1

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

Glen R. Smith, Board Member

MINUTES OF THE REGULAR MEETING

OF THE

FARM CREDIT ADMINISTRATION BOARD

August 9, 2018

These minutes reflect the business transacted at the August 9, 2018, Regular Meeting of the 

Farm Credit Administration Board (FCA Board) pursuant to the Government in the Sunshine Act, 

5 U.S.C. § 552b, and the regulations of the Farm Credit Administration (FCA) adopted 

thereunder.

The FCA Board meeting was held at the FCA office in McLean, Virginia, beginning at 9:00 a.m.

and concluding at 9:45 a.m. Members of the Board present were:

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Member

Glen R. Smith, Member

The above named constitute the full Board.

Others present included Charles Rawls, General Counsel; Dale Aultman, Secretary to the 

Board; staff of the FCA and the Farm Credit System Insurance Corporation; and five members of 

the general public. (A list of staff attendees is attached as Exhibit A.) 

The Secretary read a statement that announced the meeting would be conducted according to 

the requirements of the Government in the Sunshine Act. 

Board Chairman Tonsager reviewed the published Agenda. (A copy of the Public 

Announcement publishing the Agenda for the meeting is attached as Exhibit B.)

Mr. Hall moved to adopt the Agenda as published. 

Mr. Smith seconded the motion.

There being no further discussion, Board Chairman Tonsager called the question.

The Secretary polled the Board Members and the motion carried unanimously.

Mr. Smith noted that the Agenda did not include any portions of the meeting that should be 

closed to the public as permitted by the Government in the Sunshine Act and therefore moved 

that the entire meeting remain open.
2 

Mr. Hall seconded the motion.

There being no further discussion, Board Chairman Tonsager called the question.

The Secretary polled the Board Members and the motion carried unanimously.

OPEN SESSION

Approval of Minutes

Minutes for July 12, 2018

(BM-9-AUG-18-01) 

Mr. Hall moved to approve the minutes for the July 12, 2018, FCA Regular Board Meeting. 

Mr. Smith seconded the motion.

There being no further discussion, Board Chairman Tonsager called the question.

The Secretary polled the Board Members and the motion carried unanimously. (BM-9-AUG-18-

01) 

(A copy of the official “Board Action Item” is attached as Exhibit C.)

Report

Annual Report on the Farm Credit System’s Young, Beginning,

 and Small Farmer Mission Performance: 2017 Results 

Sal Iannetta and Jessica Potter of the Office of Regulatory Policy presented the Annual 

Report on the Farm Credit System’s Young, Beginning, and Small Farmer Mission Performance: 

2017 Results. 

Board Chairman Tonsager asked if there were any questions or further discussion from the 

Board. 

There were no further questions or discussion.

(A copy of the presentation is attached as Exhibit D.)

ADJOURNMENT

There being no further business to come before the Board, Board Chairman Tonsager indicated 

he would entertain a motion to adjourn the meeting.

Mr. Smith moved that the meeting be adjourned.

Mr. Hall seconded the motion.

Board Chairman Tonsager called the question.

The Secretary polled the Board Members and the motion carried unanimously.

The meeting adjourned at 9:45 a.m.
3 

NOTATIONAL VOTE ACTIONS 

There were two notational vote actions approved by the FCA Board from July 12, 2018, through 

August 8, 2018 as follows:

Item 

Number

Action Date Voting 

Results

Subject

NV 18-10 07/20/2018 Approved Fall 2018 Abstract of the Unified Agenda of Regulatory and 

Deregulatory Actions and Fall 2018 Regulatory Projects 

Plan

NV 18-11 08/06/2018 Approved Special assessment on Farm Credit Banks to cover the 

expenses for the Farm Credit Administration Building

The undersigned hereby certify that the foregoing minutes are the official minutes of the Regular 

Meeting of the Farm Credit Administration Board held on August 9, 2018.

