Farm Credit Administration

Fiscal Year 2025 Proposed Budget

and Performance Plan

Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— i —

Table of Contents

Part I Fiscal Year 2025 Proposed Budget ...................................................................................... 2

Fiscal Year 2025 Budget Overview ................................................................................................. 3

Budget Trends................................................................................................................................ 11

Assessments...................................................................................................................................15

Part II Farm Credit Administration....................................................................................... 19

Profile of the Farm Credit Administration ....................................................................................21

FCA Internal Operations................................................................................................................25

Ensuring Safety and Soundness ................................................................................................... 33

Developing Regulations and Policies.............................................................................................41

Part III Farm Credit System.................................................................................................. 47

Profile of the Farm Credit System ................................................................................................ 49

Financial Condition and Performance...........................................................................................54

Young, Beginning, and Small Farmers and Ranchers .................................................................. 66

Market Share of Farm Debt.......................................................................................................... 70

Part IV Performance Budget FY 2025................................................................................... 71

Performance Budget Overview ......................................................................................................73

Our Strategic Plan Framework ......................................................................................................76

Performance Measurement and Reporting .................................................................................. 84
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— ii —

List of Tables 

Table 1. FY 2025 proposed budget.................................................................................................. 3

Table 2. Information resource management plan initiatives ......................................................... 8

Table 3. FCA budgets, FYs 2023 – 2025........................................................................................ 11

Table 4. FCA actions and resulting impact....................................................................................13

Table 5. Budgeted sources of FCA revenue and funding, FYs 2023 – 2025 .................................14

Table 6. FCS assessments, FYs 2015 – 2024 ................................................................................. 15

Table 7. FCA funding, obligations, and assessment carryover, FYs 2022 and 2023 (in millions)16

Table 8. FCA’s net cost to System borrowers, FYs 2014 – 2023 ...................................................16

Table 9. Farmer Mac assessments, FYs 2015 – 2024.................................................................... 17

Table 10. Full-time-equivalent staffing levels, FYs 2015 – 2025 ..................................................25

Table 11. FCA retirement eligibility, FYs 2023 – 2028................................................................. 26

Table 12. FYs 2022, 2023, and 2024 locality rates....................................................................... 29

Table 13. Shared services, FY 2023 .............................................................................................. 30

Table 14. Competitive consulting service contracts of more than $25,000, FY 2022.................. 30

Table 15. Competitive consulting service contracts of more than $25,000, FY 2023...................31

Matching data table for figure 2 ................................................................................................... 38

Table 16. Net income (dollars in millions).....................................................................................55

Table 17. Interest margin in annualized percentages ....................................................................56

Table 18. Profitability across System districts for the first nine months of year...........................56

Table 19. Gross loan growth by district and Systemwide (dollars in millions).............................57

Matching data table for figure 4 ................................................................................................... 58

Table 20. FCS investments (dollars in millions) .......................................................................... 60
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— iii —

Table 21. FCS loan quality..............................................................................................................61

Table 22. Systemwide debt (dollars in millions) .......................................................................... 62

Table 23. FCS capital composition (dollars in millions) .............................................................. 63

Table 24. Regulatory capital ratios of FCS banks ......................................................................... 64

Table 25. YBS loans made during 2022........................................................................................ 69

Table 26. YBS loans outstanding (as of December 31, 2022)....................................................... 69

Table 27. FCA performance budget, FYs 2023 – 2025..................................................................73

Table 28. FY 2024 proposed budget and full-time equivalents for program activities.................75

Table 29. FY 2025 strategic goals and strategic objectives ...........................................................77

Table 30. Strategic Goal: Ensure a sound financial system that provides a sustainable source of 

credit for agriculture and rural America....................................................................................... 78

Table 31. Strategic Goal: Foster the long-term viability of the U.S. agricultural economy while 

supporting young, beginning, and small (YBS) farmers, ranchers, and aquatic producers .........81

Table 32. Budgets to achieve policy and regulation program....................................................... 82

Table 33. Budgets to achieve safety and soundness program ...................................................... 83

List of Figures

Figure 1. FCA organizational chart as of January 2024 ............................................................... 23

Figure 2. Farm Credit System Financial Institution Rating System (FIRS) composite ratings....37

Figure 3. The chartered territories of Farm Credit System banks as of January 1, 2024 ............ 50

Figure 4. Year-over-year percent change in System assets, September 2013 – 2023.................. 58
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— iv —

List of Acronyms and Abbreviations

ACA ...........................................agricultural credit association 

CAMELS ...................................capital, assets, management, earnings, liquidity, and sensitivity 

Farm Credit Act.........................Farm Credit Act of 1971, as amended 

Farmer Mac...............................Federal Agricultural Mortgage Corporation 

FCA............................................Farm Credit Administration 

FCS or System...........................Farm Credit System 

FCSIC........................................Farm Credit System Insurance Corporation 

FIRREA.....................................Financial Institutions Reform, Recovery, and Enforcement Act

FIRS ..........................................Financial Institution Rating System 

FLCA .........................................Federal Land Credit Association 

FTE............................................full-time equivalent 

FTP............................................full-time permanent 

FY..............................................fiscal year

Funding Corporation ................Federal Farm Credit Banks Funding Corporation 

GSE ...........................................government-sponsored enterprise 

IT...............................................information technology 

NCB...........................................National Consumer Cooperative Bank 

OSMO........................................Office of Secondary Market Oversight 

PCA ...........................................Production Credit Association 

RBC ...........................................risk-based capital 

USDA ........................................U.S. Department of Agriculture 

YBS............................................young, beginning, and small (farmers and ranchers) 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— v —

Preface

The Farm Credit Administration is an independent agency in the executive branch of the U.S. 

government. We are responsible for regulating and supervising the Farm Credit System (its 

banks, associations, and related entities) and the Federal Agricultural Mortgage Corporation 

(Farmer Mac).1

Created by an executive order of the president in 1933, FCA now derives its powers and 

authorities primarily from the Farm Credit Act of 1971, as amended (12 U.S.C. 2001 – 2279cc). 

We issue regulations to implement the act, and we examine System institutions for compliance 

with the act and regulations, and with safe and sound banking practices. Our mission is to 

ensure that System institutions, including Farmer Mac, are safe, sound, and dependable sources 

of credit and related services for all creditworthy and eligible persons in agriculture and rural 

America.

This document presents and justifies our proposed budget for fiscal year 2025 (Part I). It 

discusses our agency’s functions and program activities (Part II) and presents an overview of the 

financial condition of the FCS, including Farmer Mac (Part III). Also included is the fiscal year 

2025 performance budget, which ties proposed expenditures to the goals and objectives in our 

strategic plan (Part IV). 

1 Although Farmer Mac is an FCS institution under the Farm Credit Act (12 U.S.C. 2279aa-1(a)(2)), we 

often discuss Farmer Mac separately from the other entities of the FCS because of the secondary market 

authorities unique to Farmer Mac. Therefore, when we refer to FCS or System institutions without 

specifically including Farmer Mac, Farmer Mac should be considered excluded in that context. Farmer 

Mac is not jointly and severally liable on debt issuances with other parts of the System.

Part I 

Fiscal Year 2025

Proposed Budget 

_________________________________________________________________

Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 3 — 

Fiscal Year 2025 Budget Overview

Our FY 2025 proposed budget request, as shown in table 1, includes $100.43 million in 

assessments (current year and carryover funds) from FCS institutions, including Farmer Mac. 

Reimbursable funding from the Farm Credit System Insurance Corporation and the National 

Consumer Cooperative Bank adds $450,000 to this amount, bringing our total proposed FCA 

budget request to $100.88 million.

Table 1. FY 2025 proposed budget

Description Amount proposed 

(in dollars)

Percentage of total 

budget

Full-time-permanent personnel (FTP) $59,562,561 59.1% 

Other than FTP 421,513 0.4%

Other personnel compensation 1,335,369 1.3%

Total personnel compensation $61,319,443 60.8%

Personnel benefits 26,786,994 26.6% 

Benefits former personnel 25,000 0.0%

Total compensation and benefits $88,131,437 87.4% 

Travel and transportation of persons 3,672,393 3.6%

Transportation of things 144,913 0.1%

Rent, communications, and utilities 530,590 0.5% 

Printing and reproduction 228,473 0.2%

Consulting and other services 6,095,961 6.1% 

Supplies and materials 1,971,204 2.0% 

Equipment 100,029 0.1% 

Total budget $100,875,000 100.0%

The FY 2025 proposed budget of $100.88 million increased by $6.13 million or 6.5% over the 

FY 2024 revised budget of $94.75 million. 

