Protecting Investors in Agriculture and Rural America

Farm Credit System Insurance Corporation

2014 Annual Report
The Farm Credit System Insurance Corporation, a 

Government-controlled, independent entity, shall

•	 	 protect investors in insured Farm Credit System

obligations and taxpayers through sound 

administration of the Farm Credit Insurance 

Fund,

•	 	 exercise its authorities to minimize Insurance

Fund loss, and

•	 	 help ensure the future of a permanent system

for delivery of credit to agricultural borrowers.

Mission Statement
1

June 15, 2015

Dear Mr. President and Mr. Speaker:

In accordance with section 5.64 of the Farm Credit Act of 1971, as amended, the Farm 

Credit System Insurance Corporation is pleased to submit its annual report for calendar 

year 2014.

This report highlights our role as the independent Federal corporation established to ensure 

the timely payment of principal and interest to investors in insured Farm Credit System 

debt securities. The balance in the Farm Credit Insurance Fund as of December 31, 2014, 

was $3.75 billion.

We collected $223.1 million in insurance premiums from Farm Credit System banks for 

2014, earned $34.1 million in investment income in 2014, and expect to incur $4.0 million 

in operating costs in 2015.

We at FCSIC are proud of the role we play in supporting the safety and soundness of the 

Farm Credit System, and we are committed to fulfilling our mission faithfully.

Sincerely,

Dallas P. Tonsager

Chairman

The President of the United States Senate

The Speaker of the United States House of Representatives
Farm Credit System Insurance Corporation

2

Message from the Chairman 3

Board of Directors 4

2014 — Year in Review 8

Selected Financial Statistics 9

The Farm Credit System 10 

Insurance Fund Management 16

Risk Management 24

Financial Assistance and Receivership 27

Independent Auditor’s Report F1 

Financial Statements F5 

Notes to the Financial Statements F8 

Management Report on Internal Control over Financial Reporting 28

Performance Management Program 29

Glossary 32

Acronyms and Abbreviations 34

Corporate Staff 35

Contact Information 35

FCSIC Insured Banks 36

Contents
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Message from the Chairman 

I am pleased to present FCSIC’s 2014 Annual Report. It is gratifying to note that, for the 25th consecutive year since we began issuing financial statements, our independent public auditor has issued unmodified or unqualified opinions on those statements. The opinion letters, which are enclosed, indicate that the 

financial statements concerning the Farm Credit Insurance Fund, of which we are stewards, are fairly and 

accurately presented.

The Corporation’s net income for 2014 was $254.1 million, compared with $197.7 million for the previous 

year. The Insurance Fund balance as of December 31, 2014, was $3.75 billion, compared with $3.50 billion 

at year-end 2013.

Premium revenue was $223.1 million for 2014, compared with $172.2 million for 2013. It increased 

because the premium assessment rate went up from 10 basis points in 2013 to 12 basis points in 2014. 

Interest income for 2014 totaled $34.1 million, compared with $28.8 million in 2013.

In accordance with the requirements of the Federal Managers’ Financial Integrity Act of 1982, our management conducted its annual assessment of the system of internal controls. Its findings show that, in the 

reviewed areas, internal controls comply with the standards prescribed by the U.S. Government Accountability Office and provide reasonable assurance that program objectives are being met.

In 2015, we will continue to carry out our mission and work toward achieving our strategic goals and 

objectives. We are mindful of our public trust and will ensure that investors, Congress, the Farm Credit 

System, and other regulatory agencies receive timely and accurate information on issues concerning the 

Insurance Fund.

Sincerely,

Dallas P. Tonsager
Farm Credit System Insurance Corporation

4

Board of Directors

The Farm Credit System Insurance Corporation (FCSIC) is managed by a three-member board of directors 

comprising the same three individuals who compose the Farm Credit Administration (FCA) Board. 

However, the same member may not serve as chairman of both entities. FCA is the independent Federal 

agency responsible for the regulation and examination of the Farm Credit System (System), a nationwide 

network of financial cooperatives that lend to agriculture and rural America.

After being appointed to the FCA Board by President Barack Obama on March 17, 2015, Dallas P. 

Tonsager was elected Chairman of the FCSIC Board of Directors on March 19. He is serving in the Board 

seat previously held by former Indiana Congresswoman Jill Long Thompson, whose term had expired. 

As Chairman of the FCSIC Board of Directors, Mr. Tonsager succeeds Kenneth A. Spearman, who 

served as Chairman from November 4, 2009, until March 13, 2015, when he was designated FCA Board 

Chairman and CEO. Mr. Spearman remains a member of the FCSIC Board of Directors. 

Jeffery S. Hall is also a member of the FCSIC Board of Directors. He was appointed to the FCA Board by 

President Barack Obama on March 17, 2015, succeeding Leland A. Strom, whose term had expired.

Board member photos courtesy of Bachrach.
Protecting Investors in Agriculture and Rural America

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Dallas P. Tonsager is Chairman of the Board of Directors of 

FCSIC. He was elected to this position on March 19, 2015. He also 

serves as a member of the FCA Board.

Mr. Tonsager brings to his position as Chairman of FCSIC extensive experience as an agriculture leader and producer, and a commitment to promoting and implementing innovative development 

strategies to benefit rural residents and their communities.

Mr. Tonsager served as Under Secretary for Rural Development at 

the U.S. Department of Agriculture (USDA) from 2009 to 2013. 

In this position, he expanded broadband communication in rural 

America and implemented other key elements of the Recovery 

Act for rural America. He dramatically expanded USDA’s water 

and wastewater programs, expanded funding for first- and secondgeneration biofuels, and funded hospitals and other public facilities 

in rural America. 

In addition, Mr. Tonsager worked with the Farm Credit System 

and others to set up new venture capital investment funds. From 

2010 to 2013, he was a member of the Commodity Credit Corporation Board of Directors.

From 2004 to 2009, Mr. Tonsager served as a member of the FCA Board as well as a member of the 

FCSIC Board of Directors. 

From 2002 to 2004, he was the executive director of the South Dakota Value-Added Agriculture Development Center. In this position, he coordinated initiatives to better serve producers interested in developing 

value-added agricultural projects. Services provided by the center include project facilitation, feasibility 

studies, business planning, market assessment, technical assistance, and education.

In 1993, he was selected by President William Clinton to serve as USDA’s State director for rural development in South Dakota. Mr. Tonsager oversaw a diversified portfolio of housing, business, and infrastructure loans in South Dakota. In 1999, he was recognized as one of two outstanding State directors in the 

nation by then-USDA Under Secretary Jill Long Thompson. His term ended in February 2001. 

