FY 2021 

Performance and 

Accountability 

Report

Farm Credit Administration

Regulator of the Farm Credit System
Mission

The Farm Credit Administration ensures 

that Farm Credit System institutions and 

Farmer Mac are safe, sound, and dependable 

sources of credit and related services for 

all creditworthy and eligible persons in 

agriculture and rural America.
FCA Performance and Accountability Report — 2021 | 1

Contents

Statement of Board Chairman and CEO 4

Management’s Discussion and Analysis 6

FCA at a Glance 7

FCA history 8

FCA funding and governance 8

FCSIC 8

FCA offices 8

Highlights of FCA’s Performance Goals and Results   

Goal 1 highlights  .

Goal 2 highlights  .

Goal 3 highlights  .

Resources to achieve our strategic goals 14

Analyses and Highlights of FCA’s Financial Statements 15

Financial Highlights 15

Program costs and revenues   

Limitations of financial statements 22

Forward-looking analysis 22

Analysis of FCA’s Systems, Controls, and Legal Compliance 23

Strategy for FCA’s financial management system 23

Federal Managers’ Financial Integrity Act  .

Management control program  .

Prompt Payment Act 24

Debt Collection Improvement Act 24

Improper payments 24

Digital Accountability and Transparency Act 25

Inspector General Act 25

Summary of OIG audit, inspection, and evaluation activities 25

Statement of Assurance  .

Program Performance 28

FCA Performance Report 29

Data validation and verification   

Goals 30
2 | FCA Performance and Accountability Report — 2021

Financial Section   

Statement of Chief Financial Officer 51

Transmittal Letter of Auditor’s Report 52

Independent Auditor’s Report 53

Financial Statements   

Balance sheets 59

Statements of net cost 60

Statements of changes in net position 61

Statements of budgetary resources 62

Notes to the financial statements 63

Other Information 74

Letter from Inspector General on FCA’s Management Challenges 75

Management’s Response to Challenges Identified by FCA’s Inspector General . 

Summary of Financial Statement Audit and Management Assurances 88

Payment Integrity Information Act Reporting 89

Background . 

Risk assessments 89

Actions taken to address auditor recovery recommendations   

Civil Monetary Penalty Adjustment for Inflation 90

Additional Information  .

Tables Appearing in Report

Table 1. FY 2021 performance budget versus program costs 14

Table 2. Composition of assets . 

Table 3. Composition of liabilities 17

Table 4. Agency budget  .

Table 5. Funds used by major budget category 19

Table 6. Funds used based on congressional limitation 19

Table 7. 2020 Federal Employee Viewpoint Survey results for employee engagement 41

Table 8a. Goal 1—Performance measures and results for public mission   

Table 8b. Goal 2—Performance measures and results for safety and soundness   

Table 8c. Goal 3—Performance measures and results for workforce management  .

Table 9. Summary of financial statement audit  .

Table 10. Summary of management assurances 88

Table 11. Annual inflation adjustments of civil monetary penalties 90
FCA Performance and Accountability Report — 2021 | 3

List of Figures Appearing in Report

Figure 1: FCA organizational chart as of October 2021.  

Figure 2. Percentage of FY 2021 gross costs by agency goal  .

Figure 3. Percentage of FY 2021 gross revenue by agency goal 20

Figure 4. FY 2021 sources of revenue 21

List of acronyms appearing in report

CAMELS capital, assets, management, earnings, liquidity, and sensitivity

CEO Chief Executive Officer

COO Chief Operating Officer

COVID-19 coronavirus disease 2019

CSRS Civil Service Retirement System

DATA Digital Accountability and Transparency Act

EEO Equal Employment Opportunity 

Farmer Mac Federal Agricultural Mortgage Corporation

FCA Farm Credit Administration

FCS Farm Credit System

FCSIC Farm Credit System Insurance Corporation

FCSBA Farm Credit System Building Association

FERS Federal Employees Retirement System

FFMIA Federal Financial Management Improvement Act

FMFIA Federal Managers’ Financial Integrity Act

FIRS Financial Institution Rating System

FY fiscal year

GAAP generally accepted accounting principles

GAO Government Accountability Office

GSE government-sponsored enterprise

IM informational memorandum

IT information technology

Libor London Interbank Offered Rate

NCB National Consumer Cooperative Bank

OE Office of Examination

ODAE Office of Data Analytics and Economics

OIG Office of Inspector General

OIT Office of Information Technology

OMB U.S. Office of Management and Budget

OPM U.S. Office of Personnel Management

OSMO Office of Secondary Market Oversight

SFFAS Statements of Federal Financial Accounting Standards

USDA United States Department of Agriculture

YBS young, beginning, and small (farmers and ranchers)
4 | FCA Performance and Accountability Report — 2021

Statement of Board Chairman and CEO 

November 10, 2021

As board chairman and CEO of the Farm Credit Administration, I invite you to review our Performance 

and Accountability Report for Fiscal Year 2021. Most of the report covers our activities from Oct. 1, 2020, 

to Sept. 30, 2021. 

In FY 2021, we once again achieved the goals outlined in our strategic plan and met or exceeded almost 

all performance targets. In addition, our financial statements received an unmodified opinion from an 

independent auditor. Based on the results of our internal evaluations, I can assure you that the financial 

and performance information in this report is complete and reliable. We also did not identify any material weaknesses in our internal controls.

FCA is the arm’s length regulator of the Farm Credit System (System) and the Federal Agricultural 

Mortgage Corporation (Farmer Mac). Our mission is to ensure that System institutions and Farmer Mac 

are safe, sound, and dependable sources of credit and related services for all creditworthy and eligible 

persons in agriculture and rural America.

The System holds 43.8% of the nation’s total farm business debt, so it plays a vital role in the health of the 

nation’s agricultural economy. And Farmer Mac, which provides a secondary market for agricultural real 

estate mortgages and rural cooperative loans, enhances the ability of lenders to offer competitive financing to rural borrowers and farmland investors.

Both the System and Farmer Mac are well capitalized and remain financially safe and sound. Together, 

the Farm Credit System banks and associations held $408 billion in assets as of June 30, 2021, up 6.0% 

from the year before. Farmer Mac had program volume of $24.2 billion as of that date, up 1% from the 

year before. Its net worth was $1.2 billion as of that date, up 43% from the year before primarily because 

of preferred stock issuances and higher retained earnings.

Over the past fiscal year, we worked to protect the financial soundness of the System and Farmer Mac 

and to ensure that they continue to fulfill their missions to serve agriculture and rural America. Here are 

some of the ways we accomplished these goals during the reporting period from July 1, 2020, to June 30, 

2021: 

• Examined System institutions and Farmer Mac in accordance with statutory requirements

• Prepared 53 formal reports of examination and 54 interim activity letters

• Created a climate risk task force in partnership with the Farm Credit System Insurance Corporation to 

evaluate any potential risks that climate poses to the Farm Credit System through possible impacts on 

land values, crop productivity, animal health, and rural economies.

• Analyzed and reported on the System’s service to young, beginning, and small farmers and ranchers, 

as well as economic conditions in agriculture and the Farm Credit System

• Issued guidance to System institutions on such topics as the following: 

⸺Making loans through the Paycheck Protection Program

⸺Transitioning away from the London Interbank Offered Rate (LIBOR) 
FCA Performance and Accountability Report — 2021 | 5

⸺Managing challenges associated with the COVID-19 pandemic

⸺Identifying and executing criminal referrals on suspected violations of federal laws or regulations

⸺Maintaining and using stockholder lists

• Issued final rules governing the following: 

⸺Amortization limits on certain loans

⸺Eligibility of investments made by the System’s associations

⸺District financial reporting

• Issued a proposed rule governing collateral evaluations 

• Issued an advance notice of proposed rulemaking on liquidity reserve requirements 

• Issued a notice and request for comment on interagency questions and answers on flood insurance 

• Continued to study the loan syndication market

• Approved a direct final rule to eliminate requirements for Farmer Mac to submit paper copies of certain reports to FCA

• Issued guidance to Farmer Mac outlining expectations to protect the corporation from ransomware 

attacks

• Responded to 30 borrower inquiries and complaints

I am particularly proud to report that FCA had the highest score in the “COVID Overall” category across 

all federal agencies in the 2020 rankings for Best Places to Work in the Federal Government. This category measures the extent to which our employees feel the agency supported their mental and physical 

well-being during the COVID-19 pandemic, provided the resources they needed to do their work, had 

leaders who communicated effectively and prioritized their welfare, and successfully delivered on its 

mission. 

Also, FCA once again placed among the top five small agencies in the overall rankings for best places to 

work. The ranking is based on the agency’s “engagement score,” which was 86.0–17 points higher than 

the governmentwide score.

I am pleased with these survey results and with all our achievements in FY 2021. Our success could not 

have been possible without the hard work and dedication of our staff. I am confident we will continue to 

successfully fulfill our mission. And I hope the dark days of the pandemic will be behind us in FY 2022 

and that brighter days await us all. 

Glen R. Smith 

Board Chairman and CEO
6 | FCA Performance and Accountability Report — 2021

Management’s 

Discussion and Analysis

This section provides an overview of the Farm 

Credit Administration and our mission. It highlights 

information on FCA’s performance, financial results, 

systems and controls, compliance with laws and 

regulations, and an assessment of future challenges 

and plans.
FCA Performance and Accountability Report — 2021 | 7

FCA at a Glance

The Farm Credit Administration is an independent 

agency in the executive branch of the U.S. government. We are responsible for regulating and 

supervising the Farm Credit System (its banks, 

associations, and related entities) and the Federal 

Agricultural Mortgage Corporation (Farmer Mac).

The System is a nationwide network of borrowerowned financial institutions that provide credit 

to farmers, ranchers, residents of rural communities, agricultural and rural utility cooperatives, 

and other eligible borrowers.

FCA is responsible for ensuring that the System 

remains a dependable source of credit for agriculture and rural America. We do this in two ways:

• We ensure that System institutions, including 

Farmer Mac, operate safely and soundly and 

comply with applicable laws and regulations.

• We issue policies and regulations governing 

how System institutions conduct their business 

and interact with borrowers. 

History highlights 

1909: The Country Life Commission studies rural progress in the United States.

1912 and 1913: National commissions study European agricultural credit.

1916: Congress creates the Farm Credit System, establishing 12 federal land banks.

1923: Twelve federal intermediate credit banks are added to System.

1933: FCA is created; production credit associations and one central bank and 12 regional banks for cooperatives are 

added to System.

1934: FCA becomes responsible for chartering, examining, and supervising all federal credit unions.

1939: FCA becomes part of USDA.

1953: FCA becomes independent agency again.

1968: The System repays government capital. 

1971: Congress passes Farm Credit Act of 1971, from which FCA derives its current powers and authorities.

1980:	 The Farm Credit Act Amendments of 1980 allows System lenders to provide credit and other financial services to

additional types of borrowers. They also require federal land banks and production credit associations to develop 

lending programs for young, beginning, and small farmers and ranchers.

1985: FCA becomes arm’s length regulator with enforcement powers.

1987: The System is authorized to receive $4 billion in federal assistance but uses only $1.3 billion.

1988: The Farm Credit System Insurance Corporation and Farmer Mac are established.

1996: Congress passes Farm Credit System Reform Act granting Farmer Mac authority to buy and pool loans.

2005:	 The System repays all federal financial assistance with interest.

2017:	 FCA capital rule ensures that System institutions hold sufficient regulatory capital.

2018: Congress passes Agriculture Improvement Act of 2018, which enhances FCA’s enforcement powers.
8 | FCA Performance and Accountability Report — 2021

FCA history

An executive order by President Franklin D. 

Roosevelt in 1933 placed all existing agricultural 

credit organizations under the supervision of a 

new agency, the Farm Credit Administration. FCA 

was independent until 1939, when it became part 

of the U.S. Department of Agriculture (USDA), but 

became an independent agency again under the 

Farm Credit Act of 1953. This act created a federal 

Farm Credit Board with 13 members (one from 

each of the 12 farm credit districts and one appointed by the secretary of agriculture) to develop 

policy for FCA. Farmer-borrowers now had a voice 

at the national level.

FCA also played a pivotal role in the federal credit union movement when, in 1934, it was given 

responsibility for chartering, examining, and 

supervising all federal credit unions. Before this 

oversight was turned over to the Federal Deposit 

Insurance Corporation in 1942, FCA had chartered 

more than 4,000 credit unions and examined 

them annually.

FCA derives its current powers and authorities 

from the Farm Credit Act of 1971, as amended 

(12 U.S.C. 2001–2279cc). This act gave the banks 

and associations more flexibility in lending to 

production agriculture and authorized lending to 

commercial fishermen and rural homeowners. In 

1980, the law was amended to encourage lending 

to young, beginning, and small farmers. The U.S. 

Senate Committee on Agriculture, Nutrition, and 

Forestry and the U.S. House of Representatives 

Committee on Agriculture oversee FCA and the 

Farm Credit System.

For a complete history, see the timeline from 1909 

to the present on the FCA website (https://www.fca.

gov/about/historical-highlights-of-fca-and-the-fcs).

FCA funding and governance

FCA does not receive a federal appropriation. We 

maintain a revolving fund financed primarily by 

assessments from the institutions we regulate. 

Other sources of income for the revolving fund 

are interest earned on investments with the U.S. 

Treasury and reimbursements for services we provide to federal agencies and others.

FCA’s policy, regulatory agenda, and supervisory 

and examination activities are established by a 

full-time, three-person board whose members are 

appointed by the president of the United States 

with the advice and consent of the Senate. 

Board members serve a six-year term and may 

remain on the board until a successor is appointed. 

The president designates one member as chairman 

of the board, who serves in that capacity until the 

end of his or her own term. The chairman also 

serves as our chief executive officer.

FCSIC

FCA board members also serve as the board of 

directors for the Farm Credit System Insurance 

Corporation (FCSIC), which is a separate independent agency. FCSIC was established by the 

Agricultural Credit Act of 1987 in the wake of the 

agricultural credit crisis of the 1980s. The purpose 

of FCSIC is to protect investors in Systemwide 

debt securities by insuring the timely payment of 

principal and interest on certain System notes, 

bonds, and other obligations purchased by investors. FCSIC does so by maintaining the Farm Credit 

Insurance Fund, a reserve that represents the equity of FCSIC.

FCA offices

Our headquarters and one field office are in 

McLean, Virginia. We also have field offices in 

Bloomington, Minnesota; Dallas, Texas; Denver, 

Colorado; and Sacramento, California.

As of Sept. 30, 2021, FCA had 329 full- and 3 parttime employees. These employees work in the 

following offices, with the majority serving in the 

Office of Examination.

The FCA board manages, administers, and establishes policies for FCA. The board approves the 

policies, regulations, charters, and examination 

and enforcement activities that ensure a strong 

Farm Credit System (FCS). The board also provides 

for the examination and supervision of the FCS, 

including Farmer Mac, and oversees the activities 

of the FCS Building Association, which acquires, 

manages, and maintains FCA headquarters 
FCA Performance and Accountability Report — 2021 | 9

and field office facilities. Glen R. Smith is the 

board chairman.

The chairman of the FCA board serves as the chief 

executive officer (CEO). The CEO enforces the 

rules, regulations, and orders of the FCA board. He 

or she directs the implementation of policies and 

regulations adopted by the FCA board. The Office 

of the Chief Executive Officer plans, organizes, 

directs, coordinates, and controls our day-to-day 

operations and leads the agency’s efforts to achieve 

and manage a diverse workforce. Glen R. Smith is 

the CEO.

The chief operating officer (COO) has broad 

responsibility for planning, directing, and controlling the operations of the Offices of Agency 

Services, Examination, Regulatory Policy, Data 

Analytics and Economics, Information Technology, 

Chief Financial Officer, and General Counsel in 

accordance with the operating philosophy and 

policies of the FCA board. He or she supervises 

and provides policy direction to the executive staff 

responsible for managing these offices. The COO 

oversees and coordinates the development and 

implementation of the agencywide strategic, operating, and budget plans and activities. The COO 

also coordinates the resolution of internal policy, 

personnel, and program issues with agency executive leadership and the FCA board.

The Office of Agency Services manages and 

delivers human capital, operational, and workforce development services for the agency. The 

office consists of three service delivery teams: 

Human Resources Division, Operations Division, 

and Learning and Organizational Change Team. 

Services provided include strategic human capital 

management, recruiting, workforce planning, 

succession management, staffing and placement, 

job evaluation, compensation and benefits, payroll administration, performance management, 

awards, employee relations, employee training and 

development, property management, personnel 

security, continuity of operations and emergency 

preparedness, supply services, and mail service.

The Office of the Chief Financial Officer supports 

FCA’s operations by providing financial management policy advice, reporting the agency’s financial results, and facilitating the agency’s strategic 

planning efforts. The office manages the agency’s 

compliance with federal financial management 

requirements. It also reports on the accuracy and 

propriety of transactions, the extent to which 

assets are accounted for and safeguarded, and the 

adequacy of internal controls to detect and prevent 

material financial misstatements. It oversees the 

agency’s budget; the investments committee; FCS 

assessments; and the agency’s purchasing, credit 

card, and travel/relocation programs. It also facilitates the agency’s risk management and internal 

control efforts to help ensure operational and fiscal 

effectiveness and efficiency.

The Office of Congressional and Public Affairs

serves as the agency’s principal point of contact for 

Congress, the media, other government agencies, 

FCS institutions, employees, System borrowers, 

and the public. The office develops and monitors 

legislation pertinent to FCA and the FCS, serves 

as the agency’s congressional liaison, facilitates 

intergovernmental relations, and prepares testimony for the chairman and other board members. 

It also provides information to external audiences 

through news releases, fact sheets, reports, videos, 

and other publications. The office cultivates relationships with media representatives who report 

on matters related to agriculture and rural credit, 

and it manages the content of the FCA website and 

social media channels. It also organizes special 

meetings, briefings for international visitors, and 

field hearings.

The Office of Data Analytics and Economics

evaluates strategic risks to the System and agency 

using data, analytics, economic trends, and other 

risk factors. Its staff members serve as stewards for 

agency data and provide information to the board 

and management for objective, evidence-based 

decision-making across FCA. The office facilitates 

an agencywide strategy for analytics and collaborates on business intelligence tools and the development of models to meet the strategic needs of 

the agency.

The Office of Equal Employment Opportunity and 

Inclusion manages and directs the diversity, inclusion, and equal employment opportunity (EEO) 

program for FCA and FCSIC. The office serves 

as the chief liaison with the Equal Employment 

Opportunity Commission and the Office of 
10 | FCA Performance and Accountability Report — 2021

Personnel Management on all EEO, diversity, and 

inclusion issues. The office provides counsel and 

leadership to agency management to carry out its 

continuing policy and program of nondiscrimination, affirmative action, and diversity.

The Office of Examination is responsible for 

examining and supervising each FCS institution 

in accordance with the Farm Credit Act and applicable regulations. The office develops oversight 

plans; conducts examinations; monitors the 

System’s condition and current and emerging 

risks to the System; and develops supervisory 

strategies to ensure that the FCS operates in a safe 

and sound manner, complies with the law and 

regulations, and fulfills its public policy purpose. 

For more information about the role of the Office 

of Examination, go to www.fca.gov/bank-oversight/

guidance and click board policy statements to read 

our “Examination Philosophy” (FCA-PS-53).

The Office of General Counsel provides the FCA 

board and staff with legal counsel as well as guidance on the Farm Credit Act and general corporate, 

personnel, ethics, and administrative matters. 

The office supports the agency’s development and 

promulgation of regulations, enforcement of applicable laws and regulations, and implementation of 

conservatorships and receiverships. It represents 

and advises the agency on civil litigation. It also 

serves as the liaison to the Federal Register, administers the agency’s ethics program, and handles 

Freedom of Information Act requests.

The Office of Information Technology supports 

the information, solutions, and IT infrastructure 

that empower FCA to fulfill its mission. It is a respected partner in fulfilling FCA’s mission through 

innovative solutions. The office is responsible for 

protecting agency technology assets, planning and 

controlling information technology investments, 

leading change to improve the efficiency and effectiveness of agency operations, and maintaining 

compliance with IT regulatory mandates. It is 

responsible for continuing to leverage FCA’s investment in technology by collaborating across agency 

offices to identify and re-engineer business applications, data systems, and processes.

The Office of Inspector General provides independent and objective oversight of agency programs 

and operations through audits, inspections, evaluations, investigations, and the review of proposed 

legislation and regulations. The office promotes 

economy and efficiency within FCA and seeks 

to prevent and detect fraud, waste, abuse, and 

mismanagement in the agency’s programs and 

operations.

The Office of Regulatory Policy manages policy 

and regulation development activities, at the direction of the FCA board, to ensure the safety and 

soundness of the FCS and support the System’s 

mission. Policy and regulation development activities include the analysis of policy and strategic 

risks to the System on the basis of economic trends 

and other risk factors. The office also evaluates all 

regulatory and statutory prior approvals for System 

institutions on behalf of the FCA board, including 

chartering and other corporate approvals as well 

as funding approvals.

The Office of Secondary Market Oversight provides for the examination, regulation, and supervision of Farmer Mac to ensure its safety and soundness and the accomplishment of its public policy 

purpose as authorized by Congress. It also ensures 

that Farmer Mac complies with applicable laws 

and regulations, and it manages FCA’s enforcement 

activities with respect to Farmer Mac.

The designated agency ethics official is designated by the FCA chairman to administer the provisions of title I of the Ethics in Government Act of 

1978, as amended, to coordinate and manage FCA’s 

ethics program and to provide liaison to the Office 

of Government Ethics with regard to all aspects of 

FCA’s ethics program.

The secretary to the board serves as the parliamentarian for the board and keeps permanent and 

complete records of the acts and proceedings of 

the board. He or she ensures that the board complies with statutory, regulatory, and internal operation reporting requirements. The secretary to the 

board also serves as secretary to the Farm Credit 

System Insurance Corporation board. In addition, 

he or she serves as the Sunshine Act official for the 

FCA board.
FCA Performance and Accountability Report — 2021 | 11

Figure 1: FCA organizational chart as of October 2021

For an accessible version of this chart, go to 

www.fca.gov/about/fca-organizational-chart

FCA Board

Glen R. Smith, 

Chairman

Jeffery S. Hall, 

Member

—Chairman and Chief 

Executive Officer 

Glen R. Smith

—Office of Inspector 

General 

Wendy R. Laguarda

—Office of the Chief Operating Officer

S. Robert Coleman

—Office of Congressional and Public Affairs

Michael A. Stokke

—Office of Equal Employment Opportunity 

and Inclusion 

Thais Burlew

—Office of Secondary Market Oversight* 

Laurie A. Rea

—Designated Agency Ethics Official 

Jane Virga

—Secretary to the Board 

Ashley Waldron

—Office of Agency Services 

Vonda Bell

—Office of the Chief Financial 

Officer

Stephen G. Smith

—Office of Data Analytics and 

Economics 

Jeremy D’Antoni

—Office of Examination

Roger Paulsen

—Office of General Counsel† 

Clark Ogilvie

—Office of Information 

Technology 

Jerald Golley

—Office of Regulatory Policy

Kevin Kramp

The headquarters of the Farm Credit Administration, located in McLean, Virginia.

Sherrell Carr, Farm Credit Administration

* Reports to the board for policy and to the CEO 

for administration.

† Maintains a confidential advisory relationship 

with each of the board members.
12 | FCA Performance and Accountability Report — 2021

Highlights of FCA’s Performance Goals 

and Results 

FCA’s mission is to ensure that Farm Credit System 

institutions and Farmer Mac are safe, sound, and 

dependable sources of credit and related services 

for all creditworthy and eligible persons in agriculture and rural America.

In our Strategic Plan for Fiscal Years 2018–2023, 

we identified three goals we must meet to fulfill 

our mission. For each goal, we identified strategies 

and actions to achieve the goal, as well as a set of 

performance measures to monitor our progress in 

meeting the goal.

Our performance report (page 29) shows that we 

met the goals identified in our strategic plan and 

met or exceeded most of the performance measures for which there are data to measure performance. The following is a summary analysis of our 

performance in reaching our goals.