We continue to leverage technology and emphasize savings and efficiencies in operations to 

keep our costs reasonable. As a result, we present a prudent, cost-effective budget.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 4 —

The budget provides resources for three general purposes: 

• To support the System’s mission as a dependable source of credit and related services for 

agriculture and rural America

• To develop regulations and policy positions that implement statutes

• To promote the safety and soundness of the FCS, including Farmer Mac

The FY 2025 budget is necessary to maintain an effective examination program. A robust 

examination program will help us identify any emerging risks early so that we can better protect 

the safety and soundness of the Farm Credit System banks, associations, and Farmer Mac. The 

environment in which the FCS operates is dynamic and increasingly complex. 

The budget continues to implement the FCA board’s philosophy on risk-based examination. We 

have included sufficient resources to ensure that risks are properly identified, managed, and 

controlled. These resources will enable us to send our examiners to the institutions we regulate 

to perform on-site testing of the institutions’ credit reviews, internal audits, and internal 

controls. In addition, to help us identify risk throughout the System, we will continue to focus on 

priority issues and invest in

• information technology (IT), 

• data management and modernizing applications, and

• support of the examination function.

The budget also includes resources both to invest in skills necessary to address increasing 

technology-related demands and to hire contractors when we need technical specialists and 

technology upgrades for specific short-term related efforts. For more information about our 

risk-based examination and supervision, see page 34.

The agency has placed an emphasis on innovation and modernization, recognizing that 

innovation is critical to the success of the financial institutions we regulate. With the 

advancement of various technologies and tools including artificial intelligence, distributed 

ledger technology (blockchain), and cloud computing, the banking industry continues to change 

swiftly.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 5 —

Among our innovation priorities has been supporting data analytics and management, and 

dedicating staff resources to improving the quality and usefulness of our agency data assets. We 

continue to focus on delivering analytical tools to enhance effectiveness and efficiency in 

virtually all aspects of agency activities, including objective decision-making agency operations. 

We are also investing in training so that staff learn how to use these tools to improve their work 

and gain deeper insights.

We expect that this will continue to yield multiple benefits: more effective examination 

processes, better informed regulatory activity, improved risk identification, and more effective 

organization performance measures. Through these efforts, we continue to enhance service 

across the entire organization.

With innovation comes risk. As FCS institutions continue to innovate and evolve to meet the 

needs of agriculture and rural America, the board anticipates that there will be new challenges 

on the horizon and plans to devote adequate agency resources to this priority. 

The agency believes it is important to focus on a more comprehensive risk management strategy 

at FCA. The benefits include becoming more proactive in the discussion of emerging risks and 

trends that could impact both FCA’s ongoing ability to ensure mission fulfillment and the safety 

and soundness of the Farm Credit System. The expanded risk management strategy supports

better decision-making for policies, regulatory decisions, and examination activities covering the 

FCS. 

Good governance is critically important, within both the agency and the System institutions we 

regulate. 

As FCA evolves, we must continue to operate efficiently and effectively, and reflect ethics and 

integrity in our actions. The emphasis on good governance emcompasses strong internal 

controls, including robust policies, procedures, and plans, as well as transparent reporting and 

accountability. 

We also emphasize good governance among System institutions. We consider this area 

increasingly important as the System strives to maintain investor confidence in a period of 

growing uncertainty in the banking industry.

As an agency covered by the Financial Institutions Reform, Recovery, and Enforcement Act of 

1989 (FIRREA), we must also strive to achieve comparability in compensation and benefit 

programs with other agencies covered under the act. Therefore, the budget includes a significant 

investment in strategic and tactical human capital initiatives to continue the efforts begun in the 

previous year. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 6 —

In the FY 2025 proposed budget, we maintain a full-time-equivalent (FTE) staffing level 

consistent with the FTE level in the FY 2024 budget. A key priority for the agency is focused on 

retention and the leadership and professional development of our workforce. Therefore, the 

FY 2025 budget anticipates increases in spending for salaries and benefits because of pay and 

benefit increases, promotions, funded leave, relocations, travel, contractual services, 

publications, subscriptions, and equipment life cycle replacements. 

Consistently recognized as a “Best Place to Work in the Federal Government” by the Partnership 

for Public Service, we have made it a top agency priority to assure that FCA remains one of the 

federal government’s best places to work. Maintaining this high ranking is critical to our efforts 

to fulfill our mission of ensuring the safety and soundness of the Farm Credit System. To recruit 

and retain the most talented workforce, we focus heavily on our university recruitment strategy 

and our commitment to internal professional development and mobility.

We continue to apply evidence-based solutions to help us better address our organizational 

challenges and opportunities. With approximately 28.3% of our employees eligible to retire 

within the next five years, we continue investing in programs that foster a diverse and engaged

workforce as well as succession-planning efforts. We continue to harness and build on the 

results-oriented culture within the agency with an emphasis on professional and personal 

growth. Our efforts and programs also emphasize the importance of technical expertise, 

collaboration, and performance excellence. 

We are deliberate in our efforts to enhance the way our employees experience the workplace. 

Our strategic imperative to drive employee performance, innovation, inclusion, and engagement 

is foremost. Knowledge management remains a key component of our continuous learning 

strategy. Internal mobility has been an effective knowledge-sharing practice. Through this 

process, we’ve been able to move employees from one position or team to another inside the 

agency. This has also allowed us to provide employees with more opportunities. We provide 

developmental opportunities for supervisors and managers to enhance their leadership skills. 

We continuously work to ensure we have the right people in the right places working on the 

right things in the right ways. Our budget supports our continued investment in our employees 

and maintains compensation and benefits comparable to the other FIRREA agencies.

Our emphasis on employee development, engagement, and well-being contributed to our strong 

showing in the 2023 Federal Employee Viewpoint Survey. According to the 2023 survey results, 

the agency continues to make significant strides, as evidenced by our 10 highest scores:

1. My supervisor holds me accountable for achieving results. (98%) 

2. Employees in my work unit meet the needs of our customers. (96%) 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 7 —

3. My supervisor supports my need to balance work and other life issues. (96%) 

4. Employees in my work unit contribute positively to my agency's performance. (96%) 

5. My supervisor treats me with respect. (96%)

6. Supervisors in my work unit support employee development. (95%)

7. I know how my work relates to the agency’s goals. (95%)

8. The people I work with cooperate to get the job done. (93%)

9. I am held accountable for the quality of work I produce. (93%)

10. Employees in my work unit share job knowledge. (93%)

The FY 2025 budget is also necessary to meet our agency’s IT needs for cybersecurity 

enhancements, data efficiencies, application development, and infrastructure maintenance. As 

the complexity of our IT networks and the needs for servers and equipment increase, so does the 

need for funding to address these ever-changing complexities. Our budget also helps us to 

continue to respond to the volume of new or updated IT-related federal mandates. These 

mandates are multiyear efforts that require resources to ensure compliance. 

As part of our overall information resources management (IRM) program, we maintain a strong 

capital planning and investment control process. Our Office of Information Technology invites 

FCA operating units to submit proposals for information technology projects throughout the 

year. Our IT staff also holds partnership meetings throughout the year with staff from each 

operating unit to discuss the projects. These discussions define the priority, urgency, and scope 

of each project. The project review process considers cost, risk, anticipated return, and 

alignment with and impact on FCA’s agencywide IT systems. In addition, with the goal of 

continuous improvement, the IT staff conducts an annual customer survey to better understand 

the experiences of agency employees.

The chief information officer may reprioritize IRM initiatives during the year to accommodate 

changing business needs. The IRM Strategic Plan initiatives listed in table 2 are multiyear 

efforts that support our agency’s primary program areas. By focusing on those strategic 

outcomes, we can direct our resources to the areas that will result in the highest value outcomes. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 8 — 

Table 2. Information Resource Management Strategic Plan initiatives

Description

Goal 1 Ensure a sound financial system that provides a sustainable source of credit for 

agriculture and rural America.

Goal 2 Foster the long-term viability of the U.S. agricultural economy while supporting young, 

beginning, and small (YBS) farmers, ranchers, and aquatic producers.

