1

Vincent G. Logan, 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

December 14, 2023

These minutes reflect the business transacted at the December 14, 2023, 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 meeting was held at the FCA office in McLean, Virginia. The meeting began at 10:00 a.m. 

and concluded at 11:06 a.m.

Members of the Board present were:

Vincent G. Logan, Chairman and Chief Executive Officer

Jeffery S. Hall, Member

Glen R. Smith, Member

The above named constitute the full Board.

Others present included Ashley Waldron, Secretary to the Board; David Grahn, General 

Counsel; and staff of the FCA and Farm Credit System Insurance Corporation (FCSIC). There 

were 10 members of the general public registered to attend. (A list of Board and staff attendees 

is attached as Exhibit A.)

Chairman Logan announced that this meeting of the Board was a hybrid physical/virtual meeting.

Chairman Logan asked everyone to say the Pledge of Allegiance with him as the flag was 

displayed on the presentation screen.

Chairman Logan asked the Secretary to the Board to address technical and protocol items.

The Secretary addressed technical and protocol items.

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

the requirements of the Government in the Sunshine Act.

Chairman Logan reviewed the published agenda. (A copy of the Public Announcement 

publishing the agenda for the meeting is attached as Exhibit B.)
2

Mr. Hall moved to adopt the agenda as published.

Mr. Smith seconded the motion.

There being no further discussion, Chairman Logan called the question.

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

Mr. Smith noted that the agenda did not include 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.

Mr. Hall seconded the motion.

There being no further discussion, Chairman Logan called the question.

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

OPEN SESSION

Approval of Minutes

Minutes for November 9, 2023

(BM-14-DEC-23-01)

Mr. Hall moved to approve the minutes for the November 9, 2023, FCA Regular Board meeting.

Mr. Smith seconded the motion.

There being no further discussion, Chairman Logan called the question.

The Secretary polled the Board Members and the motion carried unanimously. (BM-14-DEC23-01)

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

Reports

Quarterly Report on Economic Conditions and

Farm Credit System Condition and Performance 

Yuri Katrinic of the Office of Data Analytics and Economics and Jarvis Tillman of the 

Office of Examination presented the Quarterly Report on Economic Conditions and Farm Credit 

System Condition and Performance.

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

Semiannual Report on Office of Examination Operations 

Dan Fennewald of the Office of Examination presented the Semiannual Report on Office of 

Examination Operations.

(A copy of the PowerPoint presentation is attached as Exhibit E.)
3 

ADJOURNMENT

There being no further business to come before the Board, Chairman Logan indicated he would 

entertain a motion to adjourn the meeting.

Mr. Smith moved that the meeting be adjourned.

Mr. Hall seconded the motion.

There being no further discussion, Chairman Logan called the question.

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

The meeting adjourned at 11:06 a.m.

NOTATIONAL VOTE ACTIONS 

There were five notational vote actions approved by the FCA Board from November 9, 2023, 

through December 13, 2023. 

Item 

Number

Action 

Date

Voting 

Results

Subject

NV 23-35 11/09/2023 Approved System Institution Request to Make an Investment for Which FCA 

Regulations Require Prior Approval

NV 23-36 11/16/2023 Approved FCS Building Association 2024 Budget

NV 23-37 12/04/2023 Approved Office of Secondary Market Oversight FY 2024 Oversight Plan 

NV 23-38 12/07/2023 Approved Limited Delegation of Authority to the FCA Director of the Office of 

Regulatory Policy for Certain Capital Requests

NV 23-39 12/13/2023 Approved Farm Credit Administration 2024 Compensation Program

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

meeting of the Farm Credit Administration Board held on December 14, 2023.