A longtime member of the South Dakota Farmers Union, Mr. Tonsager served two terms as president 

of the organization, from 1988 to 1993. During that same period, he was a board member of Green 

Thumb Inc., a nationwide job training program for senior citizens. In addition, he served on the Board of 

National Farmers Union Insurance from 1989 to 1993, and he was a member of the Advisory Board of the 

Commodity Futures Trading Commission from 1990 to 1993. 

Mr. Tonsager grew up on a dairy farm near Oldham, South Dakota. Mr. Tonsager is a graduate of South 

Dakota State University, where he earned a B.S. in agriculture in 1976. 

Dallas P. Tonsager
Farm Credit System Insurance Corporation

6

Kenneth A. Spearman has served on the FCSIC Board of Directors and on the FCA Board since his appointment by President 

Barack Obama on October 13, 2009. He served as Chairman of 

the FCSIC Board of Directors until he was appointed Chairman 

and CEO of FCA on March 13, 2015. 

Mr. Spearman brings to his position as a FCSIC Director many 

years of experience in finance, agriculture, and agricultural cooperatives, including 28 years in the citrus industry. 

From 1980 to 1991, he was controller of Citrus Central, a $100 

million cooperative in Orlando, Florida, where he was responsible for financial management and reporting and the supervision 

of staff accountants.

He later served as director of internal audit for Florida’s Natural Growers, where he designed and implemented the annual 

plan for reviewing and appraising the soundness, adequacy, and 

application of accounting, financial, and other operating internal 

controls. 

From January 2006 until his appointment to the FCA Board, Mr. Spearman served as an independently 

appointed outside director on the AgFirst Farm Credit Bank board in Columbia, South Carolina. During 

his tenure, he served on the board compensation committee and the board governance committee. 

Before entering agriculture in central Florida, Mr. Spearman served with the U.S. Army and is a Vietnam 

veteran. He later was employed by the public accounting firm Arthur Andersen & Co. and was involved 

with the development of a public accounting firm in Chicago, Illinois. He served as chairman of the 

board of trustees for the Lake Wales Medical Center. He is a member of the Institute of Internal Auditors, 

as well as the National Society of Accountants for Cooperatives, for which he served a term as national 

president. 

He obtained his MBA from Governors State University in University Park, Illinois, and his B.S. in 

accounting from Indiana University. He also attended Harvard Kennedy School Executive Education, 

where he completed a program with a concentration in Government agency strategic planning.

Mr. Spearman and his wife, Maria, of Winter Haven, Florida, have three children—twin daughters, 

Michelle Springs and Rochelle Puccia, and a son, Dr. Kenneth Spearman.

Kenneth A. Spearman
Protecting Investors in Agriculture and Rural America

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Jeffery S. Hall has served on the FCSIC Board of Directors and on 

the FCA Board since his appointment by President Barack Obama 

on March 17, 2015. Mr. Hall is serving a term that expires on 

October 13, 2018.

Before coming to FCSIC and FCA, Mr. Hall was president of The 

Capstone Group, an association management and consulting firm 

that he cofounded in 2009. From 2001 to 2009, he was the State 

Executive Director for USDA’s Farm Service Agency in Kentucky. 

In that role, he was responsible for farm program and farm loan 

program delivery and compliance. 

From 1994 to 2001, Mr. Hall served as Assistant to the Dean of the 

University of Kentucky, College of Agriculture, advising the Dean 

on State and Federal legislative activities and managing a Statewide 

economic development initiative called Ag-Project 2000.

Mr. Hall also served as a senior staff member in the office of U.S. 

Senator Mitch McConnell from 1988 to 1994. During that time, he 

was the Legislative Assistant for Agriculture, accountable for internal and external issue management. 

Before joining Senator McConnell’s staff, Mr. Hall served on the staff of the Kentucky Farm Bureau Federation. Over his 30-year career in agriculture, he has held leadership positions in the following nonprofits: 

the Kentucky Agricultural Council, the Agribusiness Industry Network, the Louisville Agricultural Club, 

the Kentucky Agricultural Water Quality Authority, and the Governor’s Commission on Family Farms.

Mr. Hall was raised on a family farm in southern Indiana, which has been in his family for nearly 200 

years. He is currently a partner in the farm with his mother and sister. Mr. Hall received a B.S. from Purdue University.

Jeffery S. Hall 
Farm Credit System Insurance Corporation

8

2014 – Year in Review

Insurance Fund 

As of December 31, 2014, the Farm Credit Insurance Fund was at $3.75 billion (1.90 percent of adjusted 

insured debt outstanding), which was $207 million below the secure base amount. (See “Insurance Fund 

Management” on page 16 for additional details.) Consequently, no funds were available to transfer to the 

Allocated Insurance Reserves Accounts (AIRAs). (See “Notes to the Financial Statements” on page F8 for 

additional details.) 

FCSIC’s Operations

The Corporation’s first year of full operations was 1993. That year, the Insurance Fund grew to $642 million, insuring $53.70 billion in System debt. The Corporation had a nine-member core staff, and it contracted with the Farm Credit Administration (FCA) for examination and administrative support. Other 

specialized services were available through contractual arrangements on an as-needed basis. 

Twenty-one years later, the Insurance Fund is almost five times larger, insuring $225.65 billion of System debt. Yet the Corporation continues to operate effectively with a small staff of 11. It still leverages its 

resources by purchasing support services from FCA and other public and private sector contractors, which 

helps ensure the cost-effective administration of its programs. 

The Corporation’s operating costs as a percentage of its total assets were 8 basis points (0.08 percent) for 

2014, an improvement of 1 basis point over 2013. In September 2014, our Board of Directors approved 

budgets for 2015 and 2016. The 2015 budget is $4.0 million, which is a decrease of 3.5 percent from the 

2014 budget.

FCSIC’s Legislative Initiative

As part of the FCSIC 2010–2015 Strategic Plan, we continue to pursue a legislative initiative to strengthen 

our resolution authorities, including our receivership and conservatorship powers. These changes would 

improve our ability to protect investors. Also, ensuring that we have express statutory authority comparable to other Federal receivers and conservators would reduce the costs of resolving a troubled Farm Credit 

System institution.

In 2012, after consulting with the FCSIC Board and meeting with a workgroup of senior System officials, 

we delivered draft legislative language to our congressional oversight committees for their consideration. 

During 2013 and 2014, we continued to provide information to our oversight committees about the benefits of, and need for, legislative changes. 

Financial Assistance and Liquidity

As explained in the FCSIC Board of Directors’ “Policy Statement Concerning Assistance,” FCSIC has 

statutory authority to provide various forms of assistance to a System bank, including loans. Any assistance agreement is subject to our Board of Directors’ approval. Therefore, in a liquidity crisis, if the 

System encounters difficulty in obtaining needed financing, FCSIC has authority to provide discretionary 

assistance. 

