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S. HRG. 111–800 

NOMINATION OF JILL LONG THOMPSON 

TO BE A MEMBER OF THE FARM CREDIT 

ADMINISTRATION BOARD, FARM CREDIT 

ADMINISTRATION 

HEARING 

BEFORE THE

COMMITTEE ON AGRICULTURE, 

NUTRITION, AND FORESTRY 

UNITED STATES SENATE 

ONE HUNDRED ELEVENTH CONGRESS 

FIRST SESSION 

NOVEMBER 18, 2009 

Printed for the use of the 

Committee on Agriculture, Nutrition, and Forestry 

( 

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

COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY 

BLANCHE L. LINCOLN, Arkansas, Chairman 

PATRICK J. LEAHY, Vermont 

TOM HARKIN, Iowa 

KENT CONRAD, North Dakota 

MAX BAUCUS, Montana 

DEBBIE STABENOW, Michigan 

E. BENJAMIN NELSON, Nebraska 

SHERROD BROWN, Ohio 

ROBERT CASEY, Jr., Pennsylvania 

AMY KLOBUCHAR, Minnesota 

MICHAEL BENNET, Colorado 

KIRSTEN GILLIBRAND, New York 

SAXBY CHAMBLISS, Georgia 

RICHARD G. LUGAR, Indiana 

THAD COCHRAN, Mississippi 

MITCH MCCONNELL, Kentucky 

PAT ROBERTS, Kansas 

MIKE JOHANNS, Nebraska 

CHARLES GRASSLEY, Iowa 

JOHN THUNE, South Dakota 

JOHN CORNYN, Texas 

ROBERT HOLIFIELD, Majority Staff Director 

JESSICA L. WILLIAMS, Chief Clerk 

MARTHA SCOTT POINDEXTER, Minority Staff Director 

ANNE C. HAZLETT, Minority Chief Counsel 

(II) 

(III) 

C O N T E N T S 

Page 

HEARING(S): 

Nomination of Jill Long Thompson to be a Member of the Farm Credit 

Administration Board, Farm Credit Administration ........................................ 1 

Wednesday, November 18, 2009 

STATEMENTS PRESENTED BY SENATORS 

Lincoln, Hon. Blanche L., U.S. Senator from the State of Arkansas, Chairman, Committe on Agriculture, Nutrition, and Forestry ................................. 1 

Chambliss, Hon. Saxby, U.S. Senator from the State of Georgia ........................ 2 

Luger, Hon. Richard G., U.S. Senator from the State of Indiana ....................... 2 

Witness 

Thompson, Jill Long, Nominee, to be a Member of the Farm Credit Administration Board, Farm Credit Administration ...................................................... 3 

APPENDIX 

PREPARED STATEMENTS: 

Chambliss, Hon. Saxby .................................................................................... 10 

Thompson, Jill Long ......................................................................................... 12 

DOCUMENT(S) SUBMITTED FOR THE RECORD: 

Committee questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Jill Long 

Thompson ...................................................................................................... 16 

Addendum to U.S. Senate Committee on Agriculture, Nutrition, and Forestry Questionnaire for Farm Credit Administration Nominees .............. 37 

Public 5-day letter to Hon. Blanche L. Lincoln, Chairman, Committee 

on Agriculture, Nutrition, and Forestry ...................................................... 39 

(1) 

NOMINATION OF JILL LONG THOMPSON 

TO BE A MEMBER OF THE FARM CREDIT 

ADMINISTRATION BOARD FARM CREDIT 

ADMINISTRATION 

Wednesday, November 18, 2009 

UNITED STATES SENATE, 

COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY, 

Washington, DC 

The committee met, pursuant to notice, at 12:26 p.m., in Room 

106 Dirksen Senate Office Building, Hon. Blanche Lincoln, Chairman of the committee, presiding. 

Present or submitting a statement: Senators Lincoln, Chambliss, 

and Lugar. 