Initiative Goal 1 Goal 2 Distributed

Mission tools & approach X 

Data management X 

DevOps/Process automation X 

Technology platforms X 

Information security and compliance X 

OIT management X 

Customer support X 

FCA open data X 

* Initiatives that apply to both goals 1 and 2 are referred to as “Distributed.” 

Budget approach

We expect the FCS to continue to evolve in the coming years to meet the demands of an 

increasingly complex marketplace for agriculture and rural America. As FCS institutions grow 

and change, their operations become more complex. We expect mergers and consolidations to 

continue. Because of challenges in the global economy, we expect the System’s asset base to 

grow at only a moderate pace. Currently, the average asset base of System associations exceeds 

$1 billion.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 9 —

Our budget strategy will enable us to leverage and invest in our most valuable investment — our 

people. It will enable us to continue to streamline, modernize, and improve operations and to 

enhance staff expertise to meet challenges and opportunities that may arise. Our budget strategy 

will also support our IT needs, allowing us to acquire and maintain the infrastructure we need,

to protect our data against the growing number of cyberthreats, and to remain agile in our 

ability to respond to evolving threats and reporting requirements.

FCA program areas

For purposes of our budget, the agency has two primary programs areas: policy and regulation 

and safety and soundness. All FCA office activities and related costs support these programs 

directly or indirectly. These primary program areas are crosscutting and support the goals in the 

agency strategic plan. 

The policy and regulation program

The budget provides resources for administering the agency’s policy and regulation program. 

This program involves developing regulations and policy positions that implement applicable 

statutes, promote the safety and soundness of the FCS, and support the System's mission as a 

dependable source of credit and related services for agriculture and rural America.

In addition, the budget provides for ongoing activities such as evaluating and recommending 

regulatory and funding approvals, managing merger and chartering activities, and providing 

strategic and systemic policy research and analyses of risks and other issues facing the System. 

The budget also provides for support activities, including communication of the agency’s 

position on issues, and training and development for staff. In total, policy and regulation 

activities account for approximately $19.3 million, including 52.13 FTEs, in the proposed 

FY 2025 budget (see table 28 on page 79).

The safety and soundness program

The budget provides resources for administering the agency’s safety and soundness program. 

The budget resources provided through this program also ensure that FCS institutions comply 

with applicable laws and regulations and are financially positioned to meet the needs of 

agriculture and rural America.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 10 —

The budget continues to implement the FCA board’s philosophy of a risk-based approach to 

oversight and examination, which maximizes the effectiveness of examinations. Sufficient 

resources are included to ensure that the FCS properly identifies, manages, and controls risk. 

Examination resources are allocated to matters presenting the highest risk or potential risk to 

the System. Activities include developing risk topics and focus areas, examining institutions onsite, and testing the institutions’ credit reviews, internal audits, and internal controls.

A small number of FCS institutions require heightened supervision as they address weaknesses 

or risks we have identified. Examiners work with FCS institutions to ensure that these and other 

risks are recognized and mitigated in a timely manner.

In total, safety and soundness activities account for approximately $80.4 million, including 

283.38 FTEs, in the proposed FY 2025 budget (see table 28 on page 79).

Office of Inspector General’s FY 2025 budget request

In accordance with 5 U.S.C. 406(g)(1), FCA’s Office of Inspector General (OIG) has provided the 

agency with the following information:

• OIG’s total budget request: $2,310,666

• OIG’s training budget: $35,000

• OIG’s support for the Council of the Inspectors General on Integrity and Efficiency: 

$9,206

By including this information in our budget request to the president, the FCA board has fulfilled 

the requirement in 5 U.S.C. 406(g)(2).
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 11 —

Budget Trends

Over the past three years our annual budget requests increased on average by 6.0%. The most 

recent increase is 6.5%. 

The FY 2025 increased budget will address the following goals:

• To cover salaries, benefits, and training associated with new hires 

• To provide career ladder promotions

• To provide funded leave

• To provide career progression

• To provide funds for relocation of hard-to-fill positions

• To provide pay increases, which helps us maintain comparability in employee 

compensation and benefits with other bank regulators, as required by the Financial 

Institutions Reform, Recovery, and Enforcement Act of 1989 

• To support innovation initiatives 

• To support IT security enhancements, application development, data governance and 

efficiencies, IT maintenance, and equipment life cycle replacement purchases

In recent years, our budget requests have increased moderately and reflect a focus on being 

good stewards of our budget while addressing agency priorities and the growth and changing 

complexities of the FCS. The primary drivers for our budget increases include human capital 

initiatives, investments in IT security, and data analytics. These investments enable us to 

maintain effectiveness and drive efficiencies across the agency. See table 3 for information on 

FCA budget trends.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 12 — 

Table 3. FCA budgets, FYs 2023 – 2025 

Budget categories FY 2023 

revised budget

FY 2024 

revised budget

FY 2025 

proposed budget

Full-time permanent (FTP) $52,482,529 $57,418,663 $59,562,561

Other than FTP 493,900 541,883 421,513 

Other personnel compensation 1,076,335 635,292 1,335,369 

Total personnel compensation $54,052,764 $58,595,838 $61,319,443

Personnel benefits 23,643,191 25,242,385 26,786,994

Benefits for former personnel 25,000 12,500 25,000 

Total compensation and benefits $77,720,955 $83,850,723 $88,131,437

Travel and transportation of 

persons

3,170,441 2,949,568 3,672,393 

Transportation of things 117,416 69,805 144,913 

Rent, communications, and utilities 758,548 618,214 530,590 

Printing and reproduction 165,548 146,874 228,473 

Consulting and other services 5,306,543 5,325,654 6,095,961 

Supplies and materials 1,529,289 1,710,902 1,971,204 

Equipment 141,260 78,260 100,029 

Total budget $88,910,000 $94,750,000 $100,875,000 

We continue our efforts to reduce costs, leverage technology, and increase efficiencies. In 

table 4, we list some of the more notable ways we’ve improved operations and increased 

efficiency in the past few years. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 13 — 

Table 4. FCA actions and resulting impact

Action Resulting impact

Scrutinized issuance of information technology 

devices and specialized software

Cost efficiencies by only purchasing items that 

meet agency business needs

Enhanced OE management reporting and 

analysis of System conditions by leveraging 

business intelligence tools

Improvements in operational efficiency and 

quicker systemic risk analysis in a rapidly 

changing environment.

Improved workflow and functionality through the 

Enterprise Documentation Guidance (EDGe) 

project

Improved efficiencies

Implemented virtual desktop review of loans to 

allow exam teams to conduct loan reviews from 

agency offices

Better managed travel costs and improved 

efficiency

Increased reliance on FCS Loan Database to 

conduct analytics

Promotes focus on safety and soundness 

activities, builds effectiveness and operational 

efficiency

Ensured service provider costs were wellmanaged Cost effectiveness

Developed internal and customer focused 

procedures and checklists for travel and credit 

card programs. Established a centralized 

database for agency’s purchase card transaction 

records using Microsoft SharePoint technology 

Reduced rework, improved operational efficiency 

and safeguarding of agency records

Redesigned the FCA Network Configuration Increased reliability and bandwidth while 

reducing costs.

Modernized several applications Improved efficiencies

Implemented required continuous monitoring 

tools.

Improved efficiencies, improved security, and 

complied with mandates

Centralized content management and integration 

of agencywide annual training requirements

Gained efficiencies by standardizing and 

streamlining the delivery and evaluation of 

training, eliminating several administrative tasks

Updated collaboration tools and continued 

collaboration and resource sharing across FCA 

offices

Improved efficiencies

Sources of FCA revenue and funding

We maintain a revolving fund financed primarily from assessments to System institutions, 

including Farmer Mac. We also earn interest from investments with the U.S. Department of the 

Treasury, and we perform reimbursable work for the National Consumer Cooperative Bank and

the Farm Credit System Insurance Corporation. Table 5 shows budgeted sources of revenue and 

funding for FYs 2023 to 2025. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 14 — 

Table 5. Budgeted sources of FCA revenue and funding, FYs 2023 – 2025 

Source FY 2023 revised 

budget

FY 2024 revised 

budget

FY 2025 proposed 

budget

Assessments

Banks, associations, 

and related entities

81,975,000 90,400,000 TBD

Federal Agricultural 

Mortgage Corporation

3,325,000 2,900,000 TBD

Carryover fundsa 3,200,000 1,000,000 TBD

Assessments available 

for obligation

$ 88,500,000 $ 94,300,000 $100,425,000 b

Reimbursementsc

National Consumer 

Cooperative Bank

8,540 7,053 5,080

Farm Credit System 

Insurance Corporation

401,460 442,947 444,920

Total $ 88,910,000 $ 94,750,000 $100,875,000

Note: “TBD” stands for “to be determined.”

a. Carryover funds are amounts brought forward from prior years’ assessments that remain available for obligation. We will 

determine assessments and carryover amounts for FY 2025 in September of FY 2024. 

b. Each year Congress limits the dollar amount of assessments that we may use to pay for administrative expenses. For 

FY 2025, we propose a limit of $100.43 million.

c. From a budget standpoint, reimbursements do not include indirect costs.