On September 24, 2013, FCSIC entered into an agreement with the Federal Financing Bank (FFB) for 

a line of credit to serve as a liquidity backstop for FCSIC under specified circumstances. The FFB is a 

Government corporation within the U.S. Department of Treasury that provides funding to eligible Federal 

agencies. 
Protecting Investors in Agriculture and Rural America

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The FFB has a similar line of credit arrangement with other Federal insurers, including the Federal 

Deposit Insurance Corporation and the National Credit Union Administration’s Central Liquidity Fund. 

Our access to the FFB provides an additional source of funds for assistance if exigent market circumstances threaten the System banks’ ability to pay maturing debt obligations. 

By obtaining the line of credit agreement with the FFB, we can provide more assistance to System banks 

than would otherwise be available using only the Insurance Fund. Under the agreement with the FFB, 

subject to its terms and conditions, we can borrow up to $10 billion upon a showing of exigent circumstances. We can then lend these funds to a System bank or banks as assistance. Exigent circumstances 

consist of a general disruption in the financial markets emanating external to the System.

There is no cost to us for establishing this line of credit with the FFB. We renewed the agreement in 2014, 

and it terminates on September 30, 2015, unless renewed. All funds that we advance to System banks as 

assistance will be fully collateralized and repaid with interest by the bank or banks receiving assistance. 

Therefore, if accessed, this liquidity backstop should operate without risk or cost to U.S. taxpayers. 

Farm Credit System Insurance Corporation

(Dollars in Millions)

2014 2013 2012

BALANCE SHEET:

Total Assets $3,750.1 $3,496.0 $3,298.2 

 

Total Liabilities 0.3 0.3 0.3 

 

Insurance Fund Balance

Allocated Insurance Reserves Accounts 0 0 0 

 

Unallocated Insurance Fund Balance 3,749.8 3,495.7 3,297.9 

 

OPERATIONS: 

Revenues 257.2 200.9 131.1 

 

Operating Expenses 3.1 3.2 3.3 

 

Insurance Expense 0 0 0 

 

Net Income 254.1 197.7 127.8 

 

Selected Financial Statistics 
Farm Credit System Insurance Corporation

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The Farm Credit System

Combined Farm Credit System Statistics

(Dollars in Billions)

 2014 2013 2012 

Insured Debt Outstanding1 $ 225.7 $ 207.5 $ 197.5

Production Agriculture:

Real Estate Mortgage Loans 98.7 94.2 88.3

Production and Intermediate-Term Loans 49.0 45.4 43.9

Agribusiness Loans2 32.8 27.2 27.1

Communication Loans 5.0 4.1 4.2

Energy, Water, and Waste Disposal Loans 16.4 15.5 14.5

Rural Residential Real Estate Loans 6.8 6.6 6.2

Agricultural Export Loans 4.6 4.6 4.7

Lease Receivables 3.0 2.7 2.4

Loans to Other Financing Institutions 0.9 0.7 0.7

Cash and Investments 57.8 51.9 46.9

Net Income 4.7 4.6 4.1

Nonperforming Loans as a Percentage of Total Loans 0.8% 1.0% 1.4%

 

 

1. Insured debt outstanding is based on System institution Call Report information and reflects the book value of insured debt outstanding plus accrued 

interest as of December 31, 2014, 2013, and 2012. (Book value excludes fair-value adjustments.)

2. As of December 31, 2014, agribusiness loans consisted of loans to cooperatives of $14.74 billion, processing and marketing loans of $14.60 billion, and 

farm-related business loans of $3.41 billion.

Structure and Funding 

The Farm Credit System is a federally chartered network of cooperative lending institutions owned by the 

agricultural and rural customers it serves, including farmers, ranchers, producers or harvesters of aquatic 

products, agricultural cooperatives, and farm-related businesses. As of January 1, 2015, the System had 4 

banks and 76 associations. Each of the associations has its own chartered territory and is affiliated with 

one of the four banks.

Each association receives wholesale funding from its affiliated bank and lends directly to its owner-borrowers, providing a consistent and reliable source of agricultural and rural credit throughout the United 

States, including the Commonwealth of Puerto Rico. One of the System banks (CoBank, ACB) also has 

nationwide authority to make retail loans to cooperatives and other eligible entities.

The banks obtain funds for their operations primarily through the sale of consolidated Systemwide debt 

securities. The banks own and use the Federal Farm Credit Banks Funding Corporation to issue Systemwide debt securities in the capital markets. As the fiscal agent for the banks, the Funding Corporation 

partners with a select group of dealers to market and distribute the securities to investors throughout the 

world to finance the System’s operations.
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Figure 1

Insured Debt Outstanding

Growth Averaged 5 Percent Over the Past 5 Years

(Dollars in Billions)

Investor Protection

Investors provide the funds the System lends to agriculture and rural America. Our primary purpose, as 

defined by the Farm Credit Act, is to ensure the timely payment of principal and interest on Systemwide 

debt securities to these investors.

Regulatory Oversight

The Farm Credit Administration is the safety and soundness regulator responsible for the examination, 

supervision, and regulation of each System institution. FCA is an independent agency in the executive 

branch of the U.S. Government and derives its broad authorities from the Farm Credit Act. These authorities include examination and enforcement authorities similar to those of commercial bank regulators. The 

U.S. Senate Committee on Agriculture, Nutrition, and Forestry and the U.S. House of Representatives 

Committee on Agriculture oversee FCSIC, FCA, and the System.

Insured and Other Obligations

FCSIC insures Systemwide and consolidated bonds, notes, and other obligations issued by System banks 

through the Federal Farm Credit Banks Funding Corporation under section 4.2(c) or (d) of the Farm 

Credit Act. Figure 1 shows that insured debt outstanding increased by 8.8 percent in 2014 to $225.7 billion, compared with an increase of 5.1 percent in 2013.

We must also ensure the retirement of eligible borrower stock at par value, as required by section 4.9A of 

the Farm Credit Act. This stock, also known as protected borrower stock, was outstanding until October 

6, 1988. At year-end 2014, protected borrower stock outstanding at System institutions totaled $1 million, 

unchanged from year-end 2013.

Note: Insured debt outstanding, which is based on the Call Report information provided by System Institutions, reflects the book value of insured 

debt outstanding, plus accrued interest. (Book value excludes fair-value adjustments.) 

 
Farm Credit System Insurance Corporation

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Farm Credit System Capital 

The primary source of funds to repay insured Systemwide debt securities is the System’s borrowers. Each 

borrower must have a minimum net worth and, in most cases, collateral posted in connection with his or 

her loan. The borrower makes payments on the loan to the lending bank or association.

