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75–118 PDF 2012

S. HRG. 112–505 

NOMINATION HEARING OF 

MICHAEL T. SCUSE, CHESTER J. CULVER 

AND BRUCE J. SHERRICK 

HEARING 

BEFORE THE

COMMITTEE ON AGRICULTURE, 

NUTRITION AND FORESTRY 

UNITED STATES SENATE 

ONE HUNDRED TWELFTH CONGRESS 

FIRST SESSION 

DECEMBER 15, 2011 

Printed for the use of the 

Committee on Agriculture, Nutrition and Forestry 

( 

Available via the World Wide Web: http://www.fdsys.gov/ 

COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY 

DEBBIE STABENOW, Michigan, Chairwoman 

PATRICK J. LEAHY, Vermont 

TOM HARKIN, Iowa 

KENT CONRAD, North Dakota 

MAX BAUCUS, Montana 

E. BENJAMIN NELSON, Nebraska 

SHERROD BROWN, Ohio 

ROBERT P. CASEY, Jr., Pennsylvania 

AMY KLOBUCHAR, Minnesota 

MICHAEL BENNET, Colorado 

KIRSTEN GILLIBRAND, New York 

PAT ROBERTS, Kansas 

RICHARD G. LUGAR, Indiana 

THAD COCHRAN, Mississippi 

MITCH MCCONNELL, Kentucky 

SAXBY CHAMBLISS, Georgia 

MIKE JOHANNS, Nebraska 

JOHN BOOZMAN, Arkansas 

CHARLES E. GRASSLEY, Iowa 

JOHN THUNE, South Dakota 

JOHN HOEVEN, North Dakota 

CHRISTOPHER J. ADAMO, Majority Staff Director 

JONATHAN W. COPPESS, Majority Chief Counsel 

JESSICA L. WILLIAMS, Chief Clerk 

MICHAEL J. SEYFERT, Minority Staff Director 

ANNE C. HAZLETT, Minority Chief Counsel 

(II) 

(III) 

C O N T E N T S 

Page 

HEARING(S): 

Nomination Hearing of Michael T. Scuse, Chester J. Culver and Bruce J. 

Sherrick ................................................................................................................. 1 

Thursday, December 15, 2011 

STATEMENTS PRESENTED BY SENATORS 

Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan, Chairwoman, Committee on Agriculture, Nutrition and Forestry ............................ 1 

Grassley, Hon. Charles, U.S. Senator from the State of Iowa ............................. 2 

Coons, Hon. Christopher A., U.S. Senator from the State of Delaware .............. 4 

Panel I 

Culver, Hon. Chester John, Iowa, nominated to be a Member of the Board 

of Directors for the Federal Agricultural Mortgage Corporation ..................... 14 

Scuse, Michael T., Delaware, nominated to be Undersecretary of Agriculture 

for Farm and Foreign Agricultural Services and to be a Member of the 

Board of Directors of the Commodity Credit Corporation ................................ 5 

Sherrick, Bruce J., Ph.D., Illinois, nominated to be a Member of the Board 

of Directors of the Federal Agricultural Mortgage Corporation ....................... 16 

APPENDIX 

PREPARED STATEMENTS: 

Chambliss, Hon. Saxby: ................................................................................... 26 

Culver, Hon. Chester John: ............................................................................. 28 

Scuse, Michael T.: ............................................................................................. 31 

Sherrick, Bruce J.: ............................................................................................ 33 

DOCUMENT(S) SUBMITTED FOR THE RECORD: 

Committee Questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Hon. 

Chester John Culver ..................................................................................... 36 

Committee Questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Michael 

T. Scuse .......................................................................................................... 47 

Committee Questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Bruce 

J. Sherrick ..................................................................................................... 72 

QUESTION AND ANSWER: 

Chambliss, Hon. Saxby: 

Written questions to Hon. Chester John Culver ............................................ 81 

Written questions to Michael T. Scuse ........................................................... 87 

Written questions to Bruce J. Sherrick .......................................................... 91 

Roberts, Hon. Pat: 

Written questions to Hon. Chester John Culver ............................................ 80 

Written questions to Michael T. Scuse ........................................................... 83 

Written questions to Bruce J. Sherrick .......................................................... 90 

Thune, Hon. John: 

Written questions to Hon. Chester John Culver ............................................ 82 

Page

IV 

Thune, Hon. John—Continued 

Written questions to Michael T. Scuse ........................................................... 88 

Written questions to Bruce J. Sherrick .......................................................... 92 

Brown, Hon. Sherrod: 

Written questions to Michael T. Scuse ........................................................... 86 

Culver, Hon. Chester John: 

Written response to questions from Hon. Pat Roberts .................................. 80 

Written response to questions from Hon. Saxby Chambliss ......................... 81 

Written response to questions from Hon. John Thune .................................. 82 

Scuse, Michael T.: 

Written response to questions from Hon. Pat Roberts .................................. 83 

Written response to questions from Hon. Sherrod Brown ............................ 86 

Written response to questions from Hon. Saxby Chambliss ......................... 87 

Written response to questions from Hon. John Thune .................................. 88 

Sherrick, Bruce J.: 

Written response to questions from Hon. Pat Roberts .................................. 90 

Written response to questions from Hon. Saxby Chambliss ......................... 91 

Written response to questions from Hon. John Thune .................................. 92 

(1) 

NOMINATION HEARING OF 

MICHAEL T. SCUSE, CHESTER J. CULVER 

AND BRUCE J. SHERRICK 

Thursday, December 15, 2011 

UNITED STATES SENATE, 

COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY

Washington, DC 

The Committee met, pursuant to notice, at 10:35 a.m., in room 

328A, Russell Senate Office Building, Hon. Debbie Stabenow, 

Chairwoman of the Committee, presiding. 

Present: Stabenow, Harkin, Conrad, Roberts, Cochran, Grassley, 

and Thune. 

STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR 

FROM THE STATE OF MICHIGAN, CHAIRWOMAN, COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY 

Chairwoman STABENOW. Well, good morning and the Senate 

Committee on Agriculture, Nutrition and Forestry, with a lot of 

feedback through the microphone, is called to order. I hope we are 

going to get that fixed. Thank you very much. We are in our newlyrefurbished, high tech Committee room, so I hope that means that 

all the technology is going to work well here as we are back. 

Welcome. Today the Committee is meeting to consider important 

nominations, the nomination of Michael T. Scuse, Delaware, to be 

Under Secretary of Agriculture for Farm and Foreign Agricultural 

Services, and a member of the Board of Directors of the Commodity 

Credit Corporation; as well as two nominees for the Board of Directors of the Federal Agricultural Mortgage Corporation, also known 

as Farmer Mac. Governor Chet Culver of Iowa and Dr. Bruce 

Sherrick of Illinois. 

Welcome to all of you and congratulations on your nominations. 

We extend a warm welcome to you and your family and friends. I 

understand that, Mr. Scuse, your wife, Patrice, is here with you 

and we welcome you as well. I would also like to welcome Governor 

Culver’s stepbrother, John, who I understand is with him today. So 

welcome. 

These positions are critically important, as we all know, for 

American farmers and ranchers. The Under Secretary of Agriculture for the Farm and Foreign Agriculture Services plays a key 

role in enforcing accountability within the Farm Service Agency, 

the Risk Management Agency, and the Foreign Agriculture Services Agency. 

2 

The Under Secretary is responsible for making sure that taxpayers are getting their money’s worth and that we are doing everything possible to make USDA services efficient and effective for 

farmers, ranchers, and the families they serve. 

Mr. Scuse, I would hope that you would use the perspective you 

have gained as both a farmer and a long-time public servant to improve the operations of the agencies you will continue to oversee, 

assessing how the agencies are measuring performance and efficiency, cutting down on duplication, and how customer service is 

being administered and improved. I would appreciate your focus in 

those areas. 

Your nomination comes at a very important time as the Committee continues to work to write the next Farm Bill. The staff of 

the Department of Agriculture will be an indispensable resource for 

us as we move forward, and you have been already—we work very 

closely with the Department and appreciate the input and expertise of the Department. 

All of you really are the boots on the ground implementing the 

programs that we have created and will create so that we are able 

to provide valuable feedback on performance, and I appreciate all 

of that work. 

Governor Culver and Dr. Sherrick, you have been nominated to 

serve as members of the Board for Farmer Mac. Of the 15 Board 

members, five are elected by the Farm Credit system institutions, 

five are elected by other financial institutions as we know, and five 

are nominated by the President and confirmed by the Senate. 

Those five are particularly important to preserve consumer protections for the American people. As Board members, it will be 

your responsibility to ensure that Farmer Mac is managed in a safe 

and sound manner, and with an appropriate balance between financial performance and fulfillment of its public mission. The 

availability of credit in rural communities is absolutely essential to 

growth and sustainable economic development. It is the job of 

Farmer Mac to make sure that credit is available in rural America. 

I know I speak for all the members of the Committee when we 

say that we take our obligation to advice and consent very seriously. We look forward to all of your remarks and the opportunity 

to exercise our constitutional duties. I know that Senator Roberts 

will be joining us in just a bit, and at that point, I will turn to him 

for opening comments. 

Before turning to our excellent panel and the Senator from Delaware to make an introduction as well, I do want to turn, without 

objection, to Senator Grassley, who I know is going to have to 

leave, but wants to comment on one of our nominees at this point. 

So, Senator Grassley? 

STATEMENT OF HON. CHARLES GRASSLEY, U.S. SENATOR 

FROM THE STATE OF IOWA 

Senator GRASSLEY. Thank you for letting me go out of order, and 

it will take about three or four minutes. But also, before I introduce Governor Culver, I had the opportunity of meeting Michael 

Scuse in my office and determined he is well-qualified for that office. Coming from Delaware, you might not think he knows much 

about agriculture, but he sure does know a lot about agriculture 

3 

and I know agriculture is very important to the State of Delaware, 

even though a lot of times for a small state you do not think so. 

It is my pleasure, Madam Chairman and members of the Committee, to introduce Governor Culver, and my colleague, Senator 

Harkin, will be coming along later to do the same. I speak very 

highly of him because in the years he served as Secretary of State 

and the years he served as Governor, I had a good working relationship with him and know well his devotion to public service. 

And he comes from a family that has a history of public service as 

well. 

So I am pleased that one of the President’s nominations for 

Farmer Mac is an Iowan and I would personally congratulate the 

Governor on his nomination and welcome him to this hearing 

today. Governor Culver has served in statewide office in Iowa for 

over a decade, first two terms as Secretary of State and then as 

Governor. So he has seen first-hand many ups and downs of the 

agricultural industry, as so commonly happens in any state with 

agriculture, but it does in Iowa as well. 

The agricultural economy is going through a strong period right 

now, and part of the reason for that is that agricultural credit systems have allowed farmers access to the resources that they need 

and have otherwise had difficulty obtaining. Governor Culver, living in Iowa his life, as well as serving Iowans in those two positions, has a first-hand knowledge of how important credit is and 

the ability to finance farming operations, not only to the farmers, 

but to the prosperity of both rural Iowa, and when you look at the 

job that faces him, rural America as a whole. 

While agriculture has had a bright spot in these tough economic 

times, we are still seeing a lot of volatility in commodity and import prices. We have to make sure that U.S. farmers continue to 

have the resources available to them as they continue to produce 

a safe and abundant food and fuel supply. And Farmer Mac plays 

a very important role in ensuring capital is available to farmers in 

rural communities. 

So I think, and this Committee will know this after Governor 

Culver testifies, that he will bring a valuable perspective and a valuable understanding of rural issues to the Board of Directors of 

Farmer Mac. I want you to know that I enthusiastically support his 

nomination and I urge my colleagues to join me in confirming him, 

and I hope that confirmation can be done quickly before we go 

home for Christmas, because obviously it will linger beyond into 

February if we do not do that. 

Again, I welcome Governor Culver and congratulate him on his 

nomination. Thank you, Madam Chairman. 

Chairwoman STABENOW. Well, thank you very much, Senator 

Grassley. Governor Culver, that is high praise coming from a very 

distinguished member of our Committee and we take that very seriously. So thank you very much, Senator Grassley. 

I am now going to turn to the Senator from Delaware to tell us 

about Delaware agriculture. Would you like to respond? 

4 

STATEMENT OF HON. CHRISTOPHER A. COONS, U.S. SENATOR 

FROM THE STATE OF DELAWARE 

Senator COONS. I would love to. Thank you for the opportunity. 

Senator Stabenow, as Senator Grassley and I have previously discussed over breakfast, ag is the biggest business in Delaware. Now, 

someone from a state the size of Michigan may not think that is 

much of a big deal, but for our state, it is a big deal. 

Chairwoman STABENOW. That four farms? No, I’m sorry. 

Senator COONS. We get no respect. We get no respect. 

[Laughter.] 

Senator COONS. Poultry is really the sort of beating heart of the 

Delaware agriculture sector, but there are lots of other components 

to it, and I just want to start by saying I am grateful, Madam 

Chairman, for the opportunity to introduce my friend and fellow 

Delawarean, Michael Scuse. 

It is a rare and good day when I see good people advance here 

in Washington, and Michael is one of the best I have ever known. 

He and his wife, Patrice, have been good friends to my wife, Annie, 

and I for a long time. I first got to know him well in a public capacity when he was serving as Secretary of Agriculture for the State 

of Delaware, and we had an opportunity to get to know each other, 

both personally and professionally. He is passionate about agriculture. He is hard-working, he is smart, he is genuine, he is a decent man. 

He and his brother continue to run a family farm in Smyrna. 

Like me, he commutes to and from Delaware. His wife, Patrice, is 

with him today and I know that he remains a connected part of the 

tight-knit farm families that are the backbone of rural Delaware. 

I worked most closely with Michael when I was the New Castle 

County Executive. The day I announced my candidacy for that position, promoting farm preservation and strengthening our partnership between the county and state, was one of the things I was determined to do. And it was not easy and it required a state Secretary of Agriculture who was innovative, who was willing to find 

ways to adapt a program, and who was willing to partner with me. 

Largely because of Michael’s leadership and the Governor under 

whom he served, Delaware today has the highest percentage of preserved productive agriculture farmland of any state in the country. 

We also worked together to promote agri-tourism and to promote 

on-farm income sources that were non-traditional, which in my 

county, which is rapidly becoming suburban, was one of the few 

ways we could save for the long-term productive agricultural properties. 

So I just wanted to share with you, if I could, by way of introduction, that I think Michael’s critical work in the State of Delaware 

and now here in Washington, in the United States Department of 

Agriculture, gives him the skills and the experience to build on his 

personal character and values to be a great Under Secretary of Agriculture. 

I also think he will contribute significant skills and experience 

to the Commodity Credit Corporation. I think you could do no better than to take this great Delawarean and give him an opportunity to show everybody in the United States that Delaware does 

not just have a great agriculture sector, it also grows great agriVerDate Nov 24 2008 12:36 Dec 05, 2012 Jkt 000000 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 C:\DOCS\75118.TXT MICHA
5 

culture community leaders and Michael Scuse is one of the best. 

Thank you, Madam. 

Chairwoman STABENOW. Thank you very much, and again, high 

praise from a distinguished member of the Senate. So thank you, 

Senator Coons, for being here. Let me now go forward to specifically introduce our first nominee, Mr. Michael Scuse. 

Prior to becoming Acting Under Secretary for Farm and Foreign 

Agricultural Services, Mr. Scuse served as Deputy Under Secretary 

for the Farm and Foreign Agricultural Services mission area from 

2009 to 2011 with primary responsibility over our domestic programs at the Farm Services Agency and the Risk Management 

Agency. Before joining USDA, Mr. Scuse was, as Senator Coons, indicated, Delaware’s Secretary of Agriculture from May 2001 until 

September 2008 when Governor Ruth Ann Minner named him as 

her Chief of Staff. He lives in—— 

Mr. SCUSE. Smyrna. 

Chairwoman STABENOW. Smyrna—I am sorry, I was saying that 

wrong—Delaware with his wife, Patrice, as I indicated. And so, 

now I have two things that I need to do, Mr. Scuse, first administer 

an oath that we administer to all of our nominees. I would ask you 

to stand and to raise your right hand. 

Do you swear that the testimony you are about to present is the 

truth, the whole truth, and nothing but the truth, so help you God? 

Mr. SCUSE. I do. 

Chairwoman STABENOW. Secondly, Mr. Scuse, do you agree that 

if confirmed, you will appear before any duly-constituted Committee of Congress if asked to appear? 

Mr. SCUSE. I will. 

Chairwoman STABENOW. Thank you very much. At this point, we 

would like to proceed to your testimony. As you know, we have 

asked for five minutes of oral testimony and we are welcome to receive any other written testimony you would like to give us. So 

again, welcome, and please proceed. 

TESTIMONY OF MICHAEL T. SCUSE, DELAWARE, NOMINATED 

TO BE UNDERSECRETARY OF AGRICULTURE FOR FARM AND 

FOREIGN AGRICULTURAL SERVICES AND TO BE A MEMBER 

OF THE BOARD OF DIRECTORS OF THE COMMODITY CREDIT 

CORPORATION 

Mr. SCUSE. Thank you very much. Chairwoman Stabenow and 

members of the Senate Committee on Agriculture, Nutrition and 

Forestry, I want to thank you very much for this opportunity to appear before you today. I would also like to thank Senator Coons for 

his very kind introduction. The Senator and I have, as he said, had 

the opportunity to work together for many years. I am grateful for 

his support in the past, as well as the Senator’s support today. 

Working together, we, I believe, accomplished a great deal for 

Delaware and especially New Castle County, and I look forward to 

working with members of this Committee to further agriculture 

and achieve a tremendous amount as well. So thank you very 

much, Senator Coons. 

I would also like to take this opportunity to again introduce to 

you my wife, Patrice, and as of this past Sunday, we have been 

married 35 years, and much of what I have been able to accomplish 

6 

over the years is, in fact, due to her strong support and understanding. I would like to thank her for especially her patience and 

the sacrifices that she has made over the last 35 years. You do not 

get in a position, the positions that I have held unless you have 

someone who is very strong helping you get there, and she certainly has been my support throughout the years. 

I consider it a tremendous honor to be before this Committee 

nominated by the President and Secretary Vilsack to serve as 

Under Secretary for the Farm and Foreign Agricultural Service at 

the Department of Agriculture. As a farmer, I am keenly aware of 

the responsibility and the privilege of this position, the ability to 

positively impact America’s farmers and ranchers. Every decision I 

make I make with our farmers and ranchers in mind. 

If confirmed, I will continue this focus and examine closely the 

impact of each and every decision that I make. We have the best 

farmers and ranchers to be found anywhere in the world. Our agricultural producers are deeply rooted in this nation’s history, and 

they are a big part of our strength as a people. 

Even as America recovers from the deepest recession since the 

Great Depression, we are seeing a very strong agriculture economy. 

Agriculture is responsible for one out of every 12 jobs in America. 

This year, net cash income and net farm income are record in 

nominal terms, and adjusting for inflation or at their highest levels 

since the early 1970s. 

Farm credit is still tight for some, but expanding more and more 

in many sectors of agriculture, and total farm equity is up. U.S. agricultural exports for fiscal year 2011 reached a record $137.4 billion. Taken as a whole, the United States is in the midst of experiencing the three best years in our history in the terms of agricultural exports. 

This has also been a year of unprecedented disaster, unfortunately, from above-average snow melt and excessive rainfall, tornadoes, flooding, record drought, and finally, several major storms. 

America’s farmers and ranchers are the best in the world and they 

are, without a doubt, resilient. 

But at the end of the day, weather is beyond their control. These 

disasters only emphasize the importance of a strong and effective 

safety net for those farmers and ranchers who need it. This is a 

moment of great opportunity in agriculture, and I will not downplay the hard work that is needed, nor the long road that lies in 

front of us towards the next Farm Bill. 

If confirmed, I will look forward to working with the members of 

this Committee, and your colleagues in the House, to assist to answer any questions or provide any analysis that you may need in 

your endeavor. I would like to recognize today those with whom I 

have had the great privilege to serving at USDA. 

The three agencies that I have been working to oversee in my 

current acting role are each staffed, without a doubt, immensely capable and experienced public servants. In addition, I would like to 

emphasize my commitment to turning a new page on civil rights 

at USDA. Under Secretary Vilsack’s leadership, we have made 

great strides in resolving outstanding civil rights claims. Discrimination in any form will not be tolerated. 

7 

I would again like to thank you for this opportunity to appear 

before you today, and if confirmed, it will be my greatest honor to 

serve the American farmer and rancher and earn his trust. Thank 

you, Madam Chairwoman. 

[The prepared statement of Mr. Scuse can be found on page 31 

in the appendix.] 

Chairwoman STABENOW. Thank you very much. We have been 

joined by my distinguished colleague, Senator Roberts, and with 

his consent, we will proceed to our questions at this point. 

Mr. Scuse, you have been Acting Under Secretary for nearly a 

year. Can you explain to us what you have learned in that role to 

date, and also what your plans and goals for FFAS, what they are, 

should you be confirmed? 

Mr. SCUSE. Madam Chairwoman, thank you. I have learned that, 

again, we have an outstanding and dedicated workforce at USDA, 

and especially the three mission areas that are under me. The 

Farm and Foreign Agricultural Service, we have a dedicated workforce not just here, but in offices throughout the world to help us 

facilitate trade and solve some of the trade issues and problems 

that our companies face. 

At the Farm Service Agency, I continue to brag on the work that 

our people in our county offices do, helping our farmers and ranchers sign up for programs and assist them. At the Risk Management 

Agency, we have a very dedicated and capable workforce there to 

help us offer new products. As I said earlier, the crop insurance is 

a very important product to help us through the very difficult 

times, and they continue to look at ways to make improvements as 

well as come up with new products. 

Where I would like to see us in the future is, we need the technology, and I think members of this Committee know that we are 

headed in that direction with our MIDAS program. But the need 

to improve the technology that we have currently in our county offices is great, and I think that we need to find ways that we can 

help our farmers and ranchers be more efficient and save time in 

our county offices and save them time and money as well. 

The safety net, again, if you look at what we have experienced 

this past year with all the disasters around the United States, it 

is very important that we continue to have a safety net to help our 

farmers and ranchers, whether or not just difficult weather conditions, but also price problems as well. 

Chairwoman STABENOW. Thank you very much. Let us talk a little bit more, when you talk about risk management programs, and 

we all know as we have done hearings this year, field hearings, 

and hearings before the Committee here in Washington on important risk management tools, certainly crop insurance is at the top 

of the list. 

When we look at the volatility of the markets, the volatility in 

the weather, the risks that our farmers and ranchers face every 

single day, we know that risk management tools are incredibly important. What is the USDA doing to improve the delivery and to 

expand access of these risk management tools to all farmers and 

ranchers? 

