U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

For sale by the Superintendent of Documents, U.S. Government Printing Office

Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800

Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001

89–215 PDF 2003

S. HRG. 108–112

NOMINATION HEARING TO THE

BOARD OF DIRECTORS FEDERAL AGRICULTURAL

MORTGAGE CORPORATION

HEARING

BEFORE THE

COMMITTEE ON AGRICULTURE, 

NUTRITION, AND FORESTRY

UNITED STATES SENATE

ONE HUNDRED EIGHTH CONGRESS

FIRST SESSION

MAY 15, 2003

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

THAD COCHRAN, Mississippi, Chairman 

RICHARD G. LUGAR, Indiana 

MITCH MCCONNELL, Kentucky 

PAT ROBERTS, Kansas 

PETER G. FITZGERALD, Illinois 

SAXBY CHAMBLISS, Georgia 

NORM COLEMAN, Minnesota 

MICHEAL D. CRAPO, Idaho 

JAMES M. TALENT, Missouri 

ELIZABETH DOLE, North Carolina 

CHARLES E. GRASSLEY, Iowa 

TOM HARKIN, Iowa 

PATRICK J. LEAHY, Vermont 

KENT CONRAD, North Dakota 

THOMAS A. DASCHLE, South Dakota 

MAX BAUCUS, Montana 

BLANCHE L. LINCOLN, Arkansas 

ZELL MILLER, Georgia 

DEBBIE A. STABENOW, Michigan 

E. BENJAMIN NELSON, Nebraska 

MARK DAYTON, Minnesota

HUNT SHIPMAN, Majority Staff Director 

DAVID L. JOHNSON, Majority Chief Counsel 

LANCE KOTSCHWAR, Majority General Counsel 

ROBERT E. STURM, Chief Clerk 

MARK HALVERSON, Minority Staff Director 

(II) 

(III)

C O N T E N T S 

Page

HEARING(S):

Nomination Hearing to the Board of Directors Federal Agricultural Mortgage 

Corporation ........................................................................................................... 01

Thursday, May 15, 2003

STATEMENTS PRESENTED BY SENATORS 

Cochran, Hon. Thad, a U.S. Senator from Mississippi, Chairman, Committee 

on Agriculture, Nutrition, and Forestry ............................................................. 01

WITNESSES 

Bartling, Julia, Burke, South Dakota, to be a Member of the Board of

Directors of the Federal Agricultural Mortgage Corporation ........................... 02

Junkins, Lowell, Donnelson, Iowa, to be a Member of the Board of Directors 

of the Federal Agricultural Mortgage Corporation ........................................... 02

Klippenstein, Glen, Osborn, Missouri, to be a Member of the Board of

Directors of the Federal Agricultural Mortgage Corporation ........................... 03

APPENDIX 

PREPARED STATEMENTS: 

Bond, Hon. Christopher ................................................................................... 10

Daschle, Hon. Thomas ...................................................................................... 11

Klippenstein, Glen ............................................................................................ 14

Talent, Hon. James .......................................................................................... 12

DOCUMENT(S) SUBMITTED FOR THE RECORD: 

Bartling, Julia (Biographical Information) ..................................................... 18

Junkins, Lowell (Biographical Information) ................................................... 22

Klippenstein, Glen (Biographical Information) .............................................. 29

(1)

NOMINATIONS HEARING TO THE BOARD OF 

DIRECTORS, FEDERAL AGRICULTURAL 

MORTGAGE CORPORATION 

THURSDAY, MAY 15, 2003

U.S. SENATE, 

COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY, 

Washington, DC. 

The committee met, pursuant to notice, at 11:20 a.m., in room 

S146-A, United States Capitol, Hon. Chad Cochran, [Chairman of 

the Committee], presiding. 

Present: Senators Cochran, Talent, Dole, Harkin, and Daschle. 

STATEMENT OF HON. THAD COCHRAN, A U.S. SENATOR FROM 

MISSISSIPPI, CHAIRMAN, COMMITTEE ON AGRICULTURE, 

NUTRITION, AND FORESTRY 

The CHAIRMAN. The committee will please come to order. 

