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

July 14, 2016

These minutes reflect the business transacted at the July 14, 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 9:27 a.m. Members of the Board present were:

Kenneth A. Spearman, Board Chairman and Chief Executive Officer

Dallas Tonsager, Member

Jeffery S. Hall, Member

The above named constitute the full Board. 

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

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

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

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

requirements of the Government in the Sunshine Act. 

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

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

Mr. Tonsager moved to adopt the Agenda as published. 

Mr. Hall seconded the motion.
There being no further discussion, Board Chairman Spearman called the question.

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

Mr. Hall noted that the Agenda did not include any items that should be discussed in closed session, 

as permitted by the Government in the Sunshine Act, and therefore moved that the entire meeting 

remain open to the public. 

Mr. Tonsager seconded the motion.

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

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

OPEN SESSION

Approval of Minutes

Minutes for June 9, 2016

(BM-14 JUL-16-01)

Mr. Tonsager moved to approve the minutes for June 9, 2016, FCA Regular Board Meeting.

Mr. Hall seconded the motion.

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

The Secretary polled the Board Members and the motion carried unanimously. (BM-14 JUL-16-01)

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

New Business

Farm Credit Administration Board Resolution 

on Farm Credit System’s 100th Anniversary

(BM-14-JUL-16-02)

Dennis Carpenter of the Office of Regulatory Policy presented the Farm Credit Administration Board 

Resolution on Farm Credit System’s 100th Anniversary. (A copy of the resolution is attached as Exhibit 

D.)

Board Chairman Spearman opened the discussion for questions by the Board.

Board Chairman Spearman asked staff to provide their recommendation. Staff provided their 

recommendation. 
Board Chairman Spearman called for a motion on the staff’s recommendation regarding the 

proposed rule. 

Mr. Hall moved that the Board approve the Farm Credit Administration Board Resolution on Farm 

Credit System’s 100th Anniversary.

Mr. Tonsager seconded the motion.

Board Chairman Spearman asked for final discussion.

Mr. Tonsager stated that he had a statement which he would like attached to the minutes. (A copy 

of the statement is attached as Exhibit E.)

Mr. Hall stated that he had a statement which he would like attached to the minutes. (A copy of the 

statement is attached as Exhibit F.)

Board Chairman Spearman stated that he had a statement which he would like attached to the 

minutes and directed the Secretary to add all three statement to the minutes. (A copy of Chairman 

Spearman’s statement is attached as Exhibit G.)

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

The Secretary polled the Members and the motion carried unanimously. (BM-14-JUL-16-02)

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

Final Rule – Farmer Mac Corporate Governance

and Standards of Conduct

(BM-14-JUL-16-03)

Joe Connor of the Office of Secondary Market Oversight and Laura McFarland of the Office of 

General Counsel presented the Final Rule – Farmer Mac Corporate Governance and Standards of 

Conduct.

Board Chairman Spearman opened the discussion for questions by the Board.

Board Chairman Spearman asked if there was any further discussion and asked staff to provide their 

recommendation. Staff provided their recommendation. 

Board Chairman Spearman called for a motion on the staff’s recommendation regarding the 

proposed rule. 

Mr. Tonsager moved that the Board approve the Final Rule – Farmer Mac Corporate Governance and 

Standards of Conduct.
Mr. Hall seconded the motion.

Board Chairman Spearman asked if there was any further discussion.

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

The Secretary polled the Members and the motion carried unanimously. (BM-14-JUL-16-03)

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

ADJOURNMENT

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

would entertain a motion to adjourn the meeting.

Mr. Hall moved that the meeting be adjourned.

Mr. Tonsager seconded the motion.

Board Chairman Spearman called the question. 

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

The meeting adjourned at 9:27 a.m.

NOTATIONAL VOTE ACTIONS

There were three notational vote actions approved by the FCA Board from June 10, 2016, through 

July 13, 2016 as follows:

Item Number Action Date Voting Results Subject

NV 16-11 6/22/2016 Approved Election of Morgan Duffy to FCSBA Secretary-Treasurer of the FCS 

Building Association

NV 16-12 6/22/2016 Approved Joint final rule that implements title III of the Terrorism Risk 

Insurance Program Reauthorization Act of 2015 by exempting the 

non-cleared swaps and non-cleared security-based swaps of certain 

counterparties from the initial and variation margin requirements of 

the joint final rule on margin and capital requirements for covered 

swap entities.

NV 16-13 6/24/2016 Approved AgStar Financial Services, ACA’s and CoBank, ACB’s requests to 

invest up to $17.6 million each in bonds issued by a rural medical 

center in California. The bonds will provide financing to relocate and 

replace the existing facilities. FCA placed conditions on AgStar and 

CoBank in conjunction with this investment.
The undersigned hereby certify that the foregoing minutes are the official minutes of the Regular

Meeting of the Farm Credit Administration Board held on July 14, 2016.