FCA reserve 

The institutions we oversee are involved in two volatile industries — agriculture and finance. 

Volatility can produce financial stress for institutions, creating a need for heightened oversight 

and supervision. To ensure that we have the resources to provide the necessary supervision and 

oversight during periods of financial stress, we established an agency reserve. Congress granted 

approval for the reserve under section 5.15(a)(1)(B) of the Farm Credit Act, and the FCA board 

established guidelines for it.

The reserve ensures that we can effectively and efficiently respond to safety and soundness 

issues arising within the System. It allows us to respond to these issues without increasing 

assessments at a time that may be financially difficult for System institutions. At the end of 

FY 2023, the reserve totaled approximately $16.1 million.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 15 — 

Assessments 

FCA’s operating costs are financed by direct assessments collected from System institutions, 

including Farmer Mac. Table 6 shows assessments for FYs 2015 through 2024. Assessments in 

2015 were particularly low because we used large amounts of carryover from prior-year 

assessments to help fund our operations. To fund the FY 2024 budget, we used $1.0 million of 

carryover and increased assessments by $8.0 million.

Table 6. FCS assessments, FYs 2015 – 2024 

Fiscal year Assessment (in millions)

2015 $51.5a

2016 $58.3

2017 $66.8b

2018 $68.2b

2019 $72.7

2020 $73.0c

2021 $76.3d

2022 $82.7

2023 $85.3

2024 $93.3

a. The original assessment was $54.5 million and was reduced by $3.0 million during the year.

b. Because of the budget limitation in the continuing resolution, the assessment was reduced in the fourth quarter by $3.0 

million.

c. The original assessment was $76.0 million and was reduced by $3.0 million during the year primarily because of restricted 

business travel.

d. The original assessment was $79.8 million and was reduced by $3.5 million during the year primarily because of restricted 

business travel.

In FY 2023, we assessed the System $85.3 million and ended the year with $1.0 million in 

reimbursable revenue and deobligations (see table 7). During the year, we had obligations of 

$88.5 million. The difference between our obligations and funding was $−2.2 million, which

represents the decrease to carryover.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 16 — 

Table 7. FCA funding, obligations, and assessment carryover, Fys 2022 and 2023 (in 

millions)

Budget item FY 2022 FY 2023

Current-year assessments $82.7 $85.3

Reimbursable revenue and deobligations 1.2 1.0

Total funding $83.9 $86.5

Obligations 82.1 88.5

Total funding minus obligations $1.8 $−2.2

Assessment carryover from prior years 2.4 4.2

Carryover from assessments at end of fiscal year $4.2 $2.0

FCA’s net cost to System borrowers 

FCA’s net cost to System borrowers is based on the relationship between our total System 

assessments and assets held (not including Farmer Mac). The FCS held $492.8 billion in total 

assets as of Aug. 30, 2023, up from $464.7 billion a year earlier. 

As table 8 shows, FCS borrowers incurred a net cost of approximately 1.7 basis points, or 1.7

cents for every $100 of assets held, to pay for FCA operations in FY 2023. Since FY 2014, the net 

cost to borrowers has averaged 1.8 basis points.

Table 8. FCA’s net cost to System borrowers, FYs 2014 – 2023 

Fiscal year ended 

September 30

Basis points

2014 1.8

2015 1.7

2016 1.8

2017 2.0

2018 2.0

2019 2.0

2020 1.8

2021 1.8

2022 1.7

2023 1.7
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 17 — 

Assessments for the Federal Agricultural Mortgage Corporation (Farmer Mac)

Farmer Mac’s assessment for FY 2024 is $2.9 million. The assessment for FY 2025 is not yet 

available because the Office of Secondary Market Oversight will not complete the FY 2025 

budget and estimation of examination, oversight, and regulatory costs pertaining to Farmer Mac 

until September 2024. Table 9 shows Farmer Mac assessments for fiscal years 2015 to 2024. 

These assessments include costs associated with examination, regulation and policy 

development, and oversight activities. 

Table 9. Farmer Mac assessments, FYs 2015 – 2024 

Fiscal year Assessment (in 

millions)

2015 $2.40

2016 $2.45

2017 $2.50

2018 $2.50

2019 $2.75

2020 $2.90

2021 $3.00

2022 $3.25

2023 $3.33

2024 $2.90

Part II 

Farm Credit Administration

_________________________________________________________________

Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 21 —

Profile of the Farm Credit Administration

The Farm Credit Administration was created through an executive order of President Franklin 

D. Roosevelt and currently derives its powers and authorities primarily from the Farm Credit 

Act of 1971, as amended. As an independent agency within the executive branch of the federal 

government, we are responsible for regulating and supervising the Farm Credit System (FCS or 

System) banks, associations, and related entities, as well as the Federal Agricultural Mortgage 

Corporation (Farmer Mac).

The FCS is the oldest of the financial government-sponsored enterprises (GSEs). The Farm 

Credit Act states that the objective of the FCS is 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 selected farm-related businesses.

The System consists primarily of a nationwide network of borrower-owned, cooperative 

financial institutions that provide credit and related services to

• farmers and ranchers,

• producers and harvesters of aquatic products,

• farm-related businesses,

• rural homeowners,

• agricultural and aquatic cooperatives,

• agribusinesses, and

• rural utilities.

The FCS had $385.1 billion in outstanding loans to agriculture and rural America as of Sept. 30, 

2023.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 22 —

Farmer Mac is a stockholder-owned, federally chartered instrumentality of the United States 

and an institution of the FCS, and its authority is derived from Title VIII of the Farm Credit Act. 

Farmer Mac was established in 1988 to create a secondary market for agricultural real estate 

loans and rural housing mortgage loans. In 2008, Farmer Mac’s secondary market authorities 

were expanded to include rural utility loans. It provides secondary market services through a 

network of agricultural lenders and intermediaries, including commercial banks, FCS banks and 

associations, life insurance companies, mortgage companies, and rural utility cooperatives. As of 

Sept. 30, 2023, Farmer Mac’s outstanding program activity totaled $27.7 billion.

On a reimbursable basis, we perform examinations of certain entities that are not part of the 

Farm Credit System. FCA is required by the National Consumer Cooperative Bank Act of 1978, 

as amended, to examine and report on the condition of the National Consumer Cooperative 

Bank (NCB). Since the passage of this law, we have conducted safety and soundness 

examinations of NCB and issued reports of examination to NCB’s board of directors. NCB is a 

federally chartered, privately owned banking corporation. It is not a federal instrumentality, and 

it is not part of the FCS. In addition, we provide examination services on behalf of the Farm 

Credit System Insurance Corporation. 

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

Representatives Committee on Agriculture oversee the FCS, Farmer Mac, and FCA. Our 

operations are funded through assessments paid by the System institutions and by our 

reimbursable activities; we do not receive a federal appropriation.

Mission statement

As stated in the FCA Strategic Plan for FYs 2022 – 2026, our mission is to ensure that System 

institutions and Farmer Mac are safe, sound, and dependable sources of credit and related 

services for all creditworthy and eligible persons in agriculture and rural America. To fulfill this 

mission, we issue regulations and conduct examinations of FCS institutions, including Farmer 

Mac, to evaluate and oversee the safety and soundness of their activities. 

