Kenneth A. Spearman, Board Chairman and Chief Executive Officer

Dallas Tonsager, Board Member

Jeffery S. Hall, Board Member

MINUTES OF THE REGULAR MEETING

OF THE

FARM CREDIT ADMINISTRATION BOARD

November 10, 2016 

These minutes reflect the business transacted at the November 10, 2016, Regular Meeting of the 

Farm Credit Administration Board (FCA Board) pursuant to the Government in the Sunshine Act (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 9:48 a.m. Members of the Board present were:

Dallas Tonsager, Presiding Chairman

Jeffery S. Hall, Member

The above named constituted a quorum of the Board. 

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

of the FCA and Farm Credit System Insurance Corporation (FCSIC); and two members of the general 

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

Before starting the meeting Presiding Chairman Tonsager asked staff to keep Board Chairman 

Spearman in their thoughts as he is recovering from surgery. Mr. Hall expressed best wishes for 

Board Chairman Spearman’s speedy recovery from surgery.

Presiding Chairman Tonsager opened the meeting indicating that in accordance with FCA Board 

Policy Statement Number 64, Article I, Section 2, with Chairman Spearman unavailable this day, Mr. 

Tonsager will be the Presiding Chairman for the meeting.

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

requirements of the Government in the Sunshine Act. 
Presiding 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. 

Presiding Chairman Tonsager seconded the motion.

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

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

Mr. Hall noted that the Agenda did 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 meeting 

be closed at that point. 

Presiding Chairman Tonsager seconded the motion.

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

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

OPEN SESSION

Approval of Minutes

Minutes for October 13, 2016 Regular Board Meeting

(BM-10-NOV-16-01)

Mr. Hall moved to approve the minutes for October 13, 2016, FCA Regular Board Meeting.

Presiding Chairman Tonsager seconded the motion.

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

The Secretary polled the Board Members and the motion carried unanimously. (BM-10-NOV-16-01)

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

Report

Update on the Farm Credit System’s Young,

Beginning and Small Farmer Reporting

Steve Koenig of the Office of Regulatory Policy presented the Update on the Farm Credit System’s 

Young, Beginning and Small Farmer Reporting.
Presiding 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 PowerPoint presentation is attached as Exhibit D.)

CLOSED SESSION

Presiding Chairman Tonsager noted that this was a Closed Session and ensured that members of the 

public and nonessential FCA and FCSIC staff were not in the room so the Board could meet with 

Office of Secondary Market Oversight (OSMO) in Closed Session. 

Presiding Chairman Tonsager convened the closed session of the meeting at 9:24 a.m. and 

instructed the Secretary to activate the electronic recording device so that the proceedings of the 

closed session were properly recorded as required by the Government in the Sunshine Act. 

Presiding Chairman Tonsager then instructed the General Counsel to furnish the Secretary with a 

certification, pursuant to 5 U.S.C. § 552b(f), that the portions of the meeting held in closed session 

may be properly closed to the public. 

(A copy of the Certification is attached hereto as Exhibit E.) 

Members of the Board present were:

Dallas Tonsager, Presiding Chairman

Jeffery S. Hall, Member

The above named constituted a quorum of the Board. 

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

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

Office of Secondary Market Oversight Quarterly Report

Bruce Hudson and Clarke Cheeke presented the OSMO Quarterly Report.

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

Board. 

There were no further questions or discussion and the closed session ended at 9:47 a.m.

ADJOURNMENT

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

would entertain a motion to adjourn the meeting.
Mr. Hall moved that the meeting be adjourned.

Presiding Chairman Tonsager seconded the motion and called the question. 

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

The meeting adjourned at 9:48 a.m.

NOTATIONAL VOTE ACTIONS

There were two notational vote actions approved by the FCA Board from October 14, 2016, through 

November 9, 2016 as follows:

Item Number Action Date Voting Results Subject

NV 16-20 10/14/2016 Approved Flood Insurance – Interagency Proposed Rule 

NV 16-21 10/14/2016 Approved Oversight and Examination Plan, Office of Examination, 

FY 2017

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

Meeting of the Farm Credit Administration Board held on November 10, 2016.

_________/s/________________ _________/s/________________

Dallas Tonsager Dale L. Aultman

Board Chairman and Chief Executive Officer Secretary to the Board

Approved: December 8, 2016
Exhibit A

Page 1 of 2

STAFF PRESENT AT THE 

FCA REGULAR BOARD MEETING

November10, 2016

Dallas Tonsager, Presiding Chairman for the Meeting

Jeffery S. Hall, Board Member

OFFICE

OPEN 

SESSION

CLOSED 

SESSION

Office of the Board

Aultman, Dale X X

Middleton, Russell X

Laguarda, Wendy X X

Kramp, Kevin X X

Calhoun, Gaye X

Corey, Kathryn X

COO

Hoffman, William X X

OIT

Golley, Jerald X X

OCPA

Stokke, Mike X X

Meaux, Willy X X

OSMO

Rea, Laurie X X

Connor, Joe X X

Hudson, Bruce X X

Cheeke, Clarke (on rotation) X X

Del Moral, Jeremy X

OGC

Rawls, Charles X X

Donner, Mary Alice X X

Strickland, Joy X X
Exhibit A

Page 2 of 2

OFFICE OPEN 

SESSION

CLOSED 

SESSION

OE

Coleman, Robert X X

Paulsen, Roger X X

EEOI

Burlew, Thais X X

OIG

Dean, Elizabeth X X

ORP

Van Meter, Gary X

Mardock, Barry X X

Koenig, Steve X

Johansen, Mark X

Gabriel, Stephen X X

Iannetta, Salvatore X

OCFO

Smith, Stephen X X

OAS

Fowlkes, Jerome X X

FCSIC

Rubin, Howard X X

Pfitzinger, Rick X X

GENERAL PUBLIC 2
Exhibit B

Farm Credit Administration Farm Credit Administration

1501 Farm Credit Drive

McLean, Virginia 22102-5090

PUBLIC ANNOUNCEMENT OF

MEETING SUBJECT TO THE GOVERNMENT IN THE SUNSHINE ACT

Farm Credit Administration Board

Regular Meeting

November 10, 2016

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 November 10, 2016. 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: Parts of this meeting of the Board will be open to the public (limited space available), and 

parts will be closed to the public. Please send an e-mail to VisitorRequest@FCA.gov at least 24 hours before the meeting. 