_______/s/__________________ _______/s/__________________

Kenneth A. Spearman Dale L. Aultman

Board Chairman and Chief Executive Officer Secretary to the Board

Approved: __August 11, 2016___
Exhibit A

Page 1 of 2

STAFF PRESENT AT THE 

FCA REGULAR BOARD MEETING

July 14, 2016

Kenneth A. Spearman, Board Chairman and Chief Executive Officer

Dallas Tonsager, Board Member

Jeffery S. Hall, Board Member

OFFICE

OPEN 

SESSION

Office of the Board

Aultman, Dale X

Middleton, Russell X

Corey, Kathryn X

Kramp, Kevin X

Laguarda, Wendy X

Calhoun, Gaye X

Buccolo, Debra X

OIT

Golley, Jerald X

COO

Hoffman, William X

OCPA

Stokke, Mike X

Meaux, Willy X

OSMO

Connor, Joe X

EEOI

Burlew, Thais X
Exhibit A

Page 2 of 2

OFFICE OPEN 

SESSION

OGC

Donner, Mary Alice X

McFarland, Laura X

OE

Coleman, Robert X

Paulsen, Roger X

OIG

Dean, Elizabeth X

ORP

Van Meter, Gary X

Carpenter, Dennis X

Gibbs, Paul X

Neal, Joi X

OCFO

Smith, Stephen X

OAS

 Fowlkes, Jerome X

GENERAL PUBLIC 4
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

July 14, 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 July 14, 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: This meeting of the Board will be open to the public (limited space available). Please send 

an e-mail to VisitorRequest@FCA.gov at least 24 hours before the meeting. In your 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 June 9, 2016

New Business

2 Farm Credit Administration Board Resolution on Farm Credit System’s 100th Anniversary

3 Final Rule – Farmer Mac Corporate Governance and Standards of Conduct.

_ July 1, 2016_______ ______________/s/__________________

 Date Dale L. Aultman

Secretary to the Board
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 June 9, 2016 Regular Board Meeting

BM-14-JUL-16-01

Effective Date: July 14, 2016

Effect on Previous Action: None

THE FCA BOARD HEREBY:

Approves the minutes for June 9, 2016, Regular Board Meeting as submitted.

DATED THIS 14th DAY OF JULY 2016

BY ORDER OF THE BOARD

__________ /s/______________________

Dale L. Aultman

Secretary to the Board 
Exhibit D

Farm Credit Administration Board Resolution 

on the Farm Credit System’s 100th Anniversary 

WHEREAS, on July 17, 1916, President Woodrow Wilson signed into law the Federal Farm Loan Act (39 Stat. 

360, chapter 245), which established the Farm Credit System, the nation’s oldest government-sponsored 

enterprise; 

WHEREAS Congress recognized that a prosperous, productive agriculture is essential to a free nation;

WHEREAS Congress created the Farm Credit System to fill the growing need for credit in rural areas and to 

improve the income and well-being of American farmers and ranchers by furnishing sound, adequate, and 

constructive credit and closely related services to them, their cooperatives, and to selected farm-related 

businesses; 

WHEREAS Congress designed the Farm Credit System as a network of independently owned cooperatives that 

• are controlled by borrowers, 

• are responsive to the individual needs of borrowers for credit and financial services,

• provide competitive credit to all types of agricultural producers and their cooperatives, and to 

selected farm-related businesses, and

• actively support the next generation of agricultural producers;

WHEREAS Congress provided for the safety and soundness oversight of the Farm Credit System through the 

Farm Credit Administration, an independent federal agency;

NOW, THEREFORE, BE IT RESOLVED, the Farm Credit Administration Board

• recognizes the 100 anniversary of the Farm Credit System, and the service and support the 

System has provided to agriculture and rural communities over the past 100 years, and 

• supports the System’s mission to provide a safe, sound, and dependable source of credit and 

related services for all creditworthy and eligible persons in agriculture and rural America. 

th

Adopted this 14thday of July, 2016, by the Farm Credit Administration Board. 

___________________________

Honorable Kenneth A. Spearman

Chairman of the Board

___________________________

Honorable Dallas Tonsager

Board Member

___________________________

Honorable Jeffery S. Hall

Board Member
Exhibit E

Statement

Dallas Tonsager, Board Member

Farm Credit System 100th Anniversary Resolution

Farm Credit Administration Board Meeting

July 14, 2016

The mission of the Farm Credit System (or System) has been a hard one these last one hundred years. 

Beginning in 1916, the System was a crucial player in helping to build from the ground up our 

agricultural and rural economy. For the last century, the System has continued to grow and 

strengthen American agriculture. 

As a cooperative structure owned by its farmer and rancher members, the Farm Credit System bears 

the stamp of the hardworking people of rural America. And like friends and neighbors, the System is 

a steadfast source of credit and support for agricultural producers both in good times and bad. 

Although the Farm Credit System is a creature of the law, it is about the personnel commitment 

made to each member of this cooperative structure that truly inspires the enduring strength and 

quality of the System.

The opening days of the second one hundred years may prove to be challenging ones for agriculture 

and the Farm Credit System. Once again, the solid and resilient character demonstrated by the 

members of the System will be called upon to ensure the future of our nation’s agricultural industry.