We are pleased today to convene a meeting of our Committee on 

Agriculture for the purpose of reviewing nominations to the Federal Agricultural Mortgage Corporation. The three nominees are 

Lowell Junkins of Iowa, who is being reappointed to the Board; 

Julia Bartling of South Dakota, who is to be a new member of the 

Board; and Glen Klippenstein of Missouri, who is also nominated 

to be a new member of the Board. 

The committee is required to administer an oath to all nominees 

before commencing the hearing on your nominations, so if you will 

please stand and raise your right hand. 

[Nominees sworn.] 

Thank you. You may be seated. 

I know Senator Dole had come to the meeting earlier and is probably voting upstairs again, as we are conducting a series of roll call 

votes, as you already know. Senators may come and go, and some 

may be unable to attend the hearing because of those votes that 

are going on. 

There are statements that have been given to me for the record. 

Senator Bond has advised us he will not be able to attend the hearing to introduce Mr. Klippenstein, but he has submitted a statement and would like it entered into the record. 

[The prepared statement of Senator Bond can be found in the appendix on page 10.] 

The CHAIRMAN. Senator Daschle has also indicated that he has 

a statement in introducing Ms. Bartling, and that statement will 

be included in the record as well. 

2

[The prepared statement of Senator Daschle can be found in the 

appendix on page 11.] 

The CHAIRMAN. Let me ask each of you if you can agree that you 

will appear before any duly constituted committee of Congress, if 

asked to appear? 

Mr. KLIPPENSTEIN. Yes, sir. 

Mr. JUNKINS. Yes sir. 

Ms. BARTLING. Yes, sir. 

The CHAIRMAN. The statute that created Farmer Mac—and I’m 

not sure we need to call it that, but the ‘‘Board’’ is what I prefer 

to call it—the Board, requires that at least two of the Presidential 

nominees to the Board be experienced in farming and ranching. We 

are pleased to note today that all three of the nominees before the 

committee have some agricultural experience. 

Let me start with Ms. Bartling and ask you to tell the committee 

what your background and experience is that will be helpful to you 

in carrying out your duties as a member of this Board. 

STATEMENT OF JULIA BARTLING, BURKE, SOUTH DAKOTA, TO 

BE A MEMBER OF THE BOARD OF DIRECTORS OF THE

FEDERAL AGRICULTURAL MORTGAGE CORPORATION 

Ms. BARTLING. Thank you, Senator. 

My background, I was born and raised on a farm in South Dakota, south-central South Dakota. I continue to work with my husband in farming and ranching for those years. My husband and I 

also own an ag-related business, a feeding and grain business and 

a trucking operation. We deal strictly with agriculture. We haul 

livestock grain, feed commodities, et cetera, in our area and the 

upper Midwest. My background is not only in helping my parents 

growing up in South Dakota, but with my husband. 

I am very familiar with the struggles of agriculture, as well as 

the good times in agriculture. 

I am also an elected State Representative in the State of South 

Dakota, from District 21 now. I serve on the appropriations committee, as well as I am a delegate from South Dakota for a 2-year 

period to the National Conference of State Legislators Budgets and 

Reviews. In South Dakota, agriculture is our No. 1 industry and we 

are very concerned about the survival of it in our State. I do feel 

that my background, personally as well as professionally, will aid 

me in my serving on this board. 

Thank you, sir. 

The CHAIRMAN. Thank you. 

Mr. Junkins, you heard the question that I raised. What is your 

response about your background or experience that, in your judgment, would be helpful to you as you serve as a member of this 

Board? 

STATEMENT OF LOWELL JUNKINS, DONNELLSON, IOWA, TO 

BE A MEMBER OF THE BOARD OF DIRECTORS OF THE

FEDERAL AGRICULTURAL MORTGAGE CORPORATION 

Mr. JUNKINS. Mr. Chairman, my father and I started in the midsixties in the machinery business, growing up in a small community of about 800 people in southeastern rural Iowa. My initial connection, of course, was to come from a small community, which was 

3

an agriculture community, and then working in the machinery, 

equipment, trucking, tractor business. From that, we ended up in 

partnerships with the farm and we’ve been farming since the early 

eighties. 

