Remarks by Vincent G. Logan

Board Chairman and CEO

Farm Credit Administration

Farm Credit Council Annual Meeting

San Diego, California

February 6, 2023

Thank you, Bo, for your kind introduction, and thank you, Todd, for the invitation to speak 

at the Farm Credit Council’s 2023 annual meeting. I’ve had a chance to meet many of you, 

and we’ve had some great conversations. I look forward to many more such conversations 

during my tenure. 

Flying down here, I was thinking about the importance of this speech—how it’s the first 

public address of my tenure as FCA board chairman and CEO. As Special Trustee (for 

American Indians), I gave a lot of speeches and booked a lot of miles in that capacity. We 

had 54 offices scattered throughout the country, but mainly in the West. 

During my three-plus years, I traveled to over 30 of the offices, many on isolated Indian 

reservations. I would meet with staff and tribal officials at each stop. It was great to get out 

in the field, but lots of challenges—tough weather and long drives! A few uneasy moments, 

but plenty of levity.

Any Oklahomans in the audience? You will appreciate this story, as will most sports fans. 

I was visiting our office in El Reno, and when I arrived, I was greeted by the staff, all 

decked out in Sooner attire—T-shirts, football jerseys, a tailgate atmosphere. They did it 

because they thought I was a governor for the Oklahoma University Foundation. However, I 

was actually a governor for the Oklahoma State Foundation (and a major Cowboy sports 

fan). Needless to say, big difference. But I didn’t point it out and happily put on my Sooner 

football jersey they bought me and enjoyed the makeshift tailgate. But I’ll tell you—it’s 

tough to put on the rival’s colors!

I learned a lot from those field office visits—talking to the staff who served the public and 

supported the mission—and I was able to take what I learned back with me to Washington 

and apply that knowledge in my job. I look forward to doing the same thing in my role at 

FCA. By being here today, visiting your institutions, and speaking with you and your 

customers, I’ll gain insights that will help me do a better job as a regulator.

Who I am

In his introduction, Bo told you about my professional background. Now I’d like to briefly 

share a few personal details that shed light on my values and priorities. 

Both of my parents were raised in rural Oklahoma on family farms; both were members of 

the Osage Nation, and both served in the military during World War II. My father enlisted in 

the U.S. Marine Corps at the age of 17 and fought with the Fifth Division in Iwo Jima. He 

received a Purple Heart after being critically wounded in that historic battle. My mother 

served in the U.S. Army as a nurse stationed at Walter Reed Hospital in Washington. 
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As they amply demonstrated, my parents believed in service to our communities and our 

country, and they instilled these values in me. These values led me to serve our country as 

Special Trustee for American Indians during the Obama Administration and to accept the 

role as chairman of the FCA board. I am truly honored to serve in this new role, where I 

intend to put my expertise in finance and investments to good use. 

Although the Farm Credit System and FCA have very different roles (you’re the lenders, 

we’re the regulator), our mission is ultimately the same: To ensure that all creditworthy 

U.S. farmers, ranchers, and other rural Americans have access to dependable and 

affordable credit. 

The supply chain shortages we experienced during the pandemic served as a reminder to us 

all that we cannot take plentiful food for granted. As farmers and ranchers and as lenders to 

agriculture, you can be extremely proud of the industry and the mission you’re a part of. By 

making low-cost funds available to our nation’s agricultural producers, you are contributing 

to the food security of our nation and much of the world. And, of course, anything that 

contributes to food security also contributes to our national security. 

Good governance

To meet the credit needs of U.S. ag producers, the Farm Credit System sells securities to 

investors in the credit markets. Given my experience as a professional investor, I can tell 

you one thing with great certainty: Good governance at System institutions matters to 

potential investors because it allows them to invest with confidence. Investors understand 

that well-governed institutions are less likely to be rocked by corruption, fraud, waste, and 

abuse.

Fortunately, good governance is baked into the System’s business model. Because you are 

cooperative institutions, your borrowers are your owners, and that fact alone tells investors 

you have a personal stake in governing your institutions with integrity and accountability. 

As the regulator of the System, we reinforce good governance by laying out our governance 

expectations in our regulations. And through our examinations, we ensure that institutions 

meet those expectations. 