Mr. SCUSE. Well, thank you. I welcome the opportunity to explain some of the things that we are doing. The Risk Management 

8 

Agency and the Federal Crop Insurance Corporation Board continues to look at ways that we can offer new products. Just as an 

example, the last—in this past couple of years, we have developed 

a pilot program for camelina production. We have also developed 

a program for sesame production as well to protect those sesame 

growers. And we have been able to greatly expand that acreage for 

that crop. 

Right now we have pilot programs going that are about ready to 

start this next year in California for some of the nut-producing 

trees. We also have started a pilot program in Louisiana for sweet 

potato production. So we continue to look at ways to make new 

products available to protect those farmers who do not grow what 

we consider the traditional crops that are normally protected 

through crop insurance. 

We will continue, again because it is important, that we have a 

very good safety net for as many producers as we possibly can. 

Chairwoman STABENOW. Well, as you know and as we have 

talked, obviously there are a whole range of underserved crops, and 

certainly fruits and vegetables, specialty crops, are an area where 

we need to make sure that we are doing much more work around 

the crop insurance. We see that in certain regions, certainly in the 

Northeast this year as well, where there was a lot of damage and 

crop insurance was not available for those crops. And so, very supportive and interested in seeing you continue to move as quickly 

as you can to be able to expand the reach of crop insurance and 

the effectiveness of crop insurance. 

Let me also just ask if you could give us a quick update, and I 

am running out of time, on your efforts to reduce paperwork, 

streamline processes, simplify reporting. This has been another big 

priority for the Committee. 

Mr. SCUSE. Well, thank you. Again, I welcome the opportunity to 

talk about one of the initiatives that we have at the Risk Management Agency as well as the Farm Service Agency, NAS, and NRCS. 

We are currently working on an acreage crop reporting streamlining initiative. What this will do will allow our producers to go 

into a Farm Service Agency county office or to their crop insurance 

agent and give a single crop report. 

As the system is set up today, our farmers and ranchers have to 

give two reports, one to the FSA office as well as another one to 

their agent. We are looking at one-stop reporting, and ultimately 

our goal will be for the farmers and ranchers to actually do the 

crop report right from their home. So this is one area that we are 

looking at to save not just time for our county office staff, but the 

time that our farmers and ranchers are having to spend in the office and providing them the service that they should have. 

Chairwoman STABENOW. Thank you very much. Senator Roberts? 

Senator ROBERTS. Well, thank you, Madam Chairman. Michael, 

thank you for coming by my office. We had a good talk at that particular time and this sort of builds on the question posed by the 

Chairwoman. Everywhere we went, Lansing, Wichita, and then we 

had a little problem with some gang that got together and decided 

to postpone things for a while, so that did not work out. 

But I can tell you that everywhere we went, the number one 

issue of concern was crop insurance. And I know that you have just 

9 

talked about that. Farmers, bankers, ag input suppliers, and the 

overall ag economy certainly depend on the security provided by 

crop insurance. Let me just ask you, first off, do you agree with 

this assessment? 

Mr. SCUSE. Crop insurance is, in my opinion, I think crop insurance is one of the most important parts of the safety net that we 

have, Senator. 

Senator ROBERTS. Okay. I appreciate that. Now, you talk about 

extension to other crops, and I appreciate that. Several farm bills 

back, I think I was the person, after being boxed in by several proponents of those specialty crops and other crops, that finally yielded and said, Well, we have that for program crops, but, you know, 

the producer that produces program crops has to have an approved 

conservation plan, et cetera, et cetera, et cetera, before they are eligible for title 1 programs. 

I wondered if that shoe might fit on the other side. That shoe did 

not fit, but at least I think if we are extending to crops that we 

should and I am for that and I applaud you for that effort. But if, 

in fact, we go back or we have a different kind of farm program, 

whether it is counter cyclical, whether it is revenue, whether it is 

target prices, whatever kind of payment that we are talking about 

when farmers go through a tough time—when they do not have a 

crop it does not apply—and that is the key, that when farmers lose 

a crop, you have got to have a good crop insurance program. And 

$14 billion was taken from that program over the two previous 

farm bills. 

I want to make sure that we strengthen and preserve crop insurance. That is my number one goal in whatever farm bill that we 

are able to put together. And we have worked pretty hard on that. 

I just wanted to make very clear that if we extend the crop insurance program to underserved crops, I want to make sure that it 

does work for the program crops, which combined, really make up 

the food and fiber that we use to feed this country and a troubled 

and hungry world. 

By that, I do not mean to underscore anything less than importance in terms of extending crop insurance to underserved crops. 

It should not be either/or. It should be a whole program. Do you 

agree? 

Mr. SCUSE. Senator, I agree with the fact that we need to continue to work with and strengthen the program, and if confirmed, 

you have my commitment to work with you and members of this 

Committee to continue to do what we can to strengthen crop insurance for our farmers and ranchers. 

Senator ROBERTS. All right. Thank you, sir. Back when we were 

voting to ratify the trade agreements with Colombia, Panama, and 

South Korea, there was a discussion about a need for the Administration to re-engage with China and Japan on beef market access. 

Can you give us a status report on where these efforts stand? 

Mr. SCUSE. Well, currently, Senator, the Japanese government is 

posing a question to their Food Security Council regarding the beef 

issue, both domestic and foreign. We look forward to working with 

them to resolve the issue on beef trade and the age restrictions currently they have in place. 

10 

Ambassador Siddiqui and I were in China in October. We engaged the Chinese, at that time, on the various issues that are facing our beef producers, not just the age restriction, but the offal situation as well, and the numbers that are available. But we continue to engage these markets and we will continue, Senator, especially if I am confirmed in this capacity as the Under Secretary for 

Farm and Foreign Agricultural Service, we will continue to engage 

these markets and do what we can to open them for our farmers 

and ranchers. 

Senator ROBERTS. Well, I think the situation is right. We just 

had a delegation from Japan in my office and with the exception 

of one Kobe beef producer who was a little worried about tariffs, 

everybody there said it is time to act. And the Ambassador here in 

Washington wants to go out to Kansas and see 10,000, 20,000 herd 

of cattle out there right next to Dodge City. So we said we could 

certainly arrange that for him. But I think the time is right and 

I hope we can seize the moment. 

We do have some unresolved issues with the beef market access 

in Mexico, in Taiwan as well. Do you have any status report on 

those issues? 

Mr. SCUSE. I had the opportunity, Senator, to visit with some 

Mexican officials at the Trinational Accord in Texas last month. 

That is a forum where the secretaries and commissioners from the 

states of the United States meet with their counterparts from Mexico and Canada. We have had those discussions about the issue and 

we will continue to have those discussions to resolve the issues 

with the Mexicans on beef trade. 

Senator ROBERTS. I thank you for your testimony. Thank you so 

much. 

Chairwoman STABENOW. Thank you. Senator Conrad? 

Senator CONRAD. Mr. Scuse, first of all, thank you so much for 

coming to North Dakota frequently and listening to the concerns of 

producers in my state. I certainly appreciate that. Is it not the case 

that you would be replacing Mr. Jim Miller as Under Secretary? 

Mr. SCUSE. Yes, Senator, that would be the case. I would be 

former Under Secretary Jim Miller’s replacement. 

Senator CONRAD. And Jim Miller, of course, is my lead agricultural advisor. Do you see him here in the room? 

Mr. SCUSE. Yes, sir. He has got different glasses on, but I still 

recognize him. 

Senator CONRAD. He has had an upgrade. Let me just say this. 

I want to publicly acknowledge the dramatic improvement in operations—— 

[Laughter.] 

Senator CONRAD. —that you have brought to that agency. 

[Laughter.] 

Mr. SCUSE. Thank you very much, Senator. 

Senator ROBERTS. I thought you were going to talk about the 

dramatic improvement of operations in your office. 

Senator CONRAD. Well, that, too. 

[Laughter.] 

Senator CONRAD. You know, Jim Miller is, I think, somebody 

highly regarded on both sides and I am so delighted that he came 

back to help us with the Farm Bill. But I am also delighted in your 

11 

candidacy for this position, your nomination, because you have 

demonstrated to me repeatedly that you deeply, sincerely care 

about producers. 

Of course, you come from a family that is in this business and 

you have got soybeans and you have got wheat, you have got corn 

in your family operation, and it has just been a delight to have you 

out talking to our producers because you have got so much in common. So I just want to say how strongly I support this nomination. 

I just do not think the Administration could have done better and 

we look forward to working with you very much. 

If I could just also say that I understand you are an avid hunter. 

Mr. SCUSE. Yes, Senator. 

Senator CONRAD. But the word around FSA is that you do not 

actually kill anything. Is this because you are a poor shot or is 

this—— 

Mr. SCUSE. Well, Senator, if I may, I am a true conservationist 

and I practice shoot and release. 

Senator CONRAD. Well, my understanding is you shoot at and do 

not hit. 

Mr. SCUSE. That is my version of shoot and release. 

[Laughter.] 

Senator CONRAD. Let me just talk seriously for a moment about 

something that is very much on the mind of my producers and that 

is disaster assistance. As you know, this year in North Dakota, and 

across much of the country, we had one disaster after another. We 

had record prevent plant in the State of North Dakota. You fly over 

North Dakota today there is water everywhere. We joke that it is 

like Lake Agassiz is reforming. 

You know, we used to be a lake bed in North Dakota thousands 

of years ago. And you fly over North Dakota today, it is like Lake 

Agassiz is reforming. There is just water everywhere, setting us up 

for another very, very tough year if weather conditions continue. 

We had record flooding last year and records that so far exceeded 

anything that had happened before. It has raised questions in people’s mind, What is going on here? Because on the Souris River, we 

had record flood levels, and not just a little bit above previous, but 

way above anything previously seen. 

On the Missouri, we had record releases from the dams, and 

again, not just a little bit over the line, as Senator Roberts knows, 

but dramatic records. And so, with respect to the disaster program, 

the SURE program, what would happen, in your judgment, if that 

was not available in this next year? 

Mr. SCUSE. Well, Senator, those five programs that we no longer 

have as of the last of September were very important programs to 

our farmers and ranchers. The SURE program supplemented the 

crop insurance that most of our producers are now today carrying. 

So it has been, in the last few years, a very important part of the 

safety net. 

As our livestock indemnity program, the emergency livestock assistance program, these programs have been very important to our 

producers across the United States for various crops. Especially for 

the livestock producers who traditionally, through past farm bills, 

have not had any assistance, this was a major step forward. 

12 

So I think that is one of the reasons, when you looked at what 

the President said that he would like to have, that he said, you 

know, we would like to have these five programs or something 

similar because of what they have done for our farmers and ranchers across the United States. 

Senator CONRAD. Well, I appreciate that. My time has expired, 

but, Madam Chairwoman, if I just might, on the next panel, Governor Culver is here. He is a dear friend, somebody I have high regard for, and I hope that we can report these nominations quickly 

and get these people confirmed. We are lucky to have people of this 

quality and character make themselves available for public service. 

Chairwoman STABENOW. Thank you very much. Senator Cochran? 

Senator COCHRAN. Madam Chairman, thank you for convening 

this hearing. I am pleased to join you and the other members in 

welcoming our witnesses this morning. In hearing the witness mention the seriousness of the challenge that we face with flooding, 

and the Senator from North Dakota eloquently describing the practice consequences of that in that part of our country, we have had 

serious problems down in the Southeast, too. 

The Mississippi River has been backed up to cover record flooded 

areas and we still have a lot of producers worried about the longterm consequences of this. And I am glad to hear the sympathetic 

and interested response that you gave to the fact that we do have 

serious responsibilities at the Federal level to try to help manage 

the challenges that this brings to production agriculture and the 

producers themselves. 

Do you have any suggestions at this point about changes in commodity programs or any disaster assistance programs that might 

be considered by this Committee as we propose improvements or 

changes in agriculture disaster benefit programs? 

Mr. SCUSE. Senator, as this Committee moves forward with the 

crafting of the next Farm Bill, I and the staff under me would be 

more than glad and willing to assist you in providing you with information and any help that we can in the creation of the next 

Farm Bill. So I, if confirmed, look forward to working with you and 

members of this 

Committee on that next Farm Bill and providing you with the assistance that you need. 

Senator COCHRAN. Well, thank you. I think your experience and 

the contacts that you have in the agriculture communities nationwide will be a big help in explaining what our challenges are. 

Mr. SCUSE. Thank you, Senator. 

Senator COCHRAN. So best wishes to you in this new responsibility. 

Mr. SCUSE. Thank you. 

Chairwoman STABENOW. Well, thank you very much. I understand that Senator Harkin does not have questions at this time, 

and so we will thank you for your presence and excuse you and 

look forward to having the opportunity to vote and, I feel confident, 

bring your nomination forward. So we look forward to continuing 

to work with you, and I appreciate all of your efforts. So thank you. 

Mr. SCUSE. Madam Chairwoman, I thank you again for the opportunity to be here today and answer the questions posed by the 

13 

Committee. And, Senator Roberts, when I left your office the other 

day, you said I should think of two things when I wake up in the 

morning. This morning I woke up thinking of beef and crop insurance. Thank you. 

Chairwoman STABENOW. Well, I could give you a couple others, 

too. 

Mr. SCUSE. I will be more than glad. 

Chairwoman STABENOW. All right. Well, thank you very, very 

much. 

We would like to ask our second panel, two distinguished nominees, to come forward at this time. 

Good morning. It is our pleasure to have both of you, and I am 

going to turn now to Senator Harkin to introduce Governor Chet 

Culver. 

Senator HARKIN. Thank you very much, Madam Chair and Ranking Member Roberts, members of the Committee. It is indeed my 

honor this morning to introduce and highly commend to the Committee someone I have known since he was a little boy. I like to 

always comment that some people do not realize that Chet Culver 

actually was little at one time. So that is my way of saying I have 

known him all his life. 

I strongly support his nomination to serve as a member of the 

Board of Directors of the Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac. Chet Culver has served 

Iowans as our 40th Governor from 2007 to 2011; prior to that 

served eight years as our Secretary of State and served with distinction and strong accomplishments in both positions. 

During his tenure as Governor, Iowa was recognized as one of 

the best run states in the nation. During a time of great fiscal and 

economic challenges, he managed a $6 billion annual state budget, 

improved our state’s bond rating so that the three major bond rating agencies awarded Iowa their highest rating. That made Iowa 

one of only nine states to earn the highest rating from all three 

agencies. 

Thanks to Governor Culver’s leadership, Forbes Magazine 

ranked Iowa the number one place in America for business and careers. CNBC rated Iowa one of the top states for business. And 

again, this is during the height of recession. 

So while balancing four budgets, Governor Culver increased the 

minimum wage, increased teacher salaries to the national average, 

expanded health care for uninsured Iowa children, and, I think 

again, one of his signature accomplishments is expanding early 

learning statewide. So we have statewide pre-school in the State of 

Iowa. 

In addition, he invested millions in new jobs, new roads, bridges, 

renewable energy, flood prevention at a time when also protecting 

our cash reserves. He successfully dealt with the severe flooding in 

2008, the worst natural disaster in Iowa’s history. I mentioned 

some of his achievements. 

I would also mention the creation of the Iowa Office of Energy 

Independence, the Iowa Power Fund, which has invested more than 

$65 million in 40 Iowa renewable energy research and development 

and early stage commercialization projects. I mention this because 

this state investment leveraged over $200 million in private investVerDate Nov 24 2008 12:36 Dec 05, 2012 Jkt 000000 PO 00000 Frm 00017 Fmt 6633 Sfmt 6633 C:\DOCS\75118.TXT MICHA
14 

ment into Iowa’s renewable energy sector. Under Governor Culver’s 

leadership, Iowa moved to first in the world, not in the nation, but 

first in the world in per capita use of renewable energy and now 

produces nearly 20 percent of all of our energy needs from renewable resources. 

I go through all that because obviously with this background and 

this experience, Governor Culver knows agriculture, he knows 

rural communities, he knows business, how to manage budgets and 

finances, and will be an outstanding member of the Board of Directors of Farmer Mac. 

Again, I know his wife could not be here with him, Mari, and his 

kids are in school and could not be here, but I would note in passing his great devotion to a great family he has in his wife, Mari, 

and his two kids, Claire and John. And so, I commend Governor 

Culver highly to this Committee for this position. 

Chairwoman STABENOW. Well, thank you very much. Very high 

praise coming from a very distinguished member of this Committee. So we welcome you and let me introduce our second nominee as well for Farmer Mac, Dr. Bruce Sherrick. Dr. Sherrick is 

currently a professor in the Department of Agricultural Economics 

at the University of Illinois where he teaches undergraduate and 

graduate courses in applied finance and financial modeling. He is 

also a partner in the consulting firm, Integrated Financial Analytics and Research. 

Now I have two things that I need to ask both of you to do and 

if you both stand and first let me administer the oath that we have 

for all nominees, and if you would rise and raise your right hand? 

Do you swear that the testimony you are about to present is the 

truth, the whole truth, and nothing but the truth, so help you God? 

Mr. CULVER. I do. 

Mr. SHERRICK. I do. 

Chairwoman STABENOW. Thank you. And secondly, do you agree 

that if confirmed, you will appear before any duly constituted Committee of Congress if asked to appear? 

Mr. CULVER. I will. 

Mr. SHERRICK. I will. 

Chairwoman STABENOW. Thank you very much. Governor Culver, 

we will ask you to proceed, and as you know, we ask for five minutes of testimony. Anything else in writing you would like to give 

us we would welcome. 

TESTIMONY OF HON. CHESTER JOHN CULVER, IOWA, NOMINATED TO BE MEMBER OF THE BOARD OF DIRECTORS FOR 

THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION 

Mr. CULVER. Well, first of all, Madam Chairwoman, thank you 

very much, and Ranking Member Roberts, thank you as well for 

holding this hearing today. I also want to acknowledge and thank 

Senator Harkin for his kind words, and Senator Grassley as well 

who made comments earlier. 

All the distinguished members of this Committee, thank you as 

well for having this hearing this morning. It is truly an honor to 

be here with you. It is also an honor to be nominated to serve as 

a member of the Board of Directors of the Federal Agricultural 

Mortgage Corporation, and I want to thank President Obama for 

15 

the confidence he has shown in me by nominating me to this 

Board. 

As the former Governor of Iowa, I know the tremendous responsibilities of Farmer Mac and the pivotal role that it plays on a daily 

basis to increase the availability of long-term credit at stable interest rates to segments of rural America. As an Iowan, I have maintained a life-long love for rural America, its rich and vibrant landscape, culture, history, and its people. 

I believe I understand the needs of rural citizens and the particular economic development and infrastructure challenges of the 

Midwest. Throughout my career, I have been fortunate to work on 

behalf of all Iowans as a consumer and environmental advocate, as 

an educator, as Secretary of State, and as Governor, and now as 

a small business owner, to make Iowa and this nation a better 

place to live, work, and raise a family. 

I understand the needs and challenges that confront our farmers, 

ranchers, small businesses, energy suppliers, rural communities, 

and rural schools in this country. I am also aware of the inter-relationship between agribusiness, urban communities, manufacturers, 

and the financial sector. As we like to say in Iowa, from silos to 

smokestacks. 

If confirmed as a member of the Farmer Mac Board, I want to 

assure you, the Congress, employees of Farmer Mac, and the citizens of this great diverse country that I will do my utmost to ensure that the Agency upholds its mandate effectively to provide a 

secondary market for qualified agricultural mortgage loans, rural 

utility loans, and the guaranteed portions of the agricultural and 

rural development loans guaranteed by the U.S. Department of Agriculture. 

I am also motivated and committed to helping to provide a stable 

and reliable financial backbone in rural America. In the face of 

these difficult challenges, I remain optimistic about the limitless 

potential rural America has to both feed the world and help secure 

this country’s energy future. 

Chairwoman STABENOW.and Ranking Member Roberts, I welcome the opportunity to tackle the challenges that lie ahead at 

Farmer Mac and I sincerely thank you for this confirmation hearing and for affording me the opportunity to offer this brief statement today. 

In closing, I want to thank the Committee staff for its time and 

attention it has given to my nomination. If confirmed, I intend to 

work closely with you, Madam Chairwoman, Senator Roberts, 

members of this Committee, and your staffs to preserve our shared 

objectives. I am committed to maintaining the very productive and 

close working relationship that exists between this Committee and 

Farmer Mac. I am happy and pleased to respond to any questions 

that you may now have. 

[The prepared statement of Mr. Culver can be found on page 28 

in the appendix.] 

Chairwoman STABENOW. Thank you very much. Dr. Sherrick, 

welcome. 

16 

TESTIMONY OF BRUCE J. SHERRICK, Ph.D., ILLINOIS, NOMINATED TO BE A MEMBER OF THE BOARD OF DIRECTORS OF 

THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION 

Mr. SHERRICK. Good morning. Thank you. Chairwoman Stabenow, Ranking Member Roberts, and other distinguished members 

of the Committee, I am very honored to have been nominated for 

service on the Board of Directors of the Federal Agricultural Mortgage Corporation. Thank you for your time and opportunity to appear here today. 

I want to provide a very brief background statement to give a little bit of sense of who I am and some experiences that may have 

some relevance for my service in that role. Like many people in the 

agricultural community today, I was born and raised on a small, 

very diversified farm in central Ohio, and I was brought up with 

parents who view that as a teaching laboratory, and I was expected 

to have as many agricultural experiences as possible, each with the 

intent to do two things, learn something new and earn money for 

college. 

Eventually I did go to college and, at the Ohio State University, 

completed all of my degrees with only a brief stint in the middle 

working for a very large agribusiness firm in St. Louis who produces a lot of chemicals, and I decided I really did need to go back 

and finish a Ph.D., given that experience. 

After that, I joined one of the top finance programs in the country at the University of Illinois where I have been ever since. I am 

currently a professor in agricultural and consumer economics with 

responsibilities in teaching, research, and outreach. I was glancing 

at the clock earlier because at this moment, I am actually scheduled to be on a panel in western Illinois near Iowa presenting some 

materials on crop insurance reform, in fact, to a large group of 

farmers with some of my colleagues. So this is a better venue, I assure you. 

I have the privilege to be associated with a very dedicated group 

of faculty colleagues at the University of Illinois, who approach 

with sincere interest, promote every aspect of agriculture that we 

can, and that group is known as the farmdoc group. We are active 

in evaluating farm bill prospects at the moment, have been active 

in developing crop insurance products and programs, both from the 

producer level as assistants to RMA with independent companies 

and even private market add-ons to the existing insurance products 

as well. 

I mention these experiences because they have some direct relevance in representing poolable risks that also are a key cornerstone in risk management activities that producers use to manage 

the extreme agricultural production risk, much like the activities of 

Farmer Mac. 