From 1973 until 1985, I served in the Iowa Senate. I served as 

the Minority Leader as well as the Majority Leader. Mixing the 

ability for us to have some sense of how the public side of the equation works, and the interest that you all and others might have, 

being able to relate to the kinds of challenges that you have, and 

mixing that with the business side of what we do with farmers and 

ranchers and having the experience, as both a farmer in this particular case as well as a business person in the farming area are 

the strengths that we bring to the company. Thank you. 

The CHAIRMAN. Mr. Klippenstein, you heard my question of Ms. 

Bartling and Mr. Junkins. What is your response in your case? 

STATEMENT OF GLEN KLIPPENSTEIN, OSBORN, MISSOURI, TO 

BE A MEMBER OF THE BOARD OF DIRECTORS OF THE

FEDERAL AGRICULTURAL MORTGAGE CORPORATION 

Mr. KLIPPENSTEIN. My response is that I’ve been at it longer 

than these people, as you can tell. 

I started in Saskatchewan, Canada, and from the first time that 

I saw a calf wag its tail when I was giving it milk, I was hooked 

on livestock and cattle. Then we subsequently moved to Pennsylvania for educational purposes and farmed there—my parents did. 

I went to Penn State University and majored in animal science, 

was on livestock judging teams, and all kinds of extracurricular activities and was chairman of several committees. Those kinds of 

things I was drawn to. 

Then we moved to Missouri and started a seed stock operation. 

I raised Hereford and Angus bulls, and sold about 7,000 bulls over 

the years. A lot of bulls. 

Among other things, the Dixie National in Jackson, MS was one 

of my favorite places—well, it was my favorite place because I won 

more championships there and dug more gold out of those hills 

than I did anywhere else. I’m appreciative, sir. 

Then, after selling bulls, semen and frozen embryos to lots of 

countries in the world, and every State, it’s been an extraordinary 

ride, really. We’re cutting down on our farming and ranching activities now. I’m terribly passionate about it and all the energy I’ve 

given it, being a State Senator in Missouri was partially in order 

to promote, in my view, agriculture, although I always felt safer, 

better, behind the tail of a cow than I did behind the tail of a...yes. 

[Laughter.] 

At any rate, it is a passion of mine and I believe that this instrument that we commonly call Farmer Mac, the Federal Ag Mortgage 

Corporation, can be another instrument to help in ways to, if not 

reestablish, but certainly to keep rural America more healthy. 

That’s what my purpose is for having assumed, hopefully, this task. 

The CHAIRMAN. The major reasons for the creation of Farmer 

Mac were to free up rural capital and make credit more available 

and less costly. 

Do you think Farmer Mac has had that effect, and if so, to what 

extent? 

4

Mr. KLIPPENSTEIN. That’s something that I don’t know if I could 

quantify, but yes. You know, it’s amazing to me, when you do 

math, as a statistician, how much a little can do sometimes. The 

dollar loaned by Farmer Mac are relatively little compared to the 

whole, but it impacts in an almost exponential way. I would say 

the positive impact has been greater than what might initially 

meet the eye, when you just look at the raw figures. 

The CHAIRMAN. Mr. Junkins, what’s your reaction to that question? 

Mr. JUNKINS. Mr. Chairman, I believe it has served a purpose 

and continues to serve a purpose. There will be peaks and valleys 

as to the value of instruments like Farmer Mac, depending upon 

what the overall economy looks like. Even during the times when 

we’ve had reduced interest rates, thereby the margins being narrower, clearly, and maybe not as much pressure on competition to 

keep their rates low, it’s ultimately what is going to benefit farmers 

and ranchers. 

Farmer Mac provides that kind of competition in the system that 

allows you to have rates that are available in the secondary market 

that will beat or exceed rates that financial institutions might find 

in other places. On a competitive basis, it clearly is having an impact. 