STATEMENT OF HON. BLANCLHE L. LINCOLN, U.S. SENATOR 

FROM THE STATE OF ARKANSAS, CHAIRMAN, COMMITTEE 

ON AGRICULTURE, NUTRITION, AND FORESTRY 

Chairman LINCOLN. We are going to move the committee to the 

consideration of Congresswoman Jill Long Thompson to be a member of the Farm Credit Administration Board. 

Congresswoman, thank you so much for joining us today and 

welcome to the Agriculture Committee. It is great to see you again. 

Thanks for your willingness to continue your long and distinguished career of public service, and I would especially like to commend the commitment you have demonstrated to America’s farmers and ranchers. 

One of the Senate’s key constitutional obligations is to advise 

and give consent on nominations, and we do take this job very seriously, not only because our system of checks and balances is so important, but because the sooner we confirm qualified nominees, the 

sooner they can go to work. 

Congresswoman Long Thompson has demonstrated a true passion for our agriculture sector. She was raised on a family farm. 

She and her husband, Don Thompson, currently share a family 

farm near Argos in Indiana. Congresswoman Long Thompson has 

also selflessly served the public, first as a member of the Common 

Council at Valparaiso, Indiana, then as a member of the United 

States House of Representatives, where she served on the House 

Agriculture Committee, where I remember her from my days on 

the House Agriculture Committee. Finally, she served as the Under 

Secretary for Rural Development at the U.S. Department of Agriculture. 

2 

The Congresswoman’s experience in agriculture and in public 

service will be invaluable in her position as a member of the Board 

of the Farm Credit Administration. The Farm Credit Administration’s role in regulating and evaluating the banks, associations, and 

related entities of the Farm Credit System is crucial to the continued viability and growth in agriculture in rural America. 

The Farm Credit System provides loans to producers, farmowned cooperatives, processors, rural utilities, and so many other 

entities, and it is imperative that the Farm Credit Administration 

continue to ensure that agricultural interests are provided with a 

safe and dependable source of credit. I am pleased that Senator 

Chambliss mentioned that earlier in our hearing and I was glad to 

echo that. As a member of the Board of Directors of the Farm Credit Administration, I know the Congresswoman will undertake her 

responsibilities bearing in mind the key role of FCA and what it 

plays in providing credit to agricultural interests. 

So we look forward to hearing from you, to your statement and 

answers to any questions that we may have. 

I would like to now yield to my Ranking Member, Senator Chambliss. 

STATEMENT OF HON. SAXBY CHAMBLISS, U.S. SENATOR FROM 

THE STATE OF GEORGIA 

Senator CHAMBLISS. Thank you, Madam Chairman, and welcome, 

Ms. Thompson. I will submit my statement to the record, but suffice it to say that Ms. Thompson has been a member of the Hill 

for many, many years and her record speaks for itself. We look forward to moving this process along and I look forward to hearing 

from you today. Thank you. 

[The prepared statement of Senator Chambliss can be found on 

page 10 in the appendix.] 

Chairman LINCOLN. Thank you. 

Senator Lugar. 

STATEMENT OF HON. RICHARD G. LUGAR, U.S. SENATOR 

FROM THE STATE OF INDIANA 

Senator LUGAR. Madam Chairman, thank you for holding this 

very important hearing for the Farm Credit Administration Board 

confirmation. It is a real privilege to welcome back Jill Long 

Thompson to this committee. 

In 1995, I had the distinct privilege of serving as Chairman of 

this committee when we considered Jill Long Thompson for Under 

Secretary of Agriculture for Rural, Economic, and Community Development. In addition to serving as the Under Secretary, Jill 

served also in the House of Representatives, where she represented 

Indiana’s Fourth District from 1989 to 1995. She served ably on the 

House Agriculture Committee and was elected by her peers to lead 

the Congressional Rural Caucus at that time. 