With Farmer Mac, I have had a different set of professional experiences. I was one of the original researchers who built the original 

guarantee pricing model Farmer Mac had before they even expanded their authorities to pool mortgages outside their initial 

pools. Since that time, I have been involved with both the regulator, their customers, independent research, examining the role of 

securitization in providing conduits from the farm through the capVerDate Nov 24 2008 12:36 Dec 05, 2012 Jkt 000000 PO 00000 Frm 00020 Fmt 6633 Sfmt 6633 C:\DOCS\75118.TXT MICHA
17 

ital markets in providing stable and reliable access to credit in 

rural America. 

From those experiences, I have had a great deal of a chance to 

observe what they do and understand their role in the access to 

that provision of capital. My current position, as I said, it has given 

me access to an incredibly interesting and very diverse set of experiences, but my personal interest has allowed me to focus those in 

the arena of ag-finance, and that is a really unique experience and 

I find myself very privileged, both at the university level, with my 

consulting organization, and now to have been considered for membership on the Board of Directors to continue that set of interests, 

and if confirmed, would again serve to the best of my abilities. 

Again, I want to thank this group for the opportunity to be here 

today and to be considered for nomination for the Board of Directors of Federal Agriculture Mortgage Corporation. Be pleased to 

answer any questions as well. 

[The prepared statement of Mr. Sherrick can be found on page 

33 in the appendix.] 

Chairwoman STABENOW. Well, thank you very much to both of 

you, and I do want to say, Dr. Sherrick, as a Michigan State University graduate, you can tell I am very open-minded that I would 

let an Ohio State graduate appear before the Committee as a nominee and not to attempt to block your nomination. We are glad to 

have both of you. 

Let me first start and ask both of you, I am sure you have 

thought about goals and plans for your time on the Board if you 

are confirmed. I wonder if you might talk more specifically about 

what you would like to accomplish in your tenure and what you see 

your role as being in helping to shape the work of Farmer Mac? 

Governor Culver? 

Mr. CULVER. Well, thank you, Madam Chair. I really look forward to working with Chairman Lowell Junkins and the Board to 

continue to work every day to ensure that there is reliable and capital available in rural America. I think they have done a good job, 

last year in particular, during some tough times, making sure that 

credit was available. 

As Senator Conrad noted, rural America, and certainly in Iowa 

and North Dakota and Illinois, we have been hit with real disasters, natural disasters, which have caused new challenges in many 

smaller communities. And so, we need to help those main street 

businesses continue to offer services. I think that could be a little 

tricky because some of them were under water in communities like 

Oakville and Columbus Junction, for example. The main streets 

were, and certainly residential and businesses were impacted severely, in our case in 2008, with historic flooding. 

So I think we might see a new round of challenges, again as Senator Conrad noted, due to the natural disasters throughout the 

Midwest and we just have to continue to make sure that credit is 

available to those farmers in those rural communities and those 

businesses that we are counting on to keep our economy strong. 

Chairwoman STABENOW. Thank you. Dr. Sherrick? 

Mr. SHERRICK. Thank you. For purely coincidental reasons, I 

happened to be at Lehman Brothers the day they declared bankruptcy in September of 2008 and witnessed the complete destrucVerDate Nov 24 2008 12:36 Dec 05, 2012 Jkt 000000 PO 00000 Frm 00021 Fmt 6633 Sfmt 6633 C:\DOCS\75118.TXT MICHA
18 

tion, if you will, of the securitization system in traditional mortgages and so on. And I have been watching with great interest to 

see if there is any potential for similar forces to present themselves 

in agricultural conduits. 

I do not think there are, but I think it is critical to preserve that 

possibility and the ability for those well-functioning capital markets to taking full risks, divide them up into sensibly-priced possible securities, and have a matching of the demands for—and the 

liquidity services, of course, in the sector right now are—you know, 

there is this big bubble of liquidity at the moment. And so, there 

have been some change in the role that Farmer Mac might play. 

I think it is important, even more important in agriculture because we have not had the same disruption that the other economic—the other financial markets seem to have had. I have tried 

to keep an informal count and I think since Sheila Bair, the Chairwoman of the FDIC, made her comments last fall about the possible land price bubble, I think I have been asked over 30 times 

now to comment on the possibility of an agricultural land value 

bubble. 

I think the lending side response in the ’80s was profoundly important in understanding how we got to that and got out of it. I 

see that as a role to provide at Farmer Mac some careful analysis 

of the same sort of activities, and to be able to move forward 

through those periods is critical. 

The second area, as Basel 2 becomes more completely implemented, some more rational sort of capitalization schemes, and 

that applies both in traditional financial markets and in agricultural financial markets, and have been watching, and in fact, helping to some degree with FCA’s efforts to design slightly more rational capital guidelines. And Farmer Mac is the natural experiment and the natural place for which these pooling activities 

should and could take place. 

So those are two areas that I think are critical. They may sound 

very macro, in a sense nebulous, from direct questions about specific activities, but I think they are really important, sort of overarching issues related to the function of Farmer Mac as a secondary market for agricultural mortgages. 

Chairwoman STABENOW. Well, I think that is very important because folks do not think about that. We talk about rural infrastructure a lot and they do not think about the important role in the 

secondary market that Farmer Mac plays. And so, in the 2008 

Farm Bill, we, as you know, authorized Farmer Mac to purchase 

and to guarantee securities backed by loans made by cooperatives 

and electric and telecommunications infrastructure and so on. So I 

think it is important to recognize the significance of those activities. Thank you very much. Senator Roberts? 

Senator ROBERTS. Well, thank you, Madam Chairwoman. Governor Culver, just off the subject a little bit, but I sure want to 

thank you for your hands of friendship extended to our State of 

Kansas, allowing some of your five-star basketball athletes to come 

down to KU and K State and play. That is darn right neighborly 

of you and we appreciate it. 

[Laughter.] 

19 

Mr. CULVER. We have helped North Carolina a little bit, too, 

lately. 

Senator ROBERTS. Right. Hope you do not put any tariffs or have 

any trade—we do have a tariff, by the way, in terms of our athletes. Not that many. And then also, I think that is where Coach 

Snyder started out, at Kansas State, three times coach of the year 

and just made it again with a team that was not expected to do 

very well. Pardon me for—— 

Chairwoman STABENOW. Go right ahead. 

Senator ROBERTS. —getting off on that. I will behave myself 

doing that. 

Chairwoman STABENOW. I have got leftover purple from my visit 

to Kansas. 

Senator ROBERTS. Well, Governor and Dr. Sherrick, as you have 

stated, we must ensure—you must ensure the integrity of our financial institutions through appropriate oversight. The Chairwoman and I get that question every time we are on TV now with 

regard to MF Global and the unexpected demise of that trading 

company. Two hundred years of experience they had and now we 

are witnessing a devastating impact all throughout farm country, 

farmers, ranchers, investors, and businesses, and you have all 

talked about the importance of capital in that very important national enterprise. 

So we must do everything possible to prevent any unexpected collapses or calamities and these are the days where we have unexpected collapses or calamities. One thing happens and then another 

thing happens, something we do not expect, including Farmer Mac. 

The Board of Directors, it seems to me, must provide oversight 

and ensure operations are conducted strictly, and I would try to 

emphasize, within existing statutory authority. We had four farmers testify and put a human face on what is going on out there in 

farm country with MF Global. Every one of them said existing laws 

were broken and that they are not screaming for more regulation. 

They are screaming for less, so within existing statutory authority. 

What will each of you do to contribute to the Board of Directors 

to ensure that Farmer Mac is managed in a safe and sound manner according to the authority given by Congress? And I know both 

of you have an extensive background and have the ability to do 

that job and to do it well. 

Mr. CULVER. Well, Senator, as a former Governor, I am familiar 

with those responsibilities and obligations, in my case, with every 

state agency, and I think it starts with having the best possible 

staff that are there every single day helping to run the operation. 

I think it is important to have a good working relationship with all 

of the Board members so that we keep the lines of communication 

open and that we have opportunities to voice any concern, if we 

have any, whether it is within the organization or outside in terms 

of some of the economic concerns that you raised or the potential 

related to problems down the road. 

But perhaps most importantly, it is keeping the lines of communication open with this Committee and with your staff so that as 

you see concerns or if you have questions, that we can have that 

constant dialogue to together kind of stay in front of some of these 

potential problems down the road. 

20 

Senator ROBERTS. Dr. Sherrick, would you like to say something? 

Mr. SHERRICK. Thank you. In addition to echoing—— 

Senator ROBERTS. Let me preface it by saying I appreciate your 

talk about the farmland bubble. There is an article in today’s Wall 

Street Journal about that same subject right on the front page of 

the business section. I do not know how many speculative pieces 

have been written about it, and I just told the Chairwoman, We are 

going to talk our way into this if we are not careful. But please feel 

free to—— 

Mr. SHERRICK. Thank you. Had a very interesting set of opportunities to respond to that issue as well, most recently at a conference the Chicago Fed hosted. And again, there are some very 

dramatic differences from the ’80s, of course, when there was much 

more of a lender contribution to the cause, in a sense. And in this 

case, I think if we were to see a capitalization change or a rate 

change that would lead to land value changes, it would economywide, not agricultural specific. So I think it is a very different circumstance. 

It is partly the institutions, to come back to the other question, 

the institutions are different, and one of the things that is profoundly different is the environment, legal and otherwise, in which 

they operate. And I have been very impressed with Farmer Mac in 

the past decade or so with the extreme attention to detail on simple things like FAS 133 happens or maintaining not just compliance with the letter, but the intent of the law and the regulations 

while looking for authority, perhaps expansion that allows them to 

provide more liquidity services, more important services for agriculture in rural communities. 

In direct response to how, when I have specific activities related 

to maintaining the provision of these services within existing authorities or within a regulatory environment that is meant to promote safe and sound operations, I think there are two slightly overlooked, at this point, possible future avenues of activity. 

One is, as Basel 2-like things are becoming more and more promulgated through the economy, there are banks and farm credit institutions-like who find it more complicated to operate in agricultural markets. I think you need a Farmer Mac so that the community bank that cannot make an ag loan anymore because it is more 

complicated, or a Met Life who does not quite know how to deal 

with regulations when they decide whether they are a bank or not 

a bank and has a large portfolio of agricultural mortgages, it make 

sense to have a GSE. 

Importantly, the GSE status, as affiliated with Farmer Mac, provides the ability to do something that is part of the confidence gain. 

The recent meltdown, in many ways, is very much a battle for confidence. And I think it is very important to be able to demonstrate 

that from a position like Farmer Mac to the agricultural lending 

community. 

There are two major, of course, potential sets of clientele for 

Farmer Mac or farm credit institutions and banks, commercial 

banks lending to agriculture, and they both will be faced with increasing difficulty in a sense of maintaining good and fair lending 

practices in agriculture as they go forward and as other banking 

regulations evolve. So I think Farmer Mac being able to hold that 

21 

position and provide those services is, in fact, critical to others also 

maintaining their behavior within authorities. 

Chairwoman STABENOW. Thanks very much. Senator Cochran. 

Senator COCHRAN. Thank you very much for being responsive to 

the questions that our Committee has had of you, and let me join 

with others in congratulating you on your selection as members of 

this Board. We appreciate your undertaking that responsibility for 

us. 

I wonder, in your experience, whether you have come to recommend or have this Committee recommend changes in our farm 

credit system that would help improve access to credit and the effectiveness of our credit system as it relates to production agriculture? 

Mr. CULVER. Well, thank you, Senator. I think overall and generally speaking that Farmer Mac has worked. I mean, it has really 

been a critically important institution in response to the farm crisis 

in the ’80s to try to avoid some serious financial strains in rural 

America. So I do not have any particular recommendations. I am 

anxious, as a new member of the Board, to listen and learn and 

try to better understand things that we can do to improve Farmer 

Mac. I would be prepared, perhaps in the future, to come back to 

this Committee with more specific recommendations. 

But I think we need to continue to focus on some of the positive 

things that Farmer Mac has been able to do to help rural communities and farmers across this country. I think it is my understanding that one of the things that they have done well is they 

have always strived to reform themselves and make improvements, 

which has enabled them, I think, to do a good job over these years. 

Senator COCHRAN. Dr. Sherrick? 

Mr. SHERRICK. Thank you for the question. I think it is critical 

these days. If this were 1983, I would have had a much more profound and interesting response. Farm credit finds itself in incredibly healthy conditions right now with a very large amount of both 

unrealized and unallocated earnings in both forms, and prospects 

for future earnings look pretty good as well. 

I do not want to overstate, though, that the producers face unprecedented levels of risk, high prices recently, high incomes we 

have heard about, but very volatile margins. High input costs as 

well. And that could change. Farm credit has done a very good job, 

I think, in preparing for that. 

I happen to have had again another just remarkably fortunate 

experience to help FCA develop a stress test for their associations 

and we have run the first one last fall to look at the health of all 

the associations in the system and to see what things would stress 

them. And they are preparing differently than they used to. 

Specific changes, I do not have any to promote. I think, again, 

coming to grips with somewhat older capital regulations right now, 

there may be some chances to improve those and to become more 

consistent with other financial markets. But I think it is a highly 

capitalized, fairly well-run system at the moment and does not face 

potential big problems. 

Again, Farmer Mac provides a natural place to warehouse some 

of the risk, especially recognizing seasoning of risks within the system, and their capital standards are, in a sense, different by design 

22 

and intent than Farmer Mac’s, and the secondary market does 

serve a good role for allocating those risks appropriately. Beyond 

that, I do not have specific suggestions. 

Senator COCHRAN. Well, I am pleased to have an opportunity to 

visit with both of you and to congratulate you on your nomination, 

wish you all the best as you undertake these responsibilities that 

are very important. 

Mr. SHERRICK. Thank you, Senator. 

Chairwoman STABENOW. Thank you very much. Senator Thune? 

Senator THUNE. Thank you, Madam Chairwoman, and thank our 

panel today for your willingness to serve, and welcome. It is great 

to have you here. I wanted to just ask a question about a trend 

that I see in my State of South Dakota and, Governor, you probably see it in your State of Iowa, too. 

According to Iowa State University, the value of Iowa farmland 

jumped 32.5 percent in 2011, and crop land in the northern plains 

in Minnesota was up 26 percent. I have read about farmland sales, 

which are hard to believe, but as high as $20,000 an acre. As you 

are going to be members of the Board of Directors at Farmer Mac, 

my question has to do with what the ag real estate lending community can do to keep itself stabilized if and when agricultural real 

estate prices, land values take a downturn. 

I am really concerned about sort of a bubble out there. I think 

that sometimes farm bill programs get capitalized in the land 

prices. There are lots of things that are leading to this right now 

and, of course, good strong commodity prices is another good reason. But it seems that it is very hard to make, at those types of 

land prices, an operation pencil out. 

Now, the good news, I think, relative to previous times is that 

producers are not as heavily leveraged as they were. A lot of people 

have a lot of equity. They are paying cash for land, you know, averaging it out with land they purchased earlier. So there are some 

mitigating factors in that, but it still seems like just these land values are completely out of whack with what you would think would 

be normal given what inputs cost today and what commodity prices 

are. 

So how do the lenders—how do you work with the lenders to 

make sure that if and when that happens that we do not have a 

huge problem in the lending community like we saw in years past 

when a similar-type circumstance occurred? 

Mr. CULVER. Well, thank you, Senator, for that question. If 

Farmer Mac is not already having a special focus on just the land 

values issues, as you have articulated, I think we need to. I mean, 

within one of our six committees, perhaps we could make an effort, 

on a regular basis, just to have an update on the studies, the information out there on land values in rural America, and to maybe 

take a little more time than we have in the past to really focus on 

how real those values are. 

When you asked the question, I remembered I vividly can see in 

my mind a picture in the Des Moines Register of a land sale where 

someone was—they were bidding and the price had gotten up to 

$10,000, $15,000 an acre and it was something that they had never 

seen in that part of the state. So we have to stay on top of this 

and make sure that we are not getting carried away in the hype, 

23 

but we are really being more conservative in focusing on the true 

value of property. 

Mr. SHERRICK. Thank you. Very important, very good question. 

I have about a 30-page Power Point prepared on this as well that 

I have been running around the country presenting. The last two 

charts are particularly interesting. If you capitalize the cash rent 

that we are observing by the extremely low current interest rates 

we also are observing, you get numbers that look somewhat irrational relative to history. 

But it is different than the bubble. And again, I think this is the 

fourth time I have heard the characterization of it as a bubble with 

the question mark following. Is it a bubble is an important thing 

to first determine. And the fundamentals appeared to support current land values if you, again, just simply capitalize cash rent in 

many parts of the country at very high levels. 

Now, there are still remarkable things that happen at auctions 

when two neighbors bid for a farm in between that is going to sell 

once in their lifetime. 

Senator THUNE. Yeah. 

Mr. SHERRICK. Or in my local community, we have a large investor, large developer, and a heart surgeon who both want to be the 

first to own a ring of land around all of Champaign. So I do not 

think of those as being the rational question. Those are the consumptive questions. 

Senator THUNE. Right. 

Mr. SHERRICK. But what can lenders do, I think, was part of the 

question. And some of these factors are already happening. At the 

origination level, rational and responsible lenders are doing things 

like stress testing or applying limits on the amount of dollars they 

will lend in per acre regardless of the sale price. So farm credit institutions have largely limited their LTV ratios more over the past 

couple of years that effectively limit the total amount into a parcel 

of land on a per-acre basis regardless of the sale price. So that is 

a good rational, safe response. 

There are other responses, and in your part of the world, kind 

of the upper Mississippi, the whole section has had higher land values that look even more profound because the starting values were 

somewhat lower. In central Illinois, a $10,000 an acre sale would 

be viewed as a bargain today. So I think getting some relationship 

between the production capacity and the cash flows associated with 

that are very important. 

George Morrow in 1886, commented, for the first time that I can 

find in the written record, that land does not cash flow, that you 

should expect that some form of the return should accumulate in 

the form of capital gains. And so, that is a rational response that 

investors use to evaluate it. So it is not just the cash flow. It is the 

long-term prospects for change in value as well. 

I think lenders, again in the ’80s, if I could point back, contributed, in a sense, to the problem rather than solved it. And I think 

this time around, they are aware of that, in general and in the 

large, in helping to prepare for that. 

In the specific case of Farmer Mac, their own capital stress test, 

people have very different views of it depending on whether they 

like the number it presents or not, but it is compliant with the parVerDate Nov 24 2008 12:36 Dec 05, 2012 Jkt 000000 PO 00000 Frm 00027 Fmt 6633 Sfmt 6633 C:\DOCS\75118.TXT MICHA
24 

ticular definition of stress Congress wrote 14, 15 years ago that 

looks at the worst case historic land value decline ever experienced, 

and they continually stress their model with the 23 percent land 

value decline. 

I think that is a very responsible approach to dealing with this. Twenty-three percent off of $15,000 an acre is, of course, a different 

number than it was when it was 23 percent off of $4,000 an acre. 

So continuing to keep these current and modeling up and reflecting 

the current realities is the important task. 

Senator THUNE. And I hope that as you work with the lending 

community, keep this on your radar screen because I think you are 

right. I think that the lenders are in a much better position. They 

are not getting carried away like they did back in the ’80s, for example, when we went through that huge period where we just lost 

a lot of farms because the farmers got over-extended and the banks 

helped them. And the interest rate situation is very different today. 

But these land values really are. I mean, in my part of the country where I come from, in the middle of South Dakota, we are seeing land going for—and part of that, too, is that people are bidding 

it up for pheasant hunting—we have got good pheasant cover out 

there—that you have got some outside interests that do that. 

But just for a working farming operation and what use of the 

land for production agriculture would support, it seems like these 

land values are really out of whack. But I know that farmers and 

ranchers themselves are much better capitalized than they were 

before. I think banks are better capitalized and sort of better prepared for this. But I just would put it on your radar screen as 

something to keep an eye on. I see my time has expired. Thank 

you, Madam Chairwoman. 

Chairwoman STABENOW. Thank you very much. Good questions 

today and we thank both of you. We are, I can speak for myself, 

very impressed with both of you, your thoughtfulness and competence. We are very pleased that both of you are willing to come 

forward and to be involved in public service in this way. 

As you know, we will not be voting today on your nomination, 

but we are working to find a time for a business meeting to be able 

to come together as soon as possible to be able to vote. And to that 

end, I would ask any additional questions for the record to be submitted by 5:00 p.m. today so we might process those and have the 

opportunity to vote on your nominations. Thank you very much. 

Mr. CULVER. Thank you, Madam Chair, and thank you, members 

of the Committee. 

Mr. SHERRICK. Thank you as well. 

Chairwoman STABENOW. We are adjourned. 

[Whereupon, at 11:55 a.m., the hearing was adjourned.] 

(25) 

A P P E N D I X 

DECEMBER 15, 2011 

26 


75118.063

Senator Saxby Chambliss 

Opening Statement 

Nomination Hearing 

December 15,2011 

Madame Chairwoman, Ranking Member Roberts, thank: you for holding this 

hearing to consider Mr. Michael Scuse's nomination to be Under Secretary of 

Agriculture for the Farm and Foreign Agricultural Services, as well as the 

nominations of Governor Culver and Dr. Bruce Sherrick to be on the Board of 

Directors of the Federal Agricultural Mortgage Corporation, Farmer Mac. 

Mr. Scuse, the Under Secretary of Agriculture for the Farm and Foreign 

Agriculture Services is charged with overseeing the Farm Service Agency, the 

Risk Management Agency, and the Foreign Agricultural Service. As third-highest 

ranking official at USDA, it is important that you are willing to work closely with 

the members of this Committee - especially as we move to reauthorize the farm 

bill in the coming months. 

Through these uncertain times, we must support the American farmer and 

rancher: they supply this nation and many others a safe, abundant, and affordable 

food and fiber supply. The Congress and the U.S. Department of Agriculture must 

stand by our agricultural producers and provide them an environment in which 

they can prosper. Decisions related to the budget, commodity policy, risk 

management, trade, and conservation policy all playa role in creating such an 

environment. 
27 


75118.064

Governor Culver and Dr. Sherrick, Farmer Mac plays a unique role in 

financing agriculture and rural America. As you well know, it provides a 

secondary market for agricultural real estate, rural home mortgages and some rural 

utility loans. The secondary market increases the availability of long-term credit at 

reasonable rates to producers and rural America. Farmer Mac also helps to ensure 

liquidity and lending capacity for agricultural lenders. 

By comparison with the other government-sponsored enterprises, Farmer 

Mac is small. However, by statute and the expectation of this committee, Farmer 

Mac is required to fulfill its congressionally mandated purpose in a safe and sound 

manner. If you are confirmed, I hope and expect that you will learn from the 

lessons of the credit crisis and work to ensure a successful and sound future for 

Farmer Mac and those producers, utilities, banks and rural residents that use its 

programs. 