Our examinations evaluate whether institutions are complying with laws and regulations and 

are operating in a safe and sound manner. They also evaluate compliance with the congressional 

mandate requiring System associations to have programs to make credit and services available 

to young, beginning, and small (YBS) farmers and ranchers. In addition, we research, develop, 

and adopt rules, regulations, and other guidelines that govern how institutions conduct their 

business and interact with customers.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 23 —

If any System institution, including Farmer Mac, violates laws or regulations, or if we determine 

that its operations are unsafe or unsound, we may use our enforcement authority to ensure that 

the problem is corrected in a timely manner. We also ensure that the rights of certain borrowers 

are protected.2

Other statutory duties require us to issue and amend FCS institution charters, to report to 

Congress on the System’s and Farmer Mac’s financial condition and performance, and to 

approve the issuance of debt obligations by System banks. 

FCA board and governing philosophy

Our policy and regulations are established by a full-time, three-person board whose members 

are appointed by the president of the United States with the advice and consent of the Senate. 

They serve staggered six-year terms and may not be reappointed to succeed themselves after 

serving a full term or more than three years of a previous member’s unexpired term. A board 

member may serve after expiration of his or her term until a successor has been appointed and 

qualified. The president designates one member as chairman of the board; this member serves 

as chairman until the end of his or her term. The board chairman also serves as the agency’s 

chief executive officer.

The FCA board approves charters of FCS institutions, oversees the agency’s supervision and 

examination of those institutions, and issues enforcement actions. The governing philosophy of 

the FCA board is grounded in the Farm Credit Act. The board believes that the cooperative 

principles on which the System was founded are just as important today as they were in the early 

decades of the 20th century. 

FCA organizational structure

Figure 1 presents our organizational structure and shows how the offices provide strategic 

support to the FCA board and ensure that our mission and goals are performed effectively and 

efficiently. We have our headquarters in McLean, Virginia, with field offices in Bloomington, 

Minnesota; Dallas, Texas; Denver, Colorado; and Sacramento, California. Our workforce is our 

biggest asset in accomplishing our mission.

Figure 1. FCA organizational chart as of January 2024

For an accessible version of this chart, go to https://www.fca.gov/about/fca-organizationalchart.

2 Provisions in the Farm Credit Act regarding borrower rights do not apply to loans to cooperatives.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 24 —
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 25 — 

FCA Internal Operations 

Ranked the sixth best place to work among small agencies in the federal government in 2022, 

we already have significant strengths on which to build, and we continue to promote and 

encourage practices that foster well-being, inclusion, resiliency, creativity, innovation, and 

accountability.

Human capital management

The agency’s Strategic Plan reflects our commitment to maintaining a diverse, engaged and 

capable workforce. Our objectives address maintaining a skilled, motivated workforce; ensuring 

adequate succession planning and knowledge transfer; and promoting diversity, ethics, and 

engagement. We achieve this in part by ensuring that employees have clear, measurable 

performance expectations aligned with FCA’s mission and strategic plan, ensuring employees 

receive targeted training and development opportunities, and ensuring agency policies and 

practices demonstrate a culture of respect and professionalism toward all individuals, internal 

and external to FCA. 

We periodically assess external and internal workforce trends and integrate best practices. We 

also monitor the System’s changing environment so that we can adjust staffing levels and 

maintain the necessary skill sets by hiring additional staff and by providing employee training 

and development. We review our workforce-planning strategies annually. See table 10 for fulltime-equivalent (FTE) staffing levels (rounded to the nearest whole number) from FYs 2015 

through 2025. 

Table 10. Full-time-equivalent staffing levels, FYs 2015 – 2025 

Fiscal year FTE staffing level

2015 277

2016 290

2017 296

2018 298

2019 308

2020 297

2021 314

2022 313

2023 331

2024 341 (authorized)

2025 340 (authorized)

Note: From FYs 2015 to 2025, the ratio of managers and supervisors to other personnel has ranged between one to 

five and one to six.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 26 — 

We annually review workforce demographic profiles to monitor changes, such as the age and 

grade of employees, and explore trends. From this analysis, we develop five-year projections to 

determine and mitigate the impact of employee retirements and separations. In 2025, the 

agency will also launch a succession-planning effort to further support continuity across 

mission-critical and key dependencies. 

As of Sept. 30, 2023, almost 17.9% of our personnel were eligible to retire; we expect that 

number to maintain a similar level over the next few years. By FY 2028, approximately 28.3% of 

our workforce will be eligible to retire. See table 11 for retirement eligibility projections.

Table 11. FCA retirement eligibility, FYs 2023 – 2028 

Fiscal year Number of staff first 

eligible during the 

fiscal year

Number of staff 

eligible at fiscal 

year-end

Percentage of staff 

eligible to retire at 

fiscal year-end

2023 5 62 17.9% 

2024 13 75 21.7% 

2025 4 79 22.8% 

2026 6 85 24.4% 

2027 5 90 26.0% 

2028 8 98 28.3% 

Note: This table assumes that staff eligible for retirement remain employed.

We continue to promote a safe and healthy workforce at every level of the organization. In the

2023 Federal Employee Viewpoint Survey, 95% of our employees reported that employees are 

protected from health and safety hazards on the job.

Throughout the fiscal year, we initiated several agencywide activities designed to promote 

meaningful engagement at the office and among our employees, with events such as farm tours, 

special emphasis programs, and Bring Your Child to Work Day. Our current hybrid operating 

model includes both required time in the office and continuing to enable staff to telework, 

offering maximum flexibility for our employees. Our culture of supporting health and well-being 

is an important factor contributing to FCA’s continuously being named one of the Best Places to 

Work in the Federal Government by the Partnership for Public Service. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 27 —

Training

FCA remains committed to developing and delivering world-class learning resources to ensure 

that our workforce can meet current and future performance needs. During 2023, the Office of 

Agency Services used strategies to enhance technical capabilities and leadership skills while 

expanding our training technology deployment to support our employees in our geographically 

dispersed, hybrid work environment. Examples of these strategies and activities include the 

following: 

• Technical capabilities — Continued to partner with Virginia Tech’s Department of 

Agriculture and Applied Economics to develop and deliver for-credit, graduate level 

courses and professional development certificates with an emphasis in agricultural 

business, financial risk management, and data analytics 

• Leadership skills — Focused on leadership coaching and team dynamic development 

through a series of events in the Leader as a Coach Training workshop. This workshop 

was designed to provide FCA supervisors with essential coaching skills to empower them 

to adopt a coaching approach in their leadership style. FCA deployed a nationally 

recognized talent assessment across several offices, which enabled teams to identify 

interpersonal strengths among team members

• Technology deployment — Expanded the number of e-learning platform (Percipio) 

licenses to cover all employees. During the first nine months of enterprisewide access, 

our employees accessed content on the platform nearly 2,200 times. This represents 

nearly seven training interactions per FCA employee at FCA.

Our emphasis on training has contributed to our strong showing in the rankings of the Best 

Places to Work in the Federal Government based on the results of the annual Federal Employee 

Viewpoint Survey. Moving forward, FCA’s Learning and Organizational Change Team plans to 

build on existing efforts to develop our workforce by instituting a more systemic and integrated 

set of learning solutions. Our plans include the following:

• Continue to update all learning, training, and education policies by modernizing and 

streamlining procedures to support a more mission-driven and results-oriented 

approach to meeting the needs of our workforce

• Revise the agency’s leadership competency model to reflect a framework that supports 

effective succession management

• Continue to increase the utility of the agency’s e-learning platform by centralizing all 

required and discretionary learning resources
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 28 —

• Partner with key offices to support skills training related to innovation, technology tools 

and data utilization 

Examiner commissioning program

Through our Commissioning Program, we are developing the next generation of diverse and 

highly skilled examiners, ensuring they have the knowledge, skills, and talents necessary to 

accomplish the agency’s mission. The program helps examiners develop their skills in FCA’s 

primary areas of oversight — credit, finance, and operations, as well as examination 

management.

We also invest in the development of our commissioned examiners through human capital 

planning, examiner career development, and specialty programs. The specialty programs enable 

examiners to gain technical expertise and encourage them to pursue professional development 

and certification. Various professional development and certification programs are available to 

help our examiners hone their expertise. Further, we are exploring trainings and workshops 

focused on data utilization and management as well as learning new technological tools.