These experiences buttress Jill Long Thompson’s long connection 

to agriculture, formed in her earliest years. She was raised on a 

grain and dairy farm in Whitley County, Indiana, and was an active 4–H member in her youth. Notably, she still serves and lives 

on a farm in Indiana, actually manages her family’s operations. 

3 

In addition to these many accomplishments, Jill has served as 

the CEO of the National Center for Food and Agricultural Policy 

and recently as an adjunct professor at her alma mater, Valparaiso 

University. She also obtained an MBA and a Ph.D. at Indiana University and served on the faculty or as an adjunct professor in 

many of Indiana’s excellent colleges and universities. 

I look forward to hearing her testimony today and I commend the 

President on nominating her to this important Board. 

Chairman LINCOLN. Thank you, Senator Lugar. 

Congresswoman, would you please 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? 

Ms. THOMPSON. Yes. 

Chairman LINCOLN. Secondly, do you agree that, if confirmed, 

you will appear before any duly constituted committee of Congress, 

if asked? 

Ms. THOMPSON. Yes. 

Chairman LINCOLN. Great. Thank you so much. Please proceed 

with your testimony. 

TESTIMONY OF JILL LONG THOMPSON, OF INDIANA, NOMINEE 

TO BE A MEMBER OF THE FARM CREDIT ADMINISTRATION 

BOARD, FARM CREDIT ADMINISTRATION 

Ms. THOMPSON. Chairwoman Lincoln, Ranking Member Chambliss, and members of the committee, it is truly a privilege to appear before you today as President Obama’s nominee to become a 

member of the Board of the Farm Credit Administration. 

I am particularly pleased to appear before my former House colleague, friend, and the first female Chair of the Senate Agriculture 

Committee. Congratulations, Madam Chair. I think that has a good 

ring to it, and if confirmed, I look forward to renewing our association and working with you to the benefit of American agriculture. 

Ranking Member Chambliss, it has always been a privilege to 

work with you. I didn’t get to serve with you in the House, but 

when I served as Under Secretary, I worked with you and your 

staff a great deal on issues very important to the State of Georgia 

and very much appreciate your commitment to agriculture. 

And Senator Lugar, you know you are one of my two favorite 

Senators and I thank you so much for your kind and generous introduction. You make us proud in Indiana every day. You serve not 

just Hoosiers with distinction, you serve this country with distinction. Thank you. It is such an honor that you introduced me here 

today. Thank you very much. 

I also especially thank my husband, who is sitting in the back 

row here today, and thank him for being here with me and for his 

support and commitment to the many things that are important to 

me and particularly American agriculture. 

It is an honor to be selected by President Obama to serve on the 

Board of the Farm Credit Administration. My appreciation for the 

agriculture industry has been life encompassing. From my childhood days on our family farm to those I now share with my husband on our farm near Argos, Indiana, I have a firsthand underVerDate Nov 24 2008 14:14 Jan 20, 2011 Jkt 000000 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 C:\DOCS\62720 MICHA
4 

standing and respect for the millions of individuals who work in 

and for the betterment of American agriculture. 

I hold this nomination close to my heart as a tribute to my commitment and public service to America and to the prosperity of agriculture in the United States. I have had 

the great privilege to serve on the U.S. House Committee on Agriculture as a representative of the Fourth District of Indiana and 

as President Clinton’s Under Secretary for Rural Development in 

the United States Department of Agriculture. Most recently, I 

served as the CEO and Senior Fellow at the National Center for 

Food and Agricultural Policy. And I want to assure you that I will 

use these experiences and the knowledge that I have gained and 

apply them as a Board member of the Farm Credit Administration, 

if I am confirmed to serve. 

The Farm Credit Administration’s role as the Farm Credit System’s safety and soundness regulator is very important for agriculture and rural America. The presence of the Farm Credit System in agricultural lending provides farmers, ranchers, and their 

cooperatives a source of dependable and competitive financing. As 

owners and operators of our own family farming operation, my husband and I know the importance credit availability plays in production agriculture. And so it is the Farm Credit Administration’s duty 

to ensure the system remains safe and sound so that it can serve 

the generations of farmers and ranchers to come. 