I would like to welcome these nominees to the committee. I appreciate your 

willingness to serve our country in these important positions and look forward to 

hearing your testimony. 
28 


75118.001

Opening Statement of Governor Chester J. Culver (Iowa 2007-2011) 

Nominee for Member of the Board of Directors 

For the Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac 

United States Senate Committee on Agriculture, Nutrition and Forestry 

December 15, 2011 

Remarks as Prepared for Delivery 

Chairwoman Stabenow, Ranking Member Roberts, and distinguished Members of this 

Committee: Thank you for the opportunity to appear before you today. It is an honor to be 

nominated to serve as a Member of the Board of Directors of the Federal Agricultural Mortgage 

Corporation, also known as Farmer Mac. I want to thank President Obama for the confidence he 

has shown in me by nominating me. 

I would like to introduce the members of my family who are with me here today, my 

father, Fonner Iowa Senator John C. Culver, my step mother, Mary Jane Cheechi, and my 

stepbrother, John Vincent Culver. I thank them for their support of all of my endeavors. 

As the fonner Governor of the great State of Iowa, I know of the tremendous 

responsibilities of Fanner Mac and the pivotal role that it plays on a daily basis to increase the 

availability oflong-tenn credit at stable interest rates to segments of rural America. 

As an Iowan, I have maintained a life-long love for rural America, its rich and vibrant 

landscape, culture, history and its people. I believe that I understand the needs of rural citizens 

and the particular economic development and infrastructure challenges of the Midwest. 

Throughout my career, I have been fortunate to work on behalf of all Iowans as a consumer and 

environmental advocate, as an educator, as the Iowa Secretary of State and as Governor of Iowa 

and, now, as a small business owner dedicated to the advancement of renewable energy, to make 
29 


75118.002

Iowa and this nation a better place to live, work, and raise a family. I understand the needs and 

challenges that confront our farmers, ranchers, energy suppliers, rural communities, and rural 

schools in this country. I am also aware of the interrelationship between agribusiness, urban 

communities, manufacturers and the financial sector - as we like to say in Iowa - "from silos to 

smokestacks. " 

If confirmed as a Member of the Board of Directors of Farmer Mac, I want to assure you, 

the Congress, employees of Farmer Mac, and citizens of our great, diverse country, that I will do 

my utmost to ensure that the agency upholds its mandate effectively to provide a secondary 

market for qualified agricultural mortgage loans, rural utilities loans, and the guaranteed portions 

of agricultural and rural development loans guaranteed by the United States Department of 

Agriculture. 

I am also motivated and committed to helping provide a stable and reliable financial 

backbone to rural America. In the face of difficult challenges, I remain optimistic about the 

limitless potential rural America still has to both feed the world and help secure this country's 

energy future. 

Chairwoman Stabenow and Ranking Member Roberts, I welcome the opportunity to 

tackle the challenges that lie ahead at Farmer Mac, and I thank you for affording me the 

opportunity to offer this brief statement today. 

In closing, I want to thank the Committee for the attention it has given to my nomination. 

If confirmed, I intend to work closely with you, Madame Chairwoman, the other Members of 

this Committee and your staffs to pursue our shared objectives. I am committed to maintaining 

the very productive and close relationship that exists between this Committee and Farmer Mac. 
30 


75118.003

Madame Chairwoman, I would be pleased to respond to any questions that you or 

Members of the Committee may now have. 
31 


75118.004

TESTIMONY OF MICHAEL T. SCUSE 

SENATE COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY 

Thursday, December 15,201 I 

Chairwoman Stabenow, Ranking Member Roberts, and members ofthe Senate Committee on 

Agriculture, Nutrition, and Forestry, thank you for the opportunity to appear before you today. I would 

also like to thank Senator Coons for his kind introduction. The Senator and I have had the pleasure of 

working together for many years, and I am grateful for his support here today. 

I would like to take this opportunity to introduce my wife Patrice. As of this past Sunday, we have been 

married 35 years. Much of what I have been able to accomplish over the years is due to her strong 

support and understanding. I would like to thank her for her patience and the sacrifices she has made. 

I consider it a tremendous honor to be before this Committee, nominated by the President and Secretary 

Vilsack to serve as Under Secretary for the Farm and Foreign Agricultural Service at the Department of 

Agriculture. 

As a farmer, I am keenly aware of the responsibility and the privilege of this position: the ability to 

positively impact America's farmers and ranchers' ability to do business, to produce the food, fiber, and 

fuel that our nation runs on, and their lives. Every decision I make, in my last job as Secretary of 

Agriculture for the State of Delaware and in my current job at USDA, I make with farmers and ranchers 

in mind. If confirmed, I will continue this focus and examine closely the impact of each decision. 

We have the best farmers and ranchers in the world today. Our agricultural producers are deeply rooted 

in this nation's history, and they are a big part of our strength as a people. They define our rural 

communities and bring particular economic strengths to the rural parts of our country. 

Even as America recovers from the deepest recession since the Great Depression, we are seeing a strong 

agricultural economy. Agriculture is responsible for one out of every twelve jobs in America. This year, 

net cash income and net farm income are record in nominal terms and, adjusting for inflation, are at their 

highest levels since the early 1970s. Farm credit is still tight for some, but expanding more and more in 

many sectors of agriculture, and total farm equity is up. 

U.S. agricultural exports for fiscal year 2011 reached $137 billion, $22 billion higher than the previous 

record set in 2008 and $28 billion above 2010. Further, it is expected that exports for 2012 will remain 

equally strong and help to support over one million American jobs. In fact, taken as a whole, the United 

States is in the midst of experiencing the three best years in our history in terms of agricultural exports. 

This has also been a year of unprecedented disaster. This past spring, above average snowmelt and 

excessive rainfall delayed and, in many cases, prevented planting of major crops. Tornadoes hit parts of 

the Southeast, flooding spread across the Missouri, Mississippi and Ohio river basins, record drought 

affected the Southwest, and finally, Hurricane Irene and Tropical Storm Lee devastated parts of New 

England and the mid Atlantic. 

America's farmers and ranchers are the best in the world and they are resilient. But at the end of the day, 

the weather is beyond their control. These disasters only emphasize the importance of a strong and 

effective safety net for those who need it. One bad year should not have to mean the end of a farmer's 

business. I am a strong supporter of a robust and innovative crop insurance industry. As a farmer, I carry 

crop insurance on all of my crops. With the high cost of production today, we need to provide our 
32 


75118.005

producers with the best tools available to deal with the risk associated with fanning and crop insurance is 

one of the best tools we have to offer. 

This is a moment of great opportunity in agriculture. I will not downplay the hard work that is needed or 

the long road that lies in front of us to the next fann bill. If confinned, I will look forward to working 

with the members of this Committee and your colleagues in the House to assist, answer any questions, or 

provide any analysis that you might need. 

I would like to recognize today those with whom I have had the great privilege of serving at USDA. The 

three Agencies that I have been working to oversee in my current acting role, the Fann Service Agency, 

the Foreign Agricultural Service, and the Risk Management Agency, are each staffed with immensely 

capable and experienced public servants who are committed to the highest level of service to their 

customers and stakeholders. 

In addition, I would like to emphasize my commitment to turning a new page in civil rights at USDA. 

Under Secretary Vilsack's leadership, we have made great strides in resolving outstanding civil rights 

claims. Discrimination in any fonn wi II not be tolerated in the Agencies over which I have responsibility. 

Thank you again for the opportunity to appear before you today. I am grateful for the opportunity and the 

faith my President and Secretary Vii sack have placed in me. If confinned, it will be my greatest honor to 

serve the American fanner and rancher in this trust. 
33 


75118.006

Opening Statement of Bruce J. Sherrick 

Nominee for Director of the Federal Agricultural Mortgage Corporation 

December 15, 2011 

Chairwoman Stabenow, Ranking Member Roberts, and distinguished members of the Committee: 

am honored to have been nominated for service on the Board of the Federal Agricultural Mortgage 

Corporation, and appreciate the opportunity to appear bere today. I would like to provide a brief statement 

describing my background and experiences tbat may have relevance to potential service in that role. 

I was born and raised on a small, yet highly diversified farm in centtal Ohio. My parents viewed 

this setting as the ultimate teaching laboratory, and my siblings and I were brought up with the expectation 

that we would have as many ag-related experiences as possible, each with the intent to learn something 

new, and to earn money to eventually go to college. From this intentional agricultural learning experience, I 

went on to my next at The Ohio State University where I completed all my degrees with a brief intervening 

stint in a large agribusiness firm prior to starting my Ph.D. After completing a Ph.D. in Ag-Finance, I 

joined one of the top agricultural economics programs at the University of Illinois where I have been since. 

I am currently a professor of agricultural and applied finance in the Dept. of Agricultural and 

Consumer Economics (ACE), with responsibilities related to teaching, research, and outreach education. 

have the privilege to be associated with a group of outstanding faculty colleagues known as the "jarmdoc" 

group that conducts a broad set of research and decision support activities addressing needs of agricultural 

decision makers in areas including policy analysis, marketing, crop insurance, agricultural law, finance, and 

farm management. Additionally, I am the managing partner in a small research-based consulting firm 

known as integrated Financial Analytics and Research (iFAR) that provides modeling support services to 

financial firms serving agriculture, to the crop insurance industry, and to others involved in agriculture. 

A few specific professional experiences may help understand my interest and preparation to serve 

on the Board of Farmer Mac. 1 began teaching agricultural finance in 1989, and have continued to this day. 

My courses now mainly involve computerized applications and decision tool development, but still 

emphasize agriculture and institutions unique to agriculture including the Farm Credit System and FAMe. 

I was one of the original researchers that built the first guarantee pricing model that Farmer Mac had to 

evaluate its guarantee exposure on loans held in pools under their original authorities. As they evolved and 

received expanded authorities, I became involved in modeling their overall business and have supported 

their regulator through the development of their Risk-Based Capital Stress Test; and have even worked with 

their customers in evaluating their loan programs. Additionally, I have had the opportunity to work with a 
34 


75118.007

broad set of Farm Credit System entities in diverse projects including evaluation of credit risk, land values 

and collateral positions, economic capital models, underwriting practices, and many other activities related 

to portfolios of agricultural loans and securities underlying their funding. 

I have also been deeply involved in evaluating crop insurance programs from the farmer level, from 

a ratings perspective, in the development of private products, and most recently as a developer of a new 

feature ofthe products offered by RMA for com and soybeans known as the Trend-Adjusted APH. 

mention these particular experiences as they also involved pooling and pricing of agricultural risk 

management services, and also represent crucial tools for producers to use to manage agricultural 

production activities. 

My current position has given me access to tremendously interesting set of experiences and 

activities related to teaching, research, consulting, and decision making. My interests have allowed me to 

focus those in the relatively specific arena I refer to as agricultural finance and policy. I view a potential 

appointment to the Board of Farmer Mac as a great fit of my interest and aptitudes, and if confirmed, will 

serve to the .best of my abilities. 

I want to thank you again for the opportunity to be considered for the Board of Directors of the 

Federal Agricultural Mortgage Corporation. I would be pleased to respond to any questions. 
(35) 

DOCUMENTS SUBMITTED FOR THE RECORD 

DECEMBER 15, 2011 

36 


75118.008

December 14,2011 

Honorable Debbie Stabenow 

Chairwoman 

Committee on Agriculture, Nutrition, and Forestry 

Washington, DC 20510-6000 

Dear Senator Stabenow, 

In accordance with 5 C.F.R. § 2634.606, please accept this letter as notice within five 

days of the commencement of my confirmation hearing of any amendments to my 

disclosures previously submitted to this Committee pursuant to 5 C.F.R. § 2634.201(c). 

I have the following amendments to 'outside earned income': From August 19,2011 to 

December 14,2011 I have received approximately $50,000 in income from the Chet 

Culver Group. 

I have the following amendments to 'honoraria' received: None. 

Please advise if you have any questions or concerns. 
37 


75118.009

December 14,2011 

Honorable Debbie Stabenow 

Chairwoman 

Honorable Pat Roberts 

Ranking Republican Member 

Committee on Agriculture, Nutrition, and Forestry 

Washington, DC 20510-6000 

Dear Senators Stabenow and Roberts: 

Thank you for requesting updated information to my Questionnaire and financial documents 

related to my nomination to the Board of Directors of the Federal Agricultural Mortgage 

Corporation, or Farmer Mac. This letter fulfills your request by listing: 

1. Clarification to any issues raised during the Committee's review of the nomination; and, 

2. Updates to financial information and any changes to my finances or holdings and 

additional honoraria. 

As instructed, public information and confidential information is kept separate in a fashion 

similar to the Committee Questionnaire. Please note that the revised Questionnaire and financial 

documents accompany this letter. 

Please let me know if you have additional questions or need anything more from me regarding 

this or any other matter. 

Again, thank you for your request. I look forward to my time with you and Members of the 

Committee on Agriculture, Nutrition and Forestry. 

Sincerely, 

Attachments 
38 


75118.010

PUBLIC 

A) 2. List sources, amounts and dates of all expected receipts from deferred income 

arrangements, stock options, uncompleted contracts, and other future benefits that you 

expect to derive from previous business relationships, professional services, firm 

memberships, former employers, clients, or customers. 

Iowa Public Employees Retirement System -- $150,000 

RBC Wealth Management deferred compensation fund 457 Plan -- $227,000 

RBC IRA -- $10,000 
39 


75118.011

BIOGRAPHICAL INFORMATION (PUBLIC) 

1. Full name (include any former names used): 

Chester John Culver 

2. Date and place of birth: 

1/2511966, Washington, D.C. 

3. Marital Status: If married, list spouse's name (include any former names used), 

occupation, employer's name, and business address(es). 

Married, Mariclare Thinnes Culver (maiden name: Mariclare Thinnes) 

4. Education: List each college and graduate or professional school you have attended, 

including dates of attendance, degrees received, and dates degrees were granted. 

Drake University (January 1993 - December 1995) 

Masters of Arts in Teaching, 1995 

Virginia Polytechnic Institute and State University (September 1984 - July 1988) 

Bachelor of Arts in Political Science, 1988 

5. Employment and Self-Employment Record: List (by year) all business or professional 

corporations, companies, firms, or other enterprises, partnerships, institutions and 

organizations, nonprofit or otherwise, including farms or ranches, with which you were 

connected as an officer, director, partner, proprietor, or employee since graduation from 

college. Please include a title and brief job description for each. 

Self·Employed, Chet Culver Group, LLC 

Governor of Iowa 

Iowa Secretary of State 

Teacher & Coach, DSM Hoover High School 

Teacher, Roosevelt High School 

Iowa Consumer & Environmental Advocate, 

Office of the Iowa Attorney General 

Campaign Staffer, Iowa Democratic Party 

2011- Present 

2007·2011 

1999 -2007 

1996-1998 

1995-1996 

1991·1995 

1988·1990 

6. Military Service: Have you served in the military? If so, please give particulars, including 

the dates, branch of service, rank or rate, and type of discharge received. 

No 
40 


75118.012

7. Government Service: State (chronologically) your government service or public offices 

you have held, including the terms of service, grade levels, and whether such positions 

were elected or appointed. 

Elected Governor of Iowa 

Served 

Elected Iowa Secretary of State 

Served 

Office of the Iowa Attorney General 

2006 

2007-2011 

1998 

1999-2007 

1991-1995 

8. Honors and Awards: List any scholarships, fellowships, honorary degrees, and honorary 

society memberships that you received and believe would be of interest to the 

Committee. 

Fullbright Teachers Scholarship, Japan, Fall of 1996 

9. Other Memberships: If not covered above, list all organizations in which during the past 

10 years you held a position as official, board member, or other leadership position and 

describe the position. Exclude religious organizations. 

Chairman, National Governor's Association, Wind Energy 2009 - 2010 

Chairman National Governor's Association, Biofuels Coalition 2010 

Chairman, Iowa Executive Council 2007 - 2011 

National Board Member, Jobs for American Graduates 2011 

Executive Board Member, Democratic Governor's Association 2009 - 2010 

10. Political Affiliation: The statute creating the Board of the Federal Agricultural Mortgage 

Corporation requires that no more than three public members of the Board be from the 

same political party. Please list your current political party registration or affiliation. 

Democrat 

11. Published Writings: List the titles, publishers, and dates of books, articles, reports, or 

other published materials (including published speeches) you have written. Please 

include in this list published materials on which you are listed as the principal editor. It 

would be helpful to the Committee if you would provide one copy of all published material 

that may not be readily available. Also, to the maximum extent practicable, please supply 

a copy of all unpublished speeches you made during the past five years on issues 
41 


75118.013

involving agriculture, nutrition, forestry, agricultural credit, or other matters within the 

jurisdiction of this Committee or the Federal Agricultural Mortgage Corporation. 

List of published speeches (date given = date speech was delivered, as well as the 

date published by Iowa Public Television (IPTV), while the Des Moines Register 

published the following day): 

Inauguration Address; January 12, 2007 

Testimony before the U.S. Senate Committee on Health, Education, Labor and 

Pensions subcommittee on Health and Human Services, January 21, 2010. 

Condition ofthe State Address: January 15, 2008, January 13,2009, January 12, 

2010, January 11, 2011. 

The March 12,2011 published Op-Ed by Govemor Culver is also attached in a 

separate word document. 

Unpublished speeches potentially relevant to the jurisdiction of the Committee or 

the Federal Agriculture Mortgage Corporation (copies attached): 

2-27-07 

5-30-07 

6-5-07 

6-21-07 

8-2-07 

8-14-07 

10-3-07 

10-10-07 

10-16-07 

10-18-07 

11-7-07 

12-1S-07 

1-28-08 

3-5-08 

3-6-08 

3-12-08 

3-28-08 

4-3-08 

4-3-08 

4-18-08 

4-18-08 

4-28-08 

5-1-08 

Iowa Renewable Fuels Association 

Acciona Ground Breaking 

American Wind Energy Association Breakfast 

E-85 Kicking the Oil Addiction 

Barnraising VI- Health Communities Conference 

Wind Turbine Ribbon Cutting 

Govemor's Environmental Excellence Award 

Iowa Venture Capital and Entrepreneur Conference 

Iowa Hunger SummitINorman Borlaug Day 

World Food Prize 

German-American Chamber of Commerce 

Iowa State University Commencement 

Iowa Business Council 

Bottle Bill Press Conference 

State Wellness Initiative 

US House of Representatives Infrastructure Forum 

Democratic Governor's Association Big Sky Montana 

Iowa State University 1501h Anniversary 

Water Quality 

Chatauqua Event 

Hoover-Wallace Dinner 

American Wind Energy Association 

Senate File 240S - Wind Energy 
42 


75118.014

5-13-08 

6-3-08 

6-12-08 

6-27-08 

7-17-08 

7-31-08 

9-9-08 

9-16-08 

12-4-08 

12-5-08 

12-9-08 

1-15-09 

1-15-09 

1-26-09 

1-27-09 

1-27-09 

3-12-09 

3-17-09 

April 09 

4-23-09 

4-25-09 

4-27-09 

5-4-09 

5-5-09 

5-14-09 

5-22-09 

5-26-09 

7·29-09 

7-31-09 

9-15-09 

10-15-09 

11-23-09 

12-2-09 

12-9-09 

1-13-10 

1-13-10 

1-14-10 

1-25-10 

1-25-10 

1-27-10 

1-29-10 

3-18-10 

3-31-10 

4·16·10 

Health Care Reform Signing 

American Wind Energy Association award 

Association of Business and Industry (ABI) 

Rebuild Iowa Press Conference 

Rebuild Iowa Commission Meeting 

Community College Conference 

Bio-Based Energy Conference 

TPINewton 

American Council on Renewable Energy 

Farm Bureau Meeting 

Iowa Taxpayers Association 

Cedar Rapids Post Condition of State (COS) Tour 

Davenport Post COS Tour 

Iowa Business Council 

Sioux City Post COS Tour 

Council Bluffs COS Tour 

l.Jobs Rollout 

l.Jobs Fort Dodge Chamber 

l.Jobs Stump Speech 

Wind Energy Tax Bills 

Passage of l.Jobs 

Swine Flu Press Conference 

l.Jobs/Davenport Signing 

American Wind Energy Association Events 

l.Jobs/lowa City Signing 

Disaster Bills 

Resource Infrastructure Investment Fund (RIIF)/I.Jobs 

Midwest Recovery Act Roundtable 

Resource Enhancement and Protection (REAP) Conference - Energy 

Fair 

Genecor 

World Food Prize 

Midwest Clean Tech 

Farm Bureau Convention 

Iowa Taxpayers Association 

Moving Iowa Forward - Council Bluffs 

Moving Iowa Forward - Mason City 

Moving Iowa Forward - Cedar Rapids 

Renewable Energy Summit 

Iowa Business Council 

Budget Statement 

NextEra Story City 

DuPont-Pioneer Jobs Announcement 

End of Session Statement 

IAWlND Conference 
43 


75118.015

4-23-10 

4-26-10 

4-28-10 

6-15·10 

6·18·10 

6·23·10 

8·12·10 

8·20·10 

8·31·10 

12·13·10 

Sustainability Fund Signing 

l-JobsIRIIF, SF 2389 

HF 2399 Nuclear Study 

NASCO Conference (North America's Corridor Coalition) 

Iowa State University Research Park 10th Anniversary 

National Biodiesel Board 

Jacobson Center Dedication - Iowa State Fair 

Clinton Lincolnway Railport 

Farm Progress Show 

Brazil Biomass Conference 
44 


75118.016

FINANCIAL DATA AND CONFLICT OF INTEREST (PUBLIC) 

1. Have you severed all connections with your immediate past private sector employers, 

business firms, partnerships, associations, or other organizations? (If no, provide full 

details.) 

Yes, however the position to which I have been appointed is part-time, so severing 

employment is not necessary. J will my continue working at full-time occupation as 

President of the Chet Culver Group, which is primarily an alternative energy-sector 

consulting agency. 

2. List sources, amounts and dates of all expected receipts from deferred income 

arrangements, stock options, uncompleted contracts, and other future benefits that you 

expect to derive from previous business relationships, professional services, firm 

memberships, former employers, clients, or customers. 

Iowa Public Employees Retirement System -- $150,000 

The Hartford deferred compensation fund 457 Plan - $250,000 

RBC IRA - $10,000 

3. Do you, or any partnership or closely held corporation or other entity in which you have 

an interest, own or operate a farm or ranch? (If yes, provide a brief description including 

location, size, and type of operation.) 

