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

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For Immediate Release
NR 11-24 (12-08-11)
Contact: Mike Stokke or Christine Quinn, 703-883-4056
FCA Board Issues Proposed Rule to Amend Regulations
Related to Stockholder Disclosures Regarding Senior Officer Compensation
McLEAN, Va., December 8, 2011 —The Farm Credit Administration (FCA) Board today approved a proposed rule that would amend the agency’s regulations related to disclosures made by Farm Credit System (System) banks and associations to their stockholders and investors.
The purpose of the rule is to provide full, transparent and consistent disclosures to stockholders on issues related to employee compensation. The rule would For more information about the proposed rule, see the related fact sheet. A link to this fact sheet, as well as to fact sheets related to other rulemaking actions, are available on the Rulemaking Fact Sheets page on the FCA website.
Following a 30-day period for congressional review, the proposed rule will be published in the Federal Register for a 60-day comment period. The public may submit comments by electronic mail to, through the Pending Regulations section of FCA’s website at, or through the federal government Web portal at
The public may also submit comments by mail to Gary K. Van Meter, Director, Office of Regulatory Policy, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102-5090. The public may read submitted comments at the FCA office in McLean, Va., or on FCA’s website at

Quarterly 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 continues to be fundamentally safe and sound.
Strong earnings in the third quarter allowed the System to enhance capital levels. Asset quality remains satisfactory; credit quality indicators have gradually improved.
While conditions in the farm economy are generally favorable, significant risks persist. Certain agricultural sectors, poultry especially, are under considerable stress. The Southern Plains continues to be in the grip of a severe drought.
U.S. agriculture could also be adversely affected if the Eurozone sovereign debt crisis leads to a slowdown in global economic growth.

Office of Examination Reports
The Board also received the Semiannual Report on Office of Examination Operations. According to the report, all oversight and examination activities were completed as planned through the fourth quarter of FY 2011. FCA examiners performed onsite activities at 90 percent of all direct-lending System associations and banks.
The Office of Examination also continued to build its examiner workforce during this quarter. The stressed economy, coupled with an expected wave of retirements among FCA staff, presents a human resource challenge for the agency; the Office of Examination is working to ensure it has the human resources to continue to properly examine and oversee institutions.
Also, during the closed session of the meeting, the Office of Examination delivered an update on its supervisory and oversight activities.

Notational Votes
Since the November 9, 2011, FCA Board meeting, three notational votes have occurred. Notational votes are actions the FCA Board takes 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 96 banks, associations, service corporations and special-purpose entities of the Farm Credit System, which makes loans to agricultural producers and their cooperatives nationwide. This 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 Leland A. Strom, Chairman and CEO; Kenneth A. Spearman; and Jill Long Thompson.

Note: FCA news releases are available on the Web at