Our goal is to ensure that each institution

• conducts itself with integrity;

• maintains high ethical standards for board members and managers;

• maintains strong internal controls, and independent and robust audit capabilities; 

and

• provides transparent reporting.

Following these principles not only makes complying with FCA regulations less burdensome, 

it also assures your investors that your securities are solid investments. As we’ve seen 

repeatedly, nothing sends investors running like revelations of wrongdoing. 

When I joined the board, I was pleased to learn that the agency had recently finalized new 

regulations on standards of conduct. These regulations, which took effect last month, clarify 
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our governance expectations. They enhance the role of boards of directors by allowing each 

institution to tailor a standards-of-conduct program to address its particular needs and 

risks. Enhancing the role of institution boards also serves to strengthen local control 

because it promotes diversity of thought and reduces key-person risk. 

I’ll wrap up my thoughts on governance by underscoring this point: For the System, good 

governance is directly tied to the bottom line. As you know better than anyone, the 

System’s ability to attract investors to your debt instruments directly affects the amount of 

capital you can raise for lending and the cost your customers must pay to borrow it. That’s 

why the importance of good governance cannot be overstated.

Regulatory philosophy

As the regulator of the System, we address many governance issues in our regulations, so 

I’ll briefly share a few thoughts with you about my regulatory philosophy: I want to be 

deliberate, thoughtful, and forward-looking when considering regulatory actions. I recognize 

that effective rulemaking depends on quality data. It takes time, so I don’t want to rush 

anything. Our goal is to get things right the first time. 

I also want to let you know that I understand your perspective on regulations. In my 

private-sector roles, I worked in industries heavily regulated by agencies like the FAA, 

FINRA, and the SEC, so I understand the burden and expense of regulatory compliance. 

That’s why I take public comments very seriously—as I have in the other agencies where 

I’ve worked. I want to hear your thoughts and concerns when we propose regulatory 

actions. I’m particularly interested in the comments we’ve received on our recent regulatory 

burden project, which seeks to identify rules that create undue hardship or no longer serve 

a useful purpose. 

As head of a regulatory agency, I do, of course, believe in the value of regulations. They 

help ensure that regulated entities fulfill their public mission and remain safe and sound. 

But I certainly do not believe we should regulate merely for the sake of regulating. 

We’ve all heard the saying, “Don’t work harder, work smarter.” I think regulators should 

apply the same principle: Don’t regulate more; regulate more effectively—in ways that don’t 

hinder innovation. Which leads me to my next point.

Innovation

Innovation is critical to any financial institution’s success. Why? Because customers expect 

it! Your competitors will certainly be innovating, as tools such as artificial intelligence, 

distributed ledger technology (or “blockchain”), and cloud computing—just to name a few—

continue to drive innovation and reshape the competitive landscape of the financial industry. 

Therefore, you’ll have to innovate to stay competitive. 

Federal Reserve Governor Michelle Bowman made the same point in a speech last month.

“As regulators,” she said, “we should support innovation and recognize that the banking 

industry must evolve to meet consumer demand.” I agree with this statement 

wholeheartedly.
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It seems like every time you watch or read the news, a new innovation is in the spotlight. 

Recently, the White House Office of Science and Technology Policy published a “Technical 

Evaluation for a U.S. Central Bank Digital Currency System,” which set forth policy 

objectives for a potential U.S. digital currency. During my travels around the country to visit 

System institutions, I look forward to hearing your thoughts about innovations like these. I 

also look forward to better understanding your operations. 

Here are some of the questions I’ve been thinking about:

• What fintech products and services do System institutions currently offer customers, 

and what’s on the drawing board?

• What technologies and innovations are your customers exploring, adopting, and

expecting—both in their operations and in yours? And how might that change the 

risk profile of your loan portfolios?

• Taking a longer view, how will System lending change over time, and what tools or 

innovations will drive these changes? What will the System look like in 20 years?

• Finally, as your regulator, what can we do to facilitate innovation without sacrificing 

safety and soundness? 

That last clause is particularly important: without sacrificing safety and soundness. As we all 

know, innovation can introduce risk. I’d like to hear any concerns you may have about 

adopting certain financial products and services. 