Diversity and inclusion

Because we recognize the value of diversity and inclusion to the agency, we work hard to attract 

and retain staff with varied backgrounds and skills. Our recruiters regularly visit job fairs at 

universities with high minority enrollment, and we have several Special Emphasis Programs to 

raise awareness about diversity and inclusion in our workforce. FCA sponsors several diversityand-inclusion events throughout the year. As a result of our emphasis on diversity and inclusion, 

in 2022 the Partnership for Public Service ranked FCA number 1 among small federal agencies 

for support of diversity. 

FCA compensation program

Section 5.11(c)(2)(A) of the Farm Credit Act was amended in 1989 by the Financial Institutions 

Reform, Recovery, and Enforcement Act (FIRREA). This provision authorizes the FCA chairman 

to set and adjust FCA employees’ compensation without regard to the general pay schedule 

applicable to most federal agencies. The chairman may also provide additional pay and benefits 

to enable FCA to maintain comparability with other federal banking agencies as defined in 

FIRREA. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 29 — 

Section 1206 of FIRREA was subsequently amended to require the heads of FCA, the Federal 

Deposit Insurance Corporation, the Comptroller of the Currency, the National Credit Union 

Administration Board, the Federal Housing Finance Board, the Office of Financial Research, 

and the Bureau of Consumer Finance Protection to inform Congress and one another of their 

compensation and benefits and to “seek to maintain comparability regarding compensation and 

benefits.” 

To comply with FIRREA, we participate in a biennial survey of the other federal financial 

regulators and adjust our employees’ compensation and benefits accordingly. Our compensation 

rates are similar to the average market rate provided by other agencies covered under FIRREA.

We use a pay-for-performance program to adjust each employee’s salary according to his or her 

performance rating and salary range position. We make salary adjustments each calendar year 

based on several factors, including the compensation programs of other FIRREA regulators and 

available funding.

The FCA board approved for the 2024 compensation program a 1% increase in our base salary 

range structures and a merit pay matrix with pay increases ranging from 1.0% to 3.8%, 

depending on each employee’s performance rating and placement in the salary range for his or 

her grade. The board also approved increases to locality rates to align them with the locality 

rates of the Federal Deposit Insurance Corporation. Table 12 provides the revised 2024 locality 

rates for FCA locations. 

Table 12. FYs 2022, 2023, and 2024 locality rates

Locality 2023 

rate

2024 

rate

McLean 32.11% 32.99%

Bloomington 22.37% 26.89%

Denver 24.75% 29.55%

Dallas 23.60% 26.87%

Sacramento 25.76% 28.80%

Rest of the United States 16.50% 17.00%
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 30 — 

External contracting and shared services – Procurement

As table 13 shows, we continue to outsource several functions. We have a shared-service 

agreement with the Bureau of the Fiscal Service (BFS). We outsource our payroll function to 

USDA’s National Finance Center and our personnel security and credentialing function to the 

Department of Interior’s Business Center. Outsourcing these services allows us to manage 

employee benefits and other agency functions without additional personnel costs.

Table 13. Shared services, FY 2023 

Contract Services provided Amount

Administrative Service Center (BFS) Full-service accounting, e-Travel, credit 

card, and platform procurement services

$1,035,836

National Finance Center (USDA) Payroll services $56,709

Department of Interior Personal security and credential 

services

$34,405

Defense Counterintelligence Security 

Agency

Background investigation services $90,000

Tables 14 and 15 provide a summary of our competitive consulting service contracts for FYs 

2022 and 2023. 

Table 14. Competitive consulting service contracts of more than $25,000, FY 2022 

Contract Purpose Amount

Second Pillar Consulting 

(17-FCA-450-005)

Financial risk evaluation and 

assessment for the Office of 

Secondary Market Oversight

$75,000

August Schell

(20-FCA-651-006)

U.S. federal production support $60,774

Harper, Rains, Knight & Company

(18-FCA-700-001)

Financial statement audit services $57,021

Principal Financial Group

(21-FCA-641-018)

Retirement administration services $88,240

Williams Adley

(20-FCA-700-003)

FISMA evaluation services $70,453

Personnel Decisions Research Institutes

(PDRI) (20-FCA-301-001)

Commission test and staff evaluation 

services

$67,248

Guidehouse (22-FCA-621-005) Internal controls support services $214,109
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 31 — 

Table 15. Competitive consulting service contracts of more than $25,000, FY 2023 

Contract Purpose Amount

Second Pillar Consulting 

(23-FCA-450-001) 

Financial risk evaluation and 

assessment for the Office of 

Secondary Market Oversight

$75,000

August Schell

(20-FCA-651-006)

U.S. federal production support $119,491

Harper, Rains, Knight & Company

(23-FCA-700-002) 

Financial statement audit services $61,188

Williams Adley

(20-FCA-700-003)

FISMA evaluation services $71,790

Personnel Decisions Research Institutes

(PDRI) (20-FCA-301-001)

Commission test and staff evaluation 

services

$82,032

Guidehouse (22-FCA-621-005) Internal controls support services $200,891

Other functions and activities

In FY 2023, we spent $457 on events and representation expenses and had no foreign travel 

expenses.

Leveraging FCA technology

We have designed a flexible information technology (IT) program at FCA that can adapt to 

changing technical and business needs. The Office of Information Technology holds regular 

partnership meetings with staff from other business units to understand their needs, ensure that 

we make strategic investments in IT, and adjust our priorities as needed. Through these 

partnership meetings, as well as customer feedback through our annual survey and FCA board 

priorities, we identify multiyear IT initiatives and include these in our annual Information 

Resources Management (IRM) Strategic Plan. 

The IRM Strategic Plan drives IT spending through the current fiscal year and beyond. In 2025, 

we will continue to improve FCA’s records management, data reporting, dashboard, and 

analysis capabilities and strengthen our cybersecurity. We will engage contractors when we need 

specialized expertise, and we will expand use of cloud services where appropriate. As we work on 

innovation and modernization across the agency, we will also keep up with the evolving 

technological landscape through training. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 32 —

In 2023, we accomplished the following:

• Increased bandwidth while reducing internet service costs

• Upgraded software and life-cycle equipment

• Continued to develop new, and to upgrade existing, applications to support FCA’s 

examination procedures

• Improved data loading and support, including modernization of applications to simplify 

data collection

• Continued to migrate to cloud services

• Continued to strengthen our IT security program and our privacy program

• Continued to improve our records management program, including receiving positive 

remarks on the NARA inspection

For more information about the ways we will use technology in FYs 2024 and 2025 to achieve 

our strategic goals, see table 2.

Independent auditing and accountability

The Office of Inspector General contracted with Harper, Rains, Knight & Company to perform 

the FY 2023 audit of FCA’s financial statements. On Nov. 13, 2023, Harper, Rains, Knight & 

Company issued an unmodified opinion on our financial statements for the fiscal year ended 

Sept. 30, 2023. 

The auditors opined that the financial statements presented fairly, in all material respects, FCA’s 

financial position as of Sept. 30, 2023, in conformity with generally accepted accounting 

principles. In addition, although the auditors did not express an opinion on the matter, they did 

not identify any deficiencies in internal control over financial reporting that would be 

considered material weaknesses. 

The auditors also did not identify any instances of noncompliance with selected provisions of 

laws and regulations or other reportable matters that could have a direct and material effect on 

the financial statements.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 33 —

Ensuring Safety and Soundness

The Farm Credit Administration’s role is to regulate the Farm Credit System to ensure System 

institutions, including Farmer Mac, comply with applicable laws and regulations. In doing so, 

we ensure the safety and soundness of the System. 

The first section below, titled “The Farm Credit System,” summarizes examination and 

supervisory activities performed on the banks, associations, and service organizations of the 

FCS. Because the role of Farmer Mac is different from the rest of the System, we discuss Farmer 

Mac separately in the second section below. In addition, we provide examination and other 

services on a reimbursable basis to certain entities that are not part of the System. These 

activities are summarized in the third section below, titled “Other Entities.”

Our examination and supervision responsibilities are carried out by staff located in our 

headquarters in McLean, Virginia, and in four field offices — in Bloomington, Minnesota; 

Dallas, Texas; Denver, Colorado; and Sacramento, California. We do not expect any changes in 

the field office structure in FY 2025.

The Farm Credit System

Statutory and regulatory requirements

The Farm Credit Act requires FCA to examine each FCS institution at least once every 18 

months. We meet this requirement through a risk-based process of oversight and examination 

designed to maximize efficiency while addressing System risk effectively. 

