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Updated September 29, 2022
Farmer Mac and Its Board Members
Overview
that are backed by eligible loans and promises to buy
The Federal Agricultural Mortgage Corporation (Farmer
specific agricultural mortgages under future adverse
Mac) is a secondary market for agricultural mortgages. It
conditions by selling “long-term standby purchase
purchases loans from originating lenders and provides other
commitments” to financial institutions. The purchase
risk management tools to facilitate the agricultural lending
commitments guarantee loans against default risk, while the
market. It was created by Congress as a privately funded
originating lender retains interest rate risk and loan
government-sponsored enterprise (GSE) similar to the
servicing responsibilities.
housing GSEs such as Fannie Mae.
In the guarantee line, Farmer Mac purchases the portion of
Farmer Mac is governed by a 15-member board of
loans that are guaranteed by USDA, thereby accepting the
directors, five of whom are nominated by the President and
interest rate risk but carrying no default risk. The rural
confirmed by the Senate. The Senate has confirmed one
utilities business line involves mostly loans to rural electric
board member during the Biden Administration: Chester
cooperatives. The institutional credit portion supports the
John Culver in May 2022. No nominations are pending.
general obligations of eligible financial institutions, defined
The President designated an existing Democratic appointee,
as having borrowers and portfolios that are eligible for
Lowell Junkins, as chairman in March 2022.
other Farmer Mac business.
Congressional oversight is provided by the House and
As of June 30, 2022, Farmer Mac’s total business volume
Senate Agriculture Committees, which have primary
(similar to assets) was $24.5 billion, up 3.7% in six months
jurisdiction for the Farmer Mac statutes.
since the end of 2021. The largest share of Farmer Mac’s
business is farm and ranch loans, followed by rural utilities,
Farmer Mac
corporate agricultural finance, and renewable energy. Its
Farmer Mac was established in the Agricultural Credit Act
core earnings (that exclude the effects of valuation
of 1987 (P.L. 100-233, Title VII) as a secondary market for
fluctuations and infrequent or unusual transactions) was
agricultural loans. It purchases and pools qualified loans
$57 million for the first six months of 2022, which is
and may sell them to investors as securities or hold them in
comparable to $56 million for the same period in 2021.
its own portfolio. It provides risk management tools to
originating lenders that let them make more loans to
Board Members
agricultural borrowers and satisfy regulatory requirements.
Congress prescribes a 15-member board of directors (12
U.S.C. §2279aa-2). Five are presidentially appointed and
Statutorily, Farmer Mac is codified in the Farm Credit Act
Senate confirmed, five are elected by stockholders to
of 1971 (12 U.S.C. §2279aa) with the Farm Credit System
represent banks and insurance companies, and five are
(FCS; see CRS Report RS21278, Farm Credit System).
elected by other stockholders to represent the FCS.
Financially and corporately, however, Farmer Mac is a
separate entity from the FCS. Each has no liability for any
Five Presidentially Appointed and Confirmed by
of the others’ debt. Administratively, Farmer Mac and the
the Senate
FCS have the same federal regulator—the Farm Credit
For the five presidentially appointed and Senate-confirmed
Administration (see CRS In Focus IF10767, Farm Credit
members (Table 1), statute does not specify a term length
Administration and Its Board Members).
but says that such board members serve at the pleasure of
the President. The President names one of the appointees to
Farmer Mac is an investor-owned corporation, not a
be chair of the board (12 U.S.C. §2279aa-2 (a).
member-owned cooperative like the FCS. Two classes of
voting stock exist for (1) banks and insurance companies
and (2) the FCS. Any investor may own nonvoting stock.
As an independent entity, Farmer Mac is not supported by
congressional appropriations and is not part of the U.S.
Department of Agriculture (USDA).
Farmer Mac operates in four primary lines of business:
farm and ranch, USDA guarantees, rural utilities, and
institutional credit. In the farm and ranch business line,
most activity is from Farmer Mac purchasing and retaining
eligible agricultural mortgage loans. In that line of business,
Farmer Mac also guarantees securities held by third parties
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Farmer Mac and Its Board Members
Table 1. Presidentially Appointed Members of the
Wilcher (confirmed in 2019) was voted by the board to be
Farmer Mac Board of Directors
vice-chair in 2022. Other presidentially appointed board
members include Sara Faivre (confirmed in 2010), Charles
Name
Description
Stones (confirmed in 2020), and Chester Culver (confirmed
in 2022; formerly on the board from 2012 to 2019).
Lowell Junkins
Chair. Confirmed in 1996.
LaJuana Wilcher
Vice-chair. Confirmed in 2019.
For the statutory requirement that not more than three of the
presidential appointees be of the same political party, three
Sara Faivre
Confirmed in 2010.
are affiliated with the Democratic Party (Junkins, Faivre,
Charles Stones
Confirmed in 2020.
and Culver), and two are affiliated with the Republican
Party (Wilcher and Stones).
Chester Culver
Confirmed in 2022.
Source: CRS using data at Farmermac.com and Congress.gov
Figure 1 is a timeline showing the service of the
(accessed September 28, 2022).
presidentially appointed board members of Farmer Mac
since its inception in 1988.
The presidential appointees are to represent the general
public and may not have been officers or directors of
Ten Elected Representing Banks and Farm Credit
financial institutions. Not more than three may be of the
System
same political party, and at least two shall be farmers or
The other 10 members on the Farmer Mac board that
ranchers (12 U.S.C. §2279aa-2 (a)(2)(C)(i)-(iv)).
represent commercial banks and the FCS are elected to one-
year terms by the shareholders of the respective classes of
Nominations for the Farmer Mac board are considered in
stock (12 U.S.C. §2279aa-2 (a)(5)). They may serve until
the Senate to be privileged nominations, making them
their successors take office and may be reelected. Statute
subject to special procedures that may streamline their
expresses no other qualifications.
consideration (CRS Report R46273, Consideration of
Privileged Nominations in the Senate).
The Code of Federal Regulations (12 C.F.R. 651)
prescribes a “Code of Business Conduct and Ethics” for
The current slate of presidential appointees includes Lowell
Farmer Mac. This code states that the board may
Junkins (confirmed in 1996), whom President Biden
recommend to the President that a presidential appointee on
designated as chair of the board in March 2022. LaJuana
the Farmer Mac board be removed if the board determines
that the member has violated the code.
Figure 1. Presidentially Appointed Members of the Farmer Mac Board of Directors, 1988-2022
Source: Compiled by CRS using data from Senate Agriculture Committee, “Nominations,” and Congress.gov (accessed September 28, 2022).
IF11595
Jim Monke, Specialist in Agricultural Policy
https://crsreports.congress.gov
Farmer Mac and Its Board Members
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.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
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https://crsreports.congress.gov | IF11595 · VERSION 5 · UPDATED