If we begin to see those rates creep back up, as everybody feels 

they’ve got to go north at some point, the value of Farmer Mac increases during those periods of time, because those margins will 

obviously be greater and there will be a better incentive for people 

to either utilize Farmer Mac or Farmer Mac being in the system 

and creating competition that tends to hold down rates to farmers 

and ranchers. 

The CHAIRMAN. Ms. Bartling, you have a chance to respond to 

that question as well. 

Ms. BARTLING. Thank you, Senator. 

Well, it’s very difficult to followup on two excellent answers because they basically said what we all feel. Farmer Mac has been 

there and are very strong advocates in aiding the farming and 

ranching communities across the country. 

I do feel that, especially in our small town banks across the country, they are another source that they can go to to assist in finding 

financial aid for farmers and ranchers as they continue to struggle 

and reach for those opportunities to grow. I do believe that Farmer 

Mac has been strong, and I do believe it will continue to be strong 

in light of our economy and in looking at our economy. 

The CHAIRMAN. There are 15 members of the Farmer Mac Board. 

Five are selected by financial institutions, five are selected by the 

Farm Credit System, and five are nominated by the President. According to the statute, the five Presidential nominees are to be representatives of the general public. 

How do you view your responsibilities as a Board member and 

how would you try to represent the general public? I’ll ask you 

that, Ms. Bartling. 

Ms. BARTLING. Thank you, Senator. 

As a Presidential nominee, I believe, as you have just stated, the 

duties to represent the public are the primary interests and goals 

of those individuals. As a nominee, working not only in private inVerDate 0ct 09 2002 10:47 Sep 15, 2003 Jkt 089215 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 C:\DOCS\89215.TXT SAG1 PsN: TOSH
5

dustry for the years that I have, but also in the public eye, I know 

that that is going to be a very important aspect. I certainly will be 

available to help in any way that I can and bring forth the concerns from the small farmers and ranchers across the country that 

have interests and concerns in bring their support to the Board. 

The CHAIRMAN. Mr. Junkins, do you feel that you’re qualified to 

represent the interests of the general public? 

Mr. JUNKINS. If I didn’t believe it, I would tell you ‘‘yes’’ anyway. 

[Laughter.] 

I happen to believe it, so there’s no problem. 

My experience in Farmer Mac has really allowed me to make me 

feel better about answering this question today than I did five or 

6 years ago. Congress was very insightful when they mixed the 

various players as they put together the Farmer Mac Corporation. 

A lot of expertise comes out of the Farm Credit System, a lot of 

expertise comes out of the private side. Yet, at the same time, this 

GSE was put together by Congress to serve the public, not necessarily to serve those other two entities or the representatives 

from those entities. By putting five public members who, frankly, 

don’t bring in most instances a lot of the financial skills, it really 

allows us to bring, I believe, the perspective that Congress intended. That is the perspective of feeling that we understand what 

you all meant in passing the statute, what you are attempting to 

accomplish. That’s the strongest value that we, as public members, 

can bring to the Corporation, that our perspective is necessarily 

that of a broader interest, of a farmer, of a rancher, and not necessarily being tied into how do you run the day-to-day banking 

business of America. 

I have seen the other public members that I’ve served with, and 

I would like to believe that we contributed immensely toward conversations within the Corporation that really brought an added discussion, a broader discussion, about Farmer Mac, where it’s going 

and what it’s doing, than would have been otherwise the case if 

there wasn’t the public membership. I believe we have contributed 

to that and we look forward to continuing to do that, Mr. Chairman. 

The CHAIRMAN. Mr. Klippenstein, do you feel that you’re qualified to represent the interests of the general public? 

Mr. KLIPPENSTEIN. Well, Mr. Chairman, I would respond that 

we’re the public, all of us are the public, and if agriculture succeeds 

well, the rest of the public does as well. With this instrument we 

call Farmer Mac, if we’re diligent to make sure that it stays 

healthy, then those who are the direct recipients of the potential 

benefits of Farmer Mac will be healthy, and then so will, to a 

greater extent, America. Yes, I believe I’m qualified to represent 

the public’s interests. 