I realize that what may be a valuable innovation may create different opportunities, 

challenges, and risks for different institutions. For example, what works for bigger

institutions may not work for smaller ones. The value of certain types of innovation can be 

subjective, so I absolutely understand the importance of proceeding cautiously. It’s 

important to consider the needs and constraints of all institutions, regardless of size.

Fortunately, there are ways to mitigate challenges and risks, and this brings me back to 

good governance. Managing your institution in accordance with strong governance 

principles, implemented through sound internal controls, can safeguard against a variety of 

risks, including those stemming from the adoption of new technology. 

The future belongs to institutions that have good governance and innovation as twin

priorities.

Serving all creditworthy producers, including underserved groups and 

veterans

As I mentioned earlier, I’m interested in visiting with you, not only to learn about the 

fintech products and innovation you’ve adopted and plan to adopt but to talk about the 

ways you’re meeting your mission in a broad sense. 

The objective of the Farm Credit Act is to encourage farmers and ranchers to participate in 

the management, control, and ownership of a permanent system of credit for agriculture 

that will be responsive to the credit needs of all types of ag producers with a basis for 

credit.
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I’m particularly aware of the needs of groups that have historically been underserved by our 

nation’s financial systems. So I’m pleased to see that the Farm Credit Act calls for the 

System to serve all creditworthy borrowers. You could argue that this represents an implicit 

appeal for equity. After all, if you’re going to serve all creditworthy producers, you need to 

reach out to underserved groups.

I’m pleased to hear that many of you already have programs and activities that are geared 

to serving these groups. I appreciate your efforts in this area, and I look forward to learning 

more about these efforts when I visit. 

I also know that serving these groups can be challenging. According to the GAO 

[Government Accountability Office] study mentioned in the 2018 Farm Bill, one challenge in 

serving Native American producers is the limited data we have on the ag credit needs on 

tribal lands. 

As a Native American myself, I can share with you some additional challenges. There are 

574 federally recognized tribes in the U.S., with 574 ways of doing things, so cookie-cutter 

solutions are not going to work.

• One tribe may have 400,000 members; another may have only 40.

• One tribe may have $10 billion in the bank; another just $10,000.

• One may have enough land to equal the size of a small state; another just a small 

parcel. 

The tribal governance structures also vary considerably from tribe to tribe—some tribes 

have chiefs, some have governors, some have mikos, some have chairmen. In New Mexico, 

they don’t have tribes; they have pueblos. In Alaska, they have Alaska Native corporations

and villages. All these complexities can make serving this market segment extremely 

difficult. 

At the same time, the business opportunities of serving Native American groups are greater 

than many people realize. Approximately 46 million of the 56 million acres that the federal 

government holds in trust for Indian tribes and their members can be used for ag purposes. 

Also, Native producers occupy 6% of total farmland in the United States, but the ag sales 

for Native producers account for only 1% of the total market share. Clearly, there’s a 

business opportunity here. 

And this may be an area where I can be of service. Because of my role as FCA board 

chairman and my experience in working with Native American groups, I am uniquely 

positioned to help Native American producers and the System engage with each other. I’m 

also interested in how we can create and build upon partnerships between the System, 

USDA, and other lenders to better serve Native American producers. 

Partnerships may be one way to increase service not only to Native producers but to other 

groups that have been underserved by our nation’s financial institutions, including Black 

farmers and ranchers. February is Black History Month, which recognizes the contributions 

Black Americans have made to our country, the progress we’ve made as a nation in 
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redressing some historic wrongs, and the many challenges that Black Americans continue to 

face. 

Service to young, beginning, and small (or YBS) producers is an important part of reaching 

underserved groups because members of these groups tend to fall into one or all of the YBS 

categories. I also recognize the importance of YBS lending in general and the emphasis 

Congress has placed on serving these borrowers. So I want to focus on this important area 

as we continue to collect data to evaluate the current YBS proposed rule. 

Now let me turn for just a moment to a market segment that is particularly near and dear 

to me: military veterans. May I ask all the U.S. military veterans in our audience today to 

stand up for a moment? Would you mind? 