The lending association in turn makes payments on its loan to the lending bank. Both the banks, which 

ultimately repay Systemwide debt securities, and the associations exceed their minimum regulatory capital 

requirements as protection and support for the repayment of the outstanding insured debt.

If a bank were unable to repay its portion of an insured Systemwide debt obligation, FCSIC would use 

the Insurance Fund to make the payment. If the assets in the Insurance Fund were exhausted, the Farm 

Credit Act’s provisions for joint and several liability would be triggered, requiring the other System banks 

to repay the defaulting bank’s portion of the debt.

As figure 2 shows, the amount of System bank capital and the balance in the Insurance Fund together 

increased 26 percent, from $15.6 billion at year-end 2010 to $19.6 billion at year-end 2014. Bank capital plus the amount in the Insurance Fund as a percentage of insured debt outstanding decreased from 

9.0 percent in 2013 to 8.7 percent in 2014 (see figure 3). In 2014, the growth in insured debt outstanding exceeded capital growth, causing a slight decline in bank capital as a percentage of insured debt. At 

year-end 2014, bank capital as a percentage of insured debt decreased to 7.0 percent from 7.3 percent at 

year-end 2013.

Overall, the financial performance and condition of the System on a consolidated basis remains strong, 

though some individual institutions continue to experience stress from credit deterioration in certain agricultural sectors. (See trends in the Financial Institution Rating System [FIRS] in the “Risk Management” 

section beginning on page 24.)

System associations have boosted capital levels through the net income they have earned and retained. An 

association’s capital helps reduce the credit exposure of the association’s direct loan with its affiliated bank. 

As figure 4 shows, from 2010 to 2014, combined association capital increased $9.2 billion—an annual 

average increase of approximately 10.4 percent. Since 2010, the associations have collectively achieved 

solid earnings and preserved capital, causing association capital as a percentage of total assets to steadily 

increase to 18.8 percent in 2014 from 16.6 percent in 2010 (see figure 5).
Protecting Investors in Agriculture and Rural America

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Figure 2

Bank Capital Plus Insurance Fund

(Dollars in Billions)

Figure 3 

Bank Capital Plus Insurance Fund as Percentage of Insured Debt
Farm Credit System Insurance Corporation

14

Figure 4 

Combined Association Capital

(Dollars in Billions)

Figure 5 

Combined Association Capital as a Percentage of Total Assets
Protecting Investors in Agriculture and Rural America

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Additional Protections 

Farm Credit System banks have additional risk management tools to protect investors. One such tool is 

the Contractual Interbank Performance Agreement (CIPA). All System banks have entered into this agreement, which measures the financial condition and performance of each bank by using ratios that consider 

bank capital, asset quality, earnings, interest rate risk, and liquidity. The CIPA financially penalizes banks 

that do not meet performance standards.

The System banks and the Federal Farm Credit Banks Funding Corporation have also entered into the 

Market Access Agreement, which establishes conditions for each bank’s continued participation in the debt 

market. If a bank fails to meet agreed-upon performance measures, including capital and collateral ratios, 

the bank may be restricted from issuing debt. The criteria used under the Market Access Agreement are 

the CIPA scores and the net collateral and permanent capital ratios.

The System entered into a common minimum liquidity standard in 2010 to improve the quality and quantity of bank liquidity reserves. This standard is designed to maintain and ensure adequate liquidity to meet 

the business and financial needs of each bank and the System as a whole in the event access to the debt 

market is temporarily impeded.

Also, the Farm Credit Administration adopted a liquidity rule in 2013 that strengthens the banks’ liquidity 

reserve requirement, promotes best practices for liquidity risk management, and better prepares the banks 

to withstand a liquidity crisis. 
Farm Credit System Insurance Corporation

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Insurance Fund Management

The Insurance Fund and the Secure Base Amount

The Farm Credit Insurance Fund represents FCSIC’s equity, the difference between total assets and total 

liabilities, including insurance obligations. The Insurance Fund is composed of an unallocated insurance 

fund, the portion of the Insurance Fund for which no specific use has been designated, and an allocated 

insurance fund, the portion of the Insurance Fund that has been transferred to the AIRAs. Insurance premiums are due until the unallocated portion of the Insurance Fund reaches the secure base amount.

The secure base amount established by the Farm Credit Act is 2 percent of the aggregate outstanding 

insured obligations (adjusted to exclude 90 percent of Federal Government-guaranteed loans and investments and 80 percent of State Government-guaranteed loans and investments) or another percentage that 

we determine to be actuarially sound to maintain in the Insurance Fund, taking into account the risk of 

insuring outstanding insured obligations.

In 2014, both the total Insurance Fund and total assets increased by 7.3 percent to $3.75 billion. Insured 

debt outstanding grew $18.2 billion in 2014 (8.8 percent). The Insurance Fund finished 2014 at 1.90 percent, which was $207 million below the secure base amount (see figure 6). Consequently, no excess funds 

were available for allocation to the AIRAs at year-end.

Over the past five years, the total Insurance Fund has grown at an annual rate of 2.75 percent. We did not 

accrue a provision for insurance obligations in 2014 (see figure 7). 
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Figure 6

Insurance Fund Relative to 2 Percent Secure Base Amount 

Figure 7

Insurance Fund Balances and Growth Rates 

(Dollars in Billions)
Farm Credit System Insurance Corporation

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Premiums 

FCSIC’s Board of Directors reviews premium assessment rates as often as necessary but at least semiannually. The Board review focuses on five factors:

•	 The level of the Insurance Fund relative to the secure base amount

•	 Projected losses to the Insurance Fund

•	 The condition of the System

•	 The health of the agricultural economy

•	 Risks in the financial environment

The Farm Credit Act allows us to collect from 0 to 20 basis points on adjusted insured debt outstanding. 

It also authorizes a risk surcharge of up to 10 basis points on nonaccrual loans and on other-than-temporarily impaired investments. In addition, the Act reduces the total insured debt on which premiums are 

assessed. It bases premiums on outstanding insured debt obligations adjusted downward by 90 percent of 

Federal Government-guaranteed loans and investments and by 80 percent of State Government-guaranteed 

loans and investments made by the System banks.

The most important factors in determining premium rates for 2014 were the level of the Insurance Fund 

and the prospects for growth during the year. The Insurance Fund began 2014 at $115 million below the 

2 percent secure base level. Based on System growth projections that ranged from 0.5 to 6.5 percent, with 

a 4.5 percent weighted average, the FCSIC Board set the assessment rate on adjusted insured debt at 12 

basis points for 2014. This rate allowed FCSIC to make progress toward the 2 percent secure base level. 