To monitor and evaluate the System’s safety and soundness, we need loan portfolio and other 

data from System institutions. Our regulations include the following reporting requirements:

• Each System institution must prepare and file reports of condition and performance with 

FCA each quarter in accordance with 12 CFR 621.12. These reports provide detailed 

information on each institution’s financial performance and portfolio quality and other 

relevant information.

• System banks and the Federal Farm Credit Banks Funding Corporation must prepare 

consolidated System information and make this information available to investors and 

the public in accordance with 12 CFR part 630.

System institutions submit other data to us through our Consolidated Reporting System. Some 

of the submitted information is available to the public on our website (www.fca.gov). We also 

collect loan data from all System institutions in accordance with 12 CFR 621.15. We have been 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 34 —

expanding loan data collection and analysis to enhance our evaluation of risk to the System as a 

whole. 

In addition to overseeing and examining the System, we establish policies and regulations to 

ensure the System addresses key risk areas. For example, our regulations require System 

institutions to have effective loan underwriting and loan administration processes, to achieve 

and maintain minimum capital levels, to demonstrate strong asset-liability management, and to 

establish high standards for governance and transparent disclosures for shareholder 

information.

Risk-based examination and supervision

We design examination and supervision processes to address material risks and emerging issues 

at the institution level and Systemwide. We base our examination and supervision strategies on 

institution size, existing and prospective risk exposure, and the scope and nature of each 

institution’s business model. We also evaluate whether each institution’s business model will 

ensure that it fulfills its public mission as a government-sponsored enterprise. In addition to 

overseeing and examining individual institutions, we identify and evaluate Systemwide 

emerging risks and allocate examination resources to matters of highest priority and potential 

risk.

We have developed a comprehensive regulatory and supervisory framework to promote and help 

ensure the System’s safety and soundness and its compliance with laws and regulations. This 

approach recognizes each institution’s responsibility and ability to identify and manage both 

institution-specific and systemic risks. Our examination and supervision program promotes 

accountability in System institutions for their programs, policies, procedures, and controls. 

System institutions have developed effective risk-management cultures in response to our 

examination and supervision programs and our policies and regulations. These programs, 

policies, and regulations continue to set high standards for the System.

Because of volatility in the agricultural and credit markets as well as significant changes in the 

financial markets, ensuring the safety and soundness of the System is more important and 

challenging than ever. To address these challenges, we annually evaluate areas of risk and

identify focus areas to set examination priorities, identify potential regulatory issues, allocate 

resources, and monitor emerging risk exposures. The examination and supervision program 

includes strategies for addressing these emerging risks and communicating our expectations to 

both internal and external audiences. Focus areas for 2024 are the following:
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 35 —

• Cybersecurity threats and a changing operational environment

• Capital markets loan growth and increased risk in large, shared assets and commodity 

segments

• Long-term financial stewardship

• Stress analysis in a period of heightened volatility and uncertainty

• Standards of conduct

When our examiners identify unsafe and unsound practices or conditions within a System 

institution or find that an institution has violated a law or regulation, we outline the corrective 

actions the institution must take in a Report of Examination or other form of communication. If 

necessary, we use our enforcement powers to bring about changes in an institution’s policies 

and practices to correct unsafe or unsound conditions or violations of law or regulations. 

However, in most cases, we achieve corrective action without the use of formal enforcement 

powers.

Measuring the safety and soundness of the System

We use our Financial Institution Rating System (FIRS) as a key method to assess the safety and 

soundness of each FCS institution. The FIRS provides a general framework, consisting of 

component and composite ratings, for evaluating and assimilating significant financial, asset 

quality, and management factors. Similar to systems used by other federal financial regulators, 

the FIRS evaluates six key component areas to properly assess the degree of risk in an 

institution. These key component areas are capital, assets, management, earnings, liquidity, and 

sensitivity (CAMELS). 

Based on our CAMELS ratings, we assign an overall composite rating for the institution. The 

rating system ranges from 1 to 5. A composite rating of 1 indicates that an institution is sound in 

every respect and exhibits the strongest performance and risk-management practices, whereas a 

rating of 5 represents an extremely high, immediate, or near-term probability of failure. 

Our examiners continually evaluate institutional risk and regularly review and update FIRS 

ratings to reflect current risks and conditions in each System institution. We provide guidance 

on both quantitative benchmarks and qualitative factors to help examiners apply the FIRS 

process consistently. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 36 —

We disclose these confidential FIRS composite and component ratings to the institution’s board 

to provide perspective on relative safety and soundness. Examination reports and other forms of 

communication also provide the institution’s board with an assessment of the governance, 

management, quality of assets, and financial condition and performance of the institution.

Recent results 

As the composite FIRS ratings show, the System’s condition and performance have been sound 

over the past several years. The following summarizes FIRS ratings for System banks and 

associations that were active as of Oct. 1, 2023:

• Thirty-five institutions were rated 1.

• Twenty-four were rated 2.

• Two were rated 3 or lower.

See figure 2 for information on FIRS rating trends. For a more detailed discussion of the 

financial condition and performance of the System, see part III of this report. (Note: The most 

recent FIRS ratings available at this writing were released on Oct. 1, 2023, when System 

institutions totaled 61. Elsewhere in this report, where we have listed number of System banks 

and associations as of Jan. 1, 2024, you will find that the number of banks and associations 

declined to 60. The total number of FCS institutions as of Jan. 1, 2024, was 69 because the 

System also includes eight service corporations and special-purpose entities, plus Farmer Mac.)
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 37 —

Figure 2. Farm Credit System Financial Institution Rating System (FIRS) composite 

ratings

Source: FCA's FIRS Ratings Database.

Note: This chart reflects ratings for only the actively reporting System’s banks and associations; it does not include 

ratings for the System’s service corporations, Farmer Mac, or the Federal Farm Credit Banks Funding Corporation. 

34 30 32 33 35 35 

32 35 35 32 26 24 

7 7 4 4 3 2 

0%

20%

40%

60%

80%

100%

01/01/19 01/01/20 01/01/21 01/01/22 01/01/23 10/01/23

Percentage of Rated Institutions

Number of Rated Institutions

1 Rated 2 Rated 3 Rated or Lower
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 38 — 

Matching data table for figure 2

FIRS Ratings 01/01/19 01/01/20 01/01/21 01/01/22 1/01/23 10/01/23

1 rating 34 30 32 33 35 35

2 rating 32 35 35 32 26 24

3 rating or 

lower

7 7 4 4 3 2 

Total 73 72 71 69 64 61

Note: Data refers to number of institutions with each FIRS rating.

Federal Agricultural Mortgage Corporation

Through our Office of Secondary Market Oversight (OSMO), we provide for the examination, 

regulation, and general supervision of Farmer Mac’s safe and sound performance of its powers, 

functions, and duties. OSMO performs annual CAMELS-based examinations, which include 

examination of capital, assets, management, earnings, liquidity, and sensitivity. By providing a 

secondary market for agricultural real estate and other loans, Farmer Mac has a very different 

role from the System’s banks and associations. Therefore, some of our examination processes 

for Farmer Mac differ from those for other System institutions. A Sept. 24, 2021, finding by the 

FCA Office of Inspector General recommended that we document the policies and procedures 

unique to Farmer Mac examination. In 2022 and 2023, we developed guidance to address some 

aspects of the Farmer Mac examination process. 

Statutory authority

OSMO was established in 1992 by the Food, Agriculture, Conservation, and Trade Act 

Amendments of 1991 (Public Law 102 – 237), which amended section 8.11 of the Farm Credit 

Act. OSMO is required to be managed by a full-time director who reports to the FCA board, and 

OSMO’s activities, to the extent practicable, must be carried out by individuals not responsible 

for supervising the banks and associations of the FCS.

Data reporting requirements

Farmer Mac is required to submit quarterly call reports to OSMO in addition to meeting several 

other periodic reporting requirements related to Farmer Mac’s regulatory risk-based capital, 

mission, liquidity, and financial derivatives portfolio. Farmer Mac is also subject to the 

disclosure and reporting requirements of the Securities and Exchange Commission.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 39 —

Financial condition and performance

Farmer Mac’s financial condition and performance trends were generally positive in FY 2023

despite a modest increase in troubled loan volume. 

• Net income available to common shareholders was $168.6 million for the 12 months 

ended Sept. 30, 2023, compared with $ 141.4 million during FY 2022. 