Goal 1 highlights

Public mission: Ensure that the FCS and Farmer 

Mac fulfill their public missions for agriculture 

and rural areas.

There are nine strategies and six performance 

measures established for goal 1 in the strategic 

plan (see table 8a). The six performance measures 

are as follows:

1. Percentage of FCS institutions providing products and services that serve creditworthy and 

eligible persons and perform outreach to enhance diversity and inclusion. (Target: ≥90%)

2. Whether Farmer Mac’s business plan contains 

strategies to promote and encourage the inclusion of all qualified loans, including loans to 

small farms and family farmers, in its secondary market programs, and whether its business 

activities further its mission to provide a source 

of long-term credit and liquidity for qualifying 

loans. (Target: Yes)

3. Percentage of direct-lender institutions with 

satisfactory consumer and borrower rights 

compliance. (Target: ≥90%)

4. Percentage of direct-lender institutions with 

young, beginning, and small (YBS) programs 

for farmers and ranchers that are in compliance with YBS regulations. (Target: ≥90%)

5. Whether the majority of objectives listed in the 

preamble of each final rule were met on the 

two-year anniversary of the rule’s effective or 

implementation date. (Target: Yes)

6. Percentage of pre–rulemaking projects and proposed rules on which FCA requested input from 

persons outside of FCA. (Target: 100%)

We achieved or exceeded our targets for all six 

measures associated with goal 1.

Goal 2 highlights

Safety and soundness: Evaluate risk and 

provide timely and proactive oversight to ensure 

the safety and soundness of the System and 

Farmer Mac.

There are six strategies and six performance measures for goal 2 (see table 8b). The performance 

measures are as follows:

1. Percentage of System assets in institutions with 

composite CAMELS ratings of 1 or 2. See box on 

next page for explanation of CAMELS. (Target: 

≥90%)

2. Percentage of requirements in supervisory 

agreements with which FCS institutions have at 

least substantially complied within 18 months 

of execution of the agreements. (Target: ≥80%)
FCA Performance and Accountability Report — 2021 | 13

3. Percentage of institutions complying with 

regulatory capital ratio requirements. 

(Target: ≥90%)

4. Whether the Office of Secondary Market 

Oversight’s examination and oversight plan 

and activities effectively identify emerging 

risks, and whether appropriate supervisory 

and corrective actions have been taken to effect 

change when needed. (Target: Yes)

5. Percentage of institutions with satisfactory 

audit and review programs, including institutions with acceptable corrective action plans. 

(Target: 100%)

6. Whether five or more reports and dashboards 

were created that use data collected from the 

Farm Credit System to assess risk in the System. 

(Target: Yes)

We achieved or exceeded the targets for five of the 

six measures associated with goal 2. During this 

reporting period, performance measure 2 was not 

applicable because we did not have any supervisory agreements in place with FCS institutions.

The CAMELS rating system is based on an evaluation of six critical elements of a System institution’s 

operations. Its purpose is to provide an accurate and consistent assessment of an institution’s capital, asset 

quality, management, earnings, liquidity, and sensitivity to interest rate risk. Examiners assign a numeric rating 

between 1 and 5 to each of these components.

Capital—Capital is evaluated and rated based on the quantity and quality of capital, risks that could threaten 

capital, the ability to capitalize asset growth, and the management of capital. System institutions are 

expected to maintain capital commensurate with the nature and extent of risks to the institution and the 

ability of management to identify, measure, monitor, and control these risks. 

Asset Quality—Asset quality is evaluated and rated based on the credit risk in loans, investments, other real 

estate owned, and other assets. Management’s ability to identify, measure, monitor, and control credit risk 

is also reflected here. This evaluation also considers the adequacy of the allowance for credit losses.

Management—Management is evaluated and rated based on the capabilities and actions of the board 

and management, in their respective roles, to identify, measure, monitor, and control the risks of the 

institution’s activities and to ensure the institution operates in a safe, sound, and efficient manner and

complies with applicable laws and regulations, while also serving its public mission.

Earnings —Earnings are evaluated and rated based on the quantity, quality, and sustainability of the 

institution’s earnings. This evaluation considers the adequacy of earnings in relation to the institution’s 

various risk exposures, earnings strategies, operating efficiency, and the adequacy of earnings to fund

capital needs.

Liquidity—Liquidity is evaluated and rated based on the institution’s ability to fund operations and meet debt 

obligations and cash flow requirements without incurring unacceptable losses or materially adversely

affecting the institution’s daily operations and financial condition.

Sensitivity—Sensitivity is evaluated and rated based on the degree to which changes in interest rates 

can adversely affect the institution’s earnings and capital. This evaluation addresses asset–liability

management practices, hedges, strategies for managing interest rate risk, and risk measurement processes. 
14 | FCA Performance and Accountability Report — 2021

Goal 3 highlights

Workforce management: Cultivate an 

environment that fosters a well-trained, 

motivated, and diverse staff while providing an 

effective plan for leadership succession.

There are four strategies and two performance 

measures for goal 3 (see table 8c). The performance measures are as follows:

1. Whether, as part of its recruiting efforts for 

entry-level examiners, FCA has ensured that 

at least 25% of its outreach efforts target applicants with a disability or who are members of a 

minority group. (Target: 25%)

2. Whether we have maintained or improved our 

score from last year in the annual employee 

satisfaction survey. (Target: ≥86)

We achieved the target for one of the two measures 

associated with goal 3. During FY 2021, performance measure 2 was not applicable because OPM 

has delayed the release of the Federal Employee 

Viewpoint Survey until November 2021. The 2021 

results will not be available until next year.

Resources to achieve our strategic goals

The performance goals, as outlined in the strategic 

plan, provide a framework for the development of 

the annual budget request and the performance 

measures and targets. We formulate and execute 

our budget by allocating resources according to the 

agency goals. We assess and measure our overall 

effectiveness in fulfilling our mission through the 

resulting analysis of the performance measures. 

When we formulate and execute our budget, we 

allocate dollars as follows:

• Goal 1—Public mission

• Goal 2—Safety and soundness

• Goal 3—Other activity

Goals 1 and 2 above align with the goals as noted 

in the performance report. Goal 3, however, 

differs between the performance report and the 

performance budget and execution. Costs for the 

workforce management goal in the strategic plan 

are an inherent part of our ability to fulfill our 

primary agency goals of public mission and safety 

and soundness. In the performance budget and 

in our execution of the budget, we use the other 

activity goal to track reimbursable activity separate 

from other agency primary mission costs. Table 1

displays the proportion of our budget allocated to 

each goal and the proportion of the costs associated with each goal. 

Table 1. FY 2021 performance budget versus 

program costs

Agency programs % of total 

performance 

budget

% of total 

program costs

Public mission 22.3% 24.2%

Safety and 

soundness

76.2% 74.8%

Other activity 1.5% 1.0%

Total 100.0% 100.0%

During FY 2021, we had a higher proportion of program costs for public mission than anticipated in 

our budget. This was primarily due to our additional regulatory efforts to address issues in the System 

related to the COVID-19 pandemic. The percentage 

of costs related to our safety and soundness goal 

were lower than budgeted partly because we 

restricted agency travel as part of our COVID-19 

strategy to keep our employees safe.

For specifics on the agency resources expended 

in support of our agency goals, please refer to the 

program costs and revenues section on page 18.

For more information about our performance results, see the performance results tables on pages 

43–49.
FCA Performance and Accountability Report — 2021 | 15

Analyses and Highlights of FCA’s 

Financial Statements

Financial Highlights

Financial operation of FCA

We pay for planned administrative expenses from 

a revolving fund, which is funded primarily by 

assessments received from Farm Credit System 

institutions, including the Federal Agricultural 

Mortgage Corporation (Farmer Mac) and the 

System’s service corporations.

We calculate the assessments using a formula 

established by FCA regulation. The FCA board approves our budget, and Congress usually imposes a 

limitation on the dollar amount of obligations that 

we may incur in a given fiscal year.

In addition to assessments, we receive funds from 

two other sources:

• Reimbursable services: We are reimbursed for 

the cost of examining the National Consumer 

Cooperative Bank and for performing services for the Farm Credit System Insurance 

Corporation and the U.S. Department of 

Agriculture (USDA).

• Interest earned: We earn interest on investments with the U.S. Department of the Treasury. 

We use interest earned on investments to build 

and maintain an agency reserve. The reserve 

ensures that we can effectively and efficiently 

respond to unexpected, unbudgeted expenses 

without needing to increase assessments.

The following sections highlight our financial condition for FYs 2021 and 2020. Our financial statements are provided on pages 58–73.

Activity in response to COVID-19 

Beginning March 16, 2020, the agency directed 

most of its workforce to telework from home or an 

alternate work location because of the COVID-19 

pandemic, restricting business travel and in-person training. The telework period has been extended several times because of ongoing health 

and safety concerns; however, employees have 

been allowed to return to the office on a limited 

and voluntary basis. Our telework plan continued 

throughout FY 2021.

During FY 2021, we continued to encourage System 

institutions to work with System borrowers whose 

operations have been affected by COVID-19. The 

agency continued to offer temporary relief from 

certain regulatory and reporting requirements to 

System institutions affected by the pandemic in 

2021.

As in FY 2020, during FY 2021, we did not experience any significant financial impact because of 

COVID-19. We also did not receive any budgetary 

resources under any of the COVID-19 supplemental 

appropriations. Any expenses related to COVID-19 

were nominal and immaterial to our overall costs.

How FCA addresses climate change 

FCA’s senior leaders are committed to identifying 

ways to fulfill the president’s executive order titled 

“Tackling the Climate Crisis at Home and Abroad,” 

which was issued Jan. 27, 2021. Vonda Bell, chief 

human capital officer and director of the Office 

of Agency Services, was selected to serve as our 

agency’s sustainability officer. As a member of the 

executive leadership team, she ensures the agency 

has a comprehensive approach to identifying and 

mitigating environmental challenges. 

Some of our noteworthy achievements over the 

past year include the following:

• Installing a new energy-efficient cooling tower 

and state-of-the-art, environmentally friendly 

air filtration systems in all FCA offices 
16 | FCA Performance and Accountability Report — 2021

• Coordinating with the Farm Credit System 

Building Association to ensure use of green 

products

• Issuing new energy-efficient laptops 

• Donating or recycling end-of-life laptops

In FY 2022, we plan to promote and analyze the 

effectiveness of our sustainability activities. We 

will also take the following actions to support 

sustainability:

• Continue to promote a paperless environment 

by training staff on technology tools

• Encourage virtual collaboration and online 

training programs to reduce travel

• Train the contracting officer on Green 

Procurement Compilation (an online resource 

that consolidates and organizes information 

from federal environmental programs in one 

place)

• Promote National Bike to Work Day, held every 

May, and Earth Day, held annually on April 22

• Support commuter subsidy programs to encourage carpooling and use of public transportation, 

as well as telecommuting

• Continue to collaborate with the Farm Credit 

System Building Association to find strategies 

for reducing electricity consumption, review 

leases as they expire, and support green product 

procurement 

• Promote paper and plastic recycling 

• Collaborate with employee advocacy groups to 

solicit ideas for new sustainability initiatives 

FCA’s assets, liabilities, and net position

As shown in table 2, our total assets (the resources 

we own) for FY 2021 are composed of the following:

• Fund balance with Treasury (2.1%)

• Investments (93.6%)

• Accounts receivable and prepayments (0.8%)

• Property and equipment (3.5%)

During FY 2021, total assets increased by $1,574,226, 

or 3.9%, from amounts reported in FY 2020.

As of Sept. 30, 2021, the agency held $896,793 in 

cash (fund balance with Treasury). While we invest 

all excess cash in U.S. Treasury securities, the 

timing of when cash is collected affects the ending 

balance. The decrease in our cash balance relative 

to 2020 reflects a lower amount of cash collections 

on Sept. 30 after the cutoff time for investing. This 

in turn increased our investments balance at year 

end because the collections for that day were prior 

to the cutoff and included in the day’s investment. 

Cash collected after the investment cutoff for the 

day remains as an available cash balance and is 

invested the following day. The collections on Sept. 

30 were prepaid assessments (that is, assessments 

due on Oct. 1 but received on or before Sept. 30) 

from several FCS institutions.

Property and equipment assets decreased in 2021 

primarily from the disposal of the old laptops that 

were replaced in 2020. 

Table 2. Composition of assets

Assets FY 2021 FY 2020 % Change

Fund balance with Treasury $896,793 $4,204,180 (78.7%)

Investments 39,610,612 34,471,697 14.9%

Accounts receivable and prepayments 319,379 261,233 22.3%

Property and equipment 1,487,624 1,803,072 (17.5%)

Total $42,314,408 $40,740,182 3.9%
FCA Performance and Accountability Report — 2021 | 17

Our investment portfolio, which accounts for the 

largest portion of our total assets, increased by 

$5,138,915 in FY 2021. The primary factor for this 

increase is the increase in assessments this fiscal 

year relative to FY 2020. The increase also reflects 

our purchase of long-term investments this year, 

which were all purchased at a premium. This results in a higher book value than past years when 

we held securities purchased at a discount. During 

fiscal year 2021, we purchased $28,633,217 in U.S. 

Treasury securities, using an investment strategy 

that enables us both to maintain a steady cash flow 

for agency operations and earn interest to build the 

agency reserve. 

We hold the reserve funds in contingency to address specific, onetime, unforeseen events without 

increasing assessments at a time that may be 

financially difficult for System institutions. Our 

policy is to maintain a reserve balance that covers 

approximately two months of operating expenses. 

Section 5.15 of the Farm Credit Act of 1971, as 

amended, (12 U.S.C. 2250) allows FCA to maintain 

a necessary reserve. The interest reserve makes 

up roughly 35.5% of our total investment portfolio. 

The remaining balance in the interest portfolio is 

our unobligated balance net of our cash balance at 

Sept. 30, 2021.

Our liabilities, as shown in table 3, consist of the 

following general categories:

• Accounts payable (4.9%)

• Payroll and benefits (46.5%)

• Employer contributions and taxes payable (7.6%)

• Workers’ compensation (8.0%)

• Deferred revenue (33.0%)

Like total assets, our total liabilities (what we owe 

to the public and other government agencies) 

increased. Driven primarily by the increase in 

accounts payable and accrued liabilities, overall 

liabilities increased by $1,795,662 or 10.1% from 

2020 to 2021.

Accrued liabilities increased by $948,478 as of Sept. 

30, 2021, compared with those as of Sept. 30, 2020. 

This increase is a combination of a higher year-end 

payroll accrual and a higher leave liability accrual 

in 2021. We record a liability (an accrual) for payroll expenses not posted in the financial system as 

of Sept. 30 each year. Based on the timing of the 

pay periods and when payroll is posted, the yearend accrual could include extra days in the calculation. For 2021, the year-end payroll accrual included one more day than the 2020 accrual. Because of 

the impacts of the ongoing COVID-19 pandemic, 

staff members have not used as much leave (vacation time) as in years past. This has caused our 

funded leave liability to increase. 

Our accounts payable increased by $439,336 this 

year. As of Sept. 30, 2021, we had a higher amount 

in liabilities for services received but not paid 

relative to 2020. A large part of that amount was 

related to a contract for graduate-level courses 

with Virginia Tech (see goal 3 within the Program 

Performance section of this report for more detail 

on this partnership). 

Deferred revenue—assessments received from 

FCS institutions that are not due until Oct. 

1—increased only by $142,512 relative to 2020. At 

the beginning of each fiscal year we reclassify any 

Table 3. Composition of liabilities

Liabilities FY 2021 FY 2020 % Change

Accounts payable $956,848 $517,512 84.9%

Accrued liabilities (payroll and benefits) 9,141,457 8,192,979 11.6%

Employer contributions and taxes payable 1,503,037 1,291,653 16.4%

Workers’ compensation (funded and unfunded) 1,565,542 1,511,590 3.6%

Deferred revenue 6,474,352 6,331,840 2.3%

Total liabilities $19,641,236 $17,845,574 10.1%
18 | FCA Performance and Accountability Report — 2021

prepaid assessments as revenue earned in October 

of the new year.

Our net position, which represents the cumulative results of operations since the agency began, 

decreased slightly by $221,436, or 1.0%, during FY 

2021. The net position decreased primarily because 

of the increase in the net cost of operations (see 

the Program Costs and Revenues section). For a 

breakdown of the net position, see the statement 

of changes in net position on page 61.

FCA’s status of funds

Our budget represents our plan for achieving our 

mission and strategic goals while operating as effectively and efficiently as possible. Table 4 shows 

our board-approved budget amounts for FYs 2021 

and 2020. The overall FY 2021 budget increased by 

4.2% over the 2020 budget.

In FY 2021, we continued to carry out our mission, 

program goals, and objectives within the available 

budget. Our board-approved budget for FY 2021 

was just under $80.9 million and the congressional 

limitation on our spending was $80.4 million. The 

FY 2020 congressional limitation was $77.0 million. 

The congressional limitation is the spending limit 

imposed by Congress on the non-reimbursable 

activity portion of our budget for the year. It limits 

the amount of assessments that we may use to pay 

for administrative expenses. The limitation includes assessment amounts for the current year as 

well as assessment carryover from prior years.

As table 5 shows, the agency used $3,397,326 more 

in 2021 than in 2020. The largest contributor to this 

change was personnel compensation and benefits, 

which increased by $4,766,461. Several factors 

affected personnel compensation and benefits: (1) 

the previously mentioned increase in leave liability, (2) the increase in staff, and (3) planned salary 

increases and promotions. Personnel compensation and benefits continue to account for the most 

significant use of funds at FCA, representing approximately 88.6% of the total funds used in 2021.

Because of the COVID-19 pandemic, we continued 

to restrict agency travel for the safety of our staff 

and System staff. As a result, funds used for travel 

in FY 2021 decreased by $895,362 compared with 

travel expenditures in FY 2020. 

The assessment funds we used in 2021 amounted 

to 95.2% of our congressional limitation in 2021 

(see table 6). We reduced the FY 2021 assessments 

in the 4th quarter by $3.5 million.

Contractual services decreased by 8.8% over last 

year and represented approximately 7.8% of the 

total funds used in 2021. This decrease is mainly 

related to reduced training. As we’ve seen with 

travel, the COVID-19 pandemic also resulted in 

less opportunities for in-person conferences and 

trainings. Many staff substituted virtual sessions 

where feasible, which were sometimes at a lesser 

cost than in-person trainings. Funds used for 

property and equipment remained relatively flat, 

increasing only by $32,470.

Program costs and revenues

This section describes our program costs and revenues for the fiscal years ended Sept. 30, 2021, and 

Sept. 30, 2020. Please read this section in conjunction with the statements of net cost. Because this 

section focuses on the cost of operations, some of 

the data provided here may differ from data provided in other sections of this report that are based 

on budgetary accounting.

Another difference that arises when we assess our 

program costs relative to our performance goals 

and measures is with goal 3. For purposes of the 

strategic plan and the performance goals, goal 3 is 

related to workforce management. Costs to address 

workforce management are intrinsic to our main 

goals of public mission and safety and soundness 

and are captured as part of those goals. Goal 3 for 

purposes of the performance budget and costs is 

related to our reimbursable activity. We track these 

costs separately from the rest of our agency mission costs noted in goals 1 and 2.

We achieve our strategic goals and manage our 

costs with sound business planning and effective 

resource management. The net cost of our programs totaled $6,631,531 for the 12 months ended 

Sept. 30, 2021, compared with $4,093,119 for the 

same period the previous year. While both revenue 

and expenses increased this past year, the rate of 
FCA Performance and Accountability Report — 2021 | 19

Table 4. Agency budget

Budget funding sources FY 2021 FY 2020 Difference

Assessments (current year)* $79,800,000 $76,000,000 $3,800,000

Assessments (carryover from prior years) 600,000 1,000,000 $(400,000)

Reimbursable activity 470,000 630,000 $(160,000)

Total $80,870,000 $77,630,000 $3,240,000

* Assessments were reduced in the fourth quarter for each FY—by $3.5 million in FY 2021 and by $3 million in FY 2020.

Table 5. Funds used by major budget category

Budget category FY 2021 FY 2020 % Change

Personnel compensation and benefits $68,173,204 $63,406,743 7.5%

Travel and transportation 181,483 1,076,845 (83.1%)

Contractual services 5,974,237 6,550,001 (8.8%)

Property and equipment 497,791 465,321 7.0%

Other 2,094,488 2,024,967 3.4%

Total* $76,921,203 $73,523,877 4.6%

* The total funds used include reimbursable activity that is not subject to the congressional limitation.

Table 6. Funds used based on congressional limitation

Funds used category 2021 Funds used Congressional 

limitation Percentage used

Assessment funds used* $76,500,711 $80,400,000 95.2%

* Includes amounts used from the assessed amounts for the year and assessment carryover amounts used to fund the budget.
20 | FCA Performance and Accountability Report — 2021

Figure 2. Percentage of FY 2021 gross costs by 

agency goal

Figure 3. Percentage of FY 2021 gross revenue by 

agency goal

increase in expenses outpaced revenue, resulting 

in a net cost increase of $2,538,412 from 2020. 

The total cost of our programs for FY 2021 is 

$83,667,255, compared with $78,216,033 for FY 

2020. This represents an increase of $5,451,222, or 

7.0%, from 2020. Figure 2 shows the breakdown of 

FY 2021 gross costs for each of our goals. Most of 

our costs support our mission and program goals. 

The increase in total costs is primarily due to increases in staff and employee compensation. 

Employee salaries and benefits represent our 

greatest overall cost. For 2021, employee compensation totaled $70,925,664, or 84.8%, of total 

cost. Increases in staff, performance-based salary increases, employee benefits, career ladder 

promotions, and higher leave liability expenses 

all contributed to the cost increase in 2021. We 

recruit and train staff to fill vacancies in accordance with our employment and diversity strategies to meet operational challenges such as the 

COVID-19 pandemic and evolving risks in the FCS, 

including Farmer Mac. We periodically perform 

compensation studies to comply with the Financial 

Institution Reform, Recovery, and Enforcement 

Act of 1989, which requires us to keep our salaries and benefits comparable with the salaries 

and benefits of other federal financial institution 

regulators.

Keeping compensation competitive helps us continue to fulfill our mission to provide the FCS, including Farmer Mac, with effective regulation and 

oversight.

Figure 3 shows the breakdown of FY 2021 gross 

revenue allocated to each of our goals. Earned revenue for 2021 totaled $77,035,724, up $2,912,810, 

or 3.9%, from 2020. Earned revenue increased in 

2021 primarily because of increases in institution 

assessments. 

Figure 4 shows the breakdown of our three sources 

of revenue—assessments, interest on investments, 

and reimbursable activity. As one would expect, 

most of our revenue is derived from assessments 

(99.0%). Those revenues are used to fulfill our primary goals of carrying out our public mission and 

ensuring the safety and soundness of the System.
FCA Performance and Accountability Report — 2021 | 21

Figure 4. FY 2021 sources of revenue

Public mission program

We invest significant resources in our policymaking, regulatory, and corporate activity functions 

to ensure that the FCS, including Farmer Mac, 

fulfills its public mission as mandated by Congress. 

During FY 2021, we continued to ensure the safe 

and sound flow of funds to U.S. agriculture and 

rural areas by providing regulation, policy, and 

guidance for the FCS and Farmer Mac.

Costs for our public mission program include the 

review of borrower complaints. In accordance with 

the Farm Credit Act, we also review and approve 

FCS institutions’ mergers to enable institutions to 

structure themselves to best serve their customers. 

During FY 2021, we also took additional policy 

and regulatory actions to address issues in the 

System that stemmed from the ongoing COVID-19 

pandemic. 

For the fiscal year ended Sept. 30, 2021, the program cost for our public mission was $20,209,279, 

representing an increase of $1,195,188, or 6.3%, 

from the same period the previous year. The increase is primarily due to increases in staff and 

related salaries and benefits costs. The cost for the 

public mission program represents 24.2% of our 

total costs for 2021.