Every American is keenly aware of the importance of prudent 

and effective regulation of financial markets. Last year’s near-collapse of Wall Street sent shock waves throughout the world, and 

we are still recovering from the effects. While there were many reasons for the crisis, it could have been at least partly mitigated by 

more effective financial regulatory oversight. 

If confirmed to serve on the FCA Board, I assure this committee 

that I will take my responsibility seriously to be an effective armslength regulator of the Farm Credit System and Farmer Mac. 

Madam Chair, Ranking Member Chambliss, and members of the 

committee, this concludes my statement and I welcome your questions. 

[The prepared statement of Ms. Thompson can be found on page 

12 in the appendix.] 

Chairman LINCOLN. Thank you, Congresswoman. We are delighted you are here and look forward to working with you. 

Just one brief question, and I know certainly with what we have 

seen in Arkansas and surrounding States with the devastation of 

floods in the spring and floods in the fall, and as you and I both 

know, growing up in farm families, there are all kinds of unbelievable vulnerabilities that are beyond the control of our American 

farm families. 

But the Farm Credit System lends to a single industry, agriculture, and it is therefore very vulnerable to the economic volatility and risk in that industry, and since there is an awful lot 

there that they have little control over. And while certainly the 

Farm Credit System remains generally safe and sound, recent adversity in several major commodity groups has caused deterioration 

in a number of the Farm Credit institutions. 

5 

How would you just ensure that the system will be able to withstand such vulnerabilities in the long term and remain safe and 

sound? 

Ms. THOMPSON. Well, I think the legislation that was passed in 

1987, the major reforms of the Farm Credit System, have played 

a key role in keeping the system sound over the last 20-some years. 

Having said that, agriculture, production agriculture, and marketing and value-added, those are industries that are changing all 

the time and it becomes very important for any laws and regulations to be updated. And certainly it is the Congress that determines the direction, but it is the role of the Farm Credit Administration to make sure that you are aware of any challenges or forthcoming challenges when they first begin. If I am privileged to serve 

on this Board, it will be my commitment to ensure that you here 

at the committee have the information you need. 

In addition to that, the Farm Credit Administration conducts 

regular audits, about every 18 months, I believe it is, of the banks 

and associations. In addition to that, there are quarterly reports 

that are compiled. And from those, you can determine if there are 

some issues that need to be addressed, and certainly we will do 

what we have—if I am serving, I will do what I have in my power 

to make sure that those issues get addressed, but also make sure 

that you are among the first to have the information. 

Chairman LINCOLN. Thank you. 

Senator Chambliss. 

Senator CHAMBLISS. Thank you. 

Ms. Thompson, agriculture, though challenged by turmoil as 

every other industry has been by the U.S. economy over the last 

year or so, has weathered pretty well, considering. With your experience in agriculture, accounting, and finance, you have seen the 

ups and downs from a financial standpoint in the area of agriculture. How would you compare this past year’s troubles to what 

agriculture faced in the past, especially during the 1980s credit crisis, and what challenges and opportunities do you see ahead for agriculture? 

Ms. THOMPSON. You could about write a dissertation on that, I 

think. But I do think that there were some very wise decisions 

made by Congress in the late 1980s as things had begun to unfold 

in agriculture and there was such a downturn in commodity prices 

and there were droughts and floods and different issues. And so I 

think that so many of the problems in farm lending, certainly in 

the Farm Credit System, were addressed at that time, and I think 

that that has helped to ensure that the lending on the part of the 

Farm Credit System has truly been to creditworthy borrowers. 

And I also think the changes in policy and regulations have 

helped not just the industry at large, but it has helped individual 

farmers to make better decisions regarding financing of their operations. And I think that because of that, we haven’t seen the widespread kinds of issues that we dealt with in the 1980s. I think it 

is very important to continue to update policy to address problems 

of the future. 