___________/s/___________

Vincent G. Logan

Chairman and Chief Executive Officer

___________/s/___________

Ashley Waldron

Secretary to the Board

Approved: January 11, 2024
4 

Exhibit A 

BOARD AND STAFF PRESENT AT THE 

FCA REGULAR BOARD MEETING 

December 14, 2023

Vincent G. Logan, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

Glen R. Smith, Board Member

ATTENDEES OPEN 

SESSION 

Office of the Board

Logan, Vincent X

Hall, Jeffery X

Smith, Glen X

Lund, Zachary X

Donner, Mary Alice X

Stokke, Michael X

Greer, Kristin X

Calhoun, Gaye X

Lewandrowski, Barbara X

Waldron, Ashley X

Hoffman, Bill X

OCOS

Duran, Maribel X

Coleman, Robert X

Cunningham, Lesley X

OEEOI

Burlew, Thais X

Fish, Tyler X

OIT

Versace, Jerry X

Matos, Ricardo X

Rana, Ben X

OCPA

Reuschel, Trevor X

Middleton, Russell X

OGC

Grahn, David X

Griffin, Ward X

OE

Duffy, Mike X

Fennewald, Dan X

Tillman, Jarvis X

Hanson, Angela X

Wondra, Craig X

Austin, Danielle X

Ababiy, Jonathan X

Aycock, Joshua X

Baltazar, Maria X
5 

ATTENDEES OPEN 

SESSION 

Bell, Justin X

Brown, Torey X

Chung, Nancy X

Fortunati, Frank X

Graves, Susan X

Holmes, Graham X

Link, Tyler X

States, Elizabeth X

ODAE

D’Antoni, Jeremy X

Iannetta, Sal X

Katrinic, Yuri X

OIG

Laguarda, Wendy X

Miller, Kevin X

OSMO

Fay, Thomas X

Hudson, Bruce X

McGee, Brianna X

ORP

Kramp, Kevin X

Agans, Autumn X

OCFO

Walters, Sandi X

Gandy, Doug X

OAS

Bell, Vonda X

Clark, Patrina X

FCSIC

Grimaldi, Andrew X

Simonson, John X

Wynn, Wade X

Smith, Gregory X

Morgan, Matthew X

Bowen, Mark X

GENERAL PUBLIC 10
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 

December 14, 2023 

TIME AND DATE: 10 a.m., Thursday, December 14, 2023. 

PLACE: You may observe this meeting in person at 1501 Farm Credit Drive, McLean, 

Virginia 22102-5090, or virtually. If you would like to observe, at least 24 hours in advance, 

visit FCA.gov, select “Newsroom,” then select “Events.” From there, access the linked 

“Instructions for board meeting visitors” and complete the described registration process.

STATUS: This meeting will be open to the public.

MATTERS TO BE CONSIDERED: The following matters will be considered:

• Approval of Minutes for November 9, 2023 

• Quarterly Report on Economic Conditions and Farm Credit System Condition and 

Performance

• Semiannual Report on Office of Examination Operations 

CONTACT PERSON FOR MORE INFORMATION: If you need more information or assistance 

for accessibility reasons, or have questions, contact Ashley Waldron, Secretary to the Board. 

Telephone: 703-883-4009. TTY: 703-883-4056.

___________/s/___________

Ashley Waldron

Secretary to the Board

November 27, 2023
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 November 9, 2023 

BM-14-DEC-23-01 

Effective Date: December 14, 2023 

Impact on Prior Board Actions: None

THE FCA BOARD HEREBY:

• Approves the minutes for November 9, 2023. 

DATED THIS 14th DAY OF DECEMBER 2023 

BY ORDER OF THE BOARD

___________/s/___________

Ashley Waldron

Secretary to the Board
Quarterly Report on FCS Conditions 

December 14, 2023

Yuri Katrinic - Senior Economist

Jarvis Tillman - Supervisory Senior Examiner

Exhibit D
9

Topics for Open Session

Economic Conditions Affecting the Farm Credit System

 Macroeconomic conditions

 Supply and demand for commodities

 Farm and ranch margin outlook

Farm Credit System Condition and Performance

 System growth and loan portfolio

 Earnings and capital

 Financial Institution Rating System (FIRS)
10

Higher interest rates cool inflation, labor market

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, Federal Reserve Bank of St. Louis

34.0

34.3

34.5

34.8

35.0

Average weekly hours of employees

(private sector)

PCE Inflation

Federal Funds 

Rate

Real M2

$5.5

$6.0

$6.5

$7.0

$7.5

$8.0

0%

1%

2%

3%

4%

5%

6%

Trillions

Inflation, interest rates, and money supply
11

Consumer spending resilient despite signs of stress 

Sources: Bureau of Economic Analysis, New York Federal Reserve, Center for Microeconomic Data

2015-2019 

Average

-0.5%

0.0%

0.5%

1.0%

Jun-21 Dec-21 Jun-22 Dec-22 Jun-23

Real personal consumption expenditures

Monthly growth

Newly 

delinquent

Credit card 

debt-toincome

4%

5%

6%

7%

8%

2019 2020 2021 2022 2023

Credit card metrics
12

Financial challenges for lenders and borrowers 

including in commercial real estate 

Sources: Federal Reserve Board of Governors

Net percentage is the percentage of respondents who are tightening standards 

minus the percentage of respondents who are loosening standards.

