FCA News Release 06-08

News Release

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

For Immediate Release
NR-06-08 (08-10-06)
Contact: Martha Schober or Christine Quinn, 703-883-4056
E-mail: info-line@fca.gov
Web site: www.fca.gov

FCA Board Approves Fall 2006 Unified Agenda and Regulatory Performance Plan

McLEAN, Va., August 10, 2006 — The Farm Credit Administration (FCA or Agency) Board today approved the Agency’s Fall 2006 Unified Agenda of Federal Regulatory and Deregulatory Actions and the Regulatory Performance Plan.

The Unified Agenda is published semiannually in the Federal Register and describes rulemaking items that the Agency expects to conduct or review during the upcoming 12 months. The Regulatory Performance Plan, which is posted on FCA’s Web site, includes rulemaking actions that have occurred, or are projected to occur, between now and June 2007.

Items on the Unified Agenda include the following:

A proposed rule (and later a final rule) to clarify the requirements for processing and marketing entities to be eligible for Farm Credit System (FCS) funding.
A final rule to remove or revise outdated, unnecessary, or burdensome regulations.
A final rule to revise disclosure and reporting requirements for FCS institutions.
A final rule to change certain aspects of the regulatory risk-based capital standards for the Federal Agricultural Mortgage Corporation (Farmer Mac).
A proposed rule to revise regulations governing eligibility and scope of lending for farmers and ranchers and to revise how “moderately priced” rural housing limits are determined.
A proposed rule to change the priority of claims under FCS banks’ joint and several obligations for debt issuances and financing agreements with associations.
A proposed rule to revise the Farmer Mac Risk-Based Capital Stress Test to better address the terms and structure of certain program business underwritten by Farmer Mac.
A review to consider changes to FCA capital adequacy requirements for the FCS and a review of other Federal banking agencies’ Basel II and Basel IA proposals.

In other business, the FCA Office of Management Services presented its quarterly report at the meeting. The report highlighted the office’s operations including the status of the Agency’s transition to shared services; major technology projects that are anticipated during the next two fiscal years; human capital initiatives to support Agency operations; and the financial operations of the Agency.

Since the July 13 Board meeting, four notational votes have occurred. Notational votes are actions taken by the FCA Board between Board meetings. The notational votes approved the following actions:

To authorize AgriBank, FCB, and its affiliated associations to invest in agriculture and rural community bonds through a pilot investment program.
To authorize the continuation of the FCS Building Association’s negotiations concerning the McLean, Va., property.
To grant preliminary approval of the request to merge Southwest Texas ACA and its subsidiary associations with and into Capital Farm Credit, ACA, and its subsidiary associations. The proposed effective date of the merger is October 1, 2006.
To authorize U.S. AgBank, FCB, to purchase investment grade agriculture and rural infrastructure bonds under a pilot investment program.

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Note to Editors: A PDF of the Fall 2006 Regulatory Performance Plan is attached below.

The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System. FCA charters, regulates, and examines the 109 banks, associations, and service corporations of the System. System institutions make loans to agricultural producers and their cooperatives nationwide. Members of the FCA Board are Nancy C. Pellett, Chairman and CEO, Douglas L. “Doug” Flory, and Dallas P. Tonsager.

Note: FCA news releases are available on the Internet. Access the FCA Home Page at www.fca.gov.