|News Release||Farm Credit Administration|
1501 Farm Credit Drive
McLean, Virginia 22102-5090
For Immediate Release
NR 08-09 (06-24-08)
Contact: Martha Schober or Christine Quinn, 703-883-4056
Web site: www.fca.gov
FCA Commends Farm Credit System for Working with Borrowers
Affected by Midwest Floods
McLEAN, Va., June 24, 2008 — The Farm Credit Administration (FCA or Agency) Board today commended the disaster relief efforts by Farm Credit System (FCS or System) institutions to assist their borrowers in the areas affected by the Midwest floods.
FCA regulates and supervises the FCS, which is a nationwide network of borrower-owned cooperative financial institutions that provide credit to farmers, ranchers, and producers or harvesters of aquatic products, farm-related service businesses, rural homeowners, agricultural and aquatic cooperatives, and rural utilities.
“System institutions have considerable flexibility under existing FCA regulations to provide disaster relief,” said FCA Board Chairman and CEO Leland A. Strom. “I’ve spoken personally with several affected FCS institutions and I’m pleased they are already taking measures consistent with their individual disaster assistance programs and with FCA’s Board Policy Statement 71. Our policy provides guidance to System institutions on what they can do to help their borrower-members,” Strom said. “I even learned of instances where FCS employees have been on the farm helping with storm cleanup.”
Some examples of relief efforts System institutions may employ include extending the terms of loan repayment, restructuring a borrower’s debt obligations, easing some loan documentation or credit-extension terms for new loans to certain borrowers, and requesting FCA to grant relief from specific regulatory requirements.
“System institutions that prudently employ these and other measures can help borrowers recover their financial strength,” Strom said. “These efforts serve not only the well-being of the borrower but also the health of the local community and the long-term interests of the lending institutions.”
“The FCS is mandated by Congress to serve farmers, ranchers, and rural communities in good times and bad, and in a safe and sound manner,” Strom said. “I am confident that the FCS institutions serving this region will use the available relief options they have to work within their communities to help alleviate pressures on borrowers under stress.”
Note to Editors: Board Policy Statement 71 is posted on FCA’s Web site at www.fca.gov. Click on Law and Regulations, then Additional Guidance, then View Board Policy Statements, then FCA-PS-71 Disaster Relief Efforts by Farm Credit Institutions.
The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System. FCA charters, regulates, and examines the 106 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 Leland A. Strom, Chairman and CEO, Nancy C. Pellett, and Dallas P. Tonsager.
Note: FCA news releases are available on the Internet at www.fca.gov.