• Maturing debt for commercial

real estate must be refinanced at

higher rates.

• Expensive deposits, tighter net

interest margins for some

lenders.

• Costly operating lines for

farmers.

Net percentage 

tightening 

standards

Delinquency 

rate

0.5%

0.6%

0.7%

0.8%

0.9%

1.0%

1.1%

-20%

0%

20%

40%

60%

80%

2019 2020 2021 2022 2023

Commercial Real Estate at Commercial Banks
13

Higher interest rates slowing construction and 

related industries like timber 

Sources: Census Bureau, Freddie Mac, Virginia Tech Forest Landowner Education Program

$100

$110

$120

$130

$140

$150

$160

2010 2012 2014 2016 2018 2020 2022

Virginia Pine Sawtimber

$/1,000 board-feet

30-year fixed

rate mortgage

Housing starts

1200

1300

1400

1500

1600

1700

1800

2%

3%

4%

5%

6%

7%

8%

Nov-20 May-21 Nov-21 May-22 Nov-22 May-23

Thousands of starts

Mortgage rates

Mortgage rates and housing starts
14

Grain prices lower than last year

Sources: CME Group, CBOT

Corn

Soybeans

Wheat

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Change in price from year-ago
15

Falling water levels contribute to higher grain 

transportation costs

Sources: US Geological Survey, Bureau of Labor Statistics

-20

-10

0

10

20

2020 2021 2022 2023

Feet

Mississippi River at Baton Rouge, LA 

Height over seasonal average

0%

10%

20%

30%

40%

50%

Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23

Change in PPI for Water Transportation of Freight
16

Dairy and hog producers feel margin stress

Sources: USDA, Iowa State University

-$60

-$40

-$20

$0

$20

$40

$60

2020 2021 2022 2023

Iowa Swine: Total profit (loss), $/head

$10

$15

$20

$25

2020 2021 2022 2023

Class III Milk ($/hundredweight)
17

California tree nut prices declined following glut of 

plantings

Sources: USDA - NASS

• High tree nut prices in the last

decade encouraged farmers to

plant tree nuts.

• 3-to-7-year lead time for trees to

bear fruit means oversupply of

nuts today.

• Emblematic of risks for many

perennial crops. $0

$1

$2

$3

$4

$5

0

400

800

1,200

1,600

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022

Tree nut acreage and prices

Bearing Walnuts Bearing Almonds

Walnut Price Almond Price
18

Questions
Farm Credit System

Condition and Performance

as of September 30, 2023

Jarvis Tillman

Supervisory Senior FCA Examiner

Office of Examination
Loan growth slows; rural infrastructure lending 

drives gains

Source: Federal Farm Credit Banks Funding Corporation Information Statements 20

+1.7% Qtr 1.9% Qtr

+3.3% YTD +3.2% YTD

+6.0% 12M +6.5% 12M

Total 

Assets

9/30/23

$492.8

billion

Gross

Loans

9/30/23

$385.1

billion

7.8%

0.6%

-5.3%

5.1% 4.0%

-1.1%

7.8%

11.6%

1.2%

4.3%

0.0%

17.0%

Real Estate

Mortgage

(45%)

Production &

Intermediate

(18%)

Agribusiness

(18%)

Rural Infrastructure

(13%)

Loan Growth by Loan Type

(% change year-to-date through September)

3.5%

4.5%

2.7%

0.9%

2.0%

1.0%

5.1%

3.3%

5.2%

3.2%

Portfolio Loan Growth

(% change year-to-date through September)
Source: Federal Farm Credit Banks Funding Corporation Information Statements

21

Portfolio loan quality is strong; credit risk indicators

move slightly higher

$2,056 $2,099

$2,439 $2,549

$2,321

$1,784 $1,830

$2,042

0.85% 0.83%

0.92% 0.92%

0.77%

0.55% 0.51% 0.53%

Nonaccrual Loans

Other Nonperforming

OPO

% Nonperforming assets

(amounts in millions)