No 

4. Have you, or any partnership or closely held corporation or other entity in which you have 

an interest, ever participated in federal commodity income and price support, disaster, 

conservation, or related programs? (If yes, provide full details, including descriptions and 

amounts of payments and loans received or forfeited relating to each commodity, crop, 

farm, and ranch involved during the past five years.) 

No 

5. Have you, or any partnership or closely held corporation or other entity in which you have 

an interest, received payments for crop or livestock losses from the federal crop 

insurance program in the past five years? (If yes, provide full details and amounts.) 

No 

6. Have you ever received a student loan or loans? If so, has all indebtedness been 

fully repaid? (If no, provide full details.) 
45 


75118.017

Yes & Yes 

7. Have you, or any partnership or closely held corporation or other entity in which 

you have an interest, ever received a loan or cosigned a note involving a loan from 

or guaranteed by any department or agency of the federal government (other than 

a student loan). including. for example, through the farm or rural development 

lending programs of the Department of Agriculture or through the Small Business 

Administration? (If yes, provide the current status and details of such loan or 

loans, whether the indebtedness has been fully repaid, and all details of any such 

loan activity.) 

No 

8. Have you, or any partnership or closely held corporation or other entity in which 

you have an interest, ever received a loan or cosigned a note involving a loan 

from, involving, or handled by any current or previously existing institution 

regulated, overseen, or doing business with either the Farm Credit Administration 

or the Federal Agricultural Mortgage Corporation? (If yes, provide the current 

status and details of such loan or loans, whether the indebtedness has been fully 

repaid, and all details of any such loan activity.) 

No 

9. If confirmed, do you have any plans, commitments, or agreements to pursue or continue 

outside employment or engage in or continue any business or vocation, with or without 

compensation, during your service with the government? (If so, explain fully.) 

Yes, I will continue my full-time work as President of the Chet Culver Group, which 

is primarily an alternative energy sector consulting agency. 

10. Do you have any plans to resume employment, affiliation, or practice with any of your 

previous employers. business firms. partnerships. associations. or other organizations 

after completing government service? (If yes. provide full details.) 

No 

11. Has anyone made a commitment to employ you or retain your services in any capacity 

after you leave government service? (If yes, provide full details.) 

No 

12. Describe fully all matters and all employers, clients, organizations, or interests you 

represented over the past five years before the Federal Agricultural Mortgage 

Corporation or the Farm Credit Administration, or before Congress involving matters 
46 


75118.018

within the jurisdiction of this Committee, the Department of Agriculture, the Federal 

Agricultural Mortgage Corporation, or the Farm Credit Administration. 

None 

13. Explain in detail how you will resolve and avoid any actual or potential conflicts of 

interest, including any that may be disclosed by your responses to the above questions. 

In particular, identify all investments, obligations, liabilities, or other relationships that 

involve actual or potential conflicts of interest relating to the position for which you have 

been nominated and what actions you will take to resolve and avoid these actual or 

potential conflicts of interest. 

I do not anticipate any conflicts of interest Should they arise, they will be 

discussed with the appropriate authorities and resolved. 

14. Fully describe and explain all divestitures or arrangements of any nature with respect to 

any type of interest that you have made or will make to resolve and avoid actual or 

potential conflicts of interest relating to the position for which you have been nominated. 

None 
47 


75118.019

BIOGRAPHICAL INFORMATION (PUBLIC) 

1. Full name (include any former names used): 

Michael Thomas Scuse 

2. Date and place of birth: 

06/26/1954 Dover, Delaware 

3. Marital Status: If married, list spouse's name (include any former names used), 

occupation, employer's name, and business address(es). 

Spouse: Patrice Scuse 

Maiden name: Linda Patrice Clark 

Occupation: Executive Secretary 

Employer's name and business address: 

Smyrna School District 

82 Monrovia Ave, Smyrna, Delaware 19977 

4. Education: List each college and graduate or professional school you have attended, 

including dates of attendance, degrees received, and dates degrees were granted. 

September 1972 - June 1973: Salem College, Salem, WV 

5. Employment and Self-Employment Record: List (by year) all business or professional 

corporations, companies, firms, or other enterprises, partnerships, institutions and 

organizations, nonprofit or otherwise, including farms or ranches, with which you were 

connected as an officer, director, partner, proprietor, or employee since graduation from 

college. Please include a title and brief job description for each. 

[

1/2011 ~Pre~ent 

2009 - present 

I 

U.S. Department of Agriculture 

~ti!1.g~ Under SecretaI)' for F arfllSinsLforeign Agri£ull!J.@L§~rvices 

U.S. Department of Agriculture 

Deputy Under Secretary for Farm and Foreign Agricultural Services 

The Deputy Under Secretary oversees the Farm and Foreign 

Agricultural Services mission area of the United States Department of 

Agriculture, which is made up of three agencies. Those agencies 

include the Farm Service Agency, the Foreign Agricultural Service 

and the Ri~k}JlSlflSl~ment Agen~L._. ___ . ______ .. _~. 

Round Maple Farms 

. ___ .~_--,---,--P.:=a:.:.rt.nerlF=.SirlTler._~ ___ .. __ ... _ ..... _ ... ______ ............. . 
48 


75118.020

18/2008-1/2009 . -State ofDe!aware 

I--c~=--==-:::-=.-. -Shief of Staff to the Governof.2f Delaw~_ .. ___ .~ ___ _ 

5/2001- 8/2008 State of De!aware 

Secretary of Agriculture 

The Secretary of Agriculture of Delaware is the head of the 

Department of Agriculture. The mission of the Department of 

Agriculture is to sustain and promote the viability of food, fiber, and 

agricultural industries in Delaware through quality services that 

protect and enhance the environment, health, and welfare of the 

--=:::-;-__ t-'g~:,le~n",e,:::ralP..ublic. . __ .. __ .. ___ .... __ .. _._. __ 

-1997·2001 Kent County Planning Commission 

Chairman 

The Regional Planning Commission serves as the recommending 

body to the Levy Court for Rezonings, Text Amendments, Changes to 

.-:.--:c=-:-__ .+-t:-::h~e~::cC=:o:;:.:.lTIfl.£!lhensive Plan, and.Qondi!i.onal Uses. ___ . __ . __ ._ 

1-1996-2001 U.S. Department of Agriculture - Farm Service Agency I State Committee Chairman, Delaware 

The State Committee chairman oversees the activities of the Stale 

• Committee members and the agency to include helping to keep i producers informed about FSA programs and resolving appeals from 

t

; the a~l!!Jit:Lc:.ommunity. 19'86=1-994 State of Delaware - Kent County Recorder of Deeds 

'~~~O'--- -c;;'&"::----··-----------I 

6. Military Service: Have you served in the military? If so, please give particulars, including 

the dates, branch of service, rank or rate, and type of discharge received. 

N/A 

7. Government Service: State (chronologically) your government service or public offices 

you have held, including the terms of service, grade levels, and whether such positions 

were elected or appointed. 

!!!~~~~- _] ~~!i:~~~~:~~!t~~if~:t~:~~_nd ·~o~~;n·Agri~~~:I~e_~ices '-l 
49 


75118.021

[2009 

i present 

I u.s. Department ofAgrlculture 

I ~=~~~l~~~~L~~retary fo~.~~~m.~~~~Oreign Agricultural Services 

a/2-00~a----+'--'State of Delaware 

1/2009 Chief of Staff to the Governor of Delaware 

.~~+ccA",,£l.Qlnled PositiQll ..... __ ._ .. _ 

2001::S/2008 State of Delaware 

Secretary of Agriculture 

'=~=-=--I..:A===oin.!..e.Q_Eositi211 __ ._ ... ___ .. ~ ... _ ... _____________ .. 

1998-2000 State of Delaware - Kent County Planning Commission 

1986-1994 

Chairman 

..&?pointed position_ .... _ _ .. _ .. __ 

U.S. Department of Agriculture - Farm Service Agency 

State Committee Chairman, Delaware 

A ointed B2.lilti21'!. __ ... __ . __ ...... _ ... ___ . __ _ 

State of Delaware - Kent County Recorder of Deeds 

Recorder of Deeds 

Elected 

a. Honors and Awards: List any scholarships, fellowships, honorary degrees, and honorary 

society memberships that you received and believe would be of interest to the 

Committee. 

N/A 

9. Other Memberships: If not covered above, list all organizations in which during the past 

10 years you held a position as official, board member, or other leadership position and 

describe the position. Exclude religious organizations. 

present Member, Board of Directors 

The aO-member Board of Directors of the Delaware State Fair, Inc. is 

comprised of residents from all three counties of Delaware, each making 

a heartfelt commitment to the Fair. 

2009 .. ·j'lationalAssociatioo·o{i§tate Departments of Agriculture-(NASDA) -_. 

,. _____ . Vi<?ElPrEl.~.~ent ____ .... 

i 5/2000 - I Ducks Unlimited, Inc. i 5/2001 I Northern Zone Vice Chairman 

r~;~~~~- ····--_1 .. ~~~~~~!;1~::~~~··---· 

10. Published Writings: List the titles, publishers, and dates of books, articles, reports, or 

other published materials (including published speeches) you have written. Please 
50 


75118.022

include in this list published materials on which you are listed as the principal editor. It 

would be helpful to the Committee if you would provide one copy of all published material 

that may not be readily available. Also, to the maximum extent practicable, please supply 

a copy of all unpublished speeches you made during the past five years on issues 

involving agriculture, nutrition, forestry, or any other matters within the jurisdiction of this 

Committee or the Department of Agriculture. 

I have not published any speeches. My unpublished speeches relating to agriculture or 

other matters within the jurisdiction of the Committee are listed below and my speaking 

notes for those remarks are attached. 

Attachment #1 

1. Ag Progress Days 

Washington, DC 

August 19, 2009 

2. National Cattlemen's Beef Association's International Marketing Meeting 

San Antonio, TX 

January 29,2010 

3. Illinois Farm Bureau 

Washington, DC 

March 11,2010 

4. American Soybean Association Meeting 

March 16,2010 

5. Pennsylvania Biofuels Development Conference 

Harrisburg, PA 

April 20, 2010 

6. American Cotton Shippers Association 

Charleston, SC 

May 14, 2010 

7. Florida Farm to Fuel Conference 

Orlando, FL 

August 13, 2010 

8. National Farmers Union Fly-In 

September 13, 2010 

9. Arkansas Land and Farm Development Corporation 

Fargo, AR 
51 


75118.023

October 22, 2010 

10. 11th Annual Pennsylvania Crop Insurance Conference 

October 26, 2010 

11. Louisville Ag Club Luncheon 

November 5, 2010 

12. Peru Trade and Investment Mission Opening Plenary 

Lima, Peru 

January 31,2011 

13.American Chamber of Commerce of Peru Breakfast Meeting 

Lima, Peru 

February 1, 2011 

14. Farm Credit Directors Meetings 

Savannah, GA 

February 2011 

15. Corporate Council on Africa Agribusiness Working Group Rollout 

Washington, DC 

February 22, 2011 

16. National Agriculture Week Banquet 

Washington, DC 

March 15, 2011 

17. World Initiative for Soy in Human Health (WISHH) Nutrition and Development Conference 

March 17, 2011 

1S.lnternational Food Aid and Development Conference 

June 28,2011 

Kansas City, MO 

19.1nfoAg Conference Plenary Session 

Springfield, IL 

July 12, 2011 

20. U.S. Agricultural Export Development Council 

Bethesda, MD 

July 14, 2011 

21.American Sugar Alliance 

Siowe, VT 
52 


75118.024

August 3, 2011 

22. Flood Tours with Senators Conrad and Hoeven 

Minot, ND 

August 9, 2011 

23. Mid-Atlantic Farm Credit Board of Directors 

Winchester, VA 

August 18, 2011 

Attachment #2 

1. National Farmer's Union Fly-in 

Washington, DC 

September 12, 2011 

2. Iraq and Afghanistan Service Recognition Ceremony 

Washington, DC 

September 12, 2011 

3. American Society of Farm Managers and Rural Appraisersl 

Washington, DC 

September 12, 2011 

4. Vietnam Agricultural Trade Mission 

Welcome Plenary Session 

Ho Chi Minh City, Vietnam 

September 27, 2011 

5. Vietnam Agricultural Trade Mission 

Welcome Plenary Session 

Ho Chi Minh City, Vietnam 

September 27,2011 

6. Vietnam Agricultural Trade Mission 

Media Roundtable 

Ho Chi Minh City, Vietnam 

September 27, 2011 

7. Vietnam Agricultural Trade Mission 

U.S. Consulate Reception 

Ho Chi Minh City, Vietnam 

September 27, 2011 

8. Vietnam Agricultural Trade Mission 
53 


75118.025

Ribbon Cutting Ceremony, U.S. Pavilion at the Food and Hotel Vietnam 2011 Food 

Show 

Ho Chi Minh City, Vietnam 

September 28, 2011 

9. Vietnam Agricultural Trade Mission 

Press Conference at the Food and Hotel Vietnam 2011 Food Show 

Ho Chi Minh City, Vietnam 

September 28, 2011 

10. Vietnam Agricultural Trade Mission 

USDA Food Showcase and Trade Reception 

Ho Chi Minh City, Vietnam 

September 28, 2011 

FINANCIAL DATA AND CONFLICT OF INTEREST (PUBLIC) 

1. Have you severed all connections with your immediate past private sector employers, 

business firms, partnerships, associations, or other organizations? (If no, provide full 

details.) 

Yes, however in connection with the nomination process I have consulted with the Office 

of Government Ethics and the Department of Agriculture's designated agency ethics 

officials to identify potential conflicts of interest. In accordance with this agreement, if 

confirmed, my general partnership with Round Maple Farms will be changed to a limited 

partnership within 30 days of confirmation, and my membership with the Delaware State 

Fair Board will be terminated within 90 days of confirmation. 

2. List sources, amounts and dates of all expected receipts from deferred income 

arrangements, stock options, uncompleted contracts, and other future benefits that you 

expect to derive from previous business relationships, professional services, firm 

memberships, former employers, clients, or customers. 

~l~~~;:~.-.-·.-~:.t;~~~:."1.-.-.-. r.::o"fl'ILO<t.<Lif': t =T~"'1"i9:626.0.1 .. · Thrift~~irl!l!ll'~ ____ . ___ .__ 06/2016. ..... __ .... ___ . $ 12,345.2.~_ 

Delaware State Retirement Benefits 06/2016 $ 1,423.00 

Per month 

~:~~~:l,;;~fo'-I o6T~16__ __ .·1:~:~~ 

piitriCe'Scuse -~-'-'--!Dt fE t d-R·~-t--l-----A·--7i MetUfe whoieTrisurance-'-' .. __ L~)(ee£fL_.e£f!.IfJ. .. _ ........ ~---~~ ___ .. __ . ___ ._ ... __ ..... .1 08/20.!~ ..... _. . ' __ j $ 22,131.97! 

l!1.f!.!IifE!.IJIJIlOleJ.~llrancfL.:. ___ 1 08/2QJ.8 __ ....__ $ 24,997.2{1 
54 


75118.026

08/20-1-8-"-------.--$ -2,498.00 

Fideiity - Delaware State Retirement 08/2018 

account 

Kraft Food Stocks market value --

ROTH IRA American Funds 

Per month 

~$ 2,9fif09 

'--r 1 ;944:10 ~ . .QfJ 1/1/?Q.11 

3. Do you, or any partnership or closely held corporation or other entity in which you have 

an interest, own or operate a farm or ranch? (If yes, provide a brief description including 

location, size, and type of operation.) 

Michael & Patrice Scuse Farm, Smyrna, Delaware 

Full interest 

Size: 72 acres 

(Soybeans, Corn and Wheat) 

Round Maple Farms, Smyrna, Delaware 

1/2 interest 

Size: 1,700 acres of owned and leased land 

(Soy, Corn and Wheat) - Equipment 

Scuse - Third Farm 

1/3 interest 

Size: 100 acres 

(Soybeans, Corn and Wheat) 

4, Have you, or any partnership or closely held corporation or other entity in which you have 

an interest, ever participated in federal commodity income and price support, disaster, 

conservation, or related programs? (If yes, provide full details, including descriptions and 

amounts of payments and loans received or forfeited relating to each commodity, crop, 

farm, and ranch involved during the past five years.) 

Please see attached response to Question #4 

5. Have you, or any partnership or closely held corporation or other entity in which 

you have an interest, received payments for crop or livestock losses from the 

federal crop insurance program in the past five years? (If yes, provide full details 

and amounts.) 

Please see attached response to Questions #4 and #5 for SURE and crop 
55 


75118.027

insurance payments, 

6. Have you ever received a student loan or loans? If so, has all indebtedness been 

fully repaid? (If no, provide full details.) 

No. 

7. Have you, or any partnership or closely held corporation or other entity in which you have 

an interest, ever received a loan or cosigned a note involving a loan from or guaranteed 

by any department or agency of the federal government (other than a student loan), 

including, for example, through the farm or rural development lending programs of the 

Department of Agriculture or through the Small Business Administration? (If yes, provide 

the current status and details of such loan or loans, whether the indebtedness has been 

fully repaid, and all details of any such loan activity.) 

Yes. Please see attached response to Question #7 for Farm Storage Facility Loan 

payment information. 

8. If confirmed, do you have any plans, commitments, or agreements to pursue or continue 

outside employment or engage in or continue any business or vocation, with or without 

compensation, during your service with the government? (If so, explain fully.) 

No, however in connection with the nomination process I have consulted with the Office 

of Government Ethics and the Department of Agriculture's designated agency ethics 

officials to identify potential conflicts of interest. In accordance with this agreement, if 

confirmed, my general partnership with Round Maple Farms will be changed to a limited 

partnership. 

9, Do you have any plans to resume employment, affiliation, or practice with any of your 

previous employers, business firms, partnerships, associations, or other organizations 

after completing government service? (If yes, provide full details.) 

Yes. I plan to return as full partner to Round Maple Farms. 

10. Has anyone made a commitment to employ you or retain your services in any capacity 

after you leave government service? (If yes, provide full details.) 

No. 

11. Describe fully all matters and all employers, clients, organizations, or interests you 

represented over the past five years before the Department of Agriculture or any of its 

agencies, or before Congress involving matters within the jurisdiction of this Committee 

or the Department of Agriculture. 

As a member of the National Association of State Departments of Agriculture (NASDA), I 
56 


75118.028

conducted discussions with members of Congress regarding the 2008 Farm Bill, 

specifically on the Specialty Crop Block Grant. 

12. Explain in detail how you will resolve and avoid any actual or potential conflicts of 

interest, including any that may be disclosed by your responses to the above questions. 

I n particular, identify all investments, obligations, liabilities, or other relationships that 

involve actual or potential conflicts of interest relating to the position for which you have 

been nominated and what actions you will take to resolve and avoid these actual or 

potential conflicts of interest. 

In connection with the nomination process I have consulted with the Office of 

Government Ethics and the Department of Agriculture's deSignated agency ethics 

officials to identify potential conflicts of interest. Any potential conflicts of interest will be 

resolved in accordance with the terms of an ethics agreement that I have entered into 

with the Department's designated agency ethics official. 

13. Fully describe and explain all divestitures or arrangements of any nature with respect to 

any type of interest that you have made or will make to resolve and avoid actual or 

potential conflicts of interest relating to the position for which you have been nominated. 

In connection with the nomination process I have consulted with the Office of 

Government Ethics and the Department of Agriculture's designated agency ethics 

officials to identify potential conflicts of interest. Any potential conflicts of interest will be 

resolved in accordance with the terms of an ethics agreement that I have entered into 

with the Department's designated agency ethics official. 
57 


75118.029

December 14, 20 II 

The Honorable Debbie Stabenow, Chairwoman 

The Honorable Pat Roberts, Ranking Member 

Committee on Agriculture, Nutrition, and Forestry 

United States Senate 

Washington, D.C. 20510-6000 

Dear Madam Chahwoman and Ranking Member Roberts: 

On October 4,2011, a copy of my SF-278, Executive Branch Public Financial Disclosure Report, 

required in connection with my nomination to serve as Under Secretary for the Farm and Foreign 

Agricultural Services at the United States Department of Agriculture was submitted to the U.S. Office 

of Government Ethics. That report contained all required financial information for calendar year 2010 

and for the current calendar year through October 4, 2011. 

The Ethics in Government Act of 1978, as amended, also requires that I update certain amount of the 

information reported on the SF-278, i.e., that required by section 102(a)(I)(A) of the Act, respecting 

income (other than dividends, interest, rents, and capital gains) and honoraria, to date which occurs not 

more than five days before the date of the hearing to be held by your Committee to consider my 

nomination. The hearing to be held on my nomination is scheduled for December 15,2011. The 

purpose of this letter is to report that since I filed that Financial Disclosure Report, I earned no such 

income. Furthermore, I have received no income other than my government salary since my copy of 

the SF-278 was filed out on October 4,2011. 

Also, at that time I filed an ethics agreement, which needs to be updated, as follows. In the event of a 

disaster in Kent County, Delaware, or any other contiguous county, I will not participate in any way in 

a decision as to whether to designate Kent County, or any contiguous county, as entitled to disaster 

relief. 

On pages 4 on the SF-278, lines 1-4 of the annuities are for Michael and Patrice Scuse. Lines 5-9 are 

for Michael Scuse. 

On page 8 of the Senate questionnaire, question 2, for Patrice Scuse, it should read "Metlife Whole 

Life Insurance." Please see the below chaIt regarding my retirement account. 

I trust that this letter satisfies the additional applicable reporting requirements contained in the Ethics 

in Government Act. 

Sincerely, 

Michael T. Scuse 
58 


75118.030

Nominee for Under Secretary for the Farm and Foreign Agricultural Services 

U.S. Department of Agriculture 

Retirement Account 

Michael T. Scuse 

Nominee for Under Secretary for Fann and Foreign Agricultural Services, USDA 

Michael T. Scuse Date of Expected Receipt Amount 

Variable Annuity (Fann 06/2016 $19,626.01 

Retirement) 

Thrift Savings Plan 06/2016 $12,345.28 

MetUfe Whole Life Insurance 08/2018 $22,131.97 

Metlife Whole Life Insurance 08/2018 $24,997.24 

Fidelity - Delaware State 08/2018 $2,916.09 

Retirement account 

Variable Annuity $46,763.72 

ROTH IRA American Funds $7,000.00 
59 


75118.031

United States 

Office of Government Ethics 

1201 New York Avenue, NW.; Suite 500 

Washlngton, DC 20005-3917 

The Honorable Debbie Stabenow 

Chairwoman 

Committee on Agriculture, Nutrition, 

and Forestry 

United States Senate 

Washington, DC 20510 

Dear MadaJn Chairwoman: 

OCT 1 2 2011 

In accordance with the Ethics in Govermnent Act of 1978, I enclose a copy of the 

fmancial disclosure report filed by Michael T. Scuse, who has been nominated by President 

Obruna for the positions of Under Secretary of Agriculture for Farm and Foreign Agricultural 

Services and Member of the Board of Directors of the Commodity Credit Corporation, 

Department of Agriculture. 

