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News ReleaseFarm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090

Printer-friendly version => NR_13-16_12-12-13.pdfNR_13-16_12-12-13.pdf

Fact Sheet => FactSheetReportingAccountsExposures12Dec2013.pdfFactSheetReportingAccountsExposures12Dec2013.pdf

For Immediate Release
NR 13-16 (12-12-13)
Contact: Mike Stokke or Christine Quinn, 703-883-4056
FCA Board Adopts Final Rule on Reporting of Accounts and Exposures

McLEAN, Va., Dec. 12, 2013 — At its monthly meeting today, the Farm Credit Administration Board adopted a final rule to establish a regulatory framework for the reporting of Farm Credit System (System) accounts and exposures to FCA.

The intent of the rule is to help FCA identify and respond to risk more quickly and effectively. It reaffirms FCA’s authority to collect data on System institution accounts and exposures, including data on shared assets. The FCA Board approved the proposed rule on the reporting of accounts and exposures on June 28 of this year.

The final rule will become effective 30 days after publication in the Federal Register during which either body of Congress is in session. Notice of the effective date will be published in the Federal Register. For more information about the final rule, see the related fact sheet.

Office of Examination Semiannual Report
The Board also received the Semiannual Report on Office of Examination Operations. For FY 2013, FCA examiners conducted onsite activities at all the System’s banks, seven service corporations and more than 90 percent of System associations.

Report on the Condition of the Farm Credit System
In its quarterly report on the condition of the System, the Office of Examination reported that the System remains fundamentally safe and sound and is well-positioned for the risks facing agriculture. Overall, the System’s financial position is strong. Loan portfolio credit quality is good, and credit measures continued to improve in the third quarter.

In general, the risk profile for the farm economy is shifting. Because of favorable product pricing and sharply lower feed costs, the profitability outlook is strong for the protein and dairy sectors.

Crop producers, on the other hand, will face tighter margins because a large production year has driven corn and soybean prices down significantly. Lower crop prices will also put pressure on farmland values, particularly in the Midwest.

Closed Session
During the closed session, the Board received a quarterly report on the Office of Examination’s supervisory and oversight activities.

Notational Votes
Since the Nov. 14 FCA Board meeting, three notational votes have occurred. Notational votes are actions taken by the FCA Board between Board meetings.

The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System and the Federal Agricultural Mortgage Corporation (Farmer Mac). FCA charters, regulates, and examines the 93 banks, associations, service corporations and special-purpose entities of the Farm Credit System. The System makes loans to agricultural producers and their cooperatives nationwide. It includes Farmer Mac, which provides a secondary market for agricultural real estate loans, rural housing mortgage loans, and certain rural utility loans. Members of the FCA Board are Jill Long Thompson, Board Chair and CEO; Kenneth A. Spearman; and Leland A. Strom.

Note: FCA news releases are available on the Web at