4.0%

3.5%

5.8%

5.5%

2.4%

3.4%

3.0%

5.3%

4.8%

1.1%

4.9%

4.6%

7.5%

5.8%

1.2%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%

Total

Portfolio

Real Estate

Mortgage

Production &

Intermediate (1)

Agribusiness

Rural

 Infrastructure

Sep-23 Sep-22 Sep-21

Loans Classified Less than Acceptable

(as a percentage of loans outstanding)

(1) Includes lease receivables

(1) Prior to the adoption of CECL on 1/1/23, nonperforming assets included accruing restructured loans

Nonperforming Assets(1)

(as a percentage of loans outstanding and other property owned)
The System reported solid earnings through 

the 1st nine months

Source: Federal Farm Credit Banks Funding Corporation Information Statements 22

$3,589 $3,716 $4,012 $4,055

$4,446

$5,201 $5,449 $5,507

218 188 146 95 165 

(142) (9)

464 

3Q-16 3Q-17 3Q-18 3Q-19 3Q-20 3Q-21 3Q-22 3Q-23

System Net Income

Provisions for Credit Losses - Loans

(amounts in millions)

System Earnings

(year-to-date through September)

$58 

$10 

($269)

$145 

($473)

$645 

Net Income

Other

Noninterest Expense

Noninterest Income

Provisions for Credit Losses

Net Interest Income

4.40%

3.56% 3.16% 3.79%

5.47%

2.36%

1.30% 0.83% 1.63%

3.52%

2.04%

2.26% 2.33%

2.16%

1.95%

2.42% 2.46% 2.46% 2.39% 2.42%

2019 2020 2021 2022 Q3 2023

% Rate: Earning Assets % Rate: Interest-Bearing Liabilities

% Net Interest Spread % Net Interest Margin

Net Interest Spread | Net Interest Margin

Change in Net Income

(year-to-date through September)
System capital and liquidity levels are strong 

Capital & Liquidity

(as of September 30, 2023)

▶ In total, System capital has increased

$2.9 billion or 4.1% year-over-year.

▶ Total regulatory capital ratios are sound

- Banks: 13.2% to 16.9%

- Associations: 12.5% to 33.9%.

▶ Days of liquidity for the 4 funding banks

range from 167 to 197 days.

▶ Capital and the allowance for credit

losses on loans equaled 19.2% of

System loans as of September 30

compared with 19.6% a year ago.

Source: Federal Farm Credit Banks Funding Corporation Information Statements (1) Restricted Capital represents capital associated with the FCS Insurance Fund

23

$45.8 $48.9

$52.4 $55.5 $58.2

$62.4

$66.0

$69.5 $69.4 $72.3

16.9% 16.8% 16.7% 17.3% 17.4% 17.6% 17.1% 16.9%

14.9% 14.7%

Restricted Capital (1)

Total Capital less Restricted

Capital-to-Assets Ratio

(amounts in billions)

System Capital

(as of September 30)
Capital-to-assets ratio has improved recently 

despite increase in AOCL

▶ The System’s capital-to-asset ratio as of

September 30 was 14.7% as compared

to 14.4% at year-end and 14.9% for the

same period year ago.

▶ For 2023, accumulated other

comprehensive loss (AOCL) has

increased $437 million to $5.7 billion.

▶ Although capital growth has outpaced

asset growth in 2023, it continues to lag

asset growth year-over-year.

Source: Federal Farm Credit Banks Funding Corporation Information Statements (1) AOCL refers to accumulated other comprehensive loss

24

(1,051)

(2,991)

(5,299)(5,492) (5,278)(5,715)

16.9%

14.9%

14.4% 14.7%

17.1%

15.9%

15.4% 15.6%

Accum. Other

Comprehensive Loss

capital-to-asset ratio

capital-to-asset ratio

excl. AOCL

capital-to-assets ratio 

excluding AOCL(1)

capital-to-assets ratio

(amounts in millions)

Impact of AOCL(1) on the capital-to-asset ratio

(at quarter-end)
Composite FIRS ratings remain stable

Composite FIRS Ratings

(based on 9/30/23 financial reporting)

▶ Composite FIRS ratings reflect the

System’s sound financial condition.

