Updated May 16, 2024
Farm Credit Administration and Its Board Members
Overview
FCS associations are owned by their borrowers, who are
Congress oversees the Farm Credit Administration (FCA),
required to purchase stock as part of their loans. FCS banks
which is the federal financial regulator responsible for
and associations do not take deposits like commercial
ensuring the safety and soundness of Farm Credit System
banks. Instead, FCS uses capital markets to sell bonds that
(FCS) institutions and the Federal Agricultural Mortgage
become the joint and several liabilities of all FCS banks,
Corporation (Farmer Mac). FCA is directed by a three-
meaning they collectively stand behind the obligations to
member board of directors nominated by the President and
repay those bonds. FCS is composed of four regional banks
confirmed by the Senate (12 U.S.C. §2242). One nominee
that provide funds and support services to 56 smaller credit
awaits Senate confirmation, and another position is eligible
associations that in turn provide loans to eligible borrowers.
for succession.
As of December 31, 2023, FCS had $398 billion in total
Congressional oversight is provided by the House and
loans outstanding to agriculture, agribusiness, rural utility,
Senate Agriculture Committees. The most recent oversight
and other borrowers. Agriculture loans are the largest
hearings on FCS were in the Senate on May 19, 2016, and
portion ($228 billion) and provided 46% of loans on the
in the House on November 19, 2019 (with FCA witnesses).
sector-wide farm balance sheet at the end of 2022,
The Senate Agriculture Committee most recently held a
according to the U.S. Department of Agriculture.
nomination hearing for a board member in September 2022.
This In Focus summarizes FCA and FCS and provides
Statutory authority for FCS is in the Farm Credit Act of
context for current and past terms of FCA board members.
1971 (12 U.S.C. §§2001 et seq.), as amended.
Farm Credit Administration
Farmer Mac
FCA sets the policies, regulations, charters, and
Farmer Mac is a secondary market for agricultural
examinations of FCS and Farmer Mac entities. This
mortgages. It purchases loans from originating lenders and
includes compliance with laws concerning eligibility and
provides other risk management tools. Farmer Mac was
regulations protecting the rights of borrowers in default.
created by Congress in 1987 as a privately funded GSE and
FCA is an independent agency that has about 300
is an investor-owned corporation that is financially and
employees. It is located in McLean, VA, and conducts
corporately separate from FCS.
examinations from several field offices. FCA reports to
Congress on the financial condition of FCS.
As of December 31, 2023, Farmer Mac’s total business
volume (similar to assets) was over $28 billion.
FCA’s operating expenses are paid through assessments on
FCS banks and associations. Even though FCA is not
Statutory authority for Farmer Mac is in the Farm Credit
funded by congressional appropriation, the annual
Act of 1971 (12 U.S.C. §§2279aa et seq.).
Agriculture appropriations act places a limit on FCA’s
administrative expenses ($94.3 million in FY2024).
Board Members
As a regulator, FCA is directed by a three-member board of
Statutory authority for FCA is in the Farm Credit Act of
directors nominated by the President and confirmed by the
1971 (12 U.S.C. §§2241 et seq.), as amended, notably by
Senate (12 U.S.C. §2242).
the Agricultural Credit Act of 1987. Regulations are at 12
C.F.R. §§600 et seq.
Terms for board members are six years in length, fixed
when they begin and staggered so that one term begins
Farm Credit System
every two years regardless of whether a new member has
FCS is a privately owned, federally chartered, nationwide
been confirmed. Board members may not be reappointed
financial cooperative that lends to full- and part-time
after serving a full term or more than three years of an
farmers, farming-related businesses, rural homeowners,
unexpired term. A board member may continue to serve
farmer-owned cooperatives, and certain rural utilities.
beyond the end of his/her term until a replacement has been
Borrowers must meet creditworthiness requirements. FCS
confirmed. This helps maintain an effective board if
is not a lender of last resort.
successors are delayed. Not more than two members of the
board may be from the same political party. Qualifications
Established in 1916 as a government-sponsored enterprise
require some background in agricultural economics and
(GSE), FCS has a statutory mandate—and limitation—to
financial reporting, finance, law, or financial regulation.
serve agriculture. FCS is the only direct lender among the
GSEs. It receives tax benefits, but FCS operates without
The President designates one member as chairman—not
any direct federal appropriations.
subject to further confirmation—who has historically held
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Farm Credit Administration and Its Board Members
that role until the end of his/her term. The chairman is also
The President could nominate one other board member—
the chief executive officer of FCA (12 U.S.C. §2244).
for the position continued to be held by Jeffrey Hall until a
successor is confirmed—though it would require a
Current Board Members
Republican nominee. A similar situation occurred in 2015,
The current FCA board has three members, two of which
when the Obama Administration nominated Hall for a
are serving in expired terms that are available for new
Republican position on the board. A nominee for the term
nominees (Table 1).
expiring in 2024 could be reappointed, since the partial
term would be filled for less than three years.
Table 1. Farm Credit Administration Board Members
History of Board Members
Name
Term
Figure 1 is a timeline showing the new terms available
since 2013 and the service of the three current board
Jeffery S. Hall
Confirmed in 2015 to a term that expired on
10/13/2018. Serving until a successor is
members. The timeline shows that terms are six years and
staggered (gray lines). A board member’s service depends
confirmed. Successor’s term: 10/13/2024.
on Senate confirmation and may extend beyond the end of a
Glen R. Smith Confirmed in 2017 to a term that expired on
term (blue lines). Service as chairman depends on
5/21/2022. Serving until a successor is
presidential appointment (gold lines).
confirmed. Successor’s term: 5/21/2028.
FCA had generally maintained a three-member board from
Vincent G.
Confirmed in 2022 to a term that expires on
2002 to May 2019 (upon the death of Dallas Tonsager)—
Logan
5/21/2026. Designated as Chairman and CEO
except for about eight months in 2017 (after the death of
in October 2022.
Kenneth Spearman, not shown) and five months in 2009.
Source: CRS, using data at FCA.gov, “About us.”
The 40-month vacancy after the death of Dallas Tonsager
until the confirmation of Vincent Logan was the longest
In May 2023, President Biden nominated Marcus D.
period with a two-member board.
Graham, a Democrat, to fill the seat occupied by Glen
Smith for the remainder of a term that expires in 2028
Maintaining a full board has been possible because board
(nomination PN1690). Graham is currently deputy
members have continued to serve until their successors are
administrator for field operations for the U.S. Department
confirmed. The five-year continuation of Hall’s service
of Agriculture (USDA) Farm Service Agency, overseeing
after the end of his term in 2018 makes him the longest-
the agency’s state and county offices. He was a USDA farm
serving FCA board member.
loan specialist from 2003 to 2010 and worked for the
Senate Agriculture Committee in 2011-2012.
Figure 1. Farm Credit Administration Board Members and Chairmen, 2015-2024
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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