The CHAIRMAN. I don’t have any further questions. There may be 

questions that other Senators may have. We have another vote 

that is now in the final stages on the floor of the Senate. I’m going 

to go vote, and we will keep the committee in session pending the 

arrival of other Senators. I will be right back. Until then, we will 

suspend the hearing. 

[Recess.] 

6

Senator HARKIN. I again want to welcome all the nominees to the 

committee. I’m impressed with the group that we have assembled: 

an owner of a feed and grain business, feed and cattle industry, a 

former State Senator and economic development specialist, whom 

I have known for 20-some years now. Again, this represents the 

broad constituency that Farmer Mac serves. 

Farmer Mac provides important services in increasing the liquidity of farm and rural business loans. In simplest terms, Farmer 

Mac purchases these rural loans from rural lenders and the replenish the rural lenders’ ability to lend to others. 

Our rural financial infrastructure has come to rely on this service, so it is vitally important that Farmer Mac have a well-qualified 

and effective Board so that the institution needs help. I know that 

we on this committee take seriously the need to make sure the 

Board members of Farmer Mac are qualified to serving on the governing board of this important institution. I welcome you all here. 

I was going to introduce Lowell Junkins, but since you’ve already 

met him, I will not introduce him again. My good friend, Lowell 

Junkins, has been renominated to the Farmer Mac Board. He 

served in this position since 1996. He also served the State of Iowa 

in a number of capacities, as city council member, mayor of 

Montrose, IA, State Senator for 12 years, distinguished himself in 

the State Senate, and is now involved in economic development in 

Lee County down in southeast Iowa. 

Given his broad experience, Lowell understands how important 

institutions like Farmer Mac are to rural communities. With the 

challenges that rural America faces, it needs a healthy credit sector 

to help fuel its development. I am glad that Lowell has agreed to 

continue to utilize his experience in this very important position. 

I’m really glad he decided to serve. 

Thank you very much. 

The CHAIRMAN. Senator, do you have any questions at all of the 

witnesses? I have asked questions of each witness and they’ve answer them very well. 

If you have questions, please proceed. 

Senator HARKIN. If you’re satisfied, I’m satisfied. 

[Laughter.] 

I don’t think I have any more. Certainly you’ve asked questions 

about Farmer Mac and, with that, I don’t know that I need to go 

through any more. As I said, I have looked at all the resumes, and 

for the people I don’t know, I have read their backgrounds and it 

looks as if they’re very well qualified to serve and will bring good 

expertise to this Board. I don’t think I have any questions. 

The CHAIRMAN. I understand that Senator Talent had planned to 

present a statement in support of the nomination of Mr. 

Klippenstein. That will, of course, be printed in the record. 

[The prepared statement of Senator Talent can be found in the 

appendix on page 12.] 

[The prepared statement of Mr. Klippenstein can be found in the 

appendix on page 14.] 

The CHAIRMAN. Any other statements of Senators, or members of 

the committee, will be printed in the record. If they have questions 

to submit for the record, we hope you will respond to them within 

a reasonable time. 

7

If you have any additional material or statements that you would 

like to put in the record, you’re welcome to submit those for the 

record as well. 

If there are no other questions of the witnesses, this will conclude the hearing. 

The CHAIRMAN. We appreciate very much your cooperation with 

our committee, and your patience this morning during this difficult 

period of scheduling and changing the locations for the hearing and 

all the rest that we’ve all had to deal with this morning. Thank you 

very much. 

This hearing is adjourned. 

[Whereupon, at 11:45 a.m., the committee adjourned.] 

(9)

A P P E N D I X

MAY 15, 2003

10


89215.001
11


89215.002
12


89215.003
13


89215.004
14


89215.005
15


89215.006
(17)

DOCUMENTS SUBMITTED FOR THE RECORD

MAY 15, 2003

18


89215.007
19


89215.008
20


89215.009
21


89215.010
22


89215.011
23


89215.012
24


89215.013
25


89215.014
26


89215.015
27


89215.016
28


89215.017
29


89215.018
30


89215.019
31


89215.020
32


89215.021
33

Æ


89215.022