▶ Over 96% of System banks and

associations have a Composite FIRS

rating of 1 or 2.

▶ Institutions rated 3 or lower hold

under 1% of System assets.

25 Source: FCA’s FIRS ratings database

(1) active and reporting

44 39 34 30 32 33 35 35

31

29

32 35 35 32 26 24

2

5 7 7 4 4

3 2

0

10

20

30

40

50

60

70

80

90

1/1/17 1/1/18 1/1/19 1/1/20 1/1/21 1/1/22 1/1/23 10/1/23

Number of Rated Institutions

1 Rated 2 Rated 3 Rated or lower

Composite FIRS Ratings

Farm Credit System Banks and Associations(1)
Semi-Annual Report on 

Office of Examination 

Operations

December 14, 2023

Dan Fennewald, Deputy Director 

Office of Examination

FCA Board Meeting 

December 2023 Exhibit E

26
OE Operations Agenda Topics

▶ Fiscal Year 2023 Operating Plan Objectives

• Risk Supervision and Examination Activities

• Public Mission

• Operational Efficiency and Effectiveness

• Human Capital

27
Risk Supervision & Examination

▶ Conducted onsite examination and/or oversight

activities at all funding banks, 51 associations (74%),

and 5 other entities

▶ Issued 48 reports of examination, 39 interim activity

letters, and 70 FIRS Letters

▶ Maintained a higher level of supervisory oversight at

four System institutions

▶ Issued examination guidance

28
Risk Supervision & Examination (continued)

▶ National Oversight Plan Focus Areas

• Risk management practices in an uncertain environment

• Phaseout of the London Interbank Offered Rate

• Current Expected Credit Losses (CECL) implementation

• Standards of Conduct

▶ Completed all 5 systemic risk strategies and 5 institution

risk strategies

29
Public Mission

▶ Completed all public mission strategies

• Implemented the qualitative portion of the Young, Beginning,

and Small Farmers (YBS) Programs rating system

• Worked with ODAE and Systems institutions to improve YBS

data quality

• Issued a memo clarifying our expectations for internal audit

programs at certain low-risk institutions

• Provided additional guidance to examiners on differential

expectations for smaller associations with a lower risk profile

• Met with System's Small Association workgroup 30
Operational Efficiency and Effectiveness

▶ Completed all strategies related to examination tools,

operational processes, and the FCS Loan Database

• Made enhancements to the EDGe application and reports

• Continued the transition to PowerBI generated reports

• Developed the Risk Control Matrix for OE OMB A-123 audits

• Continued to assess and improve data reliability and develop

new reports

31
Human Capital

▶ Completed all strategies related to training,

development, recruitment, retention, and knowledge

transfer

• Hired 15 associate examiners, 3 external commissioned

examiners, 6 technical specialists, and 1 administrative assistant

• Attrition levels declined to 8 percent compared to 17 percent

last year

• OE Conference held in August 2023

32
Human Capital (continued)

▶ We remain below optimal targets for total staff and

commissioned examiners

Total OE Staff

Total OE Staff Planned Actual Variance

Beginning FY 2023 179 173 (6)

Attrition | Retirements (15) (13) 2

Hirings 16 25 9

Ending FY 2023 180 185 5 

Commissioned Examiners

Commissioned Examiners Planned Actual Variance

Beginning FY 2023 87 84 (3)

Attrition | Retirements (7) (8) (1)

Hirings 2 3 1 

Newly Commissioned 7 2 (5)

Ending FY 2023 89 81 (8)

33
OE Budget Results

▶ Fiscal Year 2023

• Actual expenses were in line with net budget with return to

normalized travel after the first quarter

• Full Time Equivalents (FTEs) slightly under budget

FTEs

♦ Budgeted Full Year FTEs 177.8

♦ Actual Full Year FTEs 177.2

Budget Variance -0.6 

34

$36.6 $36.6 

Budget Actual

Fiscal Year 2023 

Actual OE 

spending 

within 

Operating 

Budget 

($ millions)
Summary

▶ Effectively conducted examination and oversight

activities

▶ Completed 2023 Operating Plan objectives

▶ Focused on ensuring OE has sufficient highly skilled

staff to accomplish our mission

▶ Actively managed our budget as we returned to

normalized travel

35
Discussion

THANK YOU

36