Through May 2014, insured debt outstanding increased by $3.9 billion or 1.9 percent. Also in May, we 

surveyed the four System banks to update prospects for growth in their use of insured debt obligations 

during the remainder of 2014. Growth estimates ranged from 0.9 to 9.9 percent with a weighted average 

growth rate of between 5 percent and 7.5 percent, slightly higher than the weighted average calculated in 

January. 

Based on interim financials from May 31, 2014, the Insurance Fund was estimated to be at 1.96 percent of 

adjusted insured obligations or $82 million below the secure base amount, an improvement of $33 million from the beginning of the year. As a result, the Board, at its June meeting, maintained the premium 

assessment rate on adjusted insured debt at 12 basis points for the remainder of 2014. 

During the second half of 2014, Systemwide use of insured debt obligations increased more than projected 

(see figure 8). In fact, in December, Systemwide insured debt obligations grew $6.6 billion. Consequently, 

the Insurance Fund finished 2014 below the 2 percent secure base level, at 1.90 percent of adjusted 

insured obligations or $207 million below the target level.

Because the Insurance Fund finished 2014 at $207 million below the 2 percent secure base amount and 

the System reported prospects for continued growth in the use of insured debt, our Board of Directors 

increased the assessment rate on adjusted insured debt to 13 basis points for 2015.
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Figure 8

Secure Base Amount Calculation

Results as of December 31, 2014

(Dollars in Millions)
Farm Credit System Insurance Corporation

20

Figure 9

Corporation Revenues

(Dollars in Millions)

Revenues and Expenses 

FCSIC operates with no appropriated funds. We collect insurance premiums from each Farm Credit System bank. These premiums and the income from our investment portfolio provide the funds necessary to 

fulfill our mission.

Our revenues increased by 28 percent to $257.2 million in 2014 from $200.9 million in 2013 (see figure 

9). Revenues increased primarily because of higher insurance premiums in 2014. Interest income increased 

19 percent in 2014 to $34.1 million from $28.8 million in 2013.
Protecting Investors in Agriculture and Rural America

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Figure 10 

Corporation Expenses

(Dollars in Millions)

To avoid duplication of effort and to minimize costs, we have operated with a small core staff since 1993 

and used private and public sector contractors to leverage our efforts. Our Board of Directors and management have adopted this model as a cost-effective and efficient way to use available expertise, services, 

and resources to accomplish our mission.

Our operating costs as a percentage of total assets represented 8 basis points for 2014. Fixed costs for staff, 

travel, rent, and miscellaneous expenses were $2.4 million of the $3.1 million total for the year (see figure 

10). The remaining expenses of $0.7 million were for contract services.
Farm Credit System Insurance Corporation

22

Investments 

FCSIC investments increased during the year from $3.1 billion as of December 31, 2013, to $3.4 billion as 

of year-end 2014 (see figure 11). An investment security of $135.1 million matured on December 31, 2014, 

and its proceeds were placed into an overnight investment account classified as “cash and cash equivalents” 

on our balance sheet.

Our investment objective is to maximize returns while meeting liquidity needs and minimizing exposure 

to loss of principal. Funds are invested in U.S. Treasury securities in accordance with the Farm Credit Act 

and our investment policy.

The average portfolio yield was 0.98 percent, up from 0.87 percent the prior year. We added additional 

benchmarks in 2014 to enhance our ability to assess portfolio performance. Three weighted-average Treasury yield benchmarks serve as primary benchmarks, and two Treasury index fund benchmarks serve as 

secondary benchmarks. These index funds are considered secondary benchmarks because a portion of 

their return is generated through trading. The FCSIC Policy Statement Concerning Investments prohibits 

trading for capital gains purposes. In 2014, the average return for the primary benchmarks ranged from 

0.51 percent to 0.70 percent for 2014. The average return for the secondary benchmarks ranged from 0.58 

percent to 1.15 percent for 2014.

In accordance with our investment policy, the portfolio is composed of a liquidity pool and an investment pool. The liquidity pool consists of short-term Treasury securities maturing in two years or less. 

The investment pool is composed of Treasury securities with maturities that vary from 2 to 10 years. Our 

investment policy requires that the liquidity pool be at least 20 percent of the portfolio. And until January 2015, no more than 25 percent of the investment pool was allowed to be invested in securities with 

maturities between 5 and 10 years. To improve the transparency of the policy limit on securities with 

maturities in the 5- to 10-year range, the Board of Directors modified FCSIC’s Policy Statement Concerning Investments in January 2015. Now, securities that mature in the 5- to 10-year range must not exceed 

20 percent of the portfolio. 

The weighted average maturity of the portfolio at year-end was 2.06 years. The composition of the investment portfolio as of December 31, 2014, is shown in figure 12.

In June 2008, we began purchasing Treasury Inflation Protected Securities (TIPS). TIPS have a stated rate 

of interest, payable semiannually, which is applied to the inflation-adjusted principal. TIPS provide a hedge 

against inflation, in terms of both yield and market value. TIPS have experienced monthly inflation or 

deflation adjustments, but the United States has not had an annual deflationary environment since 1954, 

more than 60 years ago. Because of the volatility of the monthly returns on TIPS, the FCSIC Investment 

Committee limits TIPS to no more than 20 percent of the portfolio. At year-end 2014, our TIPS investments totaled $295 million or 8.5 percent of the investment portfolio. 
Protecting Investors in Agriculture and Rural America

23

Figure 11

Corporation Investments

(Dollars in Billions)

Figure 12

Investment Portfolio by Maturity as of December 31, 2014

(Dollars in Millions)

Note: Total investments reflected on the chart do not include the $0.1 billion in “cash and cash equivalents” from the balance sheet.
Farm Credit System Insurance Corporation

24

Risk Management

FCSIC monitors and manages insurance risk to minimize the Farm Credit Insurance Fund’s exposure to 

potential losses. Our staff analyzes and evaluates the financial performance and condition of Farm Credit 

System institutions, maintains continual dialogue with Farm Credit Administration examiners, and reviews 

reports of examination. When necessary, we request special examinations at System institutions of concern. 

On a quarterly basis, we screen all System institutions against key performance criteria to identify those 

institutions that may pose an increasing insurance risk.