Safety and soundness program

Costs associated with the agency’s examination 

and supervision activities make up the largest portion of our expenditures at the program level. Like 

the public mission program, the cost of the safety 

and soundness program increased and for the 

same reasons—increases in staff and the related 

compensation costs. Although we conducted our 

examinations remotely this year because of the 

pandemic, we still rose to the challenge of fulfilling our safety and soundness goal and addressing 

growing risk in the FCS from a decline in the U.S. 

agricultural economy.

We invest heavily in the recruitment and training 

of examination staff through our Examiner 

Commissioning Program. These recruiting and 

training efforts are necessary to meet human resource needs and to offset the impact of unplanned 

employee attrition and the large number of retirements expected within the next few years. These 

actions have enabled us to maintain our level of supervision of the FCS while our entire staff worked 

remotely during all of FY 2021. During FY 2021, we 

met our goals and performance targets to ensure 

the safety and soundness of the System while at the 

same time ensuring the safety of our staff and the 

staff of the FCS and Farmer Mac during the ongoing COVID-19 pandemic. 
22 | FCA Performance and Accountability Report — 2021

Program cost for the examination and supervision 

of the FCS and Farmer Mac increased $4,206,601 

to $62,627,132. Safety and soundness represents 

74.8% of our total costs in 2021.

Other activity

“Other activity” includes examining and overseeing 

the National Consumer Cooperative Bank and performing reimbursable services for USDA and the 

Farm Credit System Insurance Corporation. Costs 

associated with this category increased slightly by 

$49,433 from 2020 to $830,844. The costs for provid

ing reimbursable services remain relatively low 

compared with the total costs for our public mission 

and safety and soundness goals. Other activity repre

sented approximately 1.0% of our total costs in 2021.

Earned revenue for other activity totaled $467,605 

for 2021, compared with $504,831 for 2020, which 

is a decrease of $37,226.

Limitations of financial statements

As required by 31 U.S.C. 3515(b), we have prepared 

the principal financial statements to report the 

financial position and results of our operations. We 

have prepared these statements from our books 

and records in accordance with U.S. generally 

accepted accounting principles for federal entities and the formats prescribed by the Office of 

Management and Budget. Reports used to monitor 

and control budgetary resources are prepared from 

the same records. 

As you read these statements, please keep in 

mind that they are for a component of the U.S. 

government.

Forward-looking analysis

In FY 2021, we focused on three main priorities: 

monitoring credit risk; improving service to young, 

beginning, and small (YBS) farmers and ranchers; 

and improving the timeliness and efficiency of our 

regulatory activities. We will maintain this focus in 

FY 2022 to ensure that the Farm Credit System fulfills its public mission and remains safe and sound. 

During FY 2022, our examiners will continue to 

monitor credit risk remotely to keep both our staff 

and System employees safe during the COVID-19 

pandemic. Our examiners will resume in-person 

examinations in FY 2022 after community transmission rates of the virus are low enough to do so. 

We will continue to monitor the effects of the pandemic on the farm economy and farm lenders.

We also are monitoring other challenges to System 

borrowers, such as low commodity prices, increases in input prices, and adverse weather conditions. 

Specifically, we are monitoring the effects on credit 

quality of the intensifying drought in the West and 

the Great Plains and the wildfires in the western 

United States.

Building on an initiative we started in FY 2020, we 

improved our ability to track the System’s service 

to YBS producers in FY 2021 and will continue to do 

so in FY 2022. We will continue to modernize the 

collection of YBS data, making the process more 

automated and consistent. Through enhanced data 

quality, we will be able to share best practices with 

other government agencies and at System events 

focused on the YBS mission. 

For example, we recently partnered with USDA’s 

Farm Service Agency to find specific ways for agricultural lenders to better leverage USDA resources 

for YBS producers. In addition, our enhanced data 

collection will allow us to evaluate the growth and 

performance of YBS programs in the years ahead. 

To improve the timeliness and efficiency of our 

regulatory activities, we will continue to reassess 

and streamline our approach to regulatory projects 

in FY 2022. In FY 2021, we developed a collaborative process to carry out the policy direction of the 

board. This process requires early discussion of 

regulatory and policy issues among agency leaders. This led to several accomplishments, including 

a final rule to provide a principles-based update to 

the standards of conduct regulations and approval 

of several requests to invest in critical health care 

infrastructure in chronically underserved areas in 

rural America. 

In addition, we will continue to monitor the hemp 

industry and provide guidance to the System in FY 

2022. For example, in FY 2021, we issued an updated informational memorandum that outlined several factors institutions should consider when extending loans to hemp producers and processors.
FCA Performance and Accountability Report — 2021 | 23

Analysis of FCA’s Systems, Controls, and 

Legal Compliance

Strategy for FCA’s financial management 

system

We partner with the Department of the Treasury’s 

Bureau of the Fiscal Service to provide FCA with 

several financial management services. This 

shared-services approach helps us maximize efficiency while maintaining a high standard of financial management and accountability.

This partnership gives us access to core financial 

systems without our having to maintain the necessary technical and systems architectures. Our 

partnership with the Fiscal Service has also improved our data reliability, which is a requirement 

of Office of Management and Budget (OMB) M-15-

12, Increasing Transparency of Federal Spending 

by Making Federal Spending Data Accessible, 

Searchable, and Reliable.

Through our partnership with the Fiscal Service, 

we use Oracle Federal Financials as our financial 

system of record. Oracle Federal Financials is a 

commercial, off-the-shelf software package, which 

is certified under the Joint Financial Management 

Improvement Program to meet federal government accounting requirements. This web-based 

software integrates our key activities, such as 

e-payroll, e-travel, purchase card activity, and federal investments.

Although we perform all procurement activities 

in-house, we partner with the Fiscal Service for 

procurement system services and support. The 

procurement system is fully integrated with Oracle 

Federal Financials. This integration enables us to 

check our funds in real time and to commit and 

obligate funds as transactions are approved.

By working with the Fiscal Service, we comply 

with the OMB Financial Management Line of 

Business initiative, which encourages agencies 

to improve the cost, quality, and performance of 

financial management systems by using shared 

services. The partnership also helps us address 

the President’s Management Agenda cross-agency 

priority goal for sharing quality services. 

Collaborating with the Fiscal Service also facilitates our continued goals of financial management 

improvement by ensuring that our financial systems are up to date and in compliance with the 

latest Treasury and OMB guidance. Internally, we 

continue to work on streamlining our business 

processes to ensure efficient and effective financial 

management operations. 

Federal Managers’ Financial Integrity Act

The Federal Managers’ Financial Integrity Act 

(FMFIA) requires federal agencies to establish and 

maintain a system of internal control to achieve 

the objectives of effective and efficient operations, 

reliable financial reporting, and compliance with 

applicable laws and regulations. 

The management control objectives under the 

FMFIA are to reasonably ensure the following:

• Obligations and costs comply with applicable 

laws.

• Funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or 

misappropriations. 

• Revenues and expenditures applicable to agency 

operations are properly recorded and accounted 

for to permit the preparation of accounts and 

reliable financial and statistical reports and to 

maintain accountability over the assets. 

Agencies must evaluate and report on the effectiveness of their internal controls and assess whether 

their financial management systems comply with 

requirements outlined in section 4 of the FMFIA.
24 | FCA Performance and Accountability Report — 2021

Through our financial management system strategy, management control program, and compliance 

with applicable laws and regulations, we ensure 

our compliance with the FMFIA.

Management control program

We have established management controls to 

meet the objectives of section 2 and section 4 of 

the FMFIA. Our system of internal control conforms with the Government Accountability Office’s 

Standards for Internal Control in the Federal 

Government (Green Book). 

Our internal controls are designed to provide reasonable assurance that transactions are properly 

recorded, processed, and summarized to permit 

the preparation of financial statements and that 

assets are safeguarded.

Our program offices are responsible for implementing and maintaining effective risk management practices and internal controls to ensure 

(1) alignment of strategic goals with the agency’s 

mission, (2) effective and efficient operations, (3) 

reliable reporting, and (4) compliance with applicable laws and regulations. 

We conduct risk-based internal control assessments in accordance with OMB Circular A-123, 

Management’s Responsibility for Enterprise Risk 

Management and Internal Control, and applicable 

appendices. Based on the results of the assessments, we have reasonable assurance that controls 

over operations, reporting, and compliance with 

laws and regulations are designed and operating 

effectively. 

In addition, our independent financial statement 

auditor reported that we maintained effective 

internal control over financial reporting and compliance with applicable laws and regulations. The 

auditor did not report any material weaknesses or 

significant deficiencies. 

Prompt Payment Act

We follow the Prompt Payment Act guidelines, 

which call for vendors generally to be paid 30 days 

after receipt of a valid invoice for goods and services ordered and delivered.

During FY 2021, we paid all invoices within the 

time requirement, thus resulting in $0 in interest 

penalties. Payments are made by electronic funds 

transfer through the Secure Payment System.

Debt Collection Improvement Act

The Debt Collection Improvement Act of 1996 prescribes standards for carrying out federal agency 

collection actions and for referring an agency’s 

uncollectible debts to the proper federal agency for 

collection and litigation. The act has no material 

effect on us because we operate with virtually no 

delinquent debt.

This act was amended by the Digital Accountability 

and Transparency Act of 2014 (DATA Act) to require that debts outstanding for more than 120 

days be transferred to the Treasury Department 

for collection under the Treasury Offset Program. 

We currently have one debt being serviced by the 

Treasury Department. 

Improper payments

The Payment Integrity Information Act of 2019 

requires executive branch agencies to identify 

programs and activities that may be susceptible to 

significant improper payments, conduct risk assessments to determine risk factors that are likely 

to contribute to a susceptibility to significant improper payments, estimate annual improper payment amounts in the susceptible program(s), and 

report on actions to recover improper payments. 

Additional information on our improper payment activities are reported under “Payment 

Integrity Information Act Reporting” in the “Other 

Information” section of this report. 
FCA Performance and Accountability Report — 2021 | 25

Digital Accountability and 

Transparency Act 

The DATA Act was enacted to increase accountability and transparency in federal spending and 

expand the requirements of the Federal Funding 

Accountability and Transparency Act of 2006. Since 

our agency does not receive federal tax dollars, 

OMB has determined that FCA is not subject to the 

reporting requirements of the DATA Act. 

Inspector General Act

The Inspector General Act of 1978, as amended, 

requires inspectors general to report to their 

agency heads and to Congress every six months. 

The semiannual reports prepared by FCA’s Office 

of Inspector General (OIG) describe its audits, 

inspections, evaluations, investigations, and other 

oversight activities.

The FCA OIG posts all audit, inspection, and evaluation reports on its website within three business 

days of final submission to the FCA board. These 

reports are also posted on Oversight.gov, which 

contains OIG reports from across the federal 

government.

Below is a summary of the recommendations in 

these reports, as well as our progress in taking corrective action. 

Summary of OIG audit, inspection, and 

evaluation activities

The OIG issued six audit, inspection, or evaluation reports during FY 2021, resulting in 19 new 

recommendations. At the beginning of this fiscal 

year, nine recommendations remained open from 

prior years. Over the course of FY 2021, 24 of the 

total 28 open recommendations were closed. As of 

Sept. 30, 2021, four remained open. The reports are 

available on the FCA OIG’s website at www.fca.gov/

about/inspector-general-plans-and-reports. The 

OIG issued the following reports in FY 2021.

• The Farm Credit Administration’s Compliance 

with the Federal Information Security 

Modernization Act for Fiscal Year 2020 

(Oct. 30, 2020): The audit produced eight 

recommendations.

• Audit of the Farm Credit Administration’s 

Financial Statements (Nov. 12, 2020): The audit 

produced no recommendations.

• Farm Credit Administration’s Compliance with 

Executive Order 13950 on Combating Race and 

Sex Stereotyping (Dec. 18, 2020): The inspection 

produced no recommendations.

• Farm Credit Administration’s Employee 

Separation Process (Feb. 9, 2021): The audit produced six recommendations.

• Survey of Farm Credit Administration 

Employees on COVID-19 (June 9, 2021): The inspection produced one recommendation.

• The Office of Secondary Market Oversight’s 

Examination Policies and Procedures 

(Sept. 24, 2021): The audit produced four 

recommendations.

Summary of OIG recommendations

Open recommendations 

as of Oct. 1, 2020 9

New recommendations 

during FY 2021 19

Recommendations closed 

during FY 2021 24

Open recommendations 

as of Sept. 30, 2021 4

Recommendations open 

more than one year 0

OIG survey of FCS institutions regarding the 

agency’s examination function

The OIG conducts a quarterly survey of FCS institutions on our examination function and examiners. 

The OIG generally issues semiannual reports and 

a fiscal year summary report to the FCA chief 

examiner and the FCA board. In April 2020, in response to the COVID-19 pandemic, FCA reduced its 
26 | FCA Performance and Accountability Report — 2021

examination activity in the interest of minimizing 

travel for its examiners and reducing the burden 

on Farm Credit System institutions during the 

pandemic. In turn, the OIG paused the quarterly 

survey process. OIG resumed its quarterly survey 

of System institutions beginning with the second 

quarter of FY 2021 and plans to issue one report for 

the second, third, and fourth quarter results. OIG 

added two questions to the survey addressing the 

efficiency and effectiveness of communications 

with FCA examination staff for those examinations 

that were conducted remotely.

FCA’s compliance with improper payments 

reporting requirements for FY 2020

The OIG determined that FCA complied with improper payment reporting requirements applicable 

to the agency for FY 2020. In accordance with the 

Payment Integrity Information Act of 2019, and 

implementing guidance, the OIG issued the conclusion to the FCA board and required oversight 

bodies on May 17, 2021.
FCA Performance and Accountability Report — 2021 | 27

Statement of Assurance

The Farm Credit Administration’s management is responsible for managing risks and maintaining effective internal control and financial management systems that meet the objectives of sections 2 and 4 of the 

Federal Managers’ Financial Integrity Act (FMFIA).

FCA has considered risk management practices in the design of internal controls and in the assessment 

of their effectiveness. We conducted our assessment of risk and internal controls in accordance with 

OMB Circular A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control. 

Based on the results of this assessment, we can provide reasonable assurance that the internal controls 

over financial reporting and operational and compliance objectives were operating effectively as of Sept. 

30, 2021. No material weaknesses were found in the design or operation of the internal controls.

As part of our evaluation process, we considered the results of extensive testing and assessment across 

the organization, as well as independent audits, to provide our unmodified statement of assurance. 

Glen R. Smith

Chairman and Chief Executive Officer 

FARM CREDIT ADMINISTRATION

September 30, 2021
28 | FCA Performance and Accountability Report — 2021

Program Performance

This section discusses FCA’s performance in achieving 

the goals and strategic objectives identified in the 

agency’s Strategic Plan for Fiscal Years 2018–2023. 

This section also details the actions we are taking 

to achieve our goals and the targets we are using to 

measure our success. 

We use the June 30 end date for reporting on 

operational performance measures because the 

information statements for the fourth quarter arrive 

after the November submission deadline for this 

report. However, for Goal 3—Performance measures 

and results for workforce management—we report 

the results for the federal fiscal year, as of Sept. 30, 

2021. 
FCA Performance and Accountability Report — 2021 | 29

FCA Performance Report

FCA’s mission is to ensure that System institutions 

and Farmer Mac are safe, sound, and dependable 

sources of credit and related services for all creditworthy and eligible persons in agriculture and 

rural America.

We fulfill our mission by (1) issuing regulations 

and implementing public policy and (2) identifying 

risk and taking corrective action. The FCA board 

has adopted three strategic goals:

• Ensure that the FCS and Farmer Mac fulfill their 

public missions for agriculture and rural areas.

• Evaluate risk and provide timely and proactive 

oversight to ensure the safety and soundness of 

the System and Farmer Mac.

• Cultivate an environment that fosters a welltrained, motivated, and diverse staff while 

providing an effective plan for leadership 

succession.

Our Strategic Plan for Fiscal Years 2018–2023 contains a desired outcome for each goal, as well as 

19 strategies we are using to meet these goals. In 

addition, we have 14 performance measures with 

associated targets to measure our success in meeting our goals.

The strategic plan addresses the changing environment facing agriculture: commodity and input 

price volatility; sustainability, environmental, food 

safety, and animal welfare issues; fluctuating interest rates and land values; diversity; and pressure to 

reduce subsidies and support payments in the 2018 

Farm Bill.

The plan focuses on helping the agency operate 

effectively and efficiently; minimizing costs for FCS 

borrowers and Farmer Mac customers; and helping ensure a safe, sound, and dependable source of 

credit and financially related services for agriculture and rural America.

Data validation and verification

FCA ensures the completeness, reliability, and 

quality of all reported information included in this 

report through validation of performance data and 

other information contained in this section. These 

efforts primarily entail regular internal agency 

processes for ensuring accurate data generation, 

entry, and reporting; data integrity; and independent peer review. 

FCA’s data validation and verification include the 

following:

• Use of applied measurement techniques to identify sources, validate data, and generate meaningful information

• Identification and implementation of authoritative sources, calculations, and standards

• Use of automated data collection systems and 

reporting whenever available

• Use of automated data checking procedures in 

addition to manual verification

• Analysis of data and identification of possible 

discrepancies for resolution

• Implementation of controls, such as restricting 

permissible values, flagging outliers for review, 

and doing visual checks of results in development stages of dashboards and reports before 

deployment

• Reviews by data owners and data users

• Consolidation and deployment of enterprise 

tools for standardized reporting

• Independent quality assurance reviews before 

reports are issued

• Review and discussion of performance results 

with the executive leadership team
30 | FCA Performance and Accountability Report — 2021

Goals

As our performance results show, we succeeded 

in meeting the three strategic goals described 

below. Summary tables that follow the goals outline our performance measures and results. Each 

goal reflects our mission of ensuring that Farm 

Credit System institutions and Farmer Mac are 

safe, sound, and dependable sources of credit and 

related services for all creditworthy and eligible 

persons in agriculture and rural America. The performance measures and targets were established 

in the FCA Strategic Plan Fiscal Years 2018–2023.

Goal 1—Ensure that the FCS and Farmer Mac 

fulfill their public missions for agriculture and 

rural areas.

In our Strategic Plan for Fiscal Years 2018–2023, we 

established this goal to meet the credit and related 

financial service needs of agricultural producers 

as the agricultural industry changes. Agricultural 

production and processing methods are evolving 

and becoming more integrated. The demographics 

of farmers and agricultural producers are gradually changing. The varieties and types of food and 

fiber production continue to grow. Trends, such as 

heightened demand for locally grown and specialty 

foods, and the growth in urban agriculture, are 

creating additional options for persons interested 

in becoming farmers, ranchers, and agricultural 

suppliers and distributors. 

The purpose of goal 1 is to maximize the ability of 

the FCS and Farmer Mac to fulfill their purposes 

and meet their public missions as defined by 

Congress in the Farm Credit Act of 1971, as amended. We established nine strategies to accomplish 

this goal, and we defined six performance measures to evaluate our progress and success. 

Goal 1, Strategy 1: Ensure that the capital rules for 

the FCS and Farmer Mac are consistent with standards for the financial service industry and preserve

their financial strength and stability so they can

meet the credit needs of eligible borrowers.

The FCA board adopted a final rule in March 2016 

that revised our capital rules for FCS banks and 

associations and provides clearly defined capital 

standards that are both consistent with Basel III 

and appropriate for the farmer-owned cooperative 

Farm Credit System. 

BASEL refers to the Basel Committee on Banking Supervision, located in Basel, Switzerland, 

where the Bank for International Settlements is 

headquartered. This committee’s primary job is to 

produce guidelines for financial regulators of the

G-20 countries with the goal of aligning regulatory 

rules around the world. FCA is not required to 

comply with BASEL guidelines, but we consider 

them in all rulemakings. BASEL I, II, and III represent the various significant changes or iterations

in capital guidelines.

In FY 2017, we updated our Financial Institution 

Rating System benchmarks for capital and our 

examination guidance and examiner training 

to ensure that FCS institutions implement the 

capital rules properly. We also issued an informational memorandum to the System titled 

“Implementation of the Tier 1/Tier 2 Capital 

Framework.” 

The tier 1/tier 2 capital framework is defined in

BASEL III and in FCA regulations. Tier 1 capital 

represents the highest-quality capital included 

in regulatory capital ratios. Tier 2 represents the 

lower-quality capital included in the ratios.

In FY 2016, we issued the capital planning rule 

requiring an annual assessment of Farmer Mac’s 

capital plan, including capital adequacy modeling 

and stress testing methodologies.

In FY 2019, we issued guidance on Farmer Mac’s 

interest rate risk management. The guidance 
FCA Performance and Accountability Report — 2021 | 31

makes clear the board of directors’ ultimate responsibility for governance of interest rate risk and 

management’s role in the design and execution of 

measurement systems for interest rate risk. 

Goal 1, Strategy 2: Within the framework of the 

Farm Credit Act, develop and update policies and 

regulations as appropriate so that the System, 

including Farmer Mac, can continue to effectively

serve its members as conditions in agriculture and 

rural America change.

The following actions are examples of ways we 

have used this strategy in FY 2021:

• Issued guidance on making loans through the 

Paycheck Protection Program

• Issued guidance to the System on transitioning 

away from the London Interbank Offered Rate 

(LIBOR) 

• Issued guidance to the System on managing challenges associated with the COVID-19 pandemic

• Issued guidance to the System on identifying 

and executing criminal referrals on suspected 

violations of federal laws or regulations.

• Issued guidance to the System on maintaining 

and using stockholder lists.

• Issued a final rule governing the amortization 

limits on certain loans

• Issued a final rule governing the eligibility of 

investments made by the System’s associations

• Issued a final rule governing district financial 

reporting

• Issued a proposed rule governing collateral 

evaluations 

• Issued an advance notice of proposed rulemaking on liquidity reserve requirements 

• Issued a notice and request for comment on 

interagency questions and answers on flood 

insurance 

• Continued to study the loan syndication market

• Approved a direct final rule to eliminate requirements for Farmer Mac to submit paper copies of 

certain reports to FCA

• Issued guidance to Farmer Mac outlining expectations to protect the corporation from ransomware attacks

As part of every rulemaking project, we consider 

ways to reduce the burden of existing rules and to 

minimize the regulatory burden of the rule being 

proposed. Also, we regularly solicit public comments on regulations that are unnecessary, unduly 

burdensome, or not based on law; our most recent 

solicitation was in May 2017. 

We routinely provide guidance to System institutions to protect their safety and soundness and to 

help them manage risk. This guidance facilitates 

the flow of funds to agriculture and rural areas by 

providing System institutions with sound practices 

to follow in developing and implementing lending 

programs. We also provide guidance related to 

internal controls and information technology. 

Ultimately, our guidance helps institutions manage 

loan and funding programs more efficiently. 

Farmer Mac continues to enhance its relationships 

with its loan sellers, servicers, and other business 

partners by holding informational forums, providing updates to its formal servicing guidelines, 

and performing internal credit reviews. Our Office 

of Secondary Market Oversight evaluates Farmer 

Mac’s efforts to strengthen these relationships.

We support advances in Farmer Mac’s product 

offerings within the bounds of safety and soundness and the provisions of the Farm Credit Act. 

Our communication, examination reports, and 

off-site monitoring of Farmer Mac provide timely 

guidance to management on the possible risks associated with new products and policies. Over the 

reporting period, we provided Farmer Mac with 

guidance on regulatory compliance issues, policy 

direction, and questions regarding new products 

and services.

In addition, we continue to advance regulatory 

rulemaking projects on topics related to capital 

and margin and liquidity reserve requirements. We 

are also working to enhance our data management 
32 | FCA Performance and Accountability Report — 2021

and collection and to update other areas of supervisory guidance.

Goal 1, Strategy 3: Emphasize the public purpose 

and mission-related responsibilities of the agricultural government-sponsored enterprises (GSEs) 

to serve all of agriculture and rural America. This 

includes innovative programs for serving the credit 

and related service needs of young, beginning, and 

small (YBS) farmers, ranchers, and producers and 

harvesters of aquatic products.

FCA examiners evaluate the operating and strategic plans and the credit delivery programs of 

System institutions. We also evaluate System 

outreach efforts and best practices for serving the 

credit and related service needs of all creditworthy, 

eligible customers.