We have reviewed the report and have also obtained advice from the agency concerning 

any possible conflict in light of its functions and the nominee's proposed duties. Also enclosed 

is an ethics agreement outlining the actions that the nominee will undertake to avoid conflicts of 

interest. Unless a date for compliance is indicated in the ethics agreement, the nominee must 

fully comply within three months of confirmation with any action specified in the ethics 

agreement. 

Based thereon, we believe that this nominee is in compliance with applicable laws and 

regulations governing conflicts of interest. 

Enclosures 

~Jf'// 

~if DonW.Fox 

Acting Director 
60 


75118.032

October 4, 2011 

Mr. Stuart A. Bender 

Designated Agency Ethics Official 

U,S, Department of Agriculture 

Washington, DC 20250·0122 

Dear Mr. Bender: 

The purpose of this letter is to describe the steps that r will take to avoid any actual or apparent 

conflict of interest in the event that I am confirmed for the positions of Under Secretary for Farm and 

Foreign Agricultural Services, U.S. Department of Agriculture (USDA) and as a member of the 

Commodity Credit Corporation (CCC) Board of Directors, 

As required by 18 U.s.C. § 208(a), I will not participate personally and substantially in any 

particular matter that has a direct and predictable effect on my financial interests or those of any person 

whose interests are imputed to me, unless I first obtain a written waiver, pursuant to 18 U,S,C. § 

208(b)(I), or qualify for a regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). I understand that the 

interests of the following persons are imputed to me: any spouse or minor child of mine; any general 

partner of a partnership in which I am a limited or general partner; any organization in which I serve as 

officer, director, trustee, general partner or employee; and any person or organization with which I am 

negotiating or have an arrangement concerning prospective employment. 

Round Maple Farms is a limited partnership that I formed with a family member, who manages the 

partnership. I will resign from my position as general partner of Round Maple Farms, LP, and become a 

limited partner within 30 days of confirmation. I will continue to have a fmanciaHnterest in this entity, but I 

will not manage it or provide any services to it during my appointment. Instead, I will receive only passive 

investment income from this entity. I will not participate personally and substantially in any particular matter 

that has a direct and predictable effect on the financial interests of Round Maple Farms, LP, unless I first 

obtain a written waiver pursuant to 18 U.S.C. § 208(b)(I). 

I own 100 acres of fann land in Smyrna, Delaware together with family members. I also own 70 

acres of fann land in Smyrna, Delaware together with my spouse. These properties are leased to Round 

Maple Fanns, LP, on a fixed cash-lease basis. I will continue to have a financial interest in this land, 

but I will not actively engage in the fanning operation. Instead, I will receive only passive rental income 

from it. I will not participate personally and substantially in any particular matter that has a direct and 

predictable effect on the ability or willingness of Round Maple Fanns, LP, to fulfill terms of the lease, 

unless I first obtain a written waiver pursuant to 18 U.S,C. § 208(b)(I). In the past, Round Maple Farms, 

LP, has participated in the Conservation Reserve Program (CRP) and commodity programs and received 

benefits from USDA. These programs' are administered by USDA through the CCC, on which I will 

serve as an officer and member of the Board. I will no! participate personally and substantially in any 

particular matter that will have a direct and predictable effect on my interest in the value of this property 

or any payments received by Round Maple Farms from USDA programs unless I obtain a written 

waiver, pursuant to 18 U.s.C. § 208 (b)(l), Additionally, in the event ofa disaster in Kent County, 

Delaware, I will not participate in any way in a decision as to whether to designate Kent County as 

entitled to disaster relief. 
61 


75118.033

I will divest my interests in Kraft Foods, Inc., within 90 days of my confirmation. I will not 

participate personally and substantially in any particular matter that has a direct and predictable effect on 

the financial interests of this entity until I have divested it, unless I first obtain a written waiver, pursuant 

to 18\l.S.C. § 208(b)(I), or qualify for a regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). 

I have loans from Mid Atlantic Farm Credit in Dover, Delaware. I will not participate personally 

and substantially in any particular matter that has a direct and predictable effect on the financial interests 

of Mid Atlantic Farm Credit, unless I first obtain a written waiver, pursuant to 18 U.s.C. § 208(b)(I), or 

qualify for a regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). 

Upon confirmation, I will resign from my position on the Board of Directors of the Delaware 

State Fair. For a period of one year after my resignation, I will not participate personally and 

substantially in any particular matter involving specific parties in which the Delaware State Fair is a 

party or represents a party, unless I am first authorized to participate, pursuant to 5 C.F.R. § 

2635.S02(d). 

I will continue to participate in defined benefit pension plans for the State of Delaware and Kent 

County, Delaware. Therefore, pursuant to 18 U.S.C. § 208, I will not participate personally and 

substantially in any particular matter that will have a direct and predictable effect on the ability or 

willingness of these entities to provide these contractual benefits, unless I first obtain a written waiver, 

pursuant to 18 U.S.C. § 208(b)(1), or qualify for a regulatory exemption, pursuant to 18 U.S.C. § 

208(b)(2). 

My spouse is employed the Smyrna School District, Smyrna, Delaware, a position for which she 

receives a fixed annual salary. I will not participate personally and substantially in any particular matter 

that has a direct and predictable effect on my spouse's compensation or employment with the Smyma 

School District. I also will not participate personally and substantially in any particular matters 

involvjng specific parties in which the Smyrna School District is a party or represents a party, unless I 

am frrst authorized to participate, pursuant to 5 C.F.R. § 2635.502(d). 

I have been advised that this ethics agreement will be posted publicly, consistent with 5 U.S.C. 

§ 552, on the website of the U.S. Office of Govemment Ethics with other ethics agreements of 

Presidential nominees who file public financial disclosure reports. 

Finally, I understand that as an appointee I must continue to abide by the Ethics Pledge (Exec. 

Order No. 13490) that I previously signed and that I will be bound by the requirements and restrictions 

therein in addition to the commitments I have made in this and any other ethics agreement. 

Sincerely, 

~O~ Michael r. Scuse 

75118.034

Executive Branch Personnel PUBLIC FINANCIAL DISCLOSURE REPORT 

5 C.F.R. Part2634 

Form 

OMB N

us. Office ofOovemment ethi¢s 

inCUmbent 1New EntrAnt,. Fee for Late FiH

Mmth.o..v.'!':",. Status 0 CovendbvR(!PQrt Nominee,or 0 FJlcr 0 ca .,01, - ), I' Any Individual who 1$ requi

r (Ched<.Approprtate r 1 Candidate I I this report and does so more 

I Boxu) after the date the report is req

Reporting II ' tban30 days after the last da

I Last Name first Name and Middle filed, QT, if an extension is gra

Individual's Name $cu$e IMichaeIT. fill.ng extension period,shaUb

Title of Position I Department or Agency (If Applicable) to a $200 fee. 

Position for Which _II Fill ng Under Secretary for Farm and Foreign Agricultural Services" United Stams Department of Agriculture Reporting Peri

1----------+7.;:;===:;-=:::-;===-===:;---'------.::-:-:--::-:--:--:-:--::--:-:4 Incumbents: The repc;lrtln

Location of (Number, Street, City, State, and ZlP _______ Telephone No. (Include Are" Code) 

Present Office 1400 Independence Ave .. SW, Washington DC 20250 ! Z02-720-3i11 where you must also include 

(or forwarding address) I year up to the date you me. 

Title of and Date:(s) Held Schedule D is not applicable. PositiO;Jn{s) Held With the f-eder.tJ 

Government During the Preceding 

12 Months (ffNor Same it$ A-bow) ACClng Under Scretary for Fann and Foreign Agrirultural ServIces: 1/2011 - Present Termination Filers: The r

Deputy Under secretary for Farm and Foreign Agricultural Services: 412009 Present period begins at the end of th

covered by your previous: filin

t at the date of termination. Pa

Pruldentlrd Nominee; Subject Name of Congressional Committee COOllldering Nomination Do You Intend (0 Create a Qualified Diversified Trust? Schedule D is not applicable. 

... 

.... Candidates Nominees, New for Presid.en

Entrant

Com;tfication Signature of Reportln Individual Due (Month, Day, Year) Vtce Presid(!nt: 

--.?A// ,/ /7 ./ .. I /. Sc.hedule £-A7 /tJ/ formcome(BLOCKC)lsthep

," 'l / 

Otherilevlev; 

[lfdeslrtdby 

"-,y) 

Signature of Other ,J(evie'tm Day. Yea.r) 

Schedule B"·Not applicabl

AgencyEthJ.c::$Offldal'sOplnlon Signature of De!lgnated Agenq Erhlcs Official/RevIewIng Offtctal Date (Month, /Jay, Year) 

On eontafl!e4. in lhi..1 year and the current calenda

I ,I any date you choose: that is w

0 'i7::2D/( ofthedateofflHng. 

Office of Government Ethics Signature Date (Mtmth sy, Yea ) 

Use Only / z=. /( arrangements as ofthe date o

Schedule D--The reporUn

of Reviewing Officials (If a.dditton/ilJ space is required, ute thf! reverse sIde of miJ sheet) the preceding two calendar y

cun-ent calendar year up 

tIIt-lWL "$til ot: . offHing. Of "tfttt COMlACt>iTj ai"bt1'"" (Checkboxlffilingc!<tclIlii01l8t"4nu:d&indlntcctrtumberofdilYIi __ ID 

Agency Use OnJ

(Check box if comm€rm are comirtl.uuJ on tbe side) 0 OGf Un Only 

Supercedes SF 278 Edl(ions.. 

75118.035

OGE Form 278 (R,<:v,()912010) 

5 C.F.R. Part 2634 

U.S. Office ofGovcrnrncnt Ethics 

Reporting lndNk:tual's Name 

Scuse. Michael T, 

Assets and Income 

BLOCK A 

I 

For you. your spouse, and dependent children, 

report each asset held for investment or the production: of Income whiCh had a fair market 

in mcome during the reporting period. together with such income. 

for yourself. also report the $ou1'1::e and actual 

amount income e-xceeding SlOO (other (hanfromtheU.s.Government}. foryourspou:re, 

report the soun::e but not the amollnt (Jf earned inCOlne of more than $1.000 (exc<>pt report tbe actual amount of any honoraria ovcr $200 of 

your spouse). 

None 0 

SCHEDULE A 

Number 

2 o

Valuation of Assets 

at close of reporting period 

Income: type and amount. If "None (or less than $20

checked, no other entry is needed in Block C for that 

BLOCKH 

000 

::t 0 g 'U 0 Q 

Type 

3 0 g 5 

3 

StoCKe 

Amount 

0 

C 0 0 

0 0 

g q b& § 0 q§ -S 888& 8...; 0'" l'Jr8 ... ... 80 8 Other 

Income 

(Spe<ilY 

Type & Actual 

Amount) 

.., 88 ... l-<ve7a .... 'V 

':' :.. :.. .:. s 

il '" "';;; '" .. l 

Examples 

Airlines Common 

_____ =r_ 

I--r- 1- --;':1- H: J-U[I-I-I-++- "';;';;;;mt;

I loomMltJ30,OO

1- ---r.- f- - f-I- f--t-- --- 

IItA: Hcaman(i 500 lode;.: r-und 1-+ '-f- .:.I-!-f-I- --- 

1 I Round Maple Farms LP. Smyma DE (Soybeans, 

Corn and Wlleat Sales) (112Inlerest) 

2 I Farm, Smyrna, DE (100Aeres) (1/3 Interest} 

(fixed cash tease 10 Round Maple Farms lP) 

3 I Farm. Smyrna, DE (70 Acres) 

(ftxed cash 1ease 10 Round Maple- Farms LP) 

4 I Mid-Atlantic Farm Credit (value not readify 

ascertainable) 

5 I Kraft Food Stock 

6 [(8) Smyrna School District (Smyrna, Delaware) 

x 

x 

x 

x x 

x x x 

x x 

1< This category applies only if the ass&iincome is solely thar of tru! filer's spouse or dependent children, If the asset/Income is <!Lther that of the filer or joIntly held by the filer with the spouse or dependent children., mark the other higher categories of value, as approprjate. 

$976,000 

'''''''''' 

...... """"'''' $lI,598 

s .. " 

75118.036

00£ Farm 21$ (Rcv.09l2l)lO) 

SC.F.R.Part2634 

U,s. Offtce ofOollemmellt filbic:s 

Reponing Individua.l's Name 

ScuM, Mrch.ael T. 

Assets and Income 

BLOCK A 

1 I Allria Stock 

2 f Phl!t1p MorrIs 1nternational stock 

3 l Life Insurance (Whole life) 

MotUle 

4 I Ufe Jnsurance (Whole life) 

MetUle 

5 I Ate)( K"tng, Goose Hunting Easement 

(Value not readily ascertainable) 

1 

6 I Delaware Publtc Employees' Retirement System 

(Defined Benefit Pension. Value not read"y 

7 '.ascertainable) 

8 I Delaware Public Employees' Retirement System 

(Defined Benefit Pensfon, Value not readHy 

q I as<:ertainable){spouse's retlrement) 

SCHEDULE A continued 

(Use only if needed) 

Page Number 

3 of 

Valuation of Assets 

at dose of reporting period 

Income: type and amount. If "None (or less than $20

checked, no other entry is needed in Block C for that 

8. 

;;; 8 

..... IJ'") , , 

5" ' .-j _,"",",00 o ,..-.I ...-I V) 

x x 

x 

x 

BLOCKS 

§ § & ] 

0015 0 08 ':; goq ogq 

.. 

InOOOV)NVtO.t:l 

"'" .., 0' ' '.-10 > t:; 

goo:o88 .. 

Type 

t! 

x x 

x 

., 

o 

! 3: 

l-< (5 

x 

x 

BLOCKC 

Amount 

o 

x 

x 

x 

x 

Other 

Income 

(Specify 

81 Type& q Actual g Amount) 

q 

:::; 

lAlfo:xilmllllly 

$1,4;13pedrno 

""..-

-

$2.4IJfpefhM 

.e1llJ&\l2 

* This category applies Qnly jf the asset/income is solely that of the filer's spouse or dependent Jf the asset/income is either that of the fUer or jOintly h.eld by the filer with spouse. or dt!pendent children. mark tbe other higher categories of value, as appropriate, 

75118.037

OGE Form 278 (Rev. 1 0) 

5C£R,Part2634 

U.S, Oflioe ofOovcmmentE1bics 

Reponing lodivldual's Name 

ScU$e. Michaet T. I 

Assets and Income 

BLOCK A 

1 • ?enn Mutual Life Variable Annulty Penn Series 

(asStlt$ ffsted be1ow): 

Z Independence Capital Management. Inc:, 

Quality 80nd Fund 

Independence Capital Man.agement, loe 

Balanced Fund 

4 T Rowe Price Associates High 

Yield Sond Fund 

, Penn Mutual Ufft Variable AnnUity Penn Series 

(assets "_ below); 

• Goldman Sachs 

SmaQ cap Value Fund 

7 Independence Capital Manag9ment, Inc. 

Quality Bond Fund 

a T Rowe f"rica Associatea High 

Yiefd Bond Fund 

q T RowEt Price Associates Flexibly Managed 

Fund 

SCHEDULE A continued 

(Use only if needed) 

Page Number 

4 of 

ValuatlonofAssets 

at close of reporting period 

BWCKB 

r-! oog -g § 0 i 

.. 0888& !iooo,«'8-&",,,,06 

5 I ...-l-080";o .._"..-jooo oOyt .......... ! 

.. 

IXI I Ix 

Ixl Ix 

IXI Ix 

Ixi I I I I I I I I Ix 

X 

X 

IXI I I I I I I I I Ix 

Income: type and amount. If "None (or less than $20

checked, no other entry is needed in Block C for that 

Type 

-g § 

jlj 

° 

8 .!l «. " '"' "IS =: '7 

x x 

x x 

x 

X 

Ix 

RWCKC 

Amount 

8 

o 8 

000060 o888§& ir} 

Other 

Income 

<:> (Specify 01 "fype& q Actual g Amount) 

«. 

.. ibis categOfY applies only if the asset/income is solely that of the filer's spouse or"dependent children. If the asseUincome.ls either that of the filer or jointly 

by the filer wlth the spouse or dependent childre1l, mark the other higher categories of value, as, appropriate. 

75118.038

OGEFonn278 (Rev. 09lZ(10) 

Sc.p.R,ran:l634 

U.S. Orticeof Government 

Reporting fndividuat'$ Name 

Scuse, MiChael T. 

Assets and Income 

BLOCK A 

I I Programs: 

Crop Disaster Program 

Conservation Reserve Program Guaranteed Payment 

3 I M&T Bank (Checking and Savings) 

I 

<I I Oef..One Credit Union (Checking and Savings) 

5 I Kent County (DE) Employees' Reflrement 

System (Defined Benefit PensIon, Value not 

I raacfil)' ascertainable) 

7 l MeU!fe Financial Advisors Roth IRA. 

(assets listed below): 

8 I American Funds EuroPaci1ic Growth Fund-A 

Q I American Funds The Growth Fund of America·A 

SCHEDULE A continued 

(Use only if needed) 

Page Number 

5 of 

ValuatlonofAssets 

at close of reporting period 

Income: type and amount. If "None (or less than $20

checked, no other entry is needed in Block C for that 

§ 

.. a 

!lo§8 .a 8 _ <:5 

- (A , I 

O_r-IVl 

x 

x 

x x 

BLOCK 8 

o § 

00 0 0 oeq 0 

88 -g qo 

jj C! O o4.l 

'M8>ee 

..... gosr-t--

g .. '"' r..I <v-a 

Type 

"'0 " liI 

a £ 

2 

., 

8 

'B. go a z 

x 

-

x 

HLOCKC 

Amount 

o 8 0 Income o § I Other 

Actual 

_ 8 Atnount) 

$'Qf,45(1 

" .. 

$34.202 

I I I I II I II I I 

WiIlfll<'ci<l/ 

--

""" 

"" This applies only if mZ!' asset/Income is solely that of the filer's spouse or dependent <hildren. If the asset/income is that of the flIer or jointly held by the til'?'l" wlth the spouse or dependent children. mark the other higher categories of value, as appropriate. 

75118.039

oGE t-otnl273 (Rev. ()91201O) 

S C.P.R.. Part 2634 

U.S. Office (ICGOVC!1)ment Ethics 

Reporting Individual'$ Nam(! 

Scuse, Michael T. 

Assets and Income 

BtOCKA 

Metlife Financial Advisors Roth IRA 

(a6$ets I"ted below)(corstimred): 

2. American Funds Capital World Growth and 

Income 

I 

3 American Funds capital World Bond FUfld-A 

4 State of Delaware, Fidelity Retirement Savings 

Plan (spouse) (assets listed below): 

5 Baron Growth RataH Fund 

6 Fidelity Freedom 2020 Fund 

7 

• 

q 

SCHEDULE A continued Page Number 

(Use only if needed) 6 of 

Valuation of Assets Income: type and amount.lf"None (or less than $2

at dose of reporting period checked, no other entry is needed in Block C for that 

BLOCKB BLOCK C 

Type Amount 

§ g g ] 8 Other 

;;i & o q & 0 00 0" g gk ! Income 

lio °8 00 J 08 &8 (Specify 

8,0 0 88 qo 13g Type & "'0 qo "' N '" 0 g <'Iv> o 0 S '" 0 Actual 

vi .... 88 II 8 ::; qv) g Amount) 

£;; .. '" < < <0 g § .s .... .... ... 1l '" M .... <0 M M 83 <-1.6 d! '" '" " g '" .... < < 00 s3 8 '" S is s M M 00 q .. gg 0" 1:1 < M M M 0 .. '" 0 00 8 t il' 5 '0. s& g o "q vi'c5 ttl t o " M '" M N '" > :;l 0 os 0 N M .. .. .... .. 0 .. .. ;: ;;;0 '" .s u z .... '" '" ;;;0 

X X X X X X 

X X X 

X X X 

* asset/income is elther that of the fUet or jOlntly held 

75118.040

otm Foon 278 (R¢v, 0912010) 

5 C.F .R.. Part 2634 

U.S. Office 

R.eportinz Individual's Name 

Do not complete Schedule B If you are a new entrant, nominee, or Vice Presidential or Presidential Candidate 

SCHEDULE B Page Number Scuse, Michael T, I 7 o

Part I: Transactions 

Report any purchase. sale, or exchange Do not report a transaction involVing None 0 

by you. your spouse, or dependent property used solely as your personal 

children during the reporting period of any residence. or a transaction solely between Amount of Transaction (xl real property. stocks, bonds. commodity you, your spouse, or dependent child. futures, and other securities when the Check the "Certificate of divestiture" block Date ":'8 

Iii 

,0 08 (Mo" MO II amount of the transaction exceeded $1,000. to indicate sales made pursuant to a i Day, Yr.) I! Include transa.ctions that resulted in a loss. certificate of dIvestiture from OGE. Identification of Asstts: if 

Example x l/1/99 < 

[ 

, 

3 

• 

s 

*Thts category applies only if the underlying aSset is solely that of the filer's spouse or dependent children. if the underlying asSet 1$ tUher held by the filer or jOintly held by the tiler with the spouse or dependent children. use the other high!#' categories of value, as appropriate. 