We also assess risk to the Insurance Fund in the following ways:

•	 Using analytical models to evaluate insurance risk

•	 Reviewing corporate actions (such as mergers, restructurings, and other corporate changes) approved

by FCA for System institutions

•	 Monitoring legislative, judicial, regulatory, and economic trends that could adversely affect the agricultural or financial services industries

•	 Participating as a nonvoting member on FCA’s Regulatory Enforcement Committee

During 2014, risk management staff monitored and evaluated the following factors:

•	 The performance and condition of the four System banks

•	 Negative trends at specific System institutions with declining Financial Institution Rating System

ratings

•	 Conditions in the global and domestic economy, capital markets, and the agricultural and financial

sectors

•	 The effects of commodity price volatility on agricultural operations and farmland values in the

Midwest

•	 Trade policy and Government programs that support U.S. agriculture

•	 The effects of drought and crop and livestock diseases on agricultural producers in certain regions of

the country

The Risk Environment in 2014

Economic output as measured by real gross domestic product (GDP) increased by 2.4 percent in 2014, 

the strongest annual rate in four years. The Federal Open Market Committee projects moderate economic 

growth in 2015, with GDP forecasts ranging from 2.3 percent to 2.7 percent. Analysts had been worried that highly accommodative monetary policy would spur inflation, leading to substantial interest rate 

increases. However, inflation remained low in 2014, and the Federal Open Market Committee projects 

inflation to remain below its 2 percent target level throughout 2015. 

The Bureau of Labor Statistics reported an unemployment rate of 5.6 percent at year-end 2014, the lowest 

level since June 2008. An improved labor market, lower fuel prices, reduced household debt, and continued improvement in housing prices and equity markets will likely increase consumer spending, which 

accounts for almost 70 percent of GDP growth. Moreover, increasing job prospects, higher wages, and 

the improving consumer and business sentiment should positively affect family incomes of farmers who 

depend on off-farm sources of income.
Protecting Investors in Agriculture and Rural America

25

The agricultural sector remained strong in 2014; however, there are some signs of increasing headwinds. In 

February 2015, the U.S. Department of Agriculture estimated that national net farm income in 2014 was 

$108.0 billion, down 16 percent from 2013. After several years of improvement, farm financial risk indicators such as the debt-to-asset ratio are expected to increase in 2015, indicating increasing financial pressure on the sector. Both net cash and net farm income are forecast to decline for the second consecutive 

year after reaching historic highs during 2012 and 2013. Net farm income is forecast to be $73.6 billion 

in 2015, down nearly 32 percent from 2014’s forecast of $108 billion. If this forecast is accurate, 2015 net 

farm income will be the lowest since 2009. Net cash income is forecast at $89.4 billion, down 22 percent 

from the 2014 forecast. Commodity price volatility has increased in certain sectors. The impact of drought 

on agricultural producers in certain regions of the country continues to be a concern in 2015.

System earnings were $4.7 billion in 2014, up 1.8 percent from the $4.6 billion for 2013. The net interest 

spread declined 14 basis points for 2014 to 2.5 percent. Several factors contributed to the decline in the 

net interest spread: competitive pressures, increases in loan volume in lower-spread lines of business, and 

a lesser amount of debt being called and replaced with debt issued at more favorable rates. In 2014, the 

System issued $80 billion in term debt, as compared with $78.8 billion in 2013, and called $19 billion in 

debt, as compared with $24.3 billion in 2013. 

FCA authorizes each System bank to hold eligible investments in an amount not to exceed 35 percent of 

its total outstanding loans for the purposes of maintaining a liquidity reserve, managing short-term surplus funds, and managing interest rate risk. The liquidity reserve must consist of marketable investments 

that are sufficient to fund 90 days of on-balance-sheet maturing obligations at all times. 

Each System bank is also required to maintain a supplemental liquidity buffer to provide additional liquidity beyond the 90-day liquidity reserve requirement. At December 31, 2014, the System banks collectively 

held 173 days of liquidity. System banks have updated their contingency funding plans and liquidity stress 

testing processes over the past few years. The Federal Farm Credit Banks Funding Corporation is currently 

working toward the development of Systemwide stress testing processes. When completed, these processes 

should provide a fuller understanding of the interconnections, concentrations, and exposures that may 

exist within the System. 

We continue to work on developing a component of our Insurance Fund solvency model to allow us to 

simulate the risk that various bank investment assets may pose to the solvency of the Insurance Fund. We 

expect this addition will improve our ability to forecast the Insurance Fund’s ability to withstand future 

insurance losses if they occur. 

Figure 13 shows a summary of composite year-end FIRS ratings for System banks and associations. The 

improvement reflects the strong agricultural sector and improving financial conditions and performance at 

numerous institutions. Institutions with performance-related issues continued to receive higher examination scrutiny and supervisory attention from FCA.
Farm Credit System Insurance Corporation

26

Figure 13

FCS Institution Financial Institution Rating System 

Composite Year-end Ratings

Source: FCA

Note: Figure reflects ratings for only the System’s banks and direct-lending associations; it does not include ratings for the System’s service corporations, the Federal Agricultural Mortgage Corporation, or the Federal Farm Credit Banks Funding Corporation.
Protecting Investors in Agriculture and Rural America

27

Financial Assistance and Receivership

FCSIC is authorized to provide assistance to System institutions to prevent default, restore normal operations, and facilitate mergers or consolidations. At present, no assistance agreements are outstanding. If 

a System institution were to need financial assistance, we would first have to ensure that the proposed 

assistance is the least costly means for resolving the institution’s problems. By law, we may not provide 

financial assistance if the cost of liquidation is lower than providing assistance.

When appointed by FCA, we have the statutory responsibility to serve as receiver or conservator for System banks and associations. Upon appointment as receiver, we will take possession of a System institution 

to settle its business operations, collect the debts owed to it, liquidate its property and assets, pay its creditors, and distribute any remaining proceeds to stockholders. There are no active receiverships or conservatorships currently in the System.

To maintain the capability to act as receiver or conservator while continuing to operate with a small core 

staff, we use contractors on an as-needed basis. These contractors provide knowledgeable and readily available staff resources while allowing us to contain costs during periods of limited or no activity.

Our staff also maintains contact with the resolution staff of the Federal Deposit Insurance Corporation 

and the National Credit Union Administration to stay informed about best practices and to exchange 

information concerning receivership management.

As discussed earlier, we are pursuing a legislative initiative to modernize and strengthen our resolution 

authorities. Since 1987, there have been no substantive amendments to the Farm Credit Act relating to 

FCSIC’s resolution authorities. 

We have a number of Board-approved policy statements that provide guidance related to resolution activities, including appraisals of real estate securing nonperforming assets, insurance of assets that come under 

our control, and environmental hazards assessments of real estate securing nonperforming assets. Policy 

statements are required to be reviewed and approved by the FCSIC Board every five years.
















Farm Credit System Insurance Corporation

28

April 15, 2015

FCSIC’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Corporation.

FCSIC is an independent U.S. Government-controlled corporation. Our primary purpose is to ensure the 

timely payment of principal and interest on insured debt obligations issued on behalf of System banks.

The System is a nationwide Government-sponsored enterprise of privately owned banks and affiliated associations that serve borrowers and related entities in the agricultural sector. By protecting investors, we help 

maintain a dependable source of funds for the farmers, ranchers, and other borrowers of the System.