As a Board Member of the Farm Credit Administration (FCA), it is my duty to see that the System 

fulfills its mission in a safe and sound manner. It is also my privilege, for the benefit of agriculture and 

rural America, to work with my colleagues at FCA to usher the Farm Credit System into the next 

century of its life.
Exhibit F

Statement 

Jeffery Hall, Board Member

Farm Credit System 100th Anniversary Resolution

Farm Credit Administration Board Meeting

July 14, 2016

Today I proudly vote for the Board Resolution recognizing and congratulating the Farm Credit 

System’s 100 anniversary. The Farm Credit System, the nation’s oldest government sponsored 

enterprise, has admirably served America’s farmers and rancher through good times and bad.

On July 17, 1916 President Woodrow Wilson signed into law the Federal Farm Loan Act which 

established the Farm Credit System. In 1916, credit often was unavailable or unaffordable in rural 

areas. Many lenders avoided farm loans due to the inherent risks of agriculture. The Farm Credit 

System was created to provide a permanent, reliable source of credit to American agriculture.

Agriculture production in this country has changed greatly over the years but the need for the Farm 

Credit System has not. Agriculture is still fraught with uncontrollable and often unpredictable risks 

and is not for the faint of heart. It can be argued, however, that agriculture is the most important 

domestic industry highlighting the need for the dependable source of credit provided by the Farm 

Credit System.

Recently the House Committee on Agriculture held a hearing to highlight agriculture’s role in our 

nation’s security. If we couldn’t produce our own food, if we were dependent imports to survive this 

country would not be the strongest country on Earth. 

Because of the Farm Credit System and its successful execution of its mission to provide a safe, sound 

and dependable source of credit and related services for all creditworthy and eligible persons in 

agriculture and rural America we aren’t dependent on foreign sources of food. Because of the 

success of the Farm Credit System America feeds the world.

The lifeblood of any farming operation, big, small, urban, commercial or organic, is liquidity. If 

producers can’t get the capital they need to buy land, put crops in the ground or buy incredibly 

expensive equipment they simply would not be able to operate. The expertise the Farm Credit 

System has developed in agriculture lending and the efficiency with which they do it provides our 

farmers, ranchers and rural communities with a dependable and cost effective funding source. 

Today I am proud to recognize the Farm Credit System for all that it does for our country. 

Congratulations on its 100th anniversary.
Exhibit G

Statement

Kenneth A. Spearman, Board Chairman

Farm Credit System 100th Anniversary Resolution

Farm Credit Administration Board Meeting

July 14, 2016

As we recognize and celebrate the 100th anniversary of the establishment of the Farm Credit System, 

I think it is important to remember that its existence has not always been assured, and we should not 

take that for granted. In fact, there was serious opposition in 1916 when Congress voted on the 

original “Federal Farm Loan Act” which established the System with long-term agricultural mortgage 

financing. It was not until 1933, 17 years later, that the System received most of its lending 

authority.

Despite opposition from critics and competitors, and downturns in the agricultural economy, the 

Farm Credit System survived and thrived, and evolved into a $300 billion dependable source of credit 

for America’s farmers and ranchers. Like American society, the System continues to grow and 

change to meet the credit needs of an ever changing face of American agriculture. Today the System 

is meeting its mission to serve all creditworthy, eligible farmers and ranchers. I hope it will continue 

to diversify and meet the needs of nontraditional agricultural producers.

Also, I want to recognize and emphasize the important role the Farm Credit Administration has 

played in the System’s viability, growth, and evolution. I realize we do not make loans or sit on 

institution boards; we are the regulator. However, by ensuring the System’s safety and soundness 

and mission delivery, we help in the success of the Farm Credit System now and in the future. 
Exhibit H

Farm Credit Administration 1501 Farm Credit Drive

McLean, Virginia 22102-5090

(703) 883-4000

BOARD ACTION ITEM

FCA BOARD ACTION ON

Farm Credit Administration Board Resolution 

on Farm Credit System’s 100th Anniversary

BM-14-JUL-16-02

Effective Date: July 14, 2016

THE FCA BOARD HEREBY:

Approves the resolution, which recognizes the 100th Anniversary of the Farm Credit 

System (System) and supports the System’s mission to provide a safe, sound, and 

dependable source of credit and related services for all creditworthy and eligible 

persons in agriculture and rural America.

DATED THIS 14th DAY OF JULY 2016

BY ORDER OF THE BOARD

___________/s/___________________

Dale L. Aultman

Secretary to the Board 
Exhibit I

Farm Credit Administration 1501 Farm Credit Drive

McLean, Virginia 22102-5090

(703) 883-4000

BOARD ACTION ITEM

FCA BOARD ACTION ON

Final Rule – Farmer Mac Corporate Governance

and Standards of Conduct

BM-14-JUL-16-03

Effective Date: July 14, 2016

THE FCA BOARD HEREBY:

• Approves the final rule, which establishes risk management standards and internal 

controls requirements, and enhances existing reporting and disclosure requirements for 

the Federal Agricultural Mortgage Corporation.

• Authorizes staff to make any technical or grammatical changes that may be necessary for 

publication in the Federal Register.

DATED THIS 14th DAY OF JULY 2016

BY ORDER OF THE BOARD

_________/s/_____________________

Dale L. Aultman

Secretary to the Board