on the financial condition of FCS.
As of December 31, 2021, Farmer Mac’s total business
FCA’s operating expenses are paid through assessments on
volume (similar to assets) was nearly $24 billion.
FCS banks and associations. Even though FCA is not
funded by congressional appropriation, the annual
Statutory authority for Farmer Mac is in the Farm Credit
Agriculture appropriations act places a limit on FCA’s
Act of 1971 (12 U.S.C. §§2279aa et seq.).
administrative expenses ($84 million in FY2022).
Board Members
Statutory authority for FCA is in the Farm Credit Act of
As a regulator, FCA is directed by a three-member board of
1971 (12 U.S.C. §§2241 et seq.), as amended, notably by
directors nominated by the President and confirmed by the
the Agricultural Credit Act of 1987. Regulations are at 12
Senate (12 U.S.C. §2242).
C.F.R. §§600 et seq.
Terms for board members are six years in length, fixed
Farm Credit System
when they begin and staggered so that one term begins
FCS is a privately owned, federally chartered, nationwide
every two years regardless of whether a new member has
financial cooperative that lends to full- and part-time
been confirmed. Board members may not be reappointed
farmers, farming-related businesses, rural homeowners,
after serving a full term or more than three years of an
farmer-owned cooperatives, and certain rural utilities.
unexpired term. A board member may continue to serve
Borrowers must meet creditworthiness requirements. FCS
beyond the end of his/her term until a replacement has been
is not a lender of last resort.
confirmed. This helps maintain an effective board if
successors are delayed. Not more than two members of the
Established in 1916 as a government-sponsored enterprise
board may be from the same political party. Qualifications
(GSE), FCS has a statutory mandate—and limitation—to
require some background in agricultural economics and
serve agriculture. FCS is the only direct lender among the
financial reporting, finance, law, or financial regulation.
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Farm Credit Administration and Its Board Members
The President designates one member as chairman—not
The Biden Administration could name all three board
subject to further confirmation—who has historically held
members, including two from one political party. A
that role until the end of his/her term. The chairman is also
nominee for the term expiring in 2024 could be
the chief executive officer of FCA (12 U.S.C. §2244).
reappointed; the partial term would be less than three years.
Current Board Members
In April 2022, the Administration nominated Vincent
The current FCA board has two members and one vacancy
Logan, a Democrat, to fill the vacant seat that expires in
(Table 1). The two incumbents are in expired terms, which
2026. On September 27, 2022, the Senate Agriculture
are available to be filled. Both are Republicans and may
committee reported the nomination favorably (PN1941).
continue to serve until their successors are confirmed. The
Senate floor action is pending. In 2014, Logan was
vacancy was created when Dallas Tonsager, a Democrat,
formerly confirmed as Special Trustee for American
died in office in May 2019.
Indians at the Department of the Interior.
Table 1. Farm Credit Administration Board Members
History of Board Members
Figure 1 is a timeline showing the service of the 20 FCA
Name
Term
board members over 36 years. The timeline shows that
terms are six years and staggered (gray lines). A board
Jeffery S. Hall
Confirmed in 2015 to a term that expired on
10/13/2018. Serving until a successor is
member’s service depends on Senate confirmation and may
confirmed. Successor’s term: 10/13/2024.
extend beyond the end of a term (blue lines). Service as
chairman depends on presidential appointment (gold lines).
—
Vacant after the death of Dallas P. Tonsager
in May 2019. Successor’s term: 5/21/2026.
FCA had generally maintained a three-member board from
2002 to May 2019 (upon the death of Tonsager)—except
Glen R. Smith Confirmed in 2017 to a term that expired on
for about eight months in 2017 (after the death of
5/21/2022. Designated as Chairman and CEO
Spearman) and five months in 2009. This has been possible
in July 2019. Serving until a successor is
because board members have continued to serve until their
confirmed. Successor’s term: 5/21/2028.
successors are confirmed. The present 40-month vacancy is
Source: CRS, using data at FCA.gov, “About us.”
the longest on record resulting in a two-member board.
Figure 1. Farm Credit Administration Board Members and Chairmen

Source: CRS, using data at FCA.gov, “About us.”
Notes: Terms (in gray) are six years, fixed, and staggered every two years. Service as a board member (in blue) depends on Senate
confirmation and may exceed a term until a successor is in place. Appointments as chairman (in gold) are named by the President.

Jim Monke, Specialist in Agricultural Policy

IF10767
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Farm Credit Administration and Its Board Members


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