FCSIC actively monitors and manages insurance risk in order to minimize the Farm Credit Insurance 

Fund’s exposure to potential losses. We also must be prepared to serve as conservator or receiver of any 

System bank or association when appointed by the Board of the Farm Credit Administration.

Our management has completed an assessment of the effectiveness of the internal controls and financial 

management systems in effect during 2014 in accordance with guidelines provided by the Office of Management and Budget (OMB) in consultation with the Comptroller General (OMB Circular A-123, “Management’s Responsibility for Internal Control”). The objective of these controls and systems is to provide 

reasonable assurance that

•	 obligations and costs comply with applicable laws;

•	 all assets are safeguarded against waste, fraud, unauthorized use, and mismanagement;

•	 revenues and expenditures applicable to our operations are recorded and accounted for properly; and

•	 financial and statistical reports will be reliable, complete, and timely, and accountability of the assets

will be maintained.

Based on the established guidelines and the assessment performed, we concluded that as of December 31,

2014, the internal control over financial reporting was effective.

In addition, as stated in the accompanying report, the Corporation’s independent auditor, Baker Tilly Virchow Krause, LLP, did not identify any material weaknesses in the effectiveness of FCSIC’s internal control 

over financial reporting as of December 31, 2014.

 

Dorothy L. Nichols Emily W. F. Dean C. Richard Pfitzinger

Chief Operating Officer Chief Financial Officer Director of Risk Management

Management Report on Internal Control Over 

Financial Reporting
Performance Management Program 

FCSIC has a mandate to ensure the timely payment of principal and interest on insured Farm Credit System debt securities and to serve as receiver or conservator of any institution placed into conservatorship 

or receivership by the Farm Credit Administration Board. As a result, we have three fundamental program 

goals:

1. Building and managing the Insurance Fund to protect investors

2. Detecting, evaluating, and managing insurance risk

3. Maintaining the capability to act as receiver or conservator as the need arises

Performance Measures

1. Building and managing the Insurance Fund to protect investors

To maintain the solvency of the Insurance Fund, we must adjust insurance premium assessments when 

appropriate and manage assets to optimize investment returns. At the same time, we must maintain appropriate liquidity to carry out our mission. Congress established a statutory requirement that the Insurance 

Fund be maintained at a secure base amount equal to 2 percent of adjusted insured obligations or such 

other percentage as we in our sole discretion determine to be actuarially sound.

We assess the effectiveness of our performance in achieving this goal through the following:

	 •	 Reviewing semiannually the need for adjustments to insurance premium assessments

	 •	 Measuring investment performance by comparing the portfolio’s average yield with peer investment funds that have similar investment parameters for quality and maturity

	 •	 Monitoring the level of the Insurance Fund every month as compared with the secure base

amount target level and reporting results to the Board of Directors

Our ability to maintain the Insurance Fund at the secure base amount may be affected by events beyond 

our control, such as insurance losses.

2. Detecting, evaluating, and managing insurance risk

We measure progress toward this program goal by how promptly we detect emerging problems and how 

effectively we minimize insurance losses. We use financial indicators to monitor conditions and trends, 

and we analyze and report data before losses become likely. In periods of probable or actual insurance 

claims, the ratio of estimated losses to actual losses is an indicator of our ability to assess prospective loss 

exposure.

As guidance, our management uses criteria specified in our allowance for loss procedure and the Financial 

Accounting Standards Board’s Accounting Standards Topic 450, Contingencies. Timely evaluation of the 

Insurance Fund’s risk exposure is critical to preserving the Insurance Fund’s solvency. We use FCA reports 

of examination to evaluate risks to the Insurance Fund. From time to time, we independently examine and 

require information from System institutions.

Protecting Investors in Agriculture and Rural America

29
3. Maintaining the capability to act as receiver or conservator as the need arises

FCSIC is required to serve as receiver or conservator of System banks and associations when appointed by 

FCA. This program goal requires us to maintain readiness through periodic staff training and evaluation 

of contractors’ capabilities. We must ensure that we have the resources we need to manage receiverships or 

conservatorships in case the need arises.

We use the following measures to determine the effectiveness of our receivership operations:

	 •	 Whether all claims received initial processing within a period specified according to the size

and complexity of the individual case

	 •	 Operating costs as a percentage of total assets

	 •	 Actual asset recovery returns as a percentage of net realizable asset values

Farm Credit System Insurance Corporation

30

2014 Budget and Expenditure by Program

(Dollars in Millions)
Investors in insured 

debt are protected 

from loss without need 

for a joint and several 

liability call. 

See pages

16-19 for

2014 results.

See pages

24-27 for

2014 results.

See pages

8-9 and

24-27 for

2014 results.

See page

27 for 2014 

results.

See page

27 for 2014 

results.

See the 

FCSIC 

website for 

additional 

information.

The Farm Credit Insurance 

Fund remains strong and 

adequately financed.

FCSIC promptly identifies 

and responds to potential 

risks to the Insurance Fund.

FCSIC resolves failure of 

System institutions in the 

manner least costly to the 

Insurance Fund.

The public, insured investors, and System institutions have access to accurate and easily understood 

information about our 

insurance program.

Maintain the Insurance

Fund at the statutory 

2 percent secure base 

amount.

Identify and address 

risks to the Insurance 

Fund.

Disseminate data and 

analyses on issues to the 

FCSIC Board, the public, 

and other stakeholders.

Effectively administer 

temporary financial 

assistance programs 

subject to the statutory 

least-cost requirements.

Market failing institutions to qualified and 

interested potential 

bidders.

Provide information 

about the benefits of 

the insurance program 

through our website, 

annual report, and other 

outlets.

Strategic Goal Strategic Objectives High-Priority For More

Performance Goals Information

Protecting Investors in Agriculture and Rural America

31
Farm Credit System Insurance Corporation

32

Farm Credit Act—The Farm Credit Act of 1971, as amended, (12 U.S.C. §2001 et seq.) is the statute 

under which the Farm Credit System, FCSIC, and the Farm Credit Administration operate.

Farm Credit Administration—FCA was established in 1933 to regulate the System. It is governed by 

a three-member presidentially appointed board. To ensure the safety and soundness of the System, the 

Agency examines and supervises System institutions and develops regulations to govern them.

Federal Farm Credit Banks Funding Corporation—Based in Jersey City, New Jersey, the Funding Corporation manages the sale of Systemwide debt securities to finance the loans made by System institutions. It 

uses a network of bond dealers to market the System’s securities.

Federal Open Market Committee—The branch of the Federal Reserve Board that determines the direction of monetary policy. The committee is composed of the Board of Governors, which has seven members and five Federal Reserve Bank presidents. The president of the Federal Reserve Bank of New York 

serves continuously, while the presidents of the other reserve banks rotate their service of one-year terms.