To everyone who stood up, I would like to say thank you—thank you for your service to our

country. With all sincerity, I regard you as national heroes, and I appreciate the personal 

sacrifices you made for our freedom and security. 

As I mentioned earlier, both my parents served our country during World War II, and my 

partner, Dr. Steven Lieberman, is Deputy Under Secretary for Health in the Department of 

Veterans Affairs, so service to veterans is personal for me. I want to do whatever I can do 

to support veterans, especially veterans in agriculture.

I understand that some of your institutions already have programs to reach out to serve 

veterans, and that’s wonderful. Thank you. I look forward to learning more about these 

programs and finding out what more can be done.

Finally, I would like to acknowledge that, like Native American tribes, System institutions 

and territories are diverse. So creative solutions are important when addressing the needs 

of underserved groups. As your regulator, we encourage you to reach out to all the diverse 

groups in your territory, but we understand that they vary considerably from one territory 

to the next. 

That’s why the diversity and inclusion rule we adopted in 2012 is flexible. It calls on you to 

develop a marketing plan that strategically addresses how your institution will be responsive 

to the credit needs of all types of creditworthy producers in your territory. However, it does 

not prescribe how you achieve this important goal.

I look forward to learning more about your territories and how you are reaching out to meet 

the needs of individuals in diverse market segments. This kind of outreach not only helps 

you more fully meet your public mission as a government-sponsored enterprise; it may also 

lead to unexpected and lucrative business opportunities.

Safety and soundness 

I would be remiss as a regulator not to share a few thoughts with you on the safety and 

soundness of the System. 

Your most recent quarterly report indicates that the System is in very good shape. Through 

the first nine months of 2022, the System reported continued loan growth, increased

earnings, and robust capital levels despite some decline in the capital-to-assets ratio. 
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Portfolio loan quality stayed strong even though producers in some ag sectors and 

geographic regions faced some tough operating conditions. 

These indicators are good, but complacency is never our friend. At present we are all facing 

a wide range of challenges, including

• the highest inflation in decades, 

• rising interest rates, 

• volatile natural gas prices, 

• high prices and long waits for equipment parts, 

• climate change and erratic weather conditions, and 

• the war in Ukraine.

These challenges are daunting, but you’ve weathered similar conditions in the past. And 

thanks to your strong financial condition, you are well-positioned to withstand the current 

challenges. 

Conclusion

As I close today, I want to re-emphasize that our roles are different, but our goal is 

ultimately the same: to ensure that all U.S. farmers, ranchers, and other rural Americans 

have access to dependable, affordable credit. Further, I want to again acknowledge that you 

have a difficult and important job. I respect what you do and the contributions you make to 

U.S. agriculture and rural America. 

The System began as an economic experiment more than 100 years ago, and you and your 

system have abundantly proved your value over that span of time. Your network of 

cooperative lending institutions is now responsible for around 45% of our nation’s farm 

debt, making the System the number one source of ag credit in the United States. And 

because credit is so critical to the farming industry, it’s not an overstatement to say that 

American agriculture owes much of its success to the Farm Credit System. 

The System also makes important contributions to rural communities. You’re a significant 

source of credit to power, water, and telecommunications cooperatives, as well as to farmer 

and rancher cooperatives. You also invest in local communities and provide other 

nontraditional support. 

These activities help make the communities in which our farmers and ranchers live more 

vibrant and appealing. This in turn helps address a concern that has worried Congress for 

decades: the ever-increasing average age of our farmers and ranchers. By helping bring 

services like broadband to rural communities, you’re making the prospect of entering 

agriculture—or staying in it—more attractive.

I will conclude my remarks with the point I made at the beginning: By traveling and visiting 

with individuals, I gained insights that directly informed my work as Special Trustee for 

American Indians. I look forward to doing the same thing in my role as FCA board chairman

and CEO. 
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Over the course of my tenure, I look forward to visiting Farm Credit System institutions. I 

want to visit you in your offices. I want to tour farming operations and meet your 

customers. I want to sit down with you and hear what’s on your mind. I especially want to 

hear your thoughts on how we can work together to ensure that the Farm Credit System 

remains safe and sound and continues to fulfill its important mission for many years to 

come.

Thank you.