________/s/______________

Dallas P. Tonsager

Board Chairman and Chief Executive Officer

________/s/_____________

Dale L. Aultman

Secretary to the Board

Approved: _September 13, 2018_ 
4

Exhibit A 

STAFF PRESENT AT THE 

FCA REGULAR BOARD MEETING

August 9, 2018 

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

Glen R. Smith, Board Member

OFFICE OPEN 

SESSION 

Office of the Board

Aultman, Dale X

Batta, Todd X

Kramp, Kevin X

Morris, James X

Corey, Kathryn X

Calhoun, Gaye X

COO

Hoffman, William X

OIT

Golley, Jerald X

EEOI

Burlew, Thais X

OCPA

Stokke, Michael X

Middleton, Russell X

DeLancy, Toni X

OSMO

Rea, Laurie X

Duckett, Teagan (intern) X

OGC

Rawls, Charles X

Strickland, Joy X

Donner, Mary Alice X

OE

Coleman, Robert X

Paulsen, Roger X

OIG

Laguarda, Wendy X

ORP

Van Meter, Gary X

Mardock, Barry X

Iannetta, Sal X

Potter, Jessica X

Johansen, Mark X

D’Antoni, Jeremy X

OCFO

Smith, Stephen X

Gandy, Doug X
5

OFFICE OPEN 

SESSION

FCSIC

Wynn, Wade X

Rubin, Howard X

GENERAL PUBLIC 5
6

Exhibit B

Farm Credit Administration 1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

PUBLIC ANNOUNCEMENT OF

MEETING SUBJECT TO THE GOVERNMENT IN THE SUNSHINE ACT

Farm Credit Administration Board

Regular Meeting

August 9, 2018

Summary: Notice is hereby given, pursuant to the Government in the Sunshine Act (5 U.S.C. Sec. 552b(e) 

(1)), of the forthcoming regular meeting of the Farm Credit Administration Board.

Date and Time: The regular meeting of the Board will be held August 9, 2018. The meeting is scheduled to 

be held at the office of the Farm Credit Administration in McLean, Virginia, from 9:00 a.m. until such time as 

the Board may conclude its business.

Address: Farm Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102-5090. Submit 

attendance requests via e-mail to VisitorRequest@FCA.gov. See SUPPLEMENTARY INFORMATION for further 

information about attendance requests.

For Further Information Contact: Dale L. Aultman, Secretary to the Farm Credit Administration Board 

(703) 883-4009. TTY is (703) 883-4056.

Supplementary Information: This meeting of the Board will be open to the public (limited space 

available). Please send an e-mail to VisitorRequest@FCA.gov at least 24 hours before the meeting. In your email include: name, postal address, entity you are representing (if applicable), and telephone number. You 

will receive an e-mail confirmation from us. Please be prepared to show a photo identification when you 

arrive. If you need assistance for accessibility reasons, or if you have any questions, contact Dale L. Aultman, 

Secretary to the Farm Credit Administration Board, at (703) 883-4009. The matters to be considered at the 

meeting are:

OPEN SESSION

Approval of Minutes

1 July 12, 2018

Report

2 Annual Report on the Farm Credit System’s Young, Beginning, and Small Farmer Mission 

Performance: 2017 Results

______July 30, 2018______

Date

_________/s/___________________

Dale L. Aultman

Secretary to the Board
7 

Exhibit C

Farm Credit Administration

BOARD ACTION ITEM

1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

FCA BOARD ACTION ON

Minutes for July 12, 2018 Regular Board Meeting

BM-9-AUG-18-01

Effective Date: August 9, 2018 

Effect on Previous Action: None

THE FCA BOARD HEREBY:

Approves the minutes for July 12, 2018, Regular Board Meeting as submitted.

DATED THIS 9th DAY OF AUGUST 2018 

BY ORDER OF THE BOARD

____________/s/__________________

Dale L. Aultman

Secretary to the Board
2017 Results: 

FCA’s Annual Report on The Farm Credit System’s

Young, Beginning and Small Farmer

Mission Performance

FCA Board Meeting

August 9, 2018

Salvatore Iannetta, Senior Policy Analyst

Jessica Potter, Senior Policy Analyst

1

Exhibit D
Outline

Review the System’s YBS Mission

YBS Results and Trends

Attributes of YBS Programs

2
YBS Guidelines

Farm Credit Act - 1980 Amendments

– FCS institutions must have programs to furnish sound and

constructive credit and related services to YBS farmers and

ranchers.

– Requires the reporting of YBS activities.

Regulation - 614.4165 (2004)

– Sets minimum YBS program components, reporting and

disclosure requirements for associations.

Bookletters

– 040 (2007) Provides flexibility on lending opportunities for

YBS farmers and ranchers.