In addition, our examiners evaluate each institution’s YBS farmer and rancher program relative to 

the demographics of its chartered territory. These 

evaluations help examiners identify trends in lending to YBS farmers and ranchers and assess the 

System’s efforts to provide financial and business 

management assistance and outreach to YBS farmers and ranchers. 

Over the past several years, FCA has worked with 

the System to improve management, monitoring, 

data quality, and reporting of this critical segment of the market. FCA staff members are now 

developing a proposed YBS rule. We expect this 

rule to lead to the creation of a rating system that 

evaluates each institution’s program and measures 

each institution’s year-over-year progress in lending and nonlending support provided to the YBS 

population.

When evaluating YBS programs, we continue to 

assess the extent to which FCS institutions use loan 

guarantee programs. We encourage System institutions to work with federal and state agencies that 

offer such programs. For example, we encourage 

institutions to meet the requirements to qualify 

for the USDA Farm Service Agency’s “preferred 

lender” status.

Not only can loan guarantees help institutions 

manage risk, they also help borrowers obtain 

the funding they need. We encourage System 

institutions to use loan guarantees to make loans 

to YBS borrowers with limited financial capacity 

and to existing borrowers with temporary financial 

difficulties.

We validate compliance with YBS laws and regulations through our risk-based oversight and 

examination processes. All the YBS programs we 

evaluated during the reporting period were in 

compliance with YBS regulations. Each year, we 

survey FCS associations regarding their YBS programs. With the information received, we prepare 

a YBS annual report that we publish in our Annual 

Report on the Farm Credit System.

FCA regulations require each direct-lender System 

institution to include in its operating and strategic 

business plan a marketing plan with strategies for 

providing the institution’s products and services 

to all creditworthy and eligible persons. With one 

exception, all FCS institutions had adequate marketing plans to provide products and services to all 

creditworthy and eligible persons. That institution 

is working to resolve its situation. In addition, each 

institution must report annually to its board of 

directors on the progress it has made in this area. 

We review these reports and evaluate the System’s 

progress in meeting this requirement. As part of 

our examination activities, we also review institution annual reports and encourage institutions to 

include a discussion of how they are meeting their 

mission.

We evaluate the extent to which Farmer Mac has 

accomplished its mission as well. Farmer Mac’s 

customer base includes financial institutions and 

other lenders that seek a secondary market for 

their agricultural, rural housing, and rural utility 

cooperative loans. We evaluate Farmer Mac’s performance in reaching out to all potential customers and in creating easy access to its services.

Farmer Mac submits an annual mission report to 

FCA. This report includes data on Farmer Mac’s 

participation in federal guarantee programs, the 

geographic distribution of Farmer Mac’s program business, the proportion of fixed- versus 

variable-rate loan volume, and activity related to 

rural utilities. In addition, the report highlights 

activity related to small and family farms, which 

Farmer Mac is required by statute to promote and 
FCA Performance and Accountability Report — 2021 | 33

encourage. These reporting requirements encourage Farmer Mac’s business development staff to 

focus on the credit needs of small and family farms 

when working with its lender customers.

Goal 1, Strategy 4: Encourage the System to provide products and services to all creditworthy and 

eligible potential borrowers and to promote outreach to enhance diversity and inclusion.

Our examinations assess the System’s efforts to 

provide financial or business management assistance and outreach to all creditworthy, eligible customers, including YBS farmers and ranchers. The 

System continues to implement programs to meet 

the needs of YBS producers and other borrowers.

The business plan of each direct-lender institution 

must include strategies and actions to market the 

institution’s products and services to all eligible 

and creditworthy persons, with specific outreach 

toward diversity and inclusion within each market segment. We evaluate the System’s progress 

in meeting this requirement. We have updated 

our examination guidance and communications 

with the System to clearly convey our minimum 

expectations regarding business plans, including 

our expectations regarding diversity and inclusion 

requirements.

In addition, we review borrower inquiries and 

complaints about the lending process and investigate any allegations of discrimination. During the 

reporting period from July 1, 2020, through June 

30, 2021, we responded to 30 borrower inquiries. 

Our investigations did not discover any pattern or 

practice of deliberate discrimination or an unwillingness of FCS institutions to serve eligible customers within their chartered territories. We also 

found that System institutions continued to comply 

with equal credit opportunity and equal housing 

laws. However, our examinations did identify one 

institution with weaknesses in complying with federal lending and borrower rights regulations. We 

are in the process of verifying the appropriateness 

of corrective actions taken by institution management to address the weaknesses. 

We are also concerned about the needs of farmers 

with disabilities and farmer veterans. In previous 

years, we have held presentations on these topics 

to raise awareness among our staff about the challenges these individuals face. In 2016, members of 

our staff met with the USDA undersecretary to discuss ways to better meet the credit needs of farmer 

veterans.

To ensure that Farmer Mac meets its responsibility 

to promote and encourage the inclusion of small 

and family farms in its programs, we have developed certain reporting requirements. We also provide Farmer Mac with feedback on various issues, 

including loan eligibility for prospective new lines 

of business.

Farmer Mac continues to work to make its programs accessible to all market participants, including those involved in rural utilities and federal 

agricultural loan guarantee programs. It seeks to 

ensure equitable treatment of all potential borrowers and the lenders that serve them. 

During examinations, we review loans purchased 

and guaranteed by Farmer Mac to ensure that their 

underwriting, loan-approval standards, and servicing are appropriate and consistent with established 

guidance. Further, Farmer Mac’s annual mission 

report includes a section covering its financing 

of small and family farmers and rural utility 

cooperatives.

FCA Bookletter (BL-066) “Providing Credit to 

Farmers and Ranchers Operating in Local/Regional 

Food Systems” encourages System associations to 

meet the credit and related service needs of farmers who market their agricultural products through 

local and regional food systems. It explains that 

System associations have authority to finance 

local-food farmers and certain farm-related businesses under existing statutes and regulations and 

under prior FCA guidance. The bookletter also provides guidance on how the regulations on System 

strategic business planning and senior officer compensation apply to financing local-food farmers 

(including those operating in urban areas).

Goal 1, Strategy 5: Encourage diversity on the 

boards and in the workforce of System institutions.

Our oversight and examination programs include 

risk-based evaluation of each institution’s human 
34 | FCA Performance and Accountability Report — 2021

capital planning, director elections, and nominating committees. Examination guidance and 

procedures consider any significant changes in 

bylaws, policies, control systems, staffing, board 

membership, board involvement, election processes, or issues related to standards of conduct. As 

part of our review of the nominating committee’s 

processes and practices, we evaluate the committee’s outreach efforts to expand diversity on the 

board. In 2018, we updated examination guidance 

on this topic.

As part of the review of human capital management, we may evaluate conditions such as staff 

turnover levels or changes in key personnel (actual 

or upcoming), depth of management, changes 

in compensation and benefit programs or levels, 

involvement of the compensation committee, and 

extent of operational weaknesses cited in audit, 

review, and examination reports that could be connected to human capital issues.

Goal 1, Strategy 6: Consistent with the Farm Credit 

Act, enable the agricultural GSEs to structure 

themselves to best serve their members and rural 

America.

FCA analyzes and approves periodic requests by 

institutions to restructure or offer new programs 

designed to better serve their customers. 

During 2021, FCA approved the merger of subsidiaries for an association affiliated with CoBank.

At fiscal year-end 2021, the System had 67 

associations. 

Goal 1, Strategy 7: Encourage System institutions 

to be conscious of the reputation risk associated 

with their lending and investments decisions.

We issue guidance on business planning, capital 

management, portfolio risk management, debt 

issuance, secondary liquidity sources, and related 

topics. We also work with FCS-wide committees 

and groups to discuss challenges, opportunities, 

and best practices in these areas. Further, we 

assess System institutions’ use of programs undertaken jointly with other financial service providers. 

Through our supervisory and enforcement activities, we require institutions to develop plans to 

address any potential reputation risks associated 

with their lending and investment decisions.

Goal 1, Strategy 8: Promote public trust in FCA’s 

regulatory framework for the System and Farmer 

Mac by developing policy guidance that supports 

mission achievement, financial stability, and

transparency.

We promote public trust and investor confidence 

by helping ensure that the System and Farmer Mac 

meet their missions to serve agriculture and rural 

America. See strategies 2 and 3 for a discussion 

of some of the ways we have helped them achieve 

their missions.

We provide guidance to System institutions to help 

them better understand their lending authorities 

and, therefore, to more appropriately market 

their products and services to prospective eligible customers. We also publish our semiannual 

Regulatory Projects Plan on our website to notify 

the public of upcoming regulatory actions so that 

the public may participate in the regulatory process. Our e-government program allows the public 

to make comments in electronic format and to 

review comments from others on our website.

We further support public trust and investor 

confidence by reviewing borrower inquiries and 

complaints about the loan-granting process and 

by investigating any allegations of discrimination. 

See strategy 4 above for more information about 

borrower inquiries and complaints.

Farmer Mac, too, has increased its focus on its 

public mission. Its year-end annual report and 

Form 10-K filing now include numerous references 

to its public mission, including a discussion of 

how pursuing its mission may contribute to lower 

returns to stockholders. Farmer Mac actively oversees its sellers/servicers, ensuring that loans sold 

into the secondary market meet its underwriting 

standards and that processes are in place to detect 

fraud and operational errors.

The guidance we have provided has had a positive 

impact on Farmer Mac’s public disclosures related 

to its mission, and we will continue to encourage Farmer Mac to regularly disclose its mission 

accomplishments.
FCA Performance and Accountability Report — 2021 | 35

Goal 1, Strategy 9: Encourage full participation of 

stakeholders in the development and review of regulatory and policy proposals as appropriate.

We encourage stakeholders to provide input on 

regulatory proposals before we issue rules. We 

publish our semiannual Regulatory Projects Plan 

on our website to notify the public of upcoming 

regulatory actions. In addition, our e-government 

program allows the public to make comments in 

electronic format and to review comments from 

others on our website.

Where practicable, we solicit input from stakeholders before we publish rules for comment. In 

some cases, we use advance notices of proposed 

rulemaking to obtain input. In almost all cases, we 

publish our proposed rules with comment periods 

of at least 60 days. For regulatory proposals that relate to the System’s GSE mission, we also reach out 

to nontraditional commenters for their input.

Goal 2—Evaluate risk and provide timely and 

proactive oversight to ensure the safety and 

soundness of the System and Farmer Mac.

In our Strategic Plan for Fiscal Years 2018–2023, we 

included this goal to ensure that FCA, the System, 

and Farmer Mac can manage data to operate effectively. As the System continues to consolidate and 

institutions become larger and more sophisticated, 

our ability to effectively examine and monitor risk 

becomes even more critical. 

To accomplish goal 2, we examine and supervise 

each System institution and Farmer Mac. We have 

six strategies to accomplish this goal and six performance measures to evaluate our success.

Goal 2, Strategy 1: Seek early FCA board input on 

policy and regulatory issues. Ensure that the board 

has timely and comprehensive information to be 

fully informed and able to respond appropriately.

The FCA board provides early input on regulatory and policy projects. For regulatory projects, 

the board provides input before and during the 

development and approval of the semiannual 

Regulatory Projects Plan, which outlines our regulatory agenda. For policy projects, the board also 

provides early input; a policy project may produce 

a guidance document, or it may eventually become 

a regulatory project.

After we’ve started a regulatory or policy project, 

board involvement continues to be crucial. We obtain board input regarding the initial issues paper, 

and we provide board briefings and monthly progress reports throughout the project.

The Office of Examination and the Office of 

Secondary Market Oversight report important 

issues at least monthly or as needed to the FCA 

board. The Office of Examination delivers reports 

to the board each quarter on the condition of the 

System. The Office of Secondary Market Oversight 

also delivers periodic reports to the board on the 

condition of Farmer Mac. 

Goal 2, Strategy 2: Maintain strong and frequent 

two-way communication with stakeholders on issues of risk and safety and soundness.

FCA management and staff participate regularly in 

FCS meetings and conferences to answer questions 

related to regulatory and FCS operational issues. 

We also use these opportunities to reinforce our 

expectations regarding these issues and to discuss 

new regulatory direction. FCA staff members also 

participate in agencywide workgroups and FCSwide committees and groups to discuss challenges, 

opportunities, and best practices.

Our approach to oversight and examination involves meeting with institution boards and audit 

committees on risk issues, interim examination 

activities, and corrective actions. Through direct 

interaction with System institutions, we hear 

about emerging issues and acquire a systemic view 

of issues warranting regulatory attention. Our 

oversight and examination approach also involves 

timely written communication through interim 

activity letters and examination reports. We also 

regularly communicate with FCS management on 

upcoming examination practices that may affect 

their institutions.

Annually, we issue an informational memorandum on our National Oversight Plan in which we 

identify risk topics that we will emphasize in our 

examination and oversight of System institutions. 
36 | FCA Performance and Accountability Report — 2021

Likewise, we issue an annual informational memorandum to Farmer Mac identifying the focus areas 

of the current examination cycle. These informational memorandums provide perspective on our 

concerns and priorities. When needed, we use the 

supervisory and enforcement process to require 

institutions to take certain action. In addition, we 

review borrower inquiries and complaints about 

the lending process and investigate any allegations.

Goal 2, Strategy 3: Continue proactive oversight of 

institution-specific and systemic risks.

We proactively identify and evaluate emerging issues that create Systemwide risk and allocate oversight and examination resources based on that risk 

in accordance with board policy statement 53. FCA 

continues to prioritize oversight activities according to risk, and we develop individualized oversight 

and examination plans for each institution. A key 

element to this approach is the national oversight 

planning process, which guides our efforts to ensure the safety and soundness of the System. We 

manage and update this process on a regular basis. 

We strive to provide timely guidance related to how 

examinations are conducted and emerging risks.

Through examinations, we routinely evaluate 

the operations and risk management practices of 

System institutions, and we share our conclusions 

and recommendations with System boards of 

directors. We determine whether FCS institutions 

have internal control systems and processes to 

manage their operations and loan portfolios, and 

whether direct-lender institutions maintain systems that allow them to properly assess the loans 

and risk exposures in their portfolios. All institutions had adequate internal control programs or 

adequate corrective actions in place in FY 2021. 

Overall, we have found that FCS institutions have 

adequate lending systems in place and that they 

continue to enhance these systems. The FCS uses a 

two-dimensional risk rating system, consisting of 

a 14-point scale to measure each borrower’s probability of default and a set of ratings to measure the 

borrower’s loss given default. The FCS enhances 

this system through periodic refinements, and we 

closely evaluate those refinements. The System 

also performs database querying and stress testing. We consider the following elements when we 

examine loan portfolios:

• Management of risk concentrations

• Loan underwriting

• Collateral risk management

• Portfolio planning and analysis

• Credit administration

• Risk identification

Goal 2, Strategy 4: Effectively remediate weakened

institutions.

We use a risk-based supervisory and enforcement 

program to respond differentially to the risks and 

particular oversight needs of FCS institutions. If 

we discover unacceptable risks, we take action 

to ensure that the identified risks are mitigated 

appropriately. Corrective actions include reducing 

risk exposures; increasing capital and enhancing 

earnings, which improve an institution’s ability to 

bear risk; and strengthening risk management.

We use a three-tiered supervision program: normal 

supervision, special supervision, and enforcement 

actions. Institutions under normal supervision 

are performing in a safe and sound manner and 

operating in compliance with applicable laws and 

regulations. These institutions are able to correct 

identified weaknesses in the normal course of 

business.

For those institutions displaying more serious or 

protracted weaknesses, we shift from normal to 

special supervision, and our examination oversight 

increases accordingly. Under special supervision, 

we give an institution clear and firm regulatory 

guidance to address weaknesses, and we allow the 

institution time to correct the problems.

If informal supervisory approaches have not been 

or are not likely to be successful, we use our formal 

enforcement authorities. We may take an enforcement action for several reasons:
FCA Performance and Accountability Report — 2021 | 37

• A situation threatens an institution’s financial 

stability.

• An institution has a safety and soundness problem or has violated a law or regulation.

• An institution’s board is unable or unwilling to 

correct problems we have identified.

• Our enforcement authorities include the following powers:

⸺To enter into formal agreements

⸺To issue cease-and-desist orders

⸺To levy civil money penalties

⸺To suspend or remove officers, directors, 

and other persons

If we take an enforcement action, the FCS institution must operate under the requirements of the 

action and report back to our agency on its progress in fulfilling the requirements. Our examiners 

oversee the institution’s performance to ensure 

compliance with the enforcement action. As of 

June 30, 2021, there were no formal enforcement 

actions in place.

Goal 2, Strategy 5: Ensure that technology, information management, and cybersecurity awareness 

are priorities at FCA and in the FCS.

Through the FCS Loan Database Project, we built 

an enterprise system for the dependable collection 

and storage of data for examination activities and 

systemic risk analysis. The loan database provides 

a robust dataset for analyzing institution loan 

portfolios and facilitating the loan review activities of the Office of Examination. It also supports 

Systemwide risk analysis. 

We previously established uniform instructions 

for the timely and reliable reporting of accounts. 

We also worked with the System to improve data 

quality, systems, and analysis capabilities. This 

improvement effort included adding the ability to 

identify shared assets and systemically significant 

customers by incorporating into the dataset both 

the System shared-asset and customer numbers 

and the attribution data on the largest System 

customers. 

We deployed an agency-level data mart/data cube 

environment, which is a centralized data warehouse for transactional and indicative data provided by each financial institution in the Farm Credit 

System.

In 2021, we continued to improve our examination 

processes by using technology more effectively: 

• We continued the redesign of the collection process for System Call Report data.

• We continued developing and implementing 

new business intelligence tools and analysis applications for examiners to leverage the agency’s 

various information sources, including the data 

mart, for analytical purposes.

• We continued enhancements to the EDGe Loan 

Workpaper, a web-based application that accesses the FCS Loans2 database.

• We continued improvements to the FCS Loan 

Database. 

• We continued developing and integrating new 

management reports and examination tools as 

part of the EDGe project.

• We continued improving connectivity to System 

institutions through videoconferencing, teleconferencing, and electronic access to loan files.

We continually evaluate whether institutions are 

maintaining systems to analyze their portfolio risk 

and borrower profiles. We review their processes 

and tools for analyzing sensitivity andstress. In 

December 2018, we issued a System memorandum 

on cybersecurity risks titled “Use of personal email 

and cybersecurity concerns.” In June 2021, we 

issued an informational memorandum titled “The 

increase in ransomware attacks and how to protect 

critical data” to provide System institutions with 

guidance to protect critical data against ransomware attacks.
38 | FCA Performance and Accountability Report — 2021

Goal 2, Strategy 6: Ensure that strong governance, 

standards of conduct, and ethical behavior are part 

of the organizational culture of the FCS.

We evaluate the compliance of System institutions 

with governance regulations and their adherence 

to cooperative principles. We evaluate each institution’s standards of conduct, ethics, and organizational culture. We share our conclusions and 

recommendations with System boards of directors. 

As discussed under goal 2, strategy 4, we use a 

three-tiered supervision program to ensure that 

institutions take appropriate measures to mitigate 

any risks our examiners identify.

Goal 3—Cultivate an environment that 

fosters a well-trained, motivated, and diverse 

staff while providing an effective plan for 

leadership succession.

In our Strategic Plan for Fiscal Years 2018–2023, 

we established this goal so that we can be an 

effective organization with the right number of 

people with the right skills, experiences, and competencies. The purpose of goal 3 is to ensure that 

FCA maintains a workforce that can carry out its 

mission. 

We have four strategies to accomplish goal 3 and 

two performance measures to evaluate our success. The data cited for this goal are for the federal 

fiscal year ended Sept. 30, 2021.

Goal 3, Strategy 1: Maintain a highly skilled and 

diverse workforce to meet FCA’s current and future 

regulatory development, risk analysis, examination, 

and supervision needs.

Our success as an agency depends on our people 

and the effective use of technology. FCA is committed to having a diverse and inclusive workforce, 

respecting individuals and their cultures, while 

complying with merit principles and applicable 

federal laws. Moreover, FCA is committed to diversity and inclusion throughout the agency to ensure 

a wide range of experiences, perspectives, and 

skills to provide better solutions, drive innovation 

and creativity, and enhance decision making.

Ensuring a diverse and inclusive workforce enables 

FCA to be more responsive to the institutions we 

regulate and better equipped to fulfil its mission. 

FCA is continuing to make strides in recruiting and 

hiring a diverse workforce. Of 39 hires in FY 2021 

(including Pathways Program interns and recent 

graduates),

• 28.1% are from diverse ethnic and racial groups,

• 10.3% have disabilities, and 

• 5.1% have targeted disabilities. 

Over the last fiscal year, the Office of Agency 

Services worked with other offices to increase FCA 

midcareer hiring to close skills gaps. Midcareer 

hiring increased notably in FY 2021. In FY 2019 

and FY 2020, midcareer hiring represented 10.0% 

and 9.5% of outside hiring respectively. In FY 2021, 

midcareer hiring represented 23.8% of overall outside hiring, a 150.0% increase from FY 2020. Many 

offices increased their outside, midcareer hiring. 

In FY 2021, the Office of Information Technology, 

Office of the Chief Financial Officer, Office of 

Agency Services, Office of Examination, Office 

of Congressional and Public Affairs, Office of the 

General Counsel, and Office of Regulatory Policy 

all hired at least one midcareer employee from an 

outside organization. In addition, FCA transformed 

existing positions or created new positions to fill 

FCA’s evolving mission. Several new midcareer 

opportunities were filled over the past year with 

internal candidates. The agency created two assistant general counsel positions and a chief diversity 

officer position that were all filled internally. The 

Office of Examination created a new deputy director of operations and filled it internally.

The Office of Agency Services closely coordinated 

and collaborated with senior leaders and hiring 

managers to recruit, hire, retain, and develop 

talented individuals from all communities and to 

create an environment in which employees can 

do their best work. We upgraded our information 

technology infrastructure to improve our ability to 

work; collaborate; gather information; and review, 

approve, and store work products. As a result, our 

workforce has become even more effective and 

efficient as demonstrated by our exemplary performance during the pandemic.
FCA Performance and Accountability Report — 2021 | 39

To ensure we continue to attract and retain a diverse, highly skilled workforce, we did the following during FY 2021:

• Continued to assess staffing needs, discontinuing functions no longer required, offering 

development options to those affected by the 

discontinuation of those functions, and identifying new staffing requirements

• Promoted awareness of internal career growth 

and developmental opportunities by sharing job 

opportunities in the agency’s internal newsletter 

• Continued to foster transparency and inclusiveness in the selection process, including using 

selection panels, behavioral interviews, and 

second assessment hurdles

• Continued to update policies and procedures to 

foster consistency in approach and to leverage 

organizational best practices 

• Continued to implement enhancements to the 

onboarding process

• Continued to provide aspiring leaders the 

necessary skills and experiences to lead while 

responding to the challenges of the COVID 19 

pandemic by doing the following:

⸺Supporting participation in OPM’s LEAD 

(Leadership Education and Development) 

Institute Program

⸺Purchasing leadership development curriculum access—50 licenses from Skillsoft

⸺Coordinating participation of 34 FCA leaders 

and aspiring leaders in tailored workshops 

by the Partnership for Public Service on engagement, with topics such as appreciation, 

communication, and empowerment

• Collaborated with external service providers 

and internal stakeholders to develop and deliver 

a three-day leadership development summit to 

ensure compliance with 5 CFR § 412.202 (building and leading teams, employee engagement, 

conflict management, effective communication, 

and using feedback to improve employee performance). Over several months, we sourced 

and created training resources directly aligned 

to the agency-specific learning needs of our supervisors, managers, and executive leadership. 

Leaders were strongly encouraged to participate 

and set an example for staff on the importance 

of continual learning and development. To 

provide maximum flexibility for our leaders to 

participate in these dynamic and informative 

sessions, we provided multiple training opportunities that included the following: 

⸺Live, instructor-led virtual training in partnership with the Federal Employee Law 

Training Group (topics included performance management, reasonable accommodation, employee relations, and the Family 

Medical Leave Act). The average number of 

attendees for each session was 46. 

⸺CyberFEDS eTraining microlearning sessions on topics that meet the requirements 

in 5 CFR § 412.202. 