Financial Institution Rating System (FIRS)—The FIRS is similar to the Uniform Financial Institutions 

Rating System used by other Federal banking regulators except that the FIRS reflects the nondepository 

nature of System institutions. The FIRS provides a general framework for assimilating and evaluating all 

significant financial, asset quality, and management factors to assign a composite rating to each System 

institution. The ratings are described below.

Rating 1—Institutions in this group are basically sound in every respect; any negative findings or comments are of a minor nature and are anticipated to be resolved in the normal course of business. Such 

institutions are well managed, resistant to external economic and financial disturbances, and more 

capable of withstanding the uncertainties of business conditions than institutions with lower ratings. 

Each institution in this category exhibits the best performance and risk management practices for its 

size, complexity, and risk profile. These institutions give no cause for regulatory concern.

Rating 2—Institutions in this group are fundamentally sound but may reflect modest weaknesses correctable in the normal course of business. Since the nature and severity of deficiencies are not material, such institutions are stable and able to withstand business fluctuations. Overall risk management 

practices are satisfactory for the size, complexity, and risk profile of each institution in this group. 

While areas of weakness could develop into conditions of greater concern, regulatory response is limited to the extent that minor adjustments are resolved in the normal course of business and operations 

continue in a satisfactory manner.

Rating 3—Institutions in this category exhibit a combination of financial, management, operational, or 

compliance weaknesses ranging from moderately severe to unsatisfactory. When weaknesses relate to 

asset quality or financial condition, these institutions may be vulnerable to the onset of adverse business conditions and could easily deteriorate if weaknesses are not corrected. Institutions that are in 

significant noncompliance with laws and regulations may also be given this rating. Risk management 

practices are less than satisfactory for the size, complexity, and risk profile of each institution in this 

group. Institutions in this category generally give cause for regulatory concern and require more than 

normal supervision to address deficiencies. Overall strength and financial capacity, however, still make 

failure only a remote possibility if corrective actions are taken.

Glossary
Protecting Investors in Agriculture and Rural America

33

Rating 4—Institutions in this group have an immoderate number of serious financial or operating 

weaknesses. Serious problems or unsafe and unsound conditions exist that are not being satisfactorily 

addressed or resolved. Unless effective actions are taken to correct these conditions, they are likely to 

impair future viability or constitute a threat to the interests of investors, borrowers, and stockholders. 

Risk management practices are generally unacceptable for the size, complexity, and risk profile of each 

institution in this group. A potential for failure is present but is not yet imminent or pronounced. 

Institutions in this category require close regulatory attention, financial surveillance, and a definitive 

plan for corrective action.

Rating 5—This category is reserved for institutions with an extremely high, immediate, or near-term 

probability of failure. The number and severity of weaknesses or unsafe and unsound conditions are 

so critical as to require urgent external financial assistance. Risk management practices are inadequate 

for the size, complexity, and risk profile of each institution in this group. In the absence of decisive 

corrective measures, these institutions will likely require liquidation or some form of emergency assistance, merger, or acquisition.

Government-Sponsored Enterprise (GSE)—A GSE is typically a federally chartered corporation that is 

privately owned, designed to provide a source of credit nationwide, and limited to servicing one economic 

sector. Each GSE has a public or social purpose. GSEs are usually created because the private markets did 

not satisfy a purpose that Congress deems worthy either to fill a credit gap or to enhance competitive 

behavior in the loan market. Each is given certain features or benefits (called GSE attributes) to allow it 

to overcome the barriers that prevented purely private markets from developing. In some cases, the GSE 

receives public assistance only to get started, as the Farm Credit System did; in other cases, the assistance 

is ongoing. The System is the oldest financial GSE.
Farm Credit System Insurance Corporation

34

AIRAs Allocated Insurance Reserves Accounts

CIPA Contractual Interbank Performance Agreement

Farm Credit Act Farm Credit Act of 1971, as amended

FCA Farm Credit Administration

FCSIC Farm Credit System Insurance Corporation

FFB Federal Financing Bank

FIRS Financial Institution Rating System

Funding Corporation Federal Farm Credit Banks Funding Corporation

System Farm Credit System

TIPS Treasury Inflation Protected Securities

USDA U.S. Department of Agriculture

Acronyms and Abbreviations
Protecting Investors in Agriculture and Rural America

35

Corporate Staff

Dorothy L. Nichols Chief Operating Officer

C. Richard Pfitzinger Director of Risk Management

Emily W. F. Dean Chief Financial Officer

Howard I. Rubin General Counsel

William R. Fayer Senior Resolution Specialist

Wade Wynn Chief Investment Officer and Senior Risk Analyst

Tanya Renica Accountant

Mark Bowen Accountant

Matthew Morgan Financial Analyst

Barbara Loggins Senior Administrative Specialist

Molly Sproles Administrative Management Assistant

Contact Information 

To obtain Farm Credit System quarterly and annual information statements, contact the Federal Farm 

Credit Banks Funding Corporation at the following address:

Federal Farm Credit Banks Funding Corporation

10 Exchange Place

Suite 1401

Jersey City, NJ 07302

(201) 200-8000

These documents are also available on the Funding Corporation’s website at www.farmcreditfunding.com. 

To obtain copies of the Farm Credit Administration’s Annual Report on the Farm Credit System and the 

FCA Annual Performance and Accountability Report, contact FCA at the following address:

Office of Congressional and Public Affairs

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102

(703) 883-4056

These documents are also available on the FCA website at www.fca.gov.
Farm Credit System Insurance Corporation

36

FCSIC — Insured Banks (as of January 1, 2015)

To obtain copies of quarterly and annual reports of a Farm Credit System bank and its affiliated associations, please contact the bank directly. The mailing addresses, website addresses, and telephone numbers of 

all four System banks are provided below.

AgFirst Farm Credit Bank

P.O. Box 1499

Columbia, SC 29202-1499

(803) 799-5000

www.agfirst.com

AgriBank

30 E. 7th Street, Suite 1600

St. Paul, MN 55101-4914

(651) 282-8800

www.agribank.com

CoBank

P.O. Box 5110

Denver, CO 80217-5110

(303) 740-4000

www.cobank.com

Farm Credit Bank of Texas

P.O. Box 202590

Austin, TX 78720-2590

(512) 465-0400

www.farmcreditbank.com

Note: Information contained on these websites is not incorporated by reference into this annual report, 

and you should not consider information contained on these websites to be part of this annual report.
Farm Credit System Insurance Corporation

1501 Farm Credit Drive

McLean, VA 22102

Voice: 703-883-4380

Fax: 703-790-9088

www.fcsic.gov