– 066 (2012) Provides guidance for serving farmers who

market their agricultural products through local or regional

food systems.

Informational Memorandum - (2014) 

– Provides information on opportunities to coordinate lending,

training, and outreach with the Farm Service Agency. 3
YBS Definitions

4

Definitions for FCA Reporting:

 Young Farmer: age 35 or younger

 Beginning Farmer: 10 years or less farming experience

 Small Farmer: gross annual farm sales of $250,000 or less

Important Data Clarifications:

 Data are reported separately for each category.

 Borrowers may qualify under more than one category; one

should not add Y, B, and S data together.

 Dollar volumes include advances and commitments.
YBS Results 

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Source: Annual Young, Beginning, and Small Farmer Reports submitted by each System lender through the District Banks

YBS Loans Outstanding

As of December 31, 2017

Percentage of Dollar volume of Number of loans Percentage of total volume

total number loans in millions

Young farmers / ranchers 187,156 18.6% $ 29,105 11.2%

Beginning farmers / ranchers 279,027 27.7% $ 45,073 17.3%

Small farmers / ranchers 489,694 48.7% $ 48,668 18.7%

YBS Loans Made During 2017 

s of December 31, 2017

Percentage of Dollar volume of Number of loans Percentage of total volume

total number loans in millions

Young farmers / ranchers 56,705 17.3% $ 9,072 11.8%

Beginning farmers / ranchers 73,752 22.5% $ 12,445 16.2%

Small farmers / ranchers 136,910 41.8% $ 11,688 15.2%

A
New YBS Loan Volume 

6

Source: Annual Young, Beginning, and Small Farmer Reports submitted by each System lender through the District Banks
YBS Shares 

Total New Loan Volume 

7

Source: Annual Young, Beginning, and Small Farmer Reports submitted by each System lender through the District Banks

11.1 11.3 11.1 10.5

11.7

11.0 11.3 11.3 11.9 11.8

17.3

16.2 15.9

13.5

15.2 14.6

14.8

15.2

16.3 16.2

20.6 20.3

19.5

15.7

17.4

15.0

13.9 14.1

15.7

15.2

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total New Loan Volume

Young Beginning Small
New YBS Loan Counts

8

Source: Annual Young, Beginning, and Small Farmer Reports submitted by each System lender through the District Banks
YBS Shares 

Total New Loan Counts

9

Source: Annual Young, Beginning, and Small Farmer Reports submitted by each System lender through the District Banks
2017 YBS Programs 

Qualitative Results

10
Components of a YBS Program

11 Source: YBS Questionnaire 

FCA Regulation §614.4165:

 Mission Statements

 Annual Quantitative Targets

 Annual Qualitative Goals

 Providing Credit in a Safe and Sound Manner
Mission

12 Source: YBS Questionnaire 

How do associations carry out their 

mission?

 Develop strategies to identify and outreach to 

creditworthy YBS farmers.

 Understand demographic diversity and financial 

needs of current and potential YBS farmers.

 Coordinate credit and delivery of related services 

with third parties. 
Quantitative Targets

13 Source: YBS Questionnaire 

Quantitative targets are based on an 

understanding of demographic data for 

the lending territory.
Qualitative Goals

14 Source: YBS Questionnaire 

Institutions have an assortment of 

qualitative goals: 

 Coordinate credit and related services with 

3rd parties

 Develop advertising campaigns

 Use advisory committees

 Implement outreach programs

 Provide educational programs
Qualitative Goals (continued)

15 Source: YBS Questionnaire 

Outreach and Education:

 Outreach used to connect with current 

and potential YBS farmers.

 Nature and content of educational 

programs were comprehensive. 
Qualitative Goals (continued)

16 Source: YBS Questionnaire 

Associations developed new programs to 

assist YBS farmers, some of whom are 

new to agriculture:

 Developed customized programs to assist 

existing and new YBS farmers.

 Used a multifaceted approach.
Providing Credit in a Safe and 

Sound Manner

17 Source: YBS Questionnaire 

Institutions establish risk parameters: 

 YBS specific loan underwriting standards

 State and Federal loan guarantees

 Personal guarantors or co-signers

 Related services (i.e. Crop Insurance)

 YBS capital commitment

 Advisory committee feedback and board member

input

 Education – for both staff and borrowers