• Expanded team-based developmental learning 

by doing the following:

⸺Delivering several agencywide webinars 

focused on a variety of coaching principles 

to help foster employee engagement and 

inclusion.

⸺Piloting team-based learning focused 

on developing team coaching skills. The 

Learning and Organizational Change Team 

will explore opportunities to expand the pilot across the agency to support a culture of 

learning and development.

• Continued to promote work-life balance approaches, leveraging lessons learned from the 

agency’s response to the pandemic

• Leveraged opportunities to recruit individuals 

with disabilities and to use special hiring authorities (e.g., Schedule A and veterans hiring)

• Offered additional opportunities for staff to 

engage with senior leaders by delivering the 

agency’s Meet the Leader Program in a virtual 

environment. This program is a unique opportunity that allows new hires to learn more about 
40 | FCA Performance and Accountability Report — 2021

FCA culture and interact with senior executives 

through small team discussions. During FY 

2021, the Learning and Organizational Change 

Team coordinated three meet the leader sessions (October 2020, April 2021, and July 2021) 

for a total of 56 new hires and interns. These 

sessions continue to receive positive feedback 

from both participants and leadership.

• Administered a one-question “pulse survey” to 

gather feedback on employees’ perceptions of 

FCA’s response to the pandemic. The agency 

successfully used this feedback to develop and 

implement responsive initiatives to support 

employees during this unprecedented time, 

earning the agency the distinction of the number one ranking in the Partnership for Public 

Service’s ranking of agencies’ responses to 

the pandemic in its 2021 Best Places to Work 

initiative.

Goal 3, Strategy 2: Facilitate the development of 

the skills our workforce needs to evaluate FCS risk 

and provide timely and proactive oversight.

In FY 2021, FCA continued to devote significant 

resources to training new examiners through our 

examiner commissioning program. In addition, 

we increased our focus on helping midcareer staff 

develop their skills. 

Through our examiner commissioning program, 

we are building a diverse cadre of highly motivated 

examiners, ensuring they have the knowledge, 

skills, and talents necessary to accomplish the 

agency’s mission. The program helps examiners 

develop their skills in FCA’s primary areas of oversight—credit, finance, and operations, as well as 

examination management.

We also invest in the development of our commissioned examiners through human capital 

planning, examiner career development, and 

specialty programs. The specialty programs enable 

examiners to gain technical expertise and encourage them to pursue professional development and 

certification.

For example, we took the following measures:

• Trained examination staff in the technical and 

soft skills they need.

• Provided opportunities for commissioned examiners to develop their careers further by completing specialist programs (for credit, finance, 

operations, and examination management) to 

ensure they have the expertise and credibility to 

carry out our mission. This included a partnership with Virginia Tech to develop and deliver 

for-credit, graduate-level courses in agricultural 

and applied economics. The integration of these 

learning programs into the agency have shown 

a positive impact on current performance, the 

agency’s bench strength, and reducing unforced 

attrition.

• Helped our examiners maintain their readiness to administer elevated supervision when 

necessary.

• Ensured that all our examiners understand our 

risk supervision approaches and how to implement them.

Goal 3, Strategy 3: Ensure adequate succession 

planning and knowledge transfer to ensure that 

future FCA leadership and staff possess the knowledge and skills required to be an effective arm’s

length regulator.

We have updated our examiner career development program to help us replace retiring managers 

and supervisors by developing the leadership, 

management, and supervisory skills of our examiners. Our strategy is to develop a pool of candidates who could become successful supervisors 

and managers, including director of the Office of 

Examination. We recognize that retirements also 

create opportunities for diversity and inclusion in 

management.

We use the following methods to develop our next 

group of program managers and leaders:

• Creating leadership positions for program and 

portfolio managers

• Providing selected candidates with formal leadership training, on-the-job training, and opportunities to participate in other projects. In FY 
FCA Performance and Accountability Report — 2021 | 41

2021, the Learning and Organizational Change 

Team created and piloted virtual training on 

the topic of “stay interviews” for all supervisors. 

The session focused on making performance 

management discussions more useful. Pilot 

feedback was overwhelmingly favorable, and 

comments were integrated into the final design. 

The session was made available to all supervisors and managers.

• Helping staff build skillsets by providing developmental assignments, such as serving as 

examiners-in-charge of complex institutions, 

completing special projects, and participating in 

Office of Examination specialist programs

• Providing internal rotational assignments between divisions in our Office of Examination

• Offering opportunities for Office of Examination 

employees to work in other FCA offices

To transfer knowledge from more tenured examiners to the new generation of examination staff, we 

use developmental initiatives. Our ongoing project 

to update the FCA Examination Manual also provides opportunities for knowledge transfer. 

Goal 3, Strategy 4: Encourage a workplace culture 

that motivates staff to be engaged, embraces diversity in all its forms, and promotes strong ethical 

behavior.

According to the 2020 Federal Employee Viewpoint 

Survey, FCA’s overall employee engagement index 

increased by 5 points, from 79 to 84 as reflected in 

table 7. 

Since 2017, FCA has been ranked by the 

Partnership for Public Service as one of the top five 

best places to work among small federal agencies. 

We promote engagement in various ways, such as 

providing training and development opportunities 

for employees to build their skills and advance 

their careers.

We also strengthen engagement by having an 

inclusive workplace. For example, our Special 

Emphasis Programs, such as the Federal Women’s 

Program Committee, Blacks in Government, and 

HOLA-FCA (Hispanic Organization for Leadership 

and Advancement), sponsor regular presentations 

on issues affecting women and minority groups. 

And each year we have a Diversity Day on which 

we celebrate the diverse cultures represented 

in our workplace. However, in FY 2020 and FY 

2021, Diversity Day was canceled because of the 

pandemic.

We also strive to increase workforce diversity. We 

target at least 25% of our recruiting efforts toward 

potential applicants who have a disability or who 

are members of a minority group. For example, 

during each recruiting season, we attend career 

fairs at historically Black colleges and universities and schools with a high rate of minority 

enrollment.

Table 7. 2020 Federal Employee Viewpoint Survey results for employee engagement

Employee 

Engagement

Governmentwide Small 

Agencies

Farm Credit 

Administration 

2019

Farm Credit 

Administration 

2020

Change in 

points

Overall 72 75 79 84 5

Leaders lead 62 64 70 77 7

Supervisors 80 83 89 93 4

Intrinsic work 

experience

76 78 79 84 5

Global satisfaction 69 71 83 85 2
42 | FCA Performance and Accountability Report — 2021

And as a financial banking regulator, we emphasize ethical conduct among all employees. In 2011, 

our board adopted a policy statement on ethics, 

independence, and our role as an arm’s length regulator. This document states the following:

• The FCA board will continue to hold itself to the 

highest standards of ethical conduct in recognition that its commitment and adherence to the 

agency ethics program sets the standard for the 

commitment and conduct of agency staff.

• FCA board members and employees must remain mindful of their duty to make independent 

determinations on matters being considered by 

the agency.

• As the arm’s length regulator of the Farm Credit 

System, FCA is committed to carrying out its 

work without any undue influence, favoritism, 

or special access.

• Our ethics program performs the following 

functions:

⸺Oversees financial disclosure reporting (that 

is, the completion of public, confidential, 

and certification forms) of covered FCA and 

Farm Credit System Insurance Corporation 

(FCSIC) employees

⸺Provides ethics counseling to FCA and FCSIC 

employees

⸺Provides ethics training to all covered FCA 

and FCSIC employees annually, as well as to 

new employees during orientation

⸺Provides a liaison to coordinate with other 

government agencies regarding ethics issues

⸺Helps develop regulations and policies related to ethics
FCA Performance and Accountability Report — 2021 | 43

Table 8a. Goal 1—Performance measures and results for public mission

July 1, 2020, to June 30, 2021

Measure 1: Percentage of FCS institutions providing 

products and services that serve creditworthy and eligible persons and perform 

outreach to enhance diversity and inclusion.

Results: FCA regulations require each direct-lender System institution to include in its operating and strategic 

business plan a marketing plan with strategies for providing the institution’s products and services to all creditworthy and eligible persons. The Office of Examination

has updated examination guidance and communications 

with the System on FCA’s minimum business plan expectations beyond regulatory compliance, including diversity and inclusion requirements. Annually, we review all 

System institutions business plans for compliance with 

FCA regulations and examination guidance. In 2021, 99% 

of FCS institutions had satisfactory operating, marketing, 

and strategic plans for providing products and services 

to all creditworthy and eligible persons. One institution 

did not meet this standard because it had an inadequate 

marketing plan. That institution is working to resolve its 

situation.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ≥90% 99% ≥90% 99%

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; 

indicates we exceeded the FY 2021 target; indicates we achieved the FY 2021 target; indicates we did not meet the FY 2021 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018 – 2023. The performance measures in the new plan remain substantially the same as the measures in the previous plan.
44 | FCA Performance and Accountability Report — 2021

Measure 2: Whether Farmer Mac’s business plan contains 

strategies to promote and encourage the 

inclusion of all qualified loans, including

loans to small farms and family farmers, in its 

secondary market programs, and whether its 

business activities further its mission to provide a source of long-term credit and liquidity 

for qualifying loans.

Results: Statute requires the Farmer Mac board to promote and encourage the inclusion of qualified loans for

small farms and family farmers in the agricultural mortgage secondary market. Farmer Mac achieved this goal 

in FY 2021. The agency, through the Office of Secondary

Market Oversight, monitors Farmer Mac’s efforts through

a review of its business plan, our ongoing monitoring 

and oversight, and our annual examination of Farmer 

Mac. Farmer Mac’s business plan contains adequate 

strategies to promote and encourage the inclusion of all 

qualified loans, including small and family farm loans,

in its secondary market programs. Its business activities 

further its mission to provide a source of long-term credit 

and liquidity. The 2021 plan discussed opportunities 

to enhance relationships and initiatives that provide 

affordable financial solutions for the benefit of small

farms and family farmers, which include minority and 

women farmers. Farmer Mac submits an annual mission 

report to FCA, highlighting activity related to small and 

family farms. Each year, FCA includes a review of mission 

achievement, and the annual mission report, in the 

examination of Farmer Mac and documents results and 

conclusions in the annual Report of Examination.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Measure 3: Percentage of direct-lender institutions with 

satisfactory consumer and borrower rights 

compliance.

Results: Our oversight and examination program regularly evaluates compliance with consumer and borrower 

rights regulations through review of policies, programs, 

processes, and loans. In 2021, 99% of direct-lender institutions have satisfactory consumer and borrower rights 

compliance. One institution did not meet this standard 

because of weaknesses in compliance with federal lending and borrower rights regulations. We are verifying the 

appropriateness of corrective actions the institution has 

taken to address the weaknesses.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

≥90% 95% ≥90% 100% ≥90% 97.3% ≥90% 95% ≥90% 96% ≥90% 99%

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; 

indicates we exceeded the FY 2021 target; indicates we achieved the FY 2021 target; indicates we did not meet the FY 2021 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018 – 2023. The performance measures in the new plan remain substantially the same as the measures in the previous plan.
FCA Performance and Accountability Report — 2021 | 45

Measure 4: Percentage of direct-lender institutions with 

YBS programs for farmers and ranchers that 

are in compliance with YBS regulations.

Results: Ongoing oversight and examination activities 

regularly address compliance with mission-related regulations, including young, beginning, and small farmer 

programs. All direct-lender institutions with YBS programs are in compliance with YBS regulations.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2020 

Target

2020 

Results

Results 

vs. target

≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100%

Measure 5: Whether the majority of objectives listed in 

the preamble of each final rule were met on

the two-year anniversary of the rule’s effective or implementation date.

Results: There was one rule that met the reporting 

requirement. A majority of the objectives listed in the 

preamble of the final rule was met on the two-year anniversary of the implementation date.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

N/A N/A Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Measure 6:	 Percentage of pre–rulemaking projects and

proposed rules on which FCA requested input 

from persons outside of FCA. (This measure 

considers all the pre–rulemaking projects

and proposed rules that were listed as completed on FCA’s Unified Agenda Abstracts for

the reporting period.)

Results: There were four pre-rulemaking projects or 

proposed rules that met the reporting requirement; we 

did request input on these projects or rules from persons 

outside of FCA. It is our standard practice to request input on all pre-rulemaking projects and proposed rules.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Results

2021 

Results

Results vs. 

target

100% N/A 100% 89% 100% 100% 100% 100% 100% 100% 100% 100%

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; 

indicates we exceeded the FY 2021 target; indicates we achieved the FY 2021 target; indicates we did not meet the FY 2021 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018 – 2023. The performance measures in the new plan remain substantially the same as the measures in the previous plan.
46 | FCA Performance and Accountability Report — 2021

Table 8b. Goal 2—Performance measures and results for safety and soundness 

July 1, 2020, to June 30, 2021

1 CAMELS is a rating of capital, assets, management, earnings, liquidity, and sensitivity.

Measure 1: Percentage of System assets in institutions 

with composite CAMELS1 ratings of 1 or 2.

Results: Ninety-nine percent of System assets are in 

institutions with composite CAMELS ratings of 1 or 2.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

≥90% 99.7% ≥90% 99.6% ≥90% 98.6% ≥90% 98% ≥90% 99% ≥90% 99%

Measure 2: Percentage of requirements in supervisory 

agreements with which FCS institutions have 

at least substantially complied within 18 

months of execution of the agreements.

Results: The agency does not have any supervisory 

agreements in place with FCS institutions.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

≥80% 91% ≥80% N/A ≥80% N/A ≥80% N/A ≥80% N/A ≥80% N/A N/A

Measure 3: Percentage of institutions complying with 

regulatory capital ratio requirements.

Results: Our oversight and examination program 

analyzes and reports on capital at least quarterly and 

in conjunction with the statutory compliance date. 

All institutions complied with regulatory capital ratio 

requirements.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ≥80% 100%

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; 

indicates we exceeded the FY 2021 target; indicates we achieved the FY 2021 target; indicates we did not meet the FY 2021 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018 – 2023. The performance measures in the new plan remain substantially the same as the measures in the previous plan.
FCA Performance and Accountability Report — 2021 | 47

Measure 4:	 Whether the Office of Secondary Market

Oversight’s examination and oversight plan 

and activities effectively identify emerging

risks, and whether appropriate supervisory 

and corrective actions have been taken to 

effect change when needed.

Results: The Office of Secondary Market Oversight’s examination and oversight plan effectively identifies risk by

outlining focus areas for the examination cycle, assigning 

risk outlooks to each examination topic area, and establishing a risk-based examination schedule. In addition, 

an annual informational memorandum identifies specific

areas of emphasis during the upcoming examination 

cycle. These focus areas are identified during the Office

of Secondary Market Oversight’s annual planning process 

and are considered for updates as needed based on the 

results of our ongoing monitoring and oversight. We 

issue corrective actions to Farmer Mac that warrant the 

attention of their board and management; the corrective 

actions we issue aim to improve the overall safety and 

soundness of Farmer Mac. We evaluate actions taken to 

address matters requiring attention (MRAs) on a quarterly basis and summarize progress in interim activity letters 

and the annual Report of Examination. In 2021, actions 

taken in response to our examination activities strengthened Farmer Mac’s operations, and its efforts to address

MRAs were satisfactory.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; 

indicates we exceeded the FY 2021 target; indicates we achieved the FY 2021 target; indicates we did not meet the FY 2021 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018 – 2023. The performance measures in the new plan remain substantially the same as the measures in the previous plan.
48 | FCA Performance and Accountability Report — 2021

Measure 5: Percentage of institutions with satisfactory 

audit and review programs, including institutions with acceptable corrective action plans.

2 This measure was added to the strategic plan the following year.

Results: Our oversight and examination program specifically emphasizes strong internal controls at all System 

institutions, including internal controls over financial

reporting. All institutions had satisfactory audit and 

review programs, including institutions with acceptable 

corrective action plans. 

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

Yes Yes 100% 99% 100% 95.9% 100% 97% 100% 99% 100% 100%

Measure 6:	 Whether five or more reports and dashboards

were created that use data collected from 

the Farm Credit System to assess risk in the 

System.

Results: The agency exceeded this goal. Numerous 

tracking and analysis reports and dashboards related to 

mergers, shared assets, portfolios, and others were created to better spot trends and identify risks.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

N/A2 N/A Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; 

indicates we exceeded the FY 2021 target; indicates we achieved the FY 2021 target; indicates we did not meet the FY 2021 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018–2023. The performance measures in the new plan remain substantially the same as the measures in the previous plan.
FCA Performance and Accountability Report — 2021 | 49

Table 8c. Goal 3—Performance measures and results for workforce management 

July 1, 2020, to June 30, 2021

3 This measure was added to the strategic plan the following year.

4 This measure was added to the strategic plan the following year.

Measure 1:	 Whether, as part of its recruiting efforts for

entry-level examiners, FCA has ensured that 

at least 25% of its outreach efforts target applicants with a disability or who are members 

of a minority group.

Results: At least 25% of our virtual outreach efforts targeted potential applicants who have a disability or who 

are members of a minority group.

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

N/A3 N/A 25% Yes 25% Yes 25% Yes 25% Yes 25% Yes

Measure 2: Whether we have maintained or improved 

our score from last year in the annual employee satisfaction survey.

Results: There are no results for fiscal year 2021 because

OPM has delayed the release of the Federal Employee 

Viewpoint Survey until November 2021. The 2021 results 

will not be available until next year. The results of the 

Federal Employment Viewpoint Survey for fiscal year

2020 were released in June 2021. They showed that the 

Farm Credit Administration had the highest score in the 

“COVID Overall” response category across all 71 federal 

agencies that participated. FCA placed in the top five

small agencies in the overall ranking of best places to 

work. The ranking is based on the agency’s engagement 

score, which was 86 — 17 points higher than the governmentwide score, and an improvement from our 2019 

results (81).

2016 

Target

2016 

Results

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

Results vs. 

target

N/A4 N/A ≥72% Yes ≥75% Yes ≥81% Yes ≥81% Yes ≥86% N/A N/A

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; 

indicates we exceeded the FY 2021 target; indicates we achieved the FY 2021 target; indicates we did not meet the FY 2021 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018 – 2023. The performance measures in the new plan remain substantially the same as the measures in the previous plan.
50 | FCA Performance and Accountability Report — 2021

Financial Section

In this section, we present our independent auditors’ 

report and our financial statements and notes. We 

prepared these statements and accompanying notes in 

compliance with U.S. generally accepted accounting 

principles for the federal government and OMB 

Circular A-136, Financial Reporting Requirements.
FCA Performance and Accountability Report — 2021 | 51

Statement of Chief Financial Officer

November 10, 2021

I am pleased to present the Farm Credit Administration’s 2021 financial statements and the auditor’s report on the financial position of the agency as of the fiscal year ended September 30, 2021. The audit was 

conducted by an independent public accounting firm contracted with the Office of Inspector General. 

Our agency received an unmodified audit opinion on our financial statements for the 28th consecutive 

year. The auditors concluded that FCA’s financial statements are presented fairly, in all material respects, 

and in accordance with U.S. generally accepted accounting principles.

As part of the financial audit, the auditors assessed our internal controls over financial reporting and 

compliance with selected provisions of applicable laws, regulations, and contracts that are material to 

the financial statements. No material weaknesses or significant deficiencies were reported.

Our leadership and staff remain committed to sound financial management practices while supporting 

and ensuring the safety of our employees as well as the ongoing safety and soundness of the Farm Credit 

System institutions through the evolving COVID-19 pandemic. We continued to operate effectively and 

efficiently while complying with federal guidelines and state mandates.

To protect the safety and health of our employees, all travel for institution examinations remained suspended in fiscal year 2021. Our examiners continued to monitor and evaluate risk in the Farm Credit 

System remotely. With lower operating expenses, we again reduced the assessment amount to the Farm 

Credit System institutions to further support the agriculture community.

We will continue to operate in a safe and sound manner and ensure agency resources are used appropriately throughout the COVID-19 health crisis. We will continue to comply with federal guidance to support 

our employees and the Farm Credit System. Our top priority continues to be our core mission: ensuring 

that the Farm Credit System meets the needs of our nation’s farmers, ranchers, and rural communities.

I would like to thank all the FCA financial personnel, as well as the staff from other offices who worked 

with them, for their conscientious management of agency resources. Our shared commitment to ensuring accountability and transparency in the execution of our fiduciary duties is the foundation of our 

strong stewardship and ability to deliver reliable financial information to our stakeholders.

Sincerely,

Stephen G. Smith

Chief Financial Officer
52 | FCA Performance and Accountability Report — 2021

Transmittal Letter of Auditor’s Report

1501 Farm Credit Drive, McLean, VA 22102 703-883-4030 www.fca.gov/about/inspector-general

November 10, 2021

The Honorable Glen R. Smith, Board Chairman and Chief Executive Officer

The Honorable Jeffery S. Hall, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Chairman Smith and Board Member Hall:

We contracted with the independent public accounting firm Harper, Rains, Knight & Company 

P.A. (HRK) to audit the financial statements of the Farm Credit Administration (FCA) as of and for 

the fiscal years ended September 30, 2021 and 2020 and to provide a report on internal control 

over financial reporting and compliance with laws and other matters. The contract required that 

the audit be performed in accordance with Government Auditing Standards, Office of Management 

and Budget audit guidance, and the U.S. Government Accountability Office/Council of the 

Inspectors General on Integrity and Efficiency’s Financial Audit Manual. 

In its audit of FCA, HRK reported: 

• the financial statements were fairly presented, in all material respects, in accordance with 

U.S. generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting and compliance with 

laws and other matters; and

• no reportable noncompliance with provisions of laws tested or other matters.

In connection with the contract, we reviewed HRK’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit of the financial 

statements in accordance with U.S. generally accepted government auditing standards, was not 

intended to enable us to express, and we do not express, opinions on FCA’s financial statements 

or conclusions about the effectiveness of internal control over financial reporting, or on 

compliance with laws and other matters. HRK is responsible for the attached auditor’s report dated 

November 10, 2021, and the conclusions expressed therein. However, our review disclosed no 

instances where HRK did not comply, in all material respects, with Government Auditing Standards. 

November 10, 2021

The Honorable Glen R. Smith, Board Chairman and Chief Executive Officer

The Honorable Jeffery S. Hall, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Chairman Smith and Board Member Hall:

We contracted with the independent public accounting firm Harper, Rains, Knight & Company 

P.A. (HRK) to audit the financial statements of the Farm Credit Administration (FCA) as of and 

for the fiscal years ended September 30, 2021 and 2020 and to provide a report on internal 

control over financial reporting and compliance with laws and other matters. The contract 

required that the audit be performed in accordance with Government Auditing Standards, Office 

of Management and Budget audit guidance, and the U.S. Government Accountability Office/

Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual.

In its audit of FCA, HRK reported:

• the financial statements were fairly presented, in all material respects, in accordance with 

U.S. generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting and compliance with 

laws and other matters; and

• no reportable noncompliance with provisions of laws tested or other matters.

In connection with the contract, we reviewed HRK’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit of the financial 

statements in accordance with U.S. generally accepted government auditing standards, was 

not intended to enable us to express, and we do not express, opinions on FCA’s financial 

statements or conclusions about the effectiveness of internal control over financial reporting, 

or on compliance with laws and other matters. HRK is responsible for the attached auditor’s 

report dated November 10, 2021, and the conclusions expressed therein. However, our review 

disclosed no instances where HRK did not comply, in all material respects, with Government 

Auditing Standards.

Respectfully,

Sonya K. Cerne 

Assistant Inspector General for Audits, Inspections, and Evaluations

Enclosure

1501 Farm Credit Drive, McLean, VA 22102 703-883-4030 www.fca.gov/about/inspector-general

November 10, 2021

The Honorable Glen R. Smith, Board Chairman and Chief Executive Officer

The Honorable Jeffery S. Hall, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Chairman Smith and Board Member Hall:

We contracted with the independent public accounting firm Harper, Rains, Knight & Company 

P.A. (HRK) to audit the financial statements of the Farm Credit Administration (FCA) as of and for 

the fiscal years ended September 30, 2021 and 2020 and to provide a report on internal control 

over financial reporting and compliance with laws and other matters. The contract required that 

the audit be performed in accordance with Government Auditing Standards, Office of Management 

and Budget audit guidance, and the U.S. Government Accountability Office/Council of the 

Inspectors General on Integrity and Efficiency’s Financial Audit Manual. 