Senator CHAMBLISS. Thank you. Thank you, Madam Chairman. 

Chairman LINCOLN. Senator Lugar. 

6 

Senator LUGAR. Congresswoman Long Thompson, this past year, 

farmers have faced, because of the huge increases in the price of 

fertilizer and seed, a special need for credit. Likewise, however, 

their confidence was undermined by the volatile price of corn and 

soybeans, to take two examples, of soybeans going to $15 and back 

to $8, or corn to $7 and back to $3.50 or so forth. So as a result, 

in the agriculture sector, at least in the Midwest, with which your 

farm and my farm are familiar, this has been an extraordinary period. 

Now, complaints have come that given the problems of local 

banks as they strive for liquidity and safety, that credit has not 

been forthcoming in the manner to which—and even if it was, 

many farmers said, we are beginning this year with fear that we 

may not have a profit, that the expenses up front of the seed and 

fertilizer may exceed whatever we are going to get at the end of 

the trail, if we are on the downside of the commodity markets. 

As you have studied the role that you will play in this, to what 

extent does the Board try to surmise what the lay of the land is 

out there, quite apart from the responsibility of the various institutions, whether they are managed well and whether they are fiscally 

sound? To what extent do you look at markets, do you look at problems of regular farmers who are facing the markets and the credit 

problems? 

Ms. THOMPSON. Well, if I am privileged to serve on the Board of 

Farm Credit Administration, it will be a significant part of my job 

to read what is coming out of the Land Grant Universities, Purdue 

University and others, so that we can always be as effective as we 

can to stay ahead of the curve of those downturns in agriculture, 

or the volatility in agriculture. And I think that having that information is probably the best way that you can effectively regulate 

the banks and the associations that are making the loans and to 

ensure that the loans, in fact, are creditworthy. And that is how 

I will approach this position, if I am privileged to serve. 

Senator LUGAR. Well, that is the view of the future. Now, in taking a look at the past, what is the situation currently in terms of 

defaults by agriculture, either individual farmers or are there 

groups of farmers or what have you? How many people are in arrears and what is—we have been hearing about the disaster with 

the earlier panel today, but how does this stack up in agricultural 

America? 

Ms. THOMPSON. Well, I don’t have the information on lending in 

general, but Farm Credit is a major lender, somewhere, depending 

upon whether it is for real estate or for operation, anywhere from 

about 31 percent, I think, to 39 percent of agriculture lending, depending upon specifically the facet that you are looking at. 

Senator LUGAR. Comes out of your agency, the Farm Credit Administration? 

Ms. THOMPSON. Yes. Yes. And, in fact, the report for the first 

three quarters of 2009, while there are some concerns, the loans 

are, in general, very sound and the system is performing very well. 

Senator LUGAR. Well, that is very salutary information. At least 

as you approach this responsibility, the system appears to be working well, and the question now is to have the foresight to make certain that continues. 

7 

I wish you every success. 

Ms. THOMPSON. Thank you. Thank you. 

Senator LUGAR. Thank you, Madam Chairman. 

Chairman LINCOLN. Thank you, Congresswoman. We all appreciate you being here today and certainly do wish you the best success. 

We would also like to leave the record open if other members of 

the committee might wish to make statements or ask questions or 

anything else, so we will leave it open for five days and that way 

if there are any other questions, we will make sure that we make 

those available to you, obviously, for you to answer. 

Ms. THOMPSON. Thank you. 

Chairman LINCOLN. But we thank you so much for taking time 

to be here, and again look forward to working with you. It is great 

to see you again. 

Ms. THOMPSON. It is great to see you. It is great to see all of you. 

Thank you. 

Chairman LINCOLN. Thank you very much. 

The committee is adjourned. 

[Whereupon, at 12:43 p.m., the committee was adjourned.] 

(9) 

A P P E N D I X 

NOVEMBER 18, 2009 

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