In your e-mail 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 October 13, 2016

Reports

2 Update on Farm Credit System’s Young, Beginning and Small Farmer Reporting

CLOSED SESSION

 4 Office of Secondary Market Oversight Quarterly Report1

_ November 1, 2016_______ _________/s/________________

 Date Dale L. Aultman

Secretary to the Board 1Session Closed-Exempt pursuant to 5 U.S.C. Section 552b(c)(8) and (9).
Exhibit C 

Farm Credit Administration 1501 Farm Credit Drive

 McLean, Virginia 22102-5090

 (703) 883-4000

BOARD ACTION ITEM

 

FCA BOARD ACTION ON

Minutes for October 13, 2016 Regular Board Meeting

BM-10-NOV-16-01

Effective Date: November 10, 2016

Effect on Previous Action: None

THE FCA BOARD HEREBY:

 

Approves the minutes for October 13, 2016, Regular Board Meeting as submitted.

DATED THIS 10th DAY OF NOVEMBER 2016 

BY ORDER OF THE BOARD

 

____________/s/____________________

Dale L. Aultman

Secretary to the Board 
Update on the Farm Credit System’s 

Young, Beginning, and Small Farmer 

Reporting

Office of Regulatory Policy

FCA Board Meeting

November 10, 2016

Steven Koenig, Senior Economist

Exhibit D
Outline

• Review of the System’s Young, Beginning, 

and Small Farmer (YBS) Reporting 

• Demographic Trends and Definitions of YBS 

Farmers and Ranchers

• Considerations When Evaluating YBS 

Definitions and Reporting 

2
YBS Reporting

3

• Farm Credit Act – 1980 Amendments

– FCS institutions must have programs to serve YBS customers

– Requires the reporting of YBS Program activities to FCA

• Regulation – 614.4165 (2004)

– Directs annual reporting requirements of YBS program for 

System institutions

• Bookletter – 040 (2007) 

– Specifies the current definitions for Young, Beginning, and 

Small Farmers 

• YBS Call Report Instructions 

– Provides specific details, definitions, and guidance on YBS 

reporting
YBS Program Reporting 

4

 Each System institution reports annually to FCA 

for each YBS category on the counts and dollar 

volumes of loans made during the year and the 

outstanding loans at yearend

• For the small farmer category each System 

institution also reports on 4 loan sizes for new 

and outstanding loan counts and dollar volumes 
FCA’s YBS Definitions

5

• Young Farmer: age 35 or younger

• Beginning Farmer: 10 years or less farming experience

• Small Farmer: annual gross agricultural sales less than $250,000

Notable YBS Reporting Details:

– Data are reported separately for each category

– Borrowers may qualify under more than one category 

– Loan counts are reported and not borrower counts

– Dollar volumes include advances and commitments
YBS Reporting Review 

• Specific Definitions for Young, Beginning, 

and Small Farmers and Ranchers

• Terms and Definitions

• Call Reporting Procedures

6
Young Farmer Definition

Principal Operator Trends Age of Farm Operators*

7
Beginning Farmer Definition

Principal Operator Trends Farm Operator Experience

8
Small Farmer Definition

Small Farm Trends Farm Numbers

9
YBS New Loan Trends

10

Source: Annual Young, Beginning, and Small Farmer Reports submitted by each System lender through their District Banks.
Small Farmer Definition – Loan Sizes

Loan Size Trends Loan Sizes to Small Farmers

11
Gross Incomes in Agriculture 

12

0

50

100

150

200

250

300

350

400

450

500

Billions of Dollars 

Source: FCA-ORP from USDA Economic Research Service data, August 30, 2016.

Cash Farm Revenues, 1980-2016F

Total direct government payments

Cash farm-related income

Animals and products receipts

Crop receipts

Last YBS Definition

Change made 

by FCA

1980 YBS

Amendments

USDA adopts

$350,000 in 

Gross Farm Income

to Define "Small"
USDA Small Farm Definition Change

Small Farm Numbers Small Farm Percentages

13
Considerations When Evaluating YBS Definitions 

and Reporting

• Characterization of Mission Performance

• Measurement of Mission Performance

• Potential Benefits and Costs

14
Going Forward 

15
Exhibit E 

Farm Credit Administration 1501 Farm Credit Drive McLean, Virginia 22102-5090

 

 

CERTIFICATE OF CLOSED MEETING

The General Counsel, in accordance with the Government in the Sunshine Act, 5 U.S.C. § 552b(f)(1), 

hereby certifies that the Farm Credit Administration Board regular meeting of November 10, 2016, 

was properly closed to the public on the basis of the exemption set forth below:

• Supervisory and Oversight Activities of FCS Institution(s) – 5 U.S.C. § 552b(c)(8) 

and (9).

 

 ___________/s/__________________ Date: November 10, 2016 

 Charles R. Rawls

General Counsel