In its audit of FCA, HRK reported: 

• the financial statements were fairly presented, in all material respects, in accordance with 

U.S. generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting and compliance with 

laws and other matters; and

• no reportable noncompliance with provisions of laws tested or other matters.

In connection with the contract, we reviewed HRK’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit of the financial 

statements in accordance with U.S. generally accepted government auditing standards, was not 

intended to enable us to express, and we do not express, opinions on FCA’s financial statements 

or conclusions about the effectiveness of internal control over financial reporting, or on 

compliance with laws and other matters. HRK is responsible for the attached auditor’s report dated 

November 10, 2021, and the conclusions expressed therein. However, our review disclosed no 

instances where HRK did not comply, in all material respects, with Government Auditing Standards. 
FCA Performance and Accountability Report — 2021 | 53

Independent Auditor’s Report

Independent Auditors' Report

FCA Board and Inspector General 

Farm Credit Administration

Report on the Financial Statements

We have audited the accompanying financial statements of the Farm Credit Administration (FCA), which 

comprise the balance sheets as of September 30, 2021 and 2020, and the related statements of net cost, 

changes in net position, and budgetary resources, for the fiscal years then ended; and the related notes to 

the financial statements. 

Management's Responsibility

FCA's management is responsible for (1) the preparation and fair presentation of these financial statements 

in accordance with accounting principles generally accepted in the United States of America; (2) 

preparing, measuring, and presenting the Required Supplementary Information (RSI) in accordance with 

accounting principles generally accepted in the United States of America; (3) preparing and presenting 

other information included in documents containing the audited financial statements and auditors' report, 

and ensuring the consistency of that information with the audited financial statements and the RSI; and 

(4) maintaining effective internal control over financial reporting, including the design, implementation, 

and maintenance of internal control relevant to the preparation and fair presentation of financial statements 

that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted 

our audits in accordance with auditing standards generally accepted in the United States of America; the 

standards applicable to financial audits contained in Government Auditing Standards, issued by the 

Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 21-04, 

Audit Requirements for Federal Financial Statements. Those standards and OMB require that we plan and 

perform the audit to obtain reasonable assurance about whether the financial statements are free from 

material misstatement. We are also responsible for applying certain limited procedures to RSI and other 

information included with the financial statements.

An audit of financial statements involves performing procedures to obtain audit evidence about the 

amounts and disclosures in the financial statements. The procedures selected depend on the auditors' 

judgment, including the auditors' assessment of the risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal 
54 | FCA Performance and Accountability Report — 2021

The FCA Board and Inspector General

Farm Credit Administration (continued)

Auditors' Responsibility (continued)

control relevant to the entity's preparation and fair presentation of the financial statements in order to 

design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an 

opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An 

audit of financial statements also involves evaluating the appropriateness of the accounting policies used 

and the reasonableness of significant accounting estimates made by management, as well as evaluating 

the overall presentation of the financial statements. Our audits also included performing such other 

procedures as we considered necessary in the circumstances.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 

our audit opinion.

Opinion on the Financial Statements

In our opinion, FCA's financial statements present fairly, in all material respects, FCA's financial position 

as of September 30, 2021 and 2020, and its net cost of operations, changes in net position, and budgetary 

resources for the fiscal years then ended, in accordance with accounting principles generally accepted in 

the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America issued by the Federal 

Accounting Standards Advisory Board (FASAB) require that the information in the Management's 

Discussion and Analysis be presented to supplement the financial statements. Such information, although 

not a part of the financial statements, is required by FASAB who considers this information to be an 

essential part of financial reporting for placing the financial statements in appropriate operational, 

economic, or historical context. We have applied certain limited procedures to the RSI in accordance with 

auditing standards generally accepted in the United States of America, which consisted of inquiries of 

management about the methods of preparing the RSI and comparing the information for consistency with 

management's responses to the auditors' inquiries, the financial statements, and other knowledge we 

obtained during the audit of the financial statements, in order to report omissions or material departures 

from FASAB guidelines, if any, identified by these limited procedures. We did not audit and we do not 

express an opinion or provide any assurance on the RSI because the limited procedures we applied do not 

provide sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming an opinion on FCA's financial statements. The 

information in the Statement of Board Chairman and CEO, Statement of Chief Financial Officer, FCA 

Performance Report, and Other Information section contains a wide range of information, some of which 

is not directly related to the financial statements. This information is presented for purposes of additional
FCA Performance and Accountability Report — 2021 | 55

The FCA Board and Inspector General

Farm Credit Administration (continued)

Other Information (continued)

analysis and is not a required part of the financial statements or the RSI. We read the other information 

included with the financial statements in order to identify material inconsistencies, if any, with the audited 

financial statements.

The Statement of Board Chairman and CEO, Statement of Chief Financial Officer, Program Performance, 

and Other Information sections have not been subjected to the auditing procedures applied in the audit of 

the financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

Internal Control over Financial Reporting

In planning and performing our audit of FCA's financial statements as of and for the year ended 

September 30, 2021, in accordance with U.S. generally accepted government auditing standards and OMB 

Bulletin 21-04, Audit Requirements for Federal Financial Statements, we considered the entity's internal 

control over financial reporting as a basis for designing audit procedures that are appropriate in the 

circumstances for the purpose of expressing our opinion on the financial statements, but not for the 

purpose of expressing an opinion on the effectiveness of the entity's internal control over financial 

reporting. Accordingly, we do not express an opinion on the entity's internal control over financial 

reporting. We did not consider all internal controls relevant to operating objectives as broadly established 

by the Federal Managers' Financial Integrity Act of 1982, such as those controls relevant to preparing 

performance information and ensuring efficient operations. We are required to report all deficiencies that 

are considered to be significant deficiencies or material weaknesses.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination 

of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement 

of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A 

significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe 

than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the 

preceding paragraph and was not designed to identify all deficiencies in internal control over financial 

reporting that might be material weaknesses or significant deficiencies, and therefore, material weaknesses 

or significant deficiencies may exist that were not identified. Given these limitations, during our audit, we 

did not identify any deficiencies in internal control over financial reporting that we consider to be material 

weaknesses. However, material weaknesses may exist that have not been identified.
56 | FCA Performance and Accountability Report — 2021

The FCA Board and Inspector General

Farm Credit Administration (continued)

Compliance and Other Matters

As part of obtaining reasonable assurance about whether FCA's financial statements are free from material 

misstatement, we performed tests of its compliance with selected provisions of applicable laws, 

regulations, contracts, and grant agreements, noncompliance with which would have a direct and material 

effect on the financial statements. We performed our tests of compliance in accordance with U.S. generally 

accepted government auditing standards and OMB Bulletin 21-04, Audit Requirements for Federal 

Financial Statements. We caution that noncompliance may occur and not be detected by these tests.

Management is responsible for complying with laws, regulations, contracts, and grant agreements 

applicable to the entity.

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts, 

and grant agreements applicable to the entity that have a direct effect on the determination of material 

amounts and disclosures in the entity's financial statements and perform certain other limited procedures. 

Accordingly, we did not test compliance with all laws, regulations, contracts, and grant agreements 

applicable to FCA.

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant 

agreements disclosed no instances of noncompliance for fiscal year 2021 that would be reportable under 

U.S. generally accepted government auditing standards or OMB Bulletin 21-04, Audit Requirements for 

Federal Financial Statements. However, the objective of our tests was not to provide an opinion on 

compliance with laws, regulations, contracts, and grant agreements applicable to FCA. Accordingly, we 

do not express such an opinion.

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication described in the Other Reporting Required by Government Auditing 

Standards section is solely to describe the scope of our testing of internal control and compliance and the 

result of that testing, and not to provide an opinion on the effectiveness of FCA's internal control or 

compliance. These reports are an integral part of an audit performed in accordance with U.S. generally 

accepted government auditing standards in considering the entity's internal control and compliance.

Accordingly, this communication is not suitable for any other purpose.

November 10, 2021

Washington, DC

58 | FCA Performance and Accountability Report — 2021

Financial Statements

We have prepared the accompanying financial statements in accordance with U.S. generally accepted accounting principles and with the Office of Management and Budget Circular A-136, as amended. For comparison purposes, we present our financial statements and notes for FY 2021 and FY 2020. All amounts 

are in whole dollars. Our financial statements include the following:

• Balance sheets, which show our assets, our liabilities, and our net position (assets minus liabilities).

• Statements of net cost, which show our net cost of operations. We calculate our net costs by subtracting from our gross costs any revenue we earn. We break the statement of net cost into three program 

components: public mission, safety and soundness, and other activity.

• Statements of changes in net position, which show the changes in our net position over the two-year 

period ending Sept. 30, 2021.

• Statements of budgetary resources, which show our resources, the status of our resources, and the 

outlay of resources during the fiscal year.

• Notes to the financial statements, which clarify and provide additional detail regarding the amounts in 

the financial statements.

Not all the statements mentioned in Circular A-136 apply to our agency. For this reason, we do not include a statement of custodial activity, a statement of social insurance, or a statement of changes in social 

insurance amounts.
FCA Performance and Accountability Report — 2021 | 59

Balance sheets

As of Sept. 30, 2021 and 2020 

(In dollars)

Balance sheet 

categories

Line item description 2021 2020

Assets Intragovernmental

Fund balance with Treasury (note 2) $896,793 $4,204,180

Investments (note 3)

Federal investments 39,447,090 34,370,600

Interest receivable—investments 163,522 101,097

Accounts receivable (note 4) 44,705 31,007

Prepaid expenses—advances and prepayments 0 2,396

Total intragovernmental 40,552,110 38,709,280

With the public

Accounts receivable (note 4) 6,751 13,009

General property, equipment, and software, net

(note 5)

1,487,624 1,803,072

Prepaid expenses 267,923 214,821

Total with the public 1,762,298 2,030,902

Total assets $42,314,408 $40,740,182

Liabilities Intragovernmental

Accounts payable $149,254 $132,622

Other liabilities (note 7)

Other liabilities (without reciprocals) 194,129 162,615

Benefit program contributions payable 668,224 563,270

Total intragovernmental 1,011,607 858,507

With the public

Accounts payable 807,594 384,890

Actuarial workers’ compensation liability (note 6) 1,533,273 1,481,359

Employer contributions and payroll taxes payable 656,980 595,999

Deferred revenue 6,474,352 6,331,840

Accrued payroll and benefits 9,141,457 8,192,979

Accrued taxes payable 15,973 0

Total with the public 18,629,629 16,987,067

Total liabilities (note 6) $19,641,236 $17,845,574

Net position Cumulative results of operations $22,673,172 $22,894,608

Total net position 22,673,172 22,894,608

Total liabilities and net position $42,314,408 $40,740,182

The accompanying notes are an integral part of these statements.
60 | FCA Performance and Accountability Report — 2021

Statements of net cost

For the years ended Sept. 30, 2021 and 2020 

(In dollars)

Agency programs Program costs 2021 2020

Public mission Gross costs $20,209,279 $19,014,091

Less: Earned revenue (18,680,718) (18,082,433)

Net program cost $1,528,561 $931,658

Safety and soundness Gross costs $62,627,132 $58,420,531

Less: Earned revenue (57,887,401) (55,535,650)

Net program cost $4,739,731 $2,884,881

Other activity Gross costs $830,844 $781,411

Less: Earned revenue (467,605) (504,831)

Net program cost $363,239 $276,580

Net cost of operations (note 8 and note 13) $6,631,531 $4,093,119

The accompanying notes are an integral part of these statements.
FCA Performance and Accountability Report — 2021 | 61

Statements of changes in net position

For the years ended Sept. 30, 2021 and 2020 

(In dollars)

Cumulative results of operations 2021 2020

Beginning balances $22,894,608 $20,901,814

Other financing 

sources 

(Non-exchange)

Imputed financing sources

Federal employee benefits (note 9) 2,760,095 2,435,913

Rent (note 9) 3,650,000 3,650,000

Total financing sources 6,410,095 6,085,913

Net cost of operations (6,631,531) (4,093,119)

Net change (221,436) 1,992,794

Cumulative results of operations $22,673,172 $22,894,608

Net position $22,673,172 $22,894,608

The accompanying notes are an integral part of these statements.
62 | FCA Performance and Accountability Report — 2021

Statements of budgetary resources

For the years ended Sept. 30, 2021 and 2020 

(In dollars)

Statement of budgetary 

resources categories

Line item description 2021 2020

Budgetary resources Unobligated balance from prior year budget 

authority, net

$23,124,450 $21,427,515

Spending authority from offsetting collections 76,457,995 74,878,764

Total budgetary resources (note 11) $99,582,445 $96,306,279

Status of budgetary 

resources

New obligations and upward adjustments 

(total)

$76,298,741 $73,181,829

Unobligated balance, end of year

Exempt from apportionment, unexpired 

accounts

16,809,352 16,792,610

Exempt from apportionment, not available 6,474,352 6,331,840

Unobligated balance, end of year (total) 23,283,704 23,124,450

Total budgetary resources (note 11) $99,582,445 $96,306,279

Outlays, net Outlays, net (total) (1,161,341) (2,630,675)

Distributed offsetting receipts (25,245) (199)

Agency outlays, net (note 13) $(1,186,586) $(2,630,874)

The accompanying notes are an integral part of these statements.
FCA Performance and Accountability Report — 2021 | 63

Notes to the financial statements

Note 1. Significant accounting policies

A. Reporting entity—We are an independent agency in the executive branch of the U.S. government. We 

are responsible for regulating and supervising the Farm Credit System (its banks, associations, and 

related entities) and the Federal Agricultural Mortgage Corporation (Farmer Mac). Specifically, we are 

empowered to ensure safe and sound operations of all System institutions. Initially created by an executive order of the president in 1933, FCA now derives its power and authority from the Farm Credit Act 

of 1971, as amended. The act requires us to periodically examine System institutions. Policymaking 

for FCA is vested in a full-time, three-person board whose members are appointed by the president 

with the advice and consent of the Senate.

While FCA’s board members also serve as the board of directors for the Farm Credit System Insurance 

Corporation (FCSIC), FCSIC is a separate independent agency from the Farm Credit Administration. 

FCSIC was established by the Agricultural Credit Act of 1987 in the wake of the agricultural credit crisis of the 1980s. The purpose of FCSIC is to protect investors in Systemwide debt securities by insuring 

the timely payment of principal and interest on obligations issued by FCS banks. FCSIC does so by 

maintaining the Farm Credit Insurance Fund, a reserve that represents the equity of FCSIC. 

The reporting entity is a component of the U.S. government. For this reason, some of the assets and 

liabilities reported by the entity may be eliminated for governmentwide reporting because they are 

offset by assets and liabilities of another U.S. government entity. These financial statements should be 

read with the realization that they are for a component of the U.S. government. 

B. Basis of accounting and presentation—The financial statements have been prepared in accordance 

with OMB Circular No. A-136, as amended. In addition, the financial statements have been prepared 

on an accrual basis from our books and records in accordance with generally accepted accounting 

principles and the Statements of Federal Financial Accounting Standards (SFFAS) prescribed by the 

Federal Accounting Standards Advisory Board, the official body for setting accounting standards for 

the federal government. Under the accrual method, revenues are recognized when earned, and expenses are recognized when goods or services are received, without regard to receipt of funds or payment of cash. FCA is not subject to apportionment. We have applied budgetary accounting to facilitate 

compliance with legal constraints and control over the use of funds.

C. Fund balance with Treasury—We maintain a revolving, no-year account with the U.S. Treasury 

through which cash receipts and disbursements are processed. We do not receive appropriated funds. 

See note 2.

D. Investments—The Farm Credit Act gives us the authority to invest in public debt securities with maturities suitable to our needs. We invest solely in U.S. Treasury securities, which are normally held 

to maturity and carried at cost. Investments are adjusted for unamortized premiums or discounts. 

Premiums and discounts are amortized, and interest is accrued using the level-yield, scientific method 

of effective interest amortization over the term of the respective issues. We use interest earned on 

investments to build and maintain an agency reserve, which allows us to respond effectively and efficiently to unexpected, unbudgeted expenses without increasing assessments. See note 3.

E. Accounts receivable—Accounts receivable are composed of reimbursements for FCA administrative expenses according to agreements with other federal entities, assessments from institutions in 
64 | FCA Performance and Accountability Report — 2021

accordance with the Farm Credit Act and FCA regulations, and any amounts owed FCA that are generated through the normal course of business with employees and vendors.

Amounts due from federal agencies are considered fully collectible. An allowance for uncollectible 

amounts receivable from the public is established when we have determined that the collection is unlikely to occur after considering the debtor’s ability to pay.

The Office of the Chief Financial Officer, in conjunction with the agency’s accounting service provider, 

the Bureau of the Fiscal Service, reviews the agency’s accounts receivable on a regular basis. We have 

determined that all accounts receivable as of Sept. 30, 2021, are fully collectible. See note 4.

F. Advances and prepaid expenses—Payments made before the receipt of goods and services are recorded as advances or prepaid expenses at the time of prepayment and are recognized as expenses 

when the goods and services are received. This process helps to minimize large dollar fluctuations 

in cost and provides for the recognition of cost based on use. When the prepayment amount has 

minimal impact on cost, it is more cost-effective to expense the advance or prepayment at the time of 

payment. We establish advances for prepaid maintenance agreements over $20,000 and for prepaid 

training exceeding $15,000.

G. General property, equipment, and software—Property (including vehicles), equipment, and software 

are recorded at cost, net of an allowance for accumulated depreciation. Repairs and maintenance 

costs are expensed as incurred. We capitalize all property and equipment with itemized costs of 

$50,000 or more and a useful life of two years or more. We also capitalize groups of items that individually are under $50,000 but together meet the bulk purchase criteria of $500,000 or more. We capitalize software when its costs exceed $250,000 and when the software has a useful life of two years or 

more. We use the straight-line method of depreciation with half-year convention to allocate the cost of 

capitalized property, equipment, or software over its estimated useful life. See note 5.

H. Accounts payable—Accounts payable consist of amounts owed to other federal agencies and the public. We strive to make payments in a timely manner in accordance with the Prompt Payment Act. If 

payments are late, we pay interest penalties.

I. Liabilities—Liabilities may or may not be covered by budgetary or other resources. All our liabilities 

are covered by budgetary resources except for the actuarial workers’ compensation liability (see note 

6). Intragovernmental liabilities are claims against us by other federal agencies.

J. Inter-entity costs—Goods and services are received from other entities at no cost or at a cost less than 

full cost to the providing entity. Consistent with accounting standards, certain costs of the providing 

entity that are not fully reimbursed by FCA are recognized as imputed cost on the statement of net 

cost and are offset by imputed revenue on the statement of changes in net position. FCA’s inter-entity 

costs that are reported as imputed costs include federal employee benefits and rent. See note 9.

K. Annual, sick, and other leave—Annual leave, compensatory leave, credit hours, and some other 

types of leave are accrued as a funded liability when earned, with an offsetting reduction for leave 

taken. The accrued leave liability for each of these types of leave is calculated using current pay rates. 

Sick leave and other types of nonvested leave are expensed as the leave is taken. Our methodology 

for calculating the leave liability includes the cost of benefits associated with the compensation. This 

ensures that our estimated liability for leave reflects the current composition of our staff; nearly 

all our employees are under the Federal Employees Retirement System instead of the Civil Service 

Retirement System.
FCA Performance and Accountability Report — 2021 | 65

L. Assessments—A substantial portion of our revenues is based on direct assessments billed to the 

System institutions we regulate or examine. We also recognize revenues based on examination 

services provided by the Office of Examination. We use a formula established in our regulations to calculate assessments. We base each institution’s assessment, in part, on its average risk-adjusted assets 

and its overall financial health.

M.Deferred revenue—Any funds received before the beginning of the new fiscal year are considered 

unearned revenue and are reported as deferred revenue on the balance sheet. These amounts are also 

reported as “exempt from apportionment, not available” on the statement of budgetary resources.

N. Use of estimates—We have made certain estimates and assumptions when reporting assets, liabilities, revenue, and expenses; we have also made estimates and assumptions in the note disclosures. 

Actual results could differ from these estimates. Some estimates include year-end accruals and 

accrued workers compensation.

O. Financial data—All amounts presented in this report are in whole dollars.

P. Reclassifications—Certain amounts presented in the prior years have been reclassified to conform to 

the current period financial statement presentation. These reclassifications have no effect on previously reported net position or budgetary resources.

Q. Classified activities—Accounting standards require all reporting entities to disclose that accounting 

standards allow certain presentations and disclosures to be modified, if needed, to prevent the disclosure of classified information. FCA does not have any classified activities. 

Note 2. Fund balance with Treasury

Line item description 2021 2020

Status of fund balance with Treasury

Unobligated balance

Available $16,809,352 $16,792,610

Unavailable 6,474,352 6,331,840

Obligated balance not yet disbursed 16,229,144 15,227,056

Subtotal—Status of fund balance 39,512,848 38,351,506

Funds invested with Treasury, net of unamortized discount (38,616,055) (34,147,326)

Total fund balance with Treasury $896,793 $4,204,180

The fund balance with Treasury is an asset account that shows our available cash. The balance in the 

account increases as we collect funds and decreases as we disburse funds. The status of our fund balance with Treasury may be classified as unobligated available, unobligated unavailable, or obligated. 

Unobligated available amounts represent funds available for incurring new obligations. The unobligated 

unavailable amounts include funds not yet available for use and represent the amount of new fiscal year 

assessments received before Oct. 1. These unavailable amounts are also classified as deferred revenue on 

the balance sheet. Amounts noted as “obligated balance not yet disbursed” represent amounts designated 

for payment of goods and services received and not yet paid.
66 | FCA Performance and Accountability Report — 2021

Unobligated balances noted above agree with unobligated balances reported on the Statement of 

Budgetary Resources.

All our funds invested with Treasury are in U.S. Treasury securities.

Note 3. Investments

Amounts for 2021 balance sheet reporting

Intragovernmental 

securities

Cost Amortized 

(premium) 

discount

Investments, 

net

Interest 

receivable

9/30/21 

Investment 

balance

Market value 

disclosure

Nonmarketable: 

market-based

$39,836,961 $(389,871) $39,447,090 $163,522 $39,610,612 $39,446,602

Amounts for 2020 balance sheet reporting

Intragovernmental 

securities

Cost Amortized 

(premium) 

discount

Investments, 

net

Interest 

receivable

9/30/20 

Investment 

balance

Market value 

disclosure

Nonmarketable: 

market-based

$34,329,817 $40,783 $34,370,600 $101,097 $34,471,697 $34,585,814

Premiums and discounts are amortized, and interest is accrued using the level-yield, scientific method 

of effective interest amortization over the term of the respective issues. Interest revenue on investments 

was $251,147 and $617,438 for FYs 2021 and 2020, respectively.

Note 4. Accounts receivable

Description 2021 2020

Intragovernmental

Reimbursements for services provided $44,705 $31,007

Subtotal 44,705 31,007

With the public

Reimbursements for services provided 2,359 12,300

Expenditure refunds 4,392 709

Subtotal 6,751 13,009

Total accounts receivable $51,456 $44,016

The intragovernmental receivables represent reimbursable services provided to USDA and FCSIC but 

unbilled as of Sept. 30. Receivables for services provided to the public represent uncollected amounts related to the cost of examining the National Consumer Cooperative Bank and some employee receivables.