Part II: Gifts, Reimbursements, and Travel Expenses 

For you. your spouse and dependent children, report the source, a brief descript- the U $. Government; givt'.n to your agency in connection with official trav

{ion, and the value of; (1) gifts (such as tangible items, transportation, reccivi',d from relatives; received by your spouse or dependent child totally food" or entertainment) received from Qne source lotaling more than $335 and independent oftbeir relationship to- you; or provided as personal hospitality 

(2) cash reimbursements received from one source totaling morethan $335. P<>rconflicts an.lysis, it i. helpful '0 lruiica'e. basi. for receipt, such 

as &etSOnal friend, agency approval under 5 U.s.C. § 4111 or other statutory for other exclusions. 

au only. etc. For travel-related gifts and reimbursements, include travel itinerary} N

dates} and the nature of expenses provided, Exclude anything given to you by 

Sour<:e (Name .tad Address) Brief Description 

I NY.m 

______ 

lImpes ____________ 

FrnnJ:Jones,Sanrnmdsco.CA Ll!itber brtefcue- (peBonal friend) 

[ 

2 

3 

4 

S 

L 

75118.041

OOE Form 278 (Rev. (912010) 

S C,F.R Part2634 

Reportlng indiVidual's Name Page Number 

Scuse, Michael T, I SCHEDULE C 8 o

Part I: Liabilities a mortgage on your personal residence None[] 

Report liabilities over $10,000 owed unless it is rented out; loans secured by C,ne ory of Amount or Value (x) to anyone creditor at any time household furniture during the repOrting period by you, or appliances; and liabUlties owed to 

your spouse. or dependent chlldren. certaIn relatives listed in instructions. .0 8§ ':'8 

Check the highest amount owed See Instructions for revolving charge MO '0 Ii C;g durlng the reporting period. Exclude accounts. gg ii Date Interest "fermif Creditors (Na.me and Address) Type of IJabU/ty IncUf1'ed Rat. appUcable 

Examples ___ ___ 1991 -!%- - -r-! - - .-- 

JohnJo)le6 Promissory-note 1999 u," on demand x 

J Mid Atlantic Farm Credil, Dover.OE Promissory Note • X 2004 5.55% 

2 Mid Atfantio Farm Credit. Dover. DE Promissory Note 2005 5.55% ,. X 

3 MUf AUantlc Farm Credit, Dovf:r, DE Promissory Note 2005 6.65% 13 X 

, Mid Mantic Farm Cred'rt, Dover. DE Promissory Note 7.35% • X 2007 

, Mid Allantic Farm Credit,. Dover. DE Mongag:eio Secure Ul'le of Credit 2008 5.50% , X 

*This category applies only if the liabHity is solely that of the filer's spouse or dependent children. If the Iiablllty is that of the filer or a jOint liabiUty of the filer 

with the spouse or dependent children. mark the other higher categories. as appropriate. 

Part II: Agreements or Arrangements 

Report your agreements or arrangements for: (I) continuing participation in an of absence; and (4) future employment. See instructions regarding the r

employee benefit plan (e.g. 401k, deferred compensation); (2) continua- ing of negotiations for any of these arrangements or benefits. 

tj.on of payment by a former employer (induding severance payments); (3) leaves 

StatuS and Tums of any Agretrnent or Arrangement Parties 

I PUfstnnt w partnersbip /Agreement, will receive-lump sum payment of capital account &: partnership :share Doc Jones &: Smith, Hometown, State 

calculated on service performed through l/OO, 

1 Delaware Public Employees' Rotlrement System (dofined benefit poosion, wkl approximately $1.4Z3 per/month at age 62) stale of [)elaware 

2 Kent County (DE) Employees' Retirement System (defined benefit pension. will '"ceive approxlmately $200 per/month at age (2) Kent COllnty, Delaware 

3 

• 

• 

6 

75118.042

'OGBForm 278 (Rev, (912010) 

S C.F.R. Part 2634 U.s. OlflCll ofOQwnlluent&hics 

lndividual's Name PaGe Number 

Scuse, Michael T. SCHEDULE C 9 o

Part I: Liabilities a mortgage on your personal residence None 0 

Report liabilitieS over $10,000 owed unless it is :rented out; loans secured by of Am<runt or Value (x) to anyone creditor at any time automobiles, household furniture during the reporting period by you, or appliances; and liabilities owed to 

your spouse, or dependent children. certain relatives listed in Instructions. 

Check §g § 8:5 0:

the highest amount owed See Jnstructions for revolving charge '0 §§ during the reporting period. Exclude accounts. 8°, gg d D.-te Interest Termu 

Crediool't (Name and Addms) Type of Uabillty In<W'red Rale applicable 

Eumples ___ ___ 1991 .;- _.2 - ;-;-- - i-- - 

John Jonu: PromlSSO.!}' POW 1999- andmnand 

1 Mid Aijantic Farm Credll, Dover, DE Promissory Note " X 2008 5.65% 

2 MId Atlantic Farm Credit, Dover, DE Mortgage 10 secure a line of credit 2008 3% X 

3 Mid Atlantic Falm Credl1, Dover, DE PromiSSolyNote 2009 5.5% X 

Mid AtlanUc Farm Credit. Dover, DE Promllml!)' Note 2011 5.7% X 

, USDA Farm $ervl¢e Agency Mortgage to secure a line of credit 2008 5% X 

"ThlS Ciltegory applies. only if the Jlab!hty is solely that oftbe filer's spouse or dependent children. If the liability is that of the filer or a Joint Ilablhtycfthe filer wIth the spouse or dependent children, mark the other hig,her categor1es, as appropriate. 

Part II: Agreements or Arrangements 

Report your 3lP:eements or arrangements for: (l) <:ontinulng participation in an of absence; and (4) future employment. See Instructions regarding the r

employee benefit plan (e.g. pension, 401k. deferred compensation); (2) continua- ing of negotiations for any of these arrangements or benefits. 

tion of payment by a former employer (including severance payments). (3) leaves 

$Utus and Terms of any Agreement or Arrangement Pm", 

Example .. 1 Pursunt t(Jo partnership agceemC!nt, will lump sum payment of «pleal af;:ctltlnl & p1lrU1er.ship share Doe Jonl<!$ & Smith, Hometown, State 

c;lwlat;ed on :oervtee ptnorme<1 througb 1/00. 

l'rtor Edltit)ns Be Used. 

75118.043

von Fmm 273 (Rev. 0912010) 

S C.F,R. Part 2634 

U,S. Office ofGnWimmcQt.&hics --

Reporting Indlvidual'3 Nllme I SCHEDULE D I Pa •• Numb., 10 

Part I: Positions Held Outside U.S. Government 

Report any positions held during the applicable reporting perIod. whether roMpen- organization or educational institution. Exclude poSitions with religiou

sated or not. Positions include but are not limited to those of an officer, director, social, fraternal. or political entities and those solely of an honorary 

trustee, general partner¥ proprietor, representative, employee, or consultant of nature. 

any corporation, firm. Partnership. or other business enterprise or any non-profit 

iutlOn (Name and Address) e of 0 aniu.tlon Pooition Held From (Mc .. Yr

____________ 

__ _________ 6/92 

Doe jQnu &:: Smith. liommwn, """'" 7185 

Delaware State Fair. Hanington, DE fion--ProfjlOrgantzal;ion Member. Board of Directors 0612004 

Z Roond Maple Farms, Smyrna, DE Farm Partnerehip General Partner 01/1979 

3 State of Oeiaware stat. Government Chief of Staff to the Governor of 0912008 

Delaware 

4 

5 

, 

Part II: Compensation in Excess of $5,000 Paid by One Source Do not complete this part if yo

Incumbent, Termination Filer, 

Report sources of more. than $5.000 compensation received by you or your non-profit organization when Presidential or Presidential Ca

business affiliation for services provided directly by you during anyone year of you diret"Uy provided the the reporting period. This includes the names of dients and customers of any services generating a fee or payment of more than 55,000. You corporation, firm, partnership. or other business enterprise, or any other need not 

r(,port the U.s. Government as a source. 

Source (Name and Address) Btief Description of Du.ties 

____________ Lo",_ 

Metro UnlVersit oIDoo Jaues- & Sm.ith;, State - - - - - - - - - - - - 

1 State of Delaware Service as Chief ot Staff to the Governor of Delaware 

, , 

, 

, 

6 
72 


75118.044

ILLINOIS 

December 13, 2011 

To: Chairwoman Debbie Stabenow, 

Ranking Member Pat Roberts, 

Bruce J. Sherrick, Ph.D 

Professor, Ag and Applied Finance 

306 Mumford Hall, Me 710 

1301 W. Gregory Drive 

Urbana, IL 61801 

U.S. Senate Committee on Agriculture, Nutrition and Forestry 

328A Russell Senate Office Building 

Washington, DC 20510 

From: Bruce J. Sherrick, Ph.D. 

Re: Updated information for Senate Questionnaire for the Board of the 

Federal Agricultural Mortgage Corporation 

The following materials are provided to validate, update and/or revise information provided in 

response to the previously completed "Questionnaire for the Board of the Federal Agricultural 

Mortgage Corporation Nominees". 

In the section delineated as "Financial Data and Conflict ofInterest (Public)", question 9 asks 

about plans for continued engagement between iFAR and FCA, the Office of Secondary Market 

Oversight, and Farmer Mac. To revise and c1arif'y my answer, if confirmed, iFAR would not 

pursue any contracts or engage in any consulting activities with FCA, the Office of Secondary 

Market Oversight, or the Federal Agricultural Mortgage Corporation during the time of my 

service on the Board. 

My response to question 12 identifies an existing engagement between iFAR and the Office of 

Secondary Market Oversight involving an ongoing modeling effort. If confirmed, I would 

terminate my participation in the active modeling activities immediately, and would be available 

for a period of up to 45 days to provide knowledge transfer assistance on an as needed and as 

requested basis to insure that the models remain accessible and operational for FCA. In 

anticipation of a possible confirmation, I have worked to substantially complete that process 

already and do not anticipate a need for anything beyond perhaps routine operational inquiries. 

Question 13 involves an explanation of the avoidance of future potential conflicts of interest. To 

extend that response, I would add that if confirmed, there will be no engagement between iFAR 

and FCA, its Office of Secondary Market Oversight, or Farmer Mac in consulting roles or other 

contractual engagements during any period of service on the Board. My previous answer was 

ambiguous in allowing others in iFAR the possibility of future engagement, and the intent of this 

addition is to c1arif'y that no such activities will occur. 
73 


75118.045

BIOGRAPHICAL INFORMATION (PUBLIC) 

1. Full name (include any former names used): Bruce John Sherrick 

2. Date and place of birth: April 23, 1963, Ashland, Ohio. 

3. Marital Status: If married, list spouse's name (include any former names used), 

occupation, employer's name, and business address(es). 

Married to Kristine L. SherricK, High School Teacher at Urbana High School, 1002 S. Race St., 

Urbana Il61801. 

4. Education: List each college and graduate or professional school you have attended, 

including dates of attendance, degrees received, and dates degrees were granted. 

Ph.D., August 1989, The Ohio State University 1985-89. 

B.S., Summa Cum laude with Distinction, March 1985, The Ohio State University 1981-85. 

5. Employment and Self-Employment Record: List (by year) all business or professional 

corporations, companies, firms, or other enterprises, partnerships, institutions and 

organizations, nonprofit or otherwise, including farms or ranches, with which you were 

connected as an officer, director, partner, proprietor, or employee since graduation from 

college. Please include a title and brief job description for each. 

Assistant Professor, 1989-96; Dept. of Agricultural Economics, UIUC. 

(Faculty member with Teaching and Research responsibilities in Agricultural Finance) 

Associate Professor, 1996-2004; Dept. of Ag. and Consumer Economics, UIUC 

(Faculty member with Teaching and Research responsibilities in Agricultural Finance) 

Professor 2004-present; Dept. of Ag. and Consumer Economics, UIUC, and 

Director, National Center for Farm and Rural Business Finance, Univ. of Illinois, 200S-present. 

(The Center conducts a comprehensive program of research on issues concerning availability 

and use of capital in the growth and development of farm and rural businesses) 

iFAR {integrated Financial Analytics and Research LlPj consulting firm, Partner 2004-present. 

(Partner with responsibilities for modeling financial firms and insurance characteristics, iFAR is a 

successor firm of Barry and Associates which conducted similar activities and in which similar 

responsibilities were maintained) 

6. Military Service: Have you served in the military? If so, please give particulars, including 

the dates, branch of service, rank or rate, and type of discharge received. 

No, Not Applicable 

7. Government Service: State (chronologically) your government service or public offices 

you have held, including the terms of service, grade levels, and whether such pOSitions 

were elected or appointed. Not Applicable 
74 


75118.046

8. Honors and Awards: List any scholarships, fellowships, honorary degrees, and honorary 

society memberships that you received and believe would be of interest to the 

Committee. 

College of Agricultural, Consumer, and Environmental Sciences Team Award for ExcellenceFAST Group, 2010. 

NACTA Fellow Award, 2007. 

College of Agriculture Funk Awards; Team Award for Excellence, 2004 

CFAR Donald A. Holt Research and Outreach Team Achievement Award, 2004 

Campus Cool Website Award - Content Category 2004 (jarmdoc webSite) 

American Agricultural Economics Association, Group Award for Professional Excellence 

Distinguished Extension Program, 2002. 

Illinois Farmland Market Advisory Committee of the USDA-FSA, Academic Member 1998-

present. 

Fellow, Kellogg National Leadership Program, 1994-97. 

Outstanding Young Alumni Award, The Ohio State University, 1995. 

Fellow, Center for Advanced Study, UIUC, 1994-95. 

Earl M. Hughes Teaching Enhancement Award, 1994 

Young Faculty Award for Excellence, College of Agriculture, 1995. 

Thesis Advisor Dept. Outstanding Thesis Award, MS (1993, 2003) and Ph.D. (1999, 2008). 

Incomplete Ust of Teachers Ranked Excellent (recognizes student-selected top teachers): 1989, 

1990,1991,1992, 1993,1995,2000,2001,2002,2004,2005,2007,2009. 

College of Agriculture - AZ Outstanding Teacher Award, 1993. 

National Outstanding NAMA Student Chapter Advisor Award, 1992. 

Agricultural Economics/NAMA Teaching Award 1990-91 (Student selected). 

Outstanding Dissertation Award, The Ohio State University, 1989. 

National Needs Fellowship, The Ohio State University, 1985-1989. 

Summa cum Laude with Distinction, The Ohio State University, 1985. 

GAMMA SIGNMA DELTA (2000-present), and ALPHA ZETA f1989-present) Honoraries. 

9. Other Memberships: If not covered above, list all organizations in which during the past 

10 years you held a position as offiCial, board member, or other leadership position and 

describe the position. Exclude religious organizations. 

NC-1014 (previous NC-207, and successor committees) Regional Committee on Agricultural 

Finance, 1989- present, (held all offices, past writing committee chair, numerous other 

committees). 

Associate Editor, Agricultural Finance Review, 1998- present). 

American Agricultural Economics Association. 

Eastern, Southern, Midwestern Finance Associations. 

IL Farmland Market Advisory and FSA Land Valuation Committee 
75 


75118.047

10. Political Affiliation: The statute creating the Board of the Federal Agricultural Mortgage 

Corporation requires that no more than three public members of the Board be from the 

same political party. Please list your current political party registration or affiliation. 

Republican 

11. Published Writings: List the titles, publishers, and dates of books, articles, reports, or 

other published materials (including published speeches) you have written. Please 

include in this list published materials on which you are listed as the principal editor. It 

would be helpful to the Committee if you would provide one copy of all published material 

that may not be readily available. Also, to the maximum extent practicable, please supply 

a copy of all unpublished speeches you made during the past five years on issues 

involving agriculture, nutrition, forestry, agricultural credit, or other matters within the 

jurisdiction of this Committee or the Federal Agricultural Mortgage Corporation. 

Please See Attached. 

FINANCIAL DATA AND CONFLICT OF INTEREST (PUBLIC) 

1. Have you severed all connections with your immediate past private sector employers, 

business firms, partnerships, associations, or other organizations? (If no, provide full 

details.) No. I plan to retain my faculty appointment at University of Illinois and partnership in 

iFAR. I have terminated all consulting relationships with the Farm Credit Administration and 

others that involve FAMC related issues. 

2. List sources, amounts and dates of all expected receipts from deferred income 

arrangements, stock options, uncompleted contracts, and other future benefits that you 

expect to derive from previous business relationships, professional services, firm 

memberships, former employers, clients, or customers. None, 

3. Do you, or any partnership or closely held corporation or other entity in which you have 

an interest, own or operate a farm or ranch? (If yes, provide a brief description including 

location, size, and type of operation.) No. I was raised on a family farm and held only indirect 

family interest until 2004 when the family farm was sold. 

4. Have you, or any partnership or closely held corporation or other entity in which you have 

an interest, ever participated in federal commodity income and price support, disaster, 

conservation, or related programs? (If yes, provide full details, including descriptions and 

amounts of payments and loans received or forfeited relating to each commodity, crop, 

farm, and ranch involved during the past five years.) No. 

5. Have you, or any partnership or closely held corporation or other entity in which you have 

an interest, received payments for crop or livestock losses from the federal crop 

insurance program in the past five years? (If yes, provide full details and amounts.) No. 
76 


75118.048

6. Have you ever received a student loan or loans? If so, has all indebtedness been 

fully repaid? (If no, provide full details.) My student loan associated with my degrees 

was fully repaid upon graduation from my Ph.D. program. 

7. Have you, or any partnership or closely held corporation or other entity in which 

you have an interest, ever received a loan or cosigned a note involving a loan from 

or guaranteed by any department or agency of the federal government (other than 

a student loan), including, for example, through the farm or rural development 

lending programs of the Department of Agriculture or through the Small Business 

Administration? (If yes, provide the current status and details of such loan or 

loans, whether the indebtedness has been fully repaid, and all details of any such 

loan activity.) No. 

8. Have you, or any partnership or closely held corporation or other entity in which 

you have an interest, ever received a loan or cosigned a note involving a loan 

from, involving, or handled by any current or previously existing institution 

regulated, overseen, or doing business with either the Farm Credit Administration 

or the Federal Agricultural Mortgage Corporation? (If yes, provide the current 

status and details of such loan or loans, whether the indebtedness has been fully 

repaid, and all details of any such loan activity.) No. 

9. If confirmed, do you have any plans, commitments, or agreements to pursue or continue 

outside employment or engage in or continue any business or vocation, with or without 

compensation, during your service with the government? (If so, explain fully.) Yes. I would 

retain my apPOintment on the faculty of the University of Illinois and continue partiCipation with 

iFAR. If confirmed, I would fully recuse myself from any future iFAR activities associated with 

either the Farm Credit Administration Office of Secondary Market Oversight, or the federal 

Agricultural Mortgage Corporation. 

10. Do you have any plans to resume employment, affiliation, or practice with any of your 

previous employers, business firms, partnerships, associations, or other organizations 

after completing government service? (If yes, provide full details.) I plan to remain a 

faculty member at the University of Illinois during any appointment to the Board of Directors of 

Farmer Mac, and continue employment after completing government service. 

11. Has anyone made a commitment to employ you or retain your services in any capacity 

after you leave government service? (If yes, provide full details.) I am a tenured faculty 

member and thus anticipate continued service with the University of Illinois during and 

potentially after any appointment with Farmer Mac. 

12. Describe fully all matters and all employers, clients, organizations, or interests you 

represented over the past five years before the Federal Agricultural Mortgage 

Corporation or the Farm Credit Administration, or before Congress involving matters 

within the jurisdiction of this Committee, the Department of Agriculture, the Federal 
77 


75118.049

Agricultural Mortgage Corporation, or the Farm Credit Administration. FCA has contracted 

with iFAR to help develop, maintain and support the Risk-Based Capital Stress test applied to 

FAMe. Through work with iFAR, I have been involved in the development of those models and 

the associated supporting activities. In those roles, I have regular contact with both FCA and 

Farmer Mac to assist in interpretation and ongoing implementation of these models. 

In addition, I have taught numerous Basel-II Capital workshops including sessions to several 

parties within the Farm Credit System including FCA, and to commercial banks (both those with 

access to FAMC, and to interests as varied as those at the Bank of China). I have also been a 

participant in the evaluation of competing software vendors who provide capital management 

services to various parties within and outside the Farm Credit System including the providers to 

both FAMC and several ofthe System Banks. Finally, my academic research includes many 

activities associated with "valuation" of risk and the appropriate mechanisms for measuring and 

controlling risk through time. My teaching and graduate student advising activities also 

frequently use case materials from the Farm Credit System, FAMC, other secondary markets, and 

FDIC Call Report materials. 

Additionally, I have been a participant in a past S08(h) submission to the FCIC, and have 

responsibilities for evaluation offederal crop insurance programs within the farmdoc research 

team -- roles which lead to frequent interactions with RMA and RME representatives of USDA. 

13. Explain in detail how you will resolve and avoid any actual or potential conflicts of 

interest, including any that may be disclosed by your responses to the above questions. 

In particular, identify all investments, obligations, liabilities, or other relationships that 

involve actual or potential conflicts of interest relating to the position for which you have 

been nominated and what actions you will take to resolve and avoid these actual or 

potential conflicts of interest. If confirmed, I would also fully recuse myself from any activities 

in iFAR that involve work for FAMC or FCA's Office of Secondary Market Oversight, or that 

provide any other potential appearance of conflict of interest with the activities of the Board or 

mission of FAMC during any period of service including activities related to FAMC vendors, 

contractors or suppliers of consulting services. Any remaining research and consulting activities 

will be fully disclosed and discussed with appropriate parties to insure the avoidance and/or 

resolution of any conflicts of interest. 

14. Fully describe and explain all divestitures or arrangements of any nature with respect to 

any type of interest that you have made or will make to resolve and avoid actual or 

potential conflicts of interest relating to the position for which you have been nominated. 

1 am not aware that any of my current investments present any conflicts of interest. Any such 

noted items would be converted to alternatives that are not related in any fashion to Board 

service. If any matters of potential concern arise, these would be fully disclosed aod discussed 

with appropriate parties to resolve. 
(79) 

QUESTIONS AND ANSWERS 

DECEMBER 15, 2011 

80 


75118.050

Senate Committee on Agriculture, Nutrition & Forestry 

Nomination Hearing 

December 15, 2011 

Questions for the Record 

Hon. Chester Culver 

Senator Pat Roberts 

1.) Can YOt! identify any potential conflicts of interest between your role as a Presidentiallyappointed Farmer Mac director and the financial interests of Farmer Mac 

shareholders? How will you handle such conflicts? 

I do not have, nor do I anticipate, any conflicts of interest. However, should they arise; they 

will be disclosed and resolved appropriately. 

2.) In 2008, Farmer Mac's financial condition deteriorated to the point it required a major 

capital infusion from its shareholders to avoid falling below minimum regulatory capital 

levels. If you are confirmed, what steps will you take to avoid this circumstance 

recurring 

It is my understanding that in the 2008 the problem was investment, not credit. Several 

major investments failed. So, Farmer Mac must diversify its investment portfolio to minimize 

the chance of that happening again. As a member I will insist upon strong policies so that the 

Finance committee of the Board continues to provide strong oversight of investment and the 

Credit committee of the Board provides strong oversight of credit. 

3.) Farmer Mac's hybrid government-sponsored enterprise (GSE) model combines publiclytraded stock with a legislatively-mandated mission in the same way Freddie Mac and 

Fannie Mae did prior to being taken over by the government. What steps can you take 

as a board member to ensure the constant pressure to increase profits that results from 

Reliance on publicly-traded stock will not push Farmer Mac to take on more risk in the 

way Fannie and Freddie did? 

I will insist that the Mission is central to Famer Mac's activities and the Mission not be 

compromised by undue pressure for significant profits. 

