Farm Credit Administration in the United States

The Farm Credit Administration ensures the safe and sound operation of the banks,
associations, af?liated service organizations, and other entities of the Farm Credit
System, and protects the interests of the public and those who borrow from Farm
Credit institutions or invest in Farm Credit securities.

The Farm Credit Administration (FCA) was established as an independent
financial regulatory agency in the executive branch of the Federal
Government by Executive Order 6084 on March 27, 1933. FCA carries out
its responsibilities by conducting examinations of the various Farm Credit
lending institutions, which are Farm Credit Banks, the Agricultural Credit
Bank, Agricultural Credit Associations, and Federal Land Credit Associations.
FCA also examines the service organizations owned by the Farm Credit
lending institutions, as well as the National Consumer Cooperative Bank.

FCA policymaking is vested in the Farm Credit Administration Board, whose
three full-time members are appointed to 6-year terms by the President, with the
advice and consent of the Senate. One member of the Board is designated by the
President as Chairman and serves as the Administration’s chief executive of?cer.

The Board is responsible for approving rules and regulations, providing for
the examination and regulation of and reporting by Farm Credit institutions, and
establishing the policies under which the Administration operates. Board
meetings are regularly held on the second Thursday of the month and are subject
to the Government in the Sunshine Act. Public announcements of these meetings
are published in the Federal Register.

The lending institutions of the Farm Credit System were established to
provide adequate and dependable credit and closely related services to farmers,
ranchers, and producers or harvesters of aquatic products; persons engaged
in providing on-the-farm services; rural homeowners; and associations of farmers,
ranchers, and producers or harvesters of aquatic products, or federations
of such associations that operate on a cooperative basis and are engaged
in marketing, processing, supply, or business service functions for the bene?t
of their members. Initially capitalized by the United States Government, the
Farm Credit lending institutions are organized as cooperatives and are
completely owned by their borrowers.

The loan funds provided to borrowers by these institutions are obtained primarily
through the sale of securities to investors in the Nation’s capital markets.
The Agricultural Credit Act of 1987, as amended (12 U.S.C. 2279aa-1),
established the Federal Agricultural Mortgage Corporation (commonly
known as “Farmer Mac”). The Corporation, designated as part of
the Farm Credit System, is a federally chartered instrumentality of the United
States and promotes the development of a secondary market for agricultural
real estate and rural housing loans.

Farmer Mac also provides guarantees for the timely payment of principal
and interest on securities representing interests in or obligations backed by
pools of agricultural real estate loans.

The Administration is responsible for the examination and regulation of Farmer
Mac to ensure the safety and soundness of its operations.

The Administration manages regulations under which Farm Credit
institutions operate. These regulations implement the Farm Credit Act of 1971,
as amended (12 U.S.C. 2001), and have the force and effect of law. Similar to the
authorities of other Federal regulators of financial institutions, the Administration’s
authorities include the power to issue cease-and-desist orders, to levy civil monetary penalties, to remove of?cers and directors of Farm Credit institutions,
and to establish financial and operating reporting requirements. Although it is
prohibited from participation in routine management or operations of Farm
Credit institutions, the Administration is authorized to become involved in
these institutions’ management and operations when the Farm Credit Act
or its regulations have been violated, when taking an action to correct an
unsafe or unsound practice, or when assuming a formal conservatorship over
an institution.

The Administration does not operate on funds appropriated by Congress;
it derives income from assessments collected from the institutions that it
regulates and examines. In addition to its headquarters in McLean, VA, the
Administration maintains four ?eld of?ces located in Aurora, CO; Bloomington,
MN; Irving, TX; and Sacramento, CA. Authority for the organization and
activities of the Farm Credit System may be found in the Farm Credit Act of 1971,
as amended.

For further information, contact the Office of Congressional and Public Affairs, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102–5090. Phone, 703–883–4056. Email, info-line@fca.gov. Internet, http://www.fca.gov.

Farm Credit Administration in State Statute Topics

Introduction to Farm Credit Administration (U.S.) (State statute topic)

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