We do not have any uncollectible accounts receivable and therefore do not display any estimate for allowance for uncollectible accounts.
FCA Performance and Accountability Report — 2021 | 67

Note 5. General property, equipment, and software

As of Sept. 30, 2021

Type of asset Estimated 

useful life

Depreciation 

method

Acquisition 

value

Accumulated/Amortized 

depreciation

Book value

Equipment 3 years Straight line $918,140 $(459,070) $459,070

Equipment 5 years Straight line 498,328 (422,157) 76,171

Equipment 10 years Straight line 305,304 (197,971) 107,333

Internal use 

software

5 years Straight line 1,656,962 (1,071,794) 585,168

Software in

development

259,882 0 259,882

Total $3,638,616 $(2,150,992) $1,487,624

As of Sept. 30, 2020

Type of asset Estimated 

useful life

Depreciation 

method

Acquisition 

value

Accumulated/Amortized 

depreciation

Book value

Equipment 3 years Straight line $1,641,722 $(876,603) $765,119

Equipment 5 years Straight line 498,326 (339,262) 159,064

Equipment 10 years Straight line 305,304 (167,440) 137,864

Internal use 

software

5 years Straight line 1,270,813 (779,016) 491,797

Software in

development

249,228 0 249,228

Total $3,965,393 $(2,162,321) $1,803,072

Capitalization thresholds for property and equipment are $50,000 per individual asset and $500,000 for bulk purchase of equipment. Capitalized internal use software is capitalized when costs exceed $250,000.

Note 6. Liabilities not covered by budgetary resources (actuarial workers’ compensation liability)

We record an unfunded liability (liability not covered by budgetary resources) for the actuarial liability under the 

Federal Employees’ Compensation Act (FECA). The actuarial FECA liability is the estimated liability for future 

benefit payments and is recorded as a component of federal employee benefits. The actuarial liability estimate for 

benefits under FECA includes the expected liability for costs associated with death, disability, and medical care for 

approved compensation cases. The estimate also includes costs associated with incurred but unreported claims.

The Department of Labor estimates future workers’ compensation liability for specified entities that are preparing 

statements under the Chief Financial Officers Act and the Government Management Reform Act. Because we are 

not one of the entities for which the Department of Labor provides individual estimates on a routine basis, we calculated our estimated FECA actuarial liability amount by using the Department of Labor’s FY 2021 model.

Liability description 2021 2020

Federal Employees’ Compensation Act actuarial liability $1,533,273 $1,481,359

Total liabilities not covered by budgetary resources 1,533,273 1,481,359

Total liabilities covered by budgetary resources 18,107,963 16,364,215

Total liabilities $19,641,236 $17,845,574
68 | FCA Performance and Accountability Report — 2021

Note 7. Other liabilities

There are two categories of intragovernmental other liabilities in our balance sheet. The benefit program contributions payable line represents the employer portion of payroll taxes and benefit contributions, such as retirement, and health and life insurance. These intragovernmental liabilities also include the amount of our funded 

liability for the Federal Employees’ Compensation Act. The other liabilities (without reciprocals) line item refers 

to transactions that are intragovernmental in nature, but no reciprocal balances will be reported by any other 

federal entity. For FCA, these balances relate to accrued liabilities for employees’ withholding taxes under the 

Federal Insurance Contributions Act and hospital insurance tax.

Other liabilities 2021 2020

Intragovernmental

Other liabilities (without reciprocals) $194,129 $162,615

Benefit program contributions payable 668,224 563,270

Total intragovernmental other liabilities 862,353 725,885

Total other liabilities $862,353 $725,885

Note 8. Suborganization program costs

The following tables provide a detailed breakout of the statement of net cost for each of the fiscal years ended 

2021 and 2020. We display our cost and earned revenue amounts by office within each program.

For the year ended Sept. 30, 2021

Agency 

programs

Program costs Office of 

Examination

Office of 

Regulatory 

Policy

Office of 

Secondary 

Market 

Oversight

Other 

offices

Total

Public 

mission

Gross costs $412,841 $5,141,388 $523,326 $14,131,724 $20,209,279

Less: Earned 

revenue

(383,409) (4,774,814) (432,124) (13,090,371) (18,680,718)

Net program cost 29,432 366,574 91,202 1,041,353 1,528,561

Safety and 

soundness

Gross costs 37,663,274 251,682 1,518,691 23,193,485 62,627,132

Less: Earned 

revenue

(34,936,386) (232,330) (1,255,517) (21,463,168) (57,887,401)

Net program cost 2,726,888 19,352 263,174 1,730,317 4,739,731

Other 

activity

Gross costs 207,940 21,164 88 601,652 830,844

Less: Earned 

revenue

(117,030) (11,911) (50) (338,614) (467,605)

Net program cost 90,910 9,253 38 263,038 363,239

Net cost of operations $2,847,230 $395,179 $354,414 $3,034,708 $6,631,531
FCA Performance and Accountability Report — 2021 | 69

For the year ended Sept. 30, 2020

Agency 

programs Program costs Office of Examination

Office of 

Regulatory 

Policy

Office of 

Secondary 

Market 

Oversight

Other 

offices Total

Public 

mission

Gross costs $425,969 $5,224,056 $418,921 $12,945,145 $19,014,091

Less: Earned 

revenue

(405,721) (4,975,737) (369,980) (12,330,995) (18,082,433)

Net program cost 20,248 248,319 48,941 614,150 931,658

Safety and 

soundness

Gross costs 36,805,731 607,834 1,502,976 19,503,990 58,420,531

Less: Earned 

revenue

(35,038,185) (577,690) (1,335,685) (18,584,090) (55,535,650)

Net program cost 1,767,546 30,144 167,291 919,900 2,884,881

Other 

activity

Gross costs 181,268 86,778 535 512,830 781,411

Less: Earned 

revenue

(117,107) (56,063) (347) (331,314) (504,831)

Net program cost 64,161 30,715 188 181,516 276,580

Net cost of operations $1,851,955 $309,178 $216,420 $1,715,566 $4,093,119

Note 9. Inter-entity costs

Federal employee benefits

Benefit description 2021 2020

Imputed pension costs $396,947 $251,324

Other imputed retirement 

benefits

2,363,148 2,184,589

Total $2,760,095 $2,435,913

We report the amount of our pension expense and other retirement benefits in accordance with SFFAS 

No. 5, Accounting for Liabilities of the Federal Government. These expenses are treated as an imputed 

expense, which is recognized when amounts remitted to OPM are less than the full cost to the government. Corresponding amounts of imputed revenue are recorded to offset the imputed cost.

Pension expenses—Our employees are covered under the Civil Service Retirement System (CSRS) and 

the Federal Employees Retirement System (FERS) to which we make contributions according to plan 

requirements. CSRS and FERS are multiemployer plans. We do not maintain or report information about 

the assets of the plan, nor do we report actuarial data for accumulated plan benefits. The reporting of 

such amounts is the responsibility of OPM.

Other retirement benefit expenses—We also recognize an expense for the cost of providing health 

benefits and life insurance to our employees after they retire. OPM provides the factors used to calculate 

these costs.
70 | FCA Performance and Accountability Report — 2021

Rent

FCA office description 2021 2020

Leased field offices $1,410,455 $1,308,035

FCA headquarters 2,239,545 2,341,965

Total $3,650,000 $3,650,000

In accordance with the Farm Credit Act, we occupy buildings owned and leased by the Farm Credit 

System Building Association (FCSBA). Our administrative headquarters building and land are in McLean, 

Virginia. In addition, the FCSBA leases office space for field offices on our behalf at various locations 

throughout the United States. Rent is provided at no cost to us. Our imputed rent expense is an estimate based on the FCSBA’s estimated budget for 2021. In accordance with SFFAS No. 4, Managerial Cost 

Accounting Concepts and Standards for the Federal Government, the rent expense and the associated 

imputed revenue are recorded as a nonmonetary transaction.

Note 10. Undelivered orders at the end of the period

As of Sept. 30, 2021, budgetary resources obligated for undelivered orders were as follows:

Type of undelivered orders Federal Nonfederal Total

Paid undelivered orders $0 $267,923 $267,923

Unpaid undelivered orders 263,933 4,821,566 5,085,499

Total undelivered orders $263,933 $5,089,489 $5,353,422

As of Sept. 30, 2020, budgetary resources obligated for undelivered orders were as follows:

Type of undelivered orders Federal Nonfederal Total

Paid undelivered orders $2,396 $214,822 $217,218

Unpaid undelivered orders 371,847 5,359,200 5,731,047

Total undelivered orders $374,243 $5,574,022 $5,948,265
FCA Performance and Accountability Report — 2021 | 71

Note 11. Explanation of differences between the Statement of Budgetary Resources and the 

budget of the U.S. government

SFFAS 7 requires the reporting of material differences between amounts reported in the Statement of 

Budgetary Resources and the actual amounts reported in the Budget of the United States Government.

There are no material differences between the amounts reported in the FY 2020 Statement of Budgetary 

Resources and the FY 2020 actual amounts reported in the FY 2022 Budget of the United States 

Government. The FY 2023 Budget of the United States is not yet available to compare the FY 2021 actual 

amounts to the FY 2021 Statement of Budgetary Resources. The budget is expected to be available in 

February 2022 at https://www.whitehouse.gov/omb/budget/.

Note 12. Incidental custodial collections

Our custodial collections include receipts to cover the costs of fulfilling Freedom of Information Act requests; they also include other receipts, such as interest and penalties. During the fiscal year, we include 

these collections in the Fund Balance with Treasury. However, since these collections are immaterial 

to the financial statements and incidental to our mission, we do not provide a Statement of Custodial 

Activity. Custodial collections totaled $25,245 for the year ended Sept. 30, 2021, and $199 for the year ended Sept. 30, 2020. The funds collected during FY 2021 were transferred to the Department of the Treasury 

at the end of FY 2021.

Note 13. Reconciliation of net cost to net outlays

As prescribed by SFFAS 53, Budget and Accrual Reconciliation, this note explains the relationship between our net outlays on a budgetary basis and the net cost of operations during the reporting period. It 

is a reconciliation between budgetary and financial accounting information. 

Budgetary and financial accounting information differ. Budgetary accounting is used for planning and 

control purposes and relates to both the receipt and use of cash. Because financial accounting is intended to provide a picture of the government’s financial operations and financial position, it presents information on an accrual basis. The accrual basis includes information about costs arising from consuming 

assets and incurring liabilities. The analyses in the tables below illustrate this reconciliation by listing the 

key differences between net cost and net outlays.
72 | FCA Performance and Accountability Report — 2021

For the year ended Sept. 30, 2021

Reconciling items Intragovernmental With the public Total

Net operating cost $21,735,529 $(15,103,998) $6,631,531

Components of net operating cost that are not part of budgetary outlays

Property, plant, and equipment 

depreciation expense 0 (712,250) (712,250)

Increase/(decrease) in assets

Accounts receivable 13,697 (6,258) 7,439

Other assets (2,396) 53,101 50,705

Investments 670,187 0 670,187

(Increase)/decrease in liabilities not affecting budgetary outlays

Accounts payable (16,631) (422,703) (439,334)

Salaries and benefits 0 (112,894) (112,894)

Other liabilities (136,470) (1,106,962) (1,243,432)

Other financing sources

Imputed federal employee retirement 

benefit costs (2,760,095) 0 (2,760,095)

Imputed rent (3,650,000) 0 (3,650,000)

Total components of net operating cost that 

are not part of budgetary outlays (5,881,708) (2,307,966) (8,189,674)

Components of budgetary outlays that are not part of net operating cost 

Acquisition of capital assets 0 396,802 396,802

Total components of budgetary outlays 

that are not part of net operating cost 0 396,802 396,802

Miscellaneous items

Distributed offsetting receipts (25,245) 0 (25,245)

Net outlays (calculated total) $15,828,576 $(17,015,162) $(1,186,586)

Related amounts on the Statement of Budgetary Resources

Outlays, net $(1,186,586)
FCA Performance and Accountability Report — 2021 | 73

For the year ended Sept. 30, 2020

Reconciling items Intragovernmental With the public Total

Net Operating Cost $19,645,808 $(15,552,689) $4,093,119

Components of net operating cost that are not part of budgetary outlays

Property, plant, and equipment 

depreciation expense 0 (537,382) (537,382)

Increase/(decrease) in assets

Accounts receivable 23,491 (137,202) (113,711)

Other assets 2,396 (75,123) (72,727)

Investments 42,511 0 42,511

(Increase)/decrease in liabilities not affecting budgetary outlays

Accounts payable (94,763) 341,724 246,961

Salaries and benefits 0 62,538 62,538

Other liabilities (140,788) (1,292,651) (1,433,439)

Other financing sources

Imputed federal employee retirement 

benefit costs (2,435,913) 0 (2,435,913)

Imputed rent (3,650,000) 0 (3,650,000)

Total components of net operating cost that 

are not part of budgetary outlays (6,253,066) (1,638,096) (7,891,162)

Components of budgetary outlays that are not part of net operating cost 

Acquisition of capital assets 0 1,167,368 1,167,368

Total components of budgetary outlays that 

are not part of net operating cost 0 1,167,368 1,167,368

Miscellaneous items

Distributed offsetting receipts (199) 0 (199)

Net outlays (calculated total) $13,392,543 $(16,023,417) $(2,630,874)

Related amounts on the Statement of Budgetary Resources

Outlays, net $(2,630,874)

Note 14. COVID-19 activity

As in FY 2020, we did not use any significant amount of our budgetary resources this year to prevent, 

prepare for, or respond to COVID-19. We also did not receive any budgetary resources under any of the 

COVID-19 supplemental appropriations. Any expenses related to COVID-19 were nominal and immaterial 

to our overall costs.
74 | FCA Performance and Accountability Report — 2021

Other Information

This section includes the following additional reporting required by the Office of Management and Budget:

• A summary of the management challenges identified by our inspector general, which includes a 

description of each challenge along with an assessment of the agency’s actions to address those 

challenges

• Our response to the inspector general’s 

assessment

• A summary of our financial statement audit and 

management assurances

• Our actions to address Payment Integrity Act 

requirements

• An update on our annual adjustment on civil 

monetary penalties
FCA Performance and Accountability Report — 2021 | 75

Letter from Inspector General on FCA’s 

Management Challenges

October 13, 2021

The Honorable Glen R. Smith, Chairman and Chief Executive Officer

The Honorable Jeffery S. Hall, Board Member

Farm Credit Administration

1501 Farm Credit Drive 

McLean, Virginia 22102-5090

Dear Chairman Smith and Board Member Hall:

As part of the Farm Credit Administration's (FCA or Agency) annual Performance and 

Accountability Report, the Reports Consolidation Act of 2000 requires Inspectors General to 

provide a summary perspective on the most serious management and performance challenges 

facing the Agency. We solicited the FCA Board and management for thoughts on this issue and 

identified the following top five management challenges:

1. Examination and Supervision Program

2. Information Technology

3. Data Quality and Analysis

4. Human Capital

5. Secondary Market Oversight

This year we incorporated challenges posed by the COVID-19 pandemic into each of the above 

challenges, as appropriate. 

We appreciate the continued, ongoing support of Agency leadership. We will continue to work 

with you in addressing these and other challenges faced by the Agency in achieving FCA’s 

mission. If you have any questions, please call me at (703) 883-4234.

Sincerely,

Wendy R. Laguarda

Inspector General
76 | FCA Performance and Accountability Report — 2021

Management Challenges

Farm Credit Administration

Office of Inspector General

October 13, 2021
FCA Performance and Accountability Report — 2021 | 77

MANAGEMENT CHALLENGES

The Reports Consolidation Act of 2000 requires Inspectors General to provide a summary perspective 

on the most serious management and performance challenges facing the Farm Credit Administration 

(FCA or Agency). These challenges reflect ongoing vulnerabilities identified by the Office of Inspector 

General (OIG) over recent years as well as new and emerging issues that the FCA faces. The chart 

below summarizes the top management challenges. The pages following the chart provide more depth 

regarding each challenge and the Agency’s progress in addressing them.

Examination and Supervision Program

• Identifying and addressing risks in the Farm Credit System through effective 

examination and supervision to ensure it remains safe and sound.

Information Technology

• Leveraging investments in information technology while maintaining a secure 

environment and mobile workforce.

Data Quality and Analysis

• Obtaining consistent and quality data vital to the Farm Credit Administration’s mission.

Human Capital

• Maintaining a safe, well-trained, and sustainable workforce while facing challenges in 

retirement eligibilities, workforce retention, and diversity.

Secondary Market Oversight

• Providing effective and impartial oversight of the Federal Agricultural Mortgage 

Corporation through the Farm Credit Administration’s Office of Secondary Market 

Oversight.
78 | FCA Performance and Accountability Report — 2021

CHALLENGE ONE: EXAMINATION AND SUPERVISION PROGRAM

A significant challenge for FCA lies in identifying and addressing risks in the Farm Credit System (FCS or 

System) through effective examination and supervision to ensure the System remains safe and sound.

Although the System remains financially sound, it continues to be impacted by changing risk 

conditions. The COVID-19 pandemic has had a substantial impact on the global economy. Disruptions 

to employees, markets, crops and livestock, transportation, climate, and other factors yield significant 

volatility and uncertainty, creating new and increased risks in the System. The security of the FCS 

information technology systems in the face of increased ransom and other attacks has also increased 

operational risks in the System. These challenges require FCS institutions to be increasingly proactive 

and responsive to risks in the System. Working with borrowers and adapting to increasing risks, while 

maintaining financial capacity, will further increase the complexity of the System.

FCA’s examination and supervision program will face new challenges to align with evolving threats, 

risks, and conditions. As a result of the COVID-19 pandemic, FCA directed most of its workforce to 

telework, suspended onsite examinations, and restricted business travel and in-person training. This 

year will bring new challenges as FCA employees return to the office and begin the resumption of onsite examination activities. FCA needs to remain flexible as employees continue to adapt to the new 

normal of working during a global pandemic. The Agency will need to adapt a hybrid approach to 

examinations as most employees will not be returning to pre-pandemic work schedules.

FCA will need to continue its risk-based approach to oversight of the System, and the Agency must 

continue to develop sophisticated risk evaluation techniques to align with emerging risk factors and 

identify and deter consequences with the greatest potential impact. Effective oversight will require 

using new technologies and developing new skill sets within the Agency to adapt to challenges, such 

as the challenges the System faces with the London Interbank Offered Rate (LIBOR) phase out.

More serious or persistent weaknesses require additional oversight activities. FCA must respond and 

intervene, when necessary, to protect the System. Effective examination and supervision require prompt 

identification of unacceptable risks. Both internal and external factors can cause significant changes 

in condition in a short period of time. Corrective actions and follow-up are critical to preventing the 

escalation of issues that impact safety and soundness. The Agency must be agile to monitor and 

prevent such conditions to protect the System.

Agency Progress

FCA continuously works to address the challenges of its examination and supervision roles and 

responsibilities. The Office of Examination (OE) issued several Informational Memoranda (IM) with 

guidance for institutions during fiscal year 2021 including:

• Guidance for serving consumers with limited English proficiency, ability-to-repay/qualified 

mortgage rule, fair debt collection practice, and annual threshold adjustments;

• Updated interpretation of sex discrimination in fair lending laws and regulations;

• Maintaining and using stockholder lists; 

• Annual threshold adjustments, [Fair Debt Collection Practices Act] FDCPA rule, 

[Government-Sponsored Enterprise] GSE patch, and compliance resources;
FCA Performance and Accountability Report — 2021 | 79

• Guidance for System Institutions Affected by the COVID-19 Pandemic; and

• Request from the [Consumer Financial Protection Bureau] CFPB for a voluntary 

self-assessment.

In January 2021, the FCA Board approved a bookletter that provides additional guidance to System 

institutions on implementing the FCA criminal referral regulations. This bookletter responds to the 

various questions the Agency has received from System institutions related to the FCA criminal referral 

regulations.

In September 2021, The FCA Board adopted a final rule on the tier 1/tier 2 capital framework. The rule 

clarifies numerous provisions of the capital regulations and corrects technical errors. Additionally, the 

rule reduces the burden to the System by simplifying certain requirements and changes the lending 

and leasing limit base calculation to be computed using total capital instead of permanent capital.

Each year, OE identifies National Oversight Plan risk topics that are emphasized in ongoing examinations 

and oversight activities. OE identified two risk topics for fiscal year 2021: Credit – Risk Management and 

Loan Servicing; and Operational Risk – Management’s Actions in Response to Risk and the Pandemic.

Finally, OE published new and updated Office Directives on FCA Examination Manual maintenance, 

Systemwide communication, flexiplace, and management reporting.

Relevant OIG Work 

Last year, the OIG completed an audit on FCA’s criminal referral process. The objective of the audit was 

to determine whether FCA’s criminal referral and follow-up process is effective and efficient. We made 

seven recommendations to the Agency to improve the criminal referral process. All recommendations 

from this audit were closed as of December 2020.

The OIG also plans to address other challenges faced by the examination and supervision program, 

including a review of the Agency’s examination staff scheduling and rotation, OE recruiting, and the 

similar entity lending oversight process.

CHALLENGE TWO: INFORMATION TECHNOLOGY

A significant management challenge for FCA is the ability to leverage investments in information 

technology (IT) while maintaining a secure environment.

Cybersecurity Threats

Cybersecurity threats and vulnerabilities present significant challenges across the federal government. 

These challenges require an IT security program that is responsive, agile, and forward-looking. The 

prevalence of cybersecurity threats and risks have been highlighted by security incidents and data 

breaches across the public and private sectors. Because FCA relies on various IT systems, security 

challenges can directly impact the Agency’s ability to achieve its mission. As such, FCA must continuously 

identify and respond to complex IT risks to effectively manage this challenge area.

Hybrid Communication Environment

The COVID-19 pandemic continues to pose challenges for the FCA workforce as most of the FCA staff 

continues to work remotely full-time. Because most of the FCA staff was telework-ready before the 

pandemic, the Agency was able to quickly transition to full-time telework. However, additional resources 
80 | FCA Performance and Accountability Report — 2021

are required from the IT staff to support what is now a fully-hybrid communication environment of 

in-person and virtual work—an environment that will continue into the future with the increased 

use of telework. Working remotely could expose potential vulnerabilities that may go beyond the 

Agency’s control, such as weak internet connections and increased spam and phishing attempts in the 

era of teleworking. The new working environment adds a new layer of complexity given the reliance 

on personally managed internet connections and the resources and support needed for a secure IT 

environment while keeping the health and safety of FCA staff the utmost priority. The need for a hybrid 

communication environment will continue after FCA’s workforce returns to the office as employees will 

continue to work from home with a more flexible telework policy in place.

Office of Information Technology (OIT) Needs

It is imperative that FCA has the necessary tools and staff to operate efficiently and effectively. At 

the same time, the Agency must be prudent and responsible with its spending. To stay current and 

address the Agency’s IT requirements, FCA needs well-trained personnel that can successfully maintain 

IT systems and integrate new tools to improve operations. This challenge becomes increasingly difficult 

as new IT requirements are developed and implemented across federal systems.

Agency Progress

FCA continues to invest in various IT tools to increase efficiency and effectiveness. In addition, FCA’s 

information security and privacy programs continue to mature as the Agency finds areas within 

which to improve. FCA has digitized and automated several manual processes, such as the Office of 

Examination workforce scheduler, the audit recommendation follow-up process and the requisition 

routing process, and simplified business systems, such as the online borrower complaint system, a 

Freedom of Information Act repository, and several enhancements to the EDGe application suite. The 

Agency continues to work with business partners to improve data processing, administrative functions, 

and communication capabilities. FCA has begun efforts to move operations into the cloud where 

appropriate, has a plan in place to implement data loss prevention, and is working on several efforts to 

improve its Federal Information Security program. The Agency regularly sends informational security 

alerts, system update notices, and email phishing tests to employees.

Relevant OIG Work

The OIG performs an annual audit of FCA’s compliance with the Federal Information Security 

Modernization Act of 2014. In 2018, the OIG performed a benchmarking evaluation comparing the 

FCA OIT’s budget and use of contractors to other FCA offices and to other federal financial regulators’ 

IT departments. Looking ahead, the OIG will continue to focus on operations and implementation of 

IT systems.

CHALLENGE THREE: DATA QUALITY AND ANALYSIS

A significant management challenge for FCA exists in the collection and use of data.

Obtaining timely, consistent, and quality data is vital to FCA’s mission of ensuring that the System remains 

a dependable source of credit for agriculture and rural America. Such data allows FCA to better monitor 

the System’s condition and identify current and emerging risks, including the impacts of the COVID-19 

pandemic. In doing so, FCA enhances the development of a risk-based examination agenda and the 

promulgation of evidence-based regulations, policies, and guidance. Data analysis is similarly important to 
FCA Performance and Accountability Report — 2021 | 81

the Agency’s internal operations, a fact put in sharp relief by the COVID-19 pandemic, which has required 

decisions about telework and other matters to be based on a variety of factors.