4.) Similarly, Government Accountability Office (GAO) studies have demonstrated the 

public stock model at Fannie Mae and Freddie Mac resulted in maximizing benefits to 

shareholders while transferring the ultimate risk to taxpayers. How can you as a Farmer 

Mac board member ensure this does not occur at Farmer Mac? 
81 


75118.051

Again, the Mission must be central to Farmer Mac's work. This means that I will work to 

ensure that the policy about risk-to-reward strikes the right balance with strong credit 

underwriting and diversified investments. 

Senator Saxby Chambliss 

1. What are your views about the benefits of a secondary market for agriculture 

mortgages and rural utility loans? 

The benefit of the secondary market is to provide capital to primary lending institutions with 

liquidity to provide loans. Farmer Mac is an additional source of capital for lending 

institutions in rural America. 

I believe that it is critical to have capital flow to rural America. Farmer Mac ensures that 

credit is available for agricultural mortgages and rural utilities. That is Farner Mac's mission, 

and as a Board Member I will be committed to following it. 

2. The board of Farmer Mac is composed of directors elected by class A and class B 

stockholders along with presidentially appointed directors. Please describe the 

advantages and disadvantages of this board composition. 

The advantages of the three separate classes are 1) to bring some breadth of understanding 

of lending institutions; 2) bring agricultural lending experience into the board room; and, 3) 

and having the presidential appointees to represent the people of the United States and the 

Congress, Administration and the interests of Farmer and Rancher to ensure that the Mission 

of Farmer Mac is central to its operations. 

Disadvantages are that owners of Class A and B lenders may want to leverage Famer Mac for 

economic or political advantages. It also raises the possibility of conflicts of interest with 

lenders on the board who also want to do business with Farmer Mac. As a Presidential 

appointee I will insist that the Mission is a central part of what the Board does. 

3. Farmer Mac was created to provide liquidity to lenders and a secondary market for 

agricultural mortgage loans, rural utility, rural housing and certain USDA-guaranteed 

loans. Do you believe Farmer Mac is accomplishing what it was set out to do by 

Congress? 

Yes, Farmer Mac has indeed accomplished what it has set out to do. As a Board member I will 

ensure that the Mission to provide capital to rural America continues. 
82 


75118.052

Senator John Thune 

1. According to Iowa State University and others the value of Iowa farmland jumped 32.5 

percent in 2011 and cropland in the Northern Plains and Minnesota was up 26 percent. 

I've read about farmland sales as high as $20,000 per acre. 

As a Member of the Board of Directors at Farmer Mac, what can the agriculture real 

estate lending community do to keep itself stabilized if and when agriculture real estate 

prices take a downturn? 

We do need to ensure that the production value of land relates in a rational way to the longterm prospect of than prices. We need to make sure that the loan-to-value rations policies 

are strong to allow for fluctuations to occur in land prices so there's enough to absorb 

potential losses. This includes a strong stress-test model. We need good strong underwriting 

criteria. 

Fortunately, farmers and ranchers, and the lending community, are much better capitalized 

then they were before to address rising land values, but the situation does warrant vigilant 

monitoring. 

2. What is your opinion of the current operating policies of Farmer Mac? 

My view is that the operating policies are strong. As a board member I will insist upon 

continued strong policies and strong oversight to see that management carries these policies 

out. 

3. Do you anticipate that any changes need to be made to reflect the dramatic changes 

that have occurred in agriculture the past few years? 

I anticipate that Famer Mac needs to be dynamic. I think that as a matter of mission, as rural 

America changes, Farmer Mac needs work with Congress to consider appropriate way to 

adapt to those changes. 
83 


75118.053

Senate Committee on Agriculture, Nutrition & Forestry 

Nomination Hearing: Scuse, Culver, and Sherrick 

December 15, 2011 

Questions for the Record 

Mr. Michael T. Scuse 

Senator Pat Roberts 

1) You've talked before about the importance of addressing commodity and regional 

differences in farm policy. You've also talked about the importance ofthe WTO and free and 

open trade to the success of rural America. I wholeheartedly agree with you on both counts. 

Do you believe the Administration's farm policy suggestions put forward in the September 2011 

deficit reduction proposal met these criteria? Do you have thoughts on how to provide a safety 

net to all farmers in all regions while maintaining our WTO commitments? 

A: The best way to achieve World Trade Organization (WTO) compliance involves a 

complicated and lengthy discussion. I look forward to working with you and your 

colleagues, if confirmed, to provide any technical assistance you might need as you 

chart the best path forward for the new farm bill. 

2) As a producer you bring a depth of knowledge and perspective to this job that I suspect will 

serve you very well. I'm sure you know well the importance of local FSA offices. Given the dire 

budget circumstances that we find ourselves in in this country, one of the challenges you will 

likely face is trying to do more with a shrinking budget. How do you plan to tackle this 

challenge with regards to local FSA offices and the delivery of FSA services? 

A: USDA is working to ensure that we can meet the challenges of reduced budgets. 

This includes efforts to innovate and create efficiencies. One of the most important 

improvements we are working towards now is the addition of the Modernize and 

Innovate the Delivery of Agricultural Systems (MIDAS) project to our farm program 

administration. MIDAS is our IT modernization project that has been designed to be 

flexible and efficient at incorporating new programs and structures. 

We are also evaluating how we do business. This includes evaluating our service 

delivery and making targeted reductions in our staff by using management flexibility 

tools - including buyouts and early outs. During this process, we are committed to 

ensuring that the cuts impact the producer to the minimum amount possible, and that 

we continue to provide the necessary services that producers require. 

If confirmed, I will look forward to working closely with you and your colleagues as we 

consider the best path forward in this environment. 
84 


75118.054

3) As budget belts tighten, both Congress and the Administration are going to be looking for 

ways to work more efficiently and to streamline processes where possible. Are there areas you 

see in FFAS where greater efficiencies would be possible but where you might need additional 

authority to take advantage of these opportunities? 

A: Thank you for your question. As I discussed in my answer to the previous question, 

USDA is working to innovate and create efficiencies across all our programs. Within the 

Mission area, we are working towards those ends now with the advancement of our IT 

capabilities and the simplification of our reporting. 

The support that you and your colleagues have shown for our IT modernization project, 

MIDAS, has been much appreciated. 

We are also working to simplify our processes. The 2002 Farm Bill required the 

Secretary of Agriculture to develop a Comprehensive Information Management System 

(ClMS) to be used by Farm Service Agency (FSA) and the Risk Management Agency 

(RMA) in the farm programs they administer. ClMS provides access for over 12,000 

users to a single source of RMA and FSA program information. The next stage of 

information sharing is now underway with the Acreage/Crop Reporting Streamlining 

Initiative (ACRSI). The goal of this program is to establish a common USDA framework 

for producer commodity reporting and establish common data standards used for 

producer commodity reporting. These two programs will facilitate 'one stop' reporting 

of producer information and greater sharing of data among government agencies. These 

efforts should save time and money for the government, producers and companies by 

reducing reporting and data management burdens. 

As a farmer myself, I have seen how our farm programs have grown in size and 

complexity over the years. If confirmed, I look forward to working with you on how we 

can continue to move in the direction of a better, more efficient USDA to serve all 

farmers and ranchers. If additional authority is required to achieve these goals, I look 

forward to working with you as needed. 

4) Mr. Scuse, the Conservation Reserve Program has been a primary component of the 

Conservation title for over 25 years. I support providing producers options through the 

conservation title programs, for example, some need financial and technical assistance to 

address regulatory burdens and their go-to is EQIP, but others have land that is not appropriate 

for production and CRP is the best option to protect the soil heath and wildlife habitat. In 

Kansas, we are facing an extreme drought and I am concerned about the amount of acres that 

will expire from CRP in Kansas and some of our neighboring "dust bowl" states. What are your 

thoughts on the future of CRP and the potential for a general sign-up this year (FY 2012)? 

A: The Secretary has not made a final decision to conduct a general signup for the 

Conservation Reserve Program (CRP) this fiscal year. Approximately 6.5 million acres of 

land enrolled in CRP are set to expire at the end of this fiscal year. 
85 


75118.055

CRP is a cost-effective means to protect our most highly erodible lands, protect ground 

and surface water, and to provide critical habitat for wildlife. CRP land has significantly 

contributed to the reduction of soil erosion in the Dust Bowl region. 

Moving forward, we must continue targeting CRP funding to the most environmentally 

sensitive land to ensure the best value for the taxpayer. 

5) USDA FSIS recently announced new verification requirements to ensure control of E.coli 

0157:H7 and six additional serotypes of E.coli called non-STECs for beef. I support the 

establishment of realistic food safety policies designed to protect public health to the maximum 

extent possible. However, I am concerned about the lack of sound science to support this new 

policy. We have seen in the past where similar policies have impacted our relationships with 

our trading partners and our ability to export when we stray from the path of sound science. 

One recent example of this is the legal challenge we are now facing with implementation of 

Country of Origin Labeling (COOL). Before any future policies or rules are imposed on our beef 

industry, it is incumbent upon this agency to ensure those policies or rules are justified by a 

sound science-based risk analysiS and evidence that there is a real danger to public health from 

these non-STECs. This is not only important for the US economy, but also mandated by the 

WTO Agreement on Sanitary and Phytosanitary Measures, which requires that trade-restrictive 

food safety rules be based on sound science and on reasonable and transparent risk 

assessment. 

What measure has the Department taken to ensure these goals are being achieved, specifically 

that WTO requirements are satisfied under this new policy? 

To what extent have FAS, USTR, and our trading partners been made aware of this policy, and 

have had an opportunity to participate in the policy process? 

A: On September 13, 2011, USDA's Food Safety and Inspection Service (FSIS) announced 

that six additional E. coli serotypes would be considered adulterants in non-intact raw 

beef. Comments are being accepted on this rule until December 21, 2011. 

USDA has worked closely with USTR during this announcement process. 

Further, as part of the public notification process, FSIS conducted a public 

teleconference in which representatives from Canada, New Zealand, and Australia 

participated and offered comments. We also sent a letter to those trade partners 

eligible to export beef products to the United States on October 24, 2011, to advise 

them of the FSIS policy and solicit comments. 

If confirmed, I would welcome the opportunity to meet and discuss this issue with you 

further. 
86 


75118.056

Senator Sherrod Brown 

1) Mr. Scuse, during the last farm bill, I worked with my colleagues to create the Average Crop 

Revenue Election Program (ACRE). While the final legislative product was substantially 

different from what I originally proposed, many of the concerns about ACRE had to do with how 

the program was implemented here in D.C. and explained out in the field. As this Committee 

works on the next farm bill, program administration and ease-of-use are paramount. Would 

you please discuss some of the problems the USDA encountered in implementing ACRE and 

highlight some of the key issues that Congress could address in the next farm bill that would 

make ACRE, or any similar program, easier for producers to understand and for the FSA to 

administer? Along these lines, I'd like to ask for your commitment to working closely with 

Congress to make sure the next generation of farm programs is written with ease of use and 

program administration in mind. Will you work with us on this? 

A: Thank you for your question, Senator. 

USDA encountered several issues while implementing the Average Crop Revenue 

Election (ACRE) program: 

Complexity of the program: Explaining a revenue-based program to 

producers who had never been exposed to a Farm Service Agency (FSA) program 

that required revenue triggers at the State and individual levels made 

implementation very difficult in such a short period of time. 

Determining triggers at the farm level: Requiring a farm trigger to be met 

meant that producers were required to furnish production certifications to their 

County Office. Producers had not been required to furnish production 

certification to FSA for production programs since the mid-1980s. Furthermore, 

producers in the initial year of participation in the program were required to 

produce six years-worth of production certifications. For many producers, this 

was a significant challenge. 

Irrevocability of ACRE: The statute required that farms that elected ACRE 

were enrolled in the program for the life of the Farm Bill. Many producers 

choose not to participate in ACRE because of that requirement. 

Software: As programs become increasingly complex, it is important to 

note the challenge involved in designing, developing, and testing new software 

quickly. 

If confirmed, it would be my pleasure to provide you and your colleagues any technical 

assistance or resources that you might need as you develop the next farm bill. 

2) Mr. Scuse, in September I joined Senator Diane Feinstein and several other colleagues in 

sending a letter to the Secretary regarding implementation of Section 1604 of the 2008 farm bill 

which, in addition to setting income eligibility caps for farm programs, directed the USDA to 
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conduct audits to verify that producers whose income exceeds these caps do not receive 

federal payments. We received a response to this letter yesterday and I am in the process of 

reviewing it, but it is clear that we must ensure that farm program payments go only towards 

eligible producers is a top priority. To do 50 requires the full cooperation of the USDA. Will you 

work constructively with me and my colleagues in the coming months and in the 2012 farm bill 

on this issue? 

A: If confirmed, it would be my pleasure to work with you and y~ur colleagues on this 

important issue. 

Senator Saxby Chambliss 

1} Will you promise to work for all of agriculture and be responsive to all Members of Congress 

no matter their party affiliation? 

A: If confirmed, it would be my pleasure and honor to work with and to be responsive to 

you and all of your colleagues in the House and Senate. 

2} It brings me comfort to see someone at the end of the table who I know will be an advocate 

for America's farmers and ranchers. I appreciate that you have experience in production 

agriculture. 

However, you have some rather large shoes to fill. Jim Miller's hands-on farm experience, his 

leadership roles in the agricultural community, and his advisory role to my good friend Kent 

Conrad served him very well while he was at USDA. I know Jim has experienced the effects of 

the Executive Branch failing to implement policies as intended by Congress, and you probably 

know that this does nothing to build positive working relationships between the Congress, the 

Administration, and farm groups. 

Will you work to assist Congress on technical matters related to the drafting of the farm bill and 

assure this committee that you will implement the farm bill fairly, expeditiously, and consistent 

with Congressional intent? And if intent is unclear to you, will you seek the guidance of the 

authorizing committees? 

A: If confirmed, I commit to provide you and your colleagues any assistance on technical 

matters that you may require, that I will work with you to implement the next farm bill 

fairly, expeditiously, and in keeping with Congressional intent, and seek instruction on 

that intent when it is unclear. 

3} The 2002 Farm Bill established criteria for determining the USDA peanut posted price which 

is announced each Tuesday afternoon. This process has been controversial since the '02 bill. 

The language continued in the 2008 Farm Bill. During the 2012 Farm Bill process this fali, we 
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again differed with USDA as to how best to determine peanut prices. The Department has 

insisted on relying on NASS data for peanut price determinations. 

Peanuts are too small for a futures market. How USDA determines peanut prices will be critical 

in the next farm bill. The University of Georgia's National Center for Peanut Competitiveness 

has determined that the Rotterdam price is a much better indication of world peanut market 

prices than the NASS data used by USDA. NASS data relies on early market contracts which do 

not reflect what is occurring in the peanut marketplace for that year. The International Trade 

Commission and our own U.S. trade negotiators relied on Rotterdam peanut prices during the 

GATT negotiations. 

Will you work with me and the peanut industry to assure that USDA is using the best market 

data and world market prices for determining peanut prices? 

A: Thank you for your question. If confirmed, I would be happy to work with you and 

the peanut industry on this important issue as Congress develops the next farm bill and 

to make any technical assistance or resources available to you and your staff. 

Senator John Thune 

1) Mr. Scuse, as we prepare to draft a new Farm Bill we can assume there will be changes to 

existing programs and possibly even some new programs. As with any Farm Bill 

implementation is almost as important as the Farm Bill itself. What will be the biggest 

challenges in implementing the 2012 Farm Bill, and what do you expect to be done differently 

to improve and quicken the implementation process? 

A: Thank you for your question. One of the biggest challenges with implementing a new 

bill will be working within a new budget reality that involves reduced administrative 

resources. However, one of the most important improvements we are working towards 

now will be the addition of the Modernize and Innovate the Delivery of Agricultural 

Systems (MIDAS) project to the farm bill implementation process. MIDAS is our IT 

modernization project that has been designed to be flexible and efficient at 

incorporating new programs and structures. 

2) Can you give us a very brief update on the status of the MIDAS IT project - what is completed 

and what needs to be done? 

A: In late 2011, the MIDAS Program completed the initial planning phase. In December 

2011, we moved into the design phase of the program. The design phase will be 

followed by initial deployment later in 2012, with ensuing deployments in 2013. 

3) I think everyone in this room on and those of us on this Committee are aware of the 

importance of crop insurance to agriculture in today's world, and we know that the Secretary 
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and the Administrator of the Risk Management Agency (RMA), have considerable 

administrative authority to make changes to crop insurance. 

What notification methodology is in place at FFAS to make Agriculture Committee members 

aware of potential changes to crop insurance? 

And the second part of my question - regardless of what is currently in place, are you willing to 

commit to us now that we will be notified of any administrative changes to crop insurance that 

impact the agriculture producers in our states? 

A: Thank you for your question, Senator. Our congressional affairs liaisons are 

responsible for providing notice to you and your colleagues when the Department 

makes announcements regarding the crop insurance program. If confirmed, I commit to 

you to keep an open dialogue and to work to make sure you, your colleagues, and staff 

receive information in a timely fashion. 
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Senate Committee on Agriculture, Nutrition & Forestry 

Nomination Hearing 

December 15, 2011 

Questions for the Record 

Dr. Bruce Sherrick 

Senator Pat Roberts 

1.) Can you identify any potential conflicts of interest between your role as a Presidentiallyappointed Farmer Mac director and the financial interests of Farmer Mac 

shareholders? How will you handle such conflicts? 

I do not foresee potential conflicts of interests beyond the natural tensions that will 

arise between programs that may have non-financial objectives and those that are more 

motivated by direct financial gains. I think sound lending practices have to be applied in 

every case, but that GSE status also provides an ability and obligation to provide 

constructive lending services that promote rural development that other lending 

systems may not have the capacity to supply. I will work to the best of my ability to 

represent both sound economic and lending principals while furthering the objectives of 

the Federal Agricultural Mortgage Corporation and its congressionally mandated 

mission. 

2.) In 2008, Farmer Mac's financial condition deteriorated to the point it required a major 

capital infusion from its shareholders to avoid falling below minimum regulatory capital 

levels. If you are confirmed, what steps will you take to avoid this circumstance 

recurring? 

Importantly, the primary causes of the large losses originated in non-program areas. 

think it is especially important to develop sound guidelines on both program exposure 

limits, and perhaps more importantly, on the investment activities to limit this potential 

exposure in the future. 

3.} Farmer Mac's hybrid government-sponsored enterprise (GSE) model combines publiclytraded stock with a legislatively-mandated mission in the same way Freddie Mac and 

Fannie Mae did prior to being taken over by the government. What steps can you take 

as a board member to ensure the constant pressure to increase profits that results from 

reliance on publicly-traded stock will not push Farmer Mac to take on more risk in the 

way Fannie and Freddie did? 

The presidential appointees perhaps have a greater obligation to represent the balance 

between taxpayer interests and financial viability of the organization. The origination 

conduits have different characteristics than did the home mortgage channels that led to 

the recent crisis, but the potential forces are similar. As a Boardmember, I will work to 

insure that meaningful shared oversight of the exposure to substandard or poorly 

underwritten loans would be minimized. 
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4.) Similarly, Government Accountability Office (GAO) studies have demonstrated the 

public stock model at Fannie Mae and Freddie Mac resulted in maximizing benefits to 

shareholders while transferring the ultimate risk to taxpayers. How can you as a Farmer 

Mac board member ensure this does not occur at Farmer Mac? 

It is a complicated balance that exists in the private public partnership. In the case of 

Farmer Mac, it appears to me that the essential ownership by those that also originate 

much of the loan volume will help avoid the same fate that befell Freddie and Fannie, 

but it remains an important feature to monitor and control. I will help insure that active 

pursuit of the mission remains the key driving force while a member of the Board rather 

than direct financial response to equity holders alone. 

Senator Saxby Chambliss 

1. What are your views about the benefits of a secondary market for agriculture 

mortgages and rural utility loans? 

I believe that a well-functioning secondary market is exceedingly valuable and provides 

great benefits to the ultimate users of loans through accurate and efficient pooling and 

priCing of risks. The "bankability" of certain types of loans is improved if pooled and 

held in a form where there is the ability to insure the payments of the loans in order to 

improve the underlying funding costs. These improved costs do translate to borrower 

benefits. 

Z. The board of Farmer Mac is composed of directors elected by class A and class B 

stockholders along with presidentially appointed directors. Please describe the 

advantages and disadvantages of this board composition. 

The design of the Board provides some check and balance potential, and helps provide 

some independence that can be valuable for the presidentially appointed directors in 

particular. The potential drawback that could be argued would be the potential conflict 

in incentives that could arise if public objectives differed from private objectives. 

3. Farmer Mac was created to provide liquidity to lenders and a secondary market for 

agricultural mortgage loans, rural utility, rural housing and certain USDA-guaranteed 

loans. Do you believe Farmer Mac is accomplishing what it was set out to do by 

Congress? 

I believe that in the large, that Farmer Mac has performed well given the economic 

circumstances surrounding its early and mid life experiences. The initial design I believe, 

was well conceived, the need for liquidity services by the Farm Credit System and Banks 

did not peak at the same time that Farmer Mac got its new authorities, so there remains 

room for continued growth and pursuit of those objectives. I intend to work toward 

furthering the goals set for Farmer Mac with my service on the Board. 
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Senator John Thune 

1. According to Iowa State University and others the value of Iowa farmland jumped 32.S 

percent in 2011 and cropland in the Northern Plains and Minnesota was up 26 percent. 

I've read about farmland sales as high as $20,000 per acre. 

As a Member of the Board of Directors at Farmer Mac, what can the agriculture real 

estate lending community do to keep itself stabilized if and when agriculture real estate 

prices take a downturn? 

Among the important tasks would be to keep lending standards conservative relative to 

current land values. As many of the financial institutions have begun dOing, 

underwriting standards perhaps cannot fully "follow" the land market upward. Effective 

capitalization is key to withstanding the potential downturns, and development of 

suitable stress testing is also key. Both are activities I will support with service on the 

Board of Directors. 

2. What is your opinion of the current operating policies of Farmer Mac? 

I have been able to observe Farmer Mac from the outside, and from a regulatory 

perspective, and I do not observe any obvious violations of good practices, and do 

believe they have attempted to comply with all regulations and requirements. I do think 

it is critical to continually review and strive to improve internal practices to conform 

with best management practices through time. 

3. Do you anticipate that any changes need to be made to reflect the dramatic changes 

that have occurred in agriculture the past few years? 

In addition to dramatic changes in agriculture to which Farmer Mac will have to 

respond, there have also been dramatic changes in financial services industries as well. I 

think capitalization of risk will always be key, and the development of appropriate 

financial products to be able to continue to offer constructive financing for agriculture 

and rural businesses and communities will require continuing evolution of the products 

and services offered by Farmer Mac. 

o