Collecting useful data from the System is no simple task, as varying practices and technical capabilities 

among its 70-plus institutions can result in inconsistencies that inhibit robust data analysis. In imposing 

reporting requirements, the Agency must consider the resulting burdens to System institutions while 

ensuring that data is collected and maintained in a manner comporting with legal requirements and 

that sensitive information is safeguarded against unauthorized access or use. By identifying the gaps 

and critical data necessary to efficiently and effectively perform its mission, the Agency can better 

ensure the safety and soundness of the System.

Agency Progress

The Agency’s Strategic Plan recognizes and underscores the importance of effective data analysis to 

oversight of the FCS. In November 2019, in recognition of the importance of data analytics and with a 

view to the requirements of the Foundations for Evidence-Based Policymaking Act of 2018 (Evidence 

Act), the FCA Board established the Office of Data Analytics and Economics (ODAE). Headed by the 

Agency’s Chief Data Officer, ODAE is responsible for, among other things, evaluating strategic risks 

to the System, serving as a steward for Agency data, and providing information to support objective, 

evidence-based decision-making Agency-wide.

In further implementation of the Evidence Act, FCA in 2020 created the Data Advisory Group as a 

forum for addressing data management standards, priorities, policies, and practices. Headed by the 

Chief Data Officer and composed of various Agency leaders, the Data Advisory Group is tasked with 

leading implementation of Agency-wide processes and standards, and with addressing common issues 

affecting FCA data programs and resources. The Agency has also formed a Data Users’ Group to focus 

on the technical implementation and management of core Agency datasets.

The past year saw FCA, jointly with the Farm Credit System Insurance Corporation, form a task force 

to identify risks to System loan portfolios posed by climate issues. The task force’s objective is to 

analyze data and build tools to mitigate risks. Also, in 2021, the Agency reported progress in improving 

the collection of call report data. FCA collects this data, which provides information on the financial 

operations of System institutions, every quarter and reports it on the Agency’s website. Relatedly, the 

Agency enhanced information it provides on its website concerning major financial indicators for the 

System. FCA continues to work with the System to prioritize the most critical data fields for the overall 

improvement of data quality and consistency.

FCA also continues to invest in related IT and develop and implement analytical and examination tools 

that will enhance its ability to perform systemic risk and data analysis, including those supporting 

improved collaboration and data inventory management.

Relevant OIG Work

Recent OIG reviews relevant to this subject include a 2019 audit on the Agency’s implementation 

of stress testing guidance and use of data and analytical and examination tools; a 2016 audit on 

FCA’s oversight of young, beginning, and small farmer and rancher programs; and a 2016 audit on 

FCA’s risk project. Going forward, the OIG will continue monitoring the Agency’s progress in obtaining 

and analyzing data, including through a planned review of ODAE’s organizational structure, goals, 

and objectives.
82 | FCA Performance and Accountability Report — 2021

CHALLENGE FOUR: HUMAN CAPITAL

A significant management challenge for FCA is maintaining a well-trained, sustainable workforce while 

facing challenges in retirement eligibilities, succession planning and training, and diversity. A key 

factor in meeting this challenge is providing a work environment where employees feel safe while they 

continue to perform their work.

Employees are FCA’s most valuable asset and the safety and well-being of FCA’s workforce has been 

brought to the forefront during the COVID-19 pandemic. The Agency’s success depends greatly on 

its ability to recruit, retain, and develop a capable workforce, while keeping its workforce safe during 

challenging times such as the current pandemic. This challenge will continue into the foreseeable 

future when FCA employees and contractors will be expected to return to the office after working 

under a maximum telework policy for an extended period of time. The Agency will be challenged to 

respond to a workforce that has adapted to productively working from home and wanting to retain 

increased telework flexibilities even after returning to the office.

Because FCA is a relatively small agency with nationwide responsibilities, changes in the workforce—

such as the retirement of management and senior employees—must be accounted and planned for to 

avoid undue disruption to Agency functions. The need for succession and human capital planning was 

highlighted in the past year by the retirement of multiple senior Agency leaders. Planning ensures that 

institutional knowledge and experience are passed on, and the Agency is less dependent on specific 

individuals.

Workforce training and development takes a significant investment of resources, but the use of several 

tools can ensure that FCA maintains a vital, experienced staff. For example, data analytics can help the 

Agency identify training gaps. Job sharing, rotational details, and micro-assignment opportunities can 

be used to promote career development. Mentoring programs can prepare employees for management 

positions.

Diversity is another important aspect of human capital. A diverse staff brings different perspectives 

to problem-solving, enriching the Agency’s ability to regulate and supervise the System. The Agency 

must continually assess and deploy strategies to reach its goals for diversity and inclusion. It can do 

this by using various tools that identify and reduce potential barriers to diversity and inclusion, enhance 

outreach, evaluate the Agency’s recruitment data, and heighten awareness through programs that 

support diversity and inclusion. The benefits of allowing a more remote workforce are the enhanced 

pool of applicants that the Agency can draw from and the enhanced flexibilities that telework allows, 

such as accommodating disabled employees who may need to work more from home.

Agency Progress

To promote a safe and healthy workforce, FCA quickly pivoted in March 2020 to accomplish its mission 

using technology and telework protocols. The Agency mandated telework for most of its workforce on 

March 16, 2020 and continues to leverage telework for most of its employees. Earning a score of 97.2, 

FCA earned the highest overall COVID-19 response score of any large, medium, or small agency on the 

latest Best Places to Work in the Federal Government rankings from the Partnership for Public Service 

and Boston Consulting Group. FCA’s Emergency Response Team (ERT), composed of the FCA Board and 

senior managers, meets regularly and continually monitors COVID-19 case trends, local school status, 

and government status at the Federal, state and local levels for its McLean, Virginia headquarters and 

four field offices in various parts of the United States. FCA’s ERT is using the latest regional and local 

CDC data on COVID-19 to make data-driven decisions on return-to-work activities and will continue 

to do so.
FCA Performance and Accountability Report — 2021 | 83

The Agency implemented several additional programs to promote employee safety and wellness during 

the pandemic, including a weather and safety leave program and an annual leave payout and restoration 

program. In July 2021, FCA submitted its Return to Work Plan to the Office of Management and Budget 

(OMB) that outlines and describes the steps the Agency is taking to promote a safe and healthy work 

environment. With input from subject matter experts at the Office of Personnel Management, the 

General Services Administration, and the Safer Federal Workforce Task Force, OMB concluded that 

FCA’s plan is consistent with the intent of OMB Memorandum M-21-25. The four-phase plan includes 

continuing to leverage telework program flexibilities; conducting contactless temperature checks at 

all office locations; ensuring that employees wear a face covering while in the office in alignment 

with CDC guidelines; upgrading the air filtration system in its headquarters and four field offices; and 

continuing building cleaning services and ensuring there are sufficient supplies (including hand soap 

and sanitizer) to support reopening FCA offices. FCA has also acquired at-home COVID-19 testing kits 

for employees to use upon request.

The Agency’s Strategic Plan evidences a commitment to maintaining a diverse and capable workforce. 

Strategic objectives address maintaining a skilled, motivated workforce; ensuring adequate succession 

planning and knowledge transfer; and encouraging an engaged, diverse, and ethical workforce. In 2021, 

the Agency added a Chief Diversity Officer role to its Equal Employment Opportunity and Inclusion 

Office. Recently, FCA has increased its mid-career hiring to help close current workforce gaps by filling 

positions with mid-career employees and adding several assistant and deputy director positions. The 

Agency has implemented a Virginia Tech graduate certificate program to develop the FCA workforce in 

three critical areas: 1) Agricultural economics; 2) Agriculture finance; and 3) Data analytics. The Agency 

expects additional progress in fiscal year 2022 around targeted leadership development through 

formal training, mentoring, and developmental assignments. FCA measures its success towards human 

capital goals based on employee outreach efforts and the results of the annual employee satisfaction 

surveys. The Agency also provides benefits and employee programs to attract and maintain a talented 

diverse workforce, including a Student Loan Repayment Program. FCA’s learning office also provides 

numerous online and in-person training resources to support technical skills, work/life balance, and 

managerial competencies.

Relevant OIG Work

In 2021, OIG surveyed Agency employees on safety measures and other actions implemented by 

FCA in response to COVID-19. The survey results showed that employees believed the Agency took 

positive actions to implement safety measures in response to COVID-19. The survey showed that most 

employees were working remotely since the COVID-19 operating changes and they felt that they 

have been able to fully perform all work responsibilities in the remote environment, with appropriate 

resources for telework.

The OIG has performed several reviews related to the subject of human capital in recent years, including 

an inspection of FCA’s implementation efforts for its 2017-2018 Fairness and Inclusiveness Assessment 

and an audit concerning the effectiveness of FCA’s process of obtaining background investigations 

for contractor personnel. Other reviews include a benchmarking evaluation comparing the structure 

and organization of FCA’s Office of Examination with comparable offices of other financial regulatory 

agencies and an audit of the Agency’s human capital planning.
84 | FCA Performance and Accountability Report — 2021

CHALLENGE FIVE: SECONDARY MARKET OVERSIGHT

A significant management challenge for FCA is to ensure that it effectively and impartially regulates 

the Federal Agricultural Mortgage Corporation (Farmer Mac) through the Office of Secondary Market 

Oversight (OSMO).

Farmer Mac is a stockholder-owned, federally-chartered corporation. Farmer Mac was established by 

the federal government in 1988 to provide a secondary market for credit by increasing access to, and 

reducing the cost of, capital to American agriculture and rural communities. Although Farmer Mac is 

part of the FCS, its secondary market mission is unique among FCS institutions. Farmer Mac’s customer 

base includes commercial and community banks, insurance companies, non-bank lenders, agricultural 

funds, rural utilities, and other FCS institutions.

OSMO examines, regulates, and supervises the activities of Farmer Mac to ensure its safety and soundness 

and the accomplishment of its public policy purpose as authorized by Congress. OSMO ensures that 

Farmer Mac complies with applicable laws and regulations and manages FCA’s enforcement activities 

with respect to Farmer Mac. Under the Farm Credit Act of 1971, as amended (Act), the OSMO Director 

reports directly to the FCA Board rather than the Chief Operating Officer. The Act also provides that the 

supervision of the powers, functions, and duties of Farmer Mac is performed, to the extent practicable, 

by personnel who are not responsible for the supervision of the banks and associations of the FCS. To 

fulfill its duties, OSMO uses examiners who also examine FCS banks and associations. Therefore, OSMO 

is challenged to ensure that it fulfills the oversight role free of conflicts of interest or undue influence 

from those also responsible for the supervision and regulation of the FCS banks and associations.

OSMO conducts the oversight and examination activities with a relatively small staff (5 employees 

with additional rotational staff), while balancing resources sourced from other FCA offices, such as 

OE, which is responsible for supervision of FCS banks and associations. OSMO staff must have the 

necessary knowledge, skills, and training to understand the unique and complex mission, secondary 

market activities, and business model and capitalization of Farmer Mac. Further, because Farmer Mac 

is a publicly-traded company, OSMO staff must understand the market forces and reputational risks 

that can potentially affect Farmer Mac’s safety and soundness. Other changing areas, such as the LIBOR 

phase-out, will continue to increase the complexity of Farmer Mac. Advancements in data gathering, 

technology, and analytics that aid OSMO with risk measurement, management, and assessment, 

coupled with appropriate specialized training, can enhance FCA’s ability to oversee Farmer Mac as it 

grows in complexity and scale. This will be particularly important in an environment that may present 

more challenges to farmers, ranchers, rural communities, and their lenders. As the complexity of Farmer 

Mac increases, OSMO will need to ensure it maintains appropriate readiness to evaluate safety and 

soundness. To achieve its mission, OSMO may require increased resources and technical skills, which 

will present additional challenges for the Agency.

Farmer Mac has experienced many changes in its organizational structure over the last 3 years, which 

includes new members in its executive management team that made notable changes in Farmer Mac 

operations. Further, OSMO’s oversight role is made more difficult in ensuring the continued safety and 

soundness of Farmer Mac in the face of its large board representing diverse interests.

Additionally, while Farmer Mac has historically chosen a decentralized model to service its loan portfolios, 

contracting with a network of third-party institutions to undertake most of the loan servicing responsibilities 

for its Farm and Ranch and USDA Guaranteed loan portfolios, its August 2021 acquisition of servicing 

rights, from a large central servicer, will greatly alter its loan servicing model. OSMO will be making it an 

examination focus to look at how Farmer Mac manages this transition.
FCA Performance and Accountability Report — 2021 | 85

In addition, the continuing COVID-19 global pandemic provides an additional challenge to OSMO 

and Farmer Mac leadership given the needs of employees, safety concerns, and forward-looking 

business models. The pandemic presents an ever-changing environment that requires flexibility and 

agility in business. For OSMO, the persistence of the COVID-19 pandemic emphasizes the need for 

highly qualified examiners and analysts to maintain vigilant oversight during these unprecedented and 

volatile times.

Agency Progress

OSMO provides guidance and implements regulatory and other changes related to Farmer Mac. These 

changes are made in addition to OSMO’s supervision and safety and soundness reviews of Farmer Mac. 

All FCA employees, including OSMO staff, were able to quickly transition to full-time telework status in 

March 2020 in response to the COVID-19 pandemic.

As a result of the COVID-19 pandemic and national emergency, OSMO created and issued guidance 

documents to Farmer Mac. On March 24, 2020, OSMO issued a memorandum that encouraged Farmer 

Mac to prudently work with its lending and servicing partners to provide flexibility and assistance 

to borrowers experiencing financial challenges due to COVID-19. OSMO also developed an IM that 

specifically addressed Farmer Mac’s position as a secondary market provider working with servicing 

partners to administer its Farm and Ranch portfolio.

Additionally, OSMO enhanced its oversight of Farmer Mac through additional reporting requirements 

to ensure potential risks were monitored and identified. Since the COVID-19 outbreak was declared 

a national emergency, OSMO established daily reporting requirements for funding, liquidity, and 

investments and developed weekly funding and market reports. Weekly reporting requirements of 

loan servicing actions related to COVID-19 were also established.

In anticipation of resource needs during the 2021 and 2022 examination cycle, OSMO added rotational 

staff. In January 2021 OSMO hired a full-time Assistant to the Director of OSMO. The Assistant to 

the Director is responsible for providing management support to office operations and programs. 

Specifically, the Assistant to the Director serves as OSMO’s quality assurance examiner and manages 

the quality assurance of reports, products, and other communications to ensure they are high-quality 

products.

In May 2021, the FCA Board approved a direct final rule adopting administrative amendments to 

eliminate requirements for Farmer Mac to submit paper copies of certain reports to OSMO. 

In July 2021, OSMO published two new office directives and revisions to two existing directives. 

Directive 5 outlines OSMO’s quality assurance program and Directive 6 outlines OSMO’s policy 

on rotational employees. Revisions to Directive 1 expand the previous version by setting forth the 

operating procedures that guide examination activities and includes information on activity letters and 

the report of examination. Additionally, revisions to Directive 3 expand on internal controls over the 

conflict of interest process.

Finally, in September 2021, OSMO issued an informational memorandum to Farmer Mac outlining 

expectations to protect the corporation from ransomware attacks. It also included expectations that 

Farmer Mac take appropriate actions to protect its data and systems to withstand cyberattacks and 

safeguard customer data and ensure continuity of operations.
86 | FCA Performance and Accountability Report — 2021

Relevant OIG Work

This year, FCA’s OIG completed an audit of OSMO’s documented examination policies and procedures. 

The objective of the audit was to determine whether OSMO’s examination policies and procedures 

are documented and implemented. The OIG found that OSMO had limited documented policies 

and procedures for the areas unique to Farmer Mac examination work. However, despite a lack of 

formalized policies and procedures that uniquely apply to Farmer Mac examination work, the OIG 

found that OSMO generally implemented the processes tested during the audit. To reduce risk and 

increase consistency in the examination process, the OIG the OIG made four recommendations to the 

OSMO.

In response to our recommendations OSMO revised Directive 3 by strengthening internal controls 

related to the conflict of interest process. Additionally, OSMO created a Farmer Mac Supplemental 

Examination Guidance and Procedures Development Plan which establishes expectations and timelines 

for creating Farmer Mac examination guidance. Finally, OSMO agreed to create a detailed reference 

document for examination staff that will include regulations that are applicable to Farmer Mac.

The OIG plans to review other aspects of OSMO in future years.
FCA Performance and Accountability Report — 2021 | 87

Management’s Response to Challenges 

Identified by FCA’s Inspector General

October 29, 2021

Ms. Wendy Laguarda

Inspector General

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Ms. Laguarda:

We concur with your assessment of the management challenges described in your Oct. 13 letter, and we 

appreciate your recommendations in addressing these challenges and your summaries of our continuing 

progress. As you noted, the ongoing COVID-19 pandemic has presented additional challenges. In FY 2021, 

we are proud of the progress we made in each of the areas you identified.

Despite the remote telework environment, we maintained a robust examination program throughout the 

pandemic. We issued operational and legal guidance to Farm Credit System institutions on several issues. 

We also worked with the board to issue a final rule on the tier 1/tier 2 capital framework and updated 

several sections of our examination manual.

In addition, our agency has risen to the challenges of maintaining the security of agency assets and 

responding to the needs of a remote workforce. In FY 2021, we automated several processes and regularly 

educated staff on IT issues.

Our newest office, the Office of Data Analytics and Economics, continues to grow in its role of evaluating 

strategic risks to the System and providing data to FCA management to guide policy decisions. It also 

continues to provide our senior leadership team with the latest COVID-19 data at the national and regional 

levels to guide return-to-work decisions in each of our offices. 

This year, in partnership with the Farm Credit System Insurance Corporation, FCA formed a task force 

to identify risks to System loan portfolios posed by climate issues. We also improved the collection and 

dissemination of call report data and major financial indicators for the System.

We implemented several programs in FY 2021 to promote employee safety and wellness during the pandemic. 

We developed a Return to Work Plan, which details safety policies and procedures during four phases of 

reopening in each of our offices. We also strengthened staffing by adding a chief diversity officer position, 

planning for succession, increasing mid-career hiring, and pursuing other training and recruitment activities.

Our Office of Secondary Market Oversight continues to provide guidance to Farmer Mac on operating during 

the COVID-19 pandemic. It also enhanced its oversight by requiring additional reporting requirements, 

adding examination staff, and updating internal procedures.

We look forward to putting the COVID-19 pandemic behind us and returning to an in-person work 

environment. Meanwhile we will continue to prioritize the health and safety of our employees and the staff 

of the institutitions we regulate. We are confident that in our current remote work environment we can 

uphold our mission to ensure the safety and soundness of the Farm Credit System. 

Thank you for your insightful analysis. We look forward to working with you and your staff in the coming year.

Sincerely,

Glen R. Smith

Board Chairman and CEO
88 | FCA Performance and Accountability Report — 2021

Summary of Financial Statement Audit and 

Management Assurances

FCA has no reported material weakness, and we are in conformance with the Federal Managers’ 

Financial Integrity Act (FMFIA).

Table 9. Summary of financial statement audit

Audit opinion: 	 Unmodified

Restatement: No

Material 

weaknesses

Beginning 

balance

New Resolved Consolidated Ending balance

Total material 

weaknesses

0 0 0 0 0

Table 10. Summary of management assurances

Effectiveness of internal control over financial reporting (FMFIA § 2) 

Statement of assurance: Unmodified

Material 

weaknesses

Beginning 

balance

New Resolved Consolidated Reassessed Ending 

balance

Total material 

weaknesses

0 0 0 0 0 0

Effectiveness of internal control over operations (FMFIA § 2) 

Statement of assurance: Unmodified

Material 

weaknesses

Beginning 

balance

New Resolved Consolidated Reassessed Ending 

balance

Total material 

weaknesses

0 0 0 0 0 0

Conformance with federal financial management system requirements (FMFIA § 4)

Statement of assurance: Federal systems conform

Nonconformances Beginning 

balance

New Resolved Consolidated Reassessed Ending 

balance

Total 

nonconformance

0 0 0 0 0 0

Compliance with Federal Financial Management Improvement Act (FFMIA § 803[a])

We are not required to report under this act. 
FCA Performance and Accountability Report — 2021 | 89

Payment Integrity Information Act Reporting

Background

The Payment Integrity Information Act of 2019 requires agencies to report annual improper payment 

estimates for OMB-designated high-priority programs and programs that are susceptible to significant 

improper payments. FCA does not have any programs that were designated by OMB as high priority, and 

our risk assessments did not identify any programs or activities that were susceptible to significant improper payments. Thus, we are not required to submit annual payment information to OMB. 

Risk assessments

In accordance with legislative requirements and OMB guidance, we conduct risk assessments at least 

once every three years to identify programs that may have a significant risk of improper payments. We 

perform our assessments on contract payments, purchase cards, travel cards, claims and vouchers, and 

payroll. Based on our last risk assessment for the period ended Sept. 30, 2020, we determined that our 

programs and activities are low risk and are not susceptible to significant improper payments. 

Actions taken to address auditor recovery recommendations

On May 17, 2021, our inspector general published her annual report on whether FCA complied with 

reporting requirements for improper payments. The report concluded that we were in compliance and 

there were no recommendations.
90 | FCA Performance and Accountability Report — 2021

Civil Monetary Penalty Adjustment for 

Inflation

Under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, agencies must 

make annual inflation adjustments to civil monetary penalties and report on these adjustments. Table 11

shows the adjustments FCA has made this year.

Table 11. Annual inflation adjustments of civil monetary penalties 

Statutory 

authority

Reason for penalty Year 

enacted

Latest year of 

adjustment 

(via statute 

or regulation)

Current 

penalty 

(dollar 

amount)

Location 

for penalty 

update 

details

Section 5.32(a) of 

the Farm Credit 

Act of 1971, as 

amended

Violation of a final

order

1985 2021 $2,395 86 FR 7235

Section 5.32(a) of 

the Farm Credit 

Act of 1971, as 

amended

Violation of the 

act or regulation

1985 2021 $1,084 86 FR 7235

Section 102(f) of 

the Flood Disaster 

Protection Act of 

1973

Pattern or practice 

of committing 

violations of 

the National 

Flood Insurance 

Program

1994 2021 $2,252 86 FR 7235
FCA Performance and Accountability Report — 2021 | 91

Additional Information

Copies of this report are available on the Farm 

Credit Administration’s website at www.fca.gov/

about/reports-publications.

To request print copies of this report or earlier 

editions, please contact the Office of Congressional 

and Public Affairs at the email address or mailing 

address provided below. You may also call 703-883-

4056 to request a copy.

We would like to hear from you! What did 

you think of our FY 2021 Performance and 

Accountability Report? Did we present information 

in a way you could use? How can we improve our 

report in the future? Any feedback you have time to 

provide would be most appreciated. Please email 

your comments to info-line@fca.gov.

Or send written comments to the following 

address:

Office of Congressional and Public Affairs

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Thank you!

 

The Federal Farm Credit Banks Funding 

Corporation, with the support of the System 

banks, prepares the financial press releases and 

the System’s annual and quarterly information 

statements, which contain the System’s combined 

financial statements. Copies are available on the 

Funding Corporation’s website at www.farmcredit-ffcb.com or from

Federal Farm Credit Banks Funding 

Corporation

10 Exchange Place

Suite 1401

Jersey City, NJ 07302

Telephone: 201-200-8000

The Farm Credit System Insurance Corporation

publishes an annual report. Copies are available on 

FCSIC’s website at www.fcsic.gov or from

Farm Credit System Insurance Corporation

1501 Farm Credit Drive

McLean, VA 22102

Telephone: 703-883-4380

In addition, FCS banks and associations are required by regulation to prepare annual and quarterly financial reports. Copies of these documents 

are available for public inspection at FCA headquarters in McLean, Virginia.
Copies available from

Office of Congressional and Public Affairs 

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102

703-883-4056

www.fca.gov

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