• Farmer Mac’s statutory core capital totaled $1.4 billion at the end of FY 2023, compared 

with $1.3 billion at the end of FY 2022. The minimum statutory core capital requirement 

for Farmer Mac’s on- and off-balance-sheet exposures totaled $840.1 million at the end 

of FY 2023. Thus, Farmer Mac exceeded its statutory minimum core capital requirement 

by approximately $581.1 million. 

• At the end of FY 2023, Farmer Mac had $1.4 billion in regulatory capital (as defined in 

the Farm Credit Act) available to meet the $177 million minimum requirement 

established by FCA’s Risk-Based Capital (RBC) Model.

• Program activity increased approximately 9.5%, ending FY 2022 at $27.7 billion. Farmer 

Mac had $4.9 billion in its liquidity portfolio as of the year-end. 

Credit quality remained stable and generally good. Total acceptable loan volume increased 30 

basis points to 98.1% in FY 2023.

Risk-Based Capital (RBC) Model

Section 8.32 of the Farm Credit Act requires the RBC Model to be used to determine the amount 

of regulatory capital that Farmer Mac needs to maintain positive capital during a 10-year period 

under certain credit risk and interest rate risk situations. The RBC Model must estimate credit 

losses on agricultural mortgages and rural utility loans owned or guaranteed by Farmer Mac. 

The rate of loan default and severity of losses on agricultural mortgages must be reasonably 

related to the default rate and severity of losses experienced in contiguous areas of the United 

States; the contiguous areas considered must contain at least 5% of the total U.S. population 

that experienced the highest rate of default and severity of agricultural mortgage losses during 

the past two consecutive years or more. The rate of loan default and severity of losses on rural 

utility loans must be reasonably related to risks in electric and telephone facility loans.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 40 —

The Farm Credit Act also requires the RBC Model to incorporate an interest rate risk stress 

scenario based on prescribed changes in interest rates on Treasury obligations of various terms. 

In addition, the Farm Credit Act requires Farmer Mac to maintain capital to protect against 

management and operational risks. This additional capital must amount to 30% of the sum of 

the credit loss and interest rate risk components of the RBC Model.

The output of the stress test depends on Farmer Mac’s risk profile. High-risk loan assets or 

significant interest rate risk exposure causes the RBC Model to calculate a higher regulatory 

capital requirement. Conversely, if Farmer Mac maintains a low risk profile in both its loan 

portfolio and interest rate risk exposure, the stress test will calculate a low capital requirement. 

Our regulations require Farmer Mac to have its operation of the RBC Model validated by an 

independent third party at least every three years. In all these third-party validations, Farmer 

Mac has been found to be operating the model appropriately.

Other entities

On a reimbursable basis, we perform examinations of certain entities that are not part of the 

Farm Credit System.

As mandated by 12 U.S.C. 3025, we oversee the safety and soundness examinations of the 

National Consumer Cooperative Bank (NCB), which owns a federal savings bank, has a 

congressional charter, and specializes in nonagricultural cooperative loans. Costs have been 

negligible because of our agreement with the Office of the Comptroller of the Currency. Through 

this agreement, we generally rely on their safety and soundness examinations to effectively and 

more efficiently carry out our statutory responsibilities with respect to NCB.

From time to time, the U.S. Department of Agriculture contracts with us to provide examination 

services for specific USDA programs. We annually review the resources dedicated to providing 

these services, and we have no current contracts.

We also provide services on a reimbursable basis to the Farm Credit System Insurance 

Corporation (FCSIC), an independent, government-controlled corporation that insures the 

timely payment of principal and interest on certain System notes, bonds, and other obligations 

issued to investors. The FCSIC board consists of the members of the FCA board. Section 

5.59(a)(5) of the Farm Credit Act provides that, to the extent practicable, FCSIC must use FCA 

personnel and resources to minimize duplication of effort and reduce costs.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 41 —

Developing Regulations and Policies

FCA routinely issues regulations, informational memorandums, policy statements, and other 

guidance to ensure that the System complies with the law, operates in a safe and sound manner, 

and efficiently carries out its statutory mission.

We are committed to providing a flexible regulatory environment that allows the System to offer 

high-quality, reasonably priced credit and related services to farmers and ranchers, their 

cooperatives, rural residents, and other entities on which farming operations depend. 

We strive to develop balanced, well-reasoned, and flexible regulations, always considering both 

the benefits and the costs of these regulations to System institutions. Our objectives are to 

ensure that the System’s activities remain consistent with the law and safety and soundness 

principles and to encourage participation by member-borrowers in the management, control, 

and ownership of their institutions.

Regulatory and policy projects active at end of FY 2023

The FCA board reviews its regulatory agenda semiannually to evaluate progress on open 

projects and to determine the need for additional initiatives. The FCA board-approved agenda is 

part of the federal Unified Agenda, which is published online at www.reginfo.gov. We publish 

our Regulatory Projects Plan on our website to notify the public of our upcoming regulatory 

actions and to encourage the public to participate in the regulatory process, but we are not 

obligated to act on our agenda items. The following list summarizes the topics for which we are 

considering regulatory action.

Collateral evaluation: We continue to consider updating collateral appraisals and valuations 

requirements to address changing credit and economic conditions.

Permanent capital revisions: We plan to issue a proposed rule that would replace certain 

references to permanent capital ratio with references to tier 1/tier 2 capital and make other 

revisions as appropriate. These revisions would seek to reduce computational, call reporting, 

shareholder reporting, and capital planning requirements.

Annual independent audits and internal controls over financial reporting: We plan 

to issue a proposed rule that would amend existing regulations concerning annual independent 

audits to include audits of internal controls over financial reporting for System institutions.

Borrower rights: We plan to issue a proposed rule to clarify disclosure and servicing 

requirements related to borrower rights.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 42 —

Limitations on bank director compensation: We plan to issue a proposed rule that would 

revise FCA regulations on compensation of bank directors to comply with the Agriculture 

Improvement Act of 2018.

Bank liquidity reserve: We plan to issue a proposed rule to amend our liquidity regulations 

to more closely align with the Basel III liquidity framework and the approach of other federal 

bank regulatory agencies.

Loan participations and territorial concurrence: We plan to issue an advance notice of 

proposed rulemaking that would consider revising loan participation requirements related to 

loans outside of chartered territories.

Similar entities: We plan to issue an advance notice of proposed rulemaking on similar-entity 

lending. Under the similar-entity lending authority, the System may participate with other 

lenders to make loans to those who are not eligible to borrow directly from the System but 

whose activities are functionally similar to those of eligible borrowers. The rulemaking would 

consider clarifying the types of activities that are similar to those of eligible borrowers, as well as 

the types of loans that would qualify under the similar-entity authority.

Cooperative principles: We plan to complete a review of cooperative principles and practices 

at System institutions.

Troubled debt restructuring (TDR) accounting standards: We plan to issue a rule to 

remove from FCA regulations the requirement to measure and report formally restructured 

loans (TDRs) due to changes in Generally Accepted Accounting Principles.

Civil money penalty adjustment: We plan to issue a final rule making the annual 

adjustment to FCA’s civil money penalties for inflation.

High-volatility commercial real estate: We plan to issue a final rule that would amend the 

tier 1/tier 2 capital rule to address a risk weight for high-volatility commercial real estate 

exposures. This rulemaking is like recent changes to the capital rules of the federal banking 

regulatory agencies, but it considers the System’s unique features.

Regulatory and policy projects completed in FY 2023 and early FY 2024

Following is a list of projects we completed in FY 2023 and early FY 2024, along with a list of 

communications we issued to System institutions to clarify our rules.

Conservators and receivers: We issued a final rule that updates certain FCA regulations and 

provides clarification on the applicability of bridge bank requirements for System banks.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 43 —

Cyber-risk management: We issued a final rule that revises our information technology 

regulations to address information security, multifactor authentication, and cybersecurity. 

Young, beginning, and small farmers and ranchers: We issued a final rule governing the 

System’s service to young, beginning, and small farmers and ranchers. 

Regulatory burden: We issued a notice and request for comment regarding outdated or 

burdensome FCA regulations.

Civil money penalty adjustment: We published a final rule to adjust FCA’s civil money 

penalties for inflation as required by the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015.

Certificates of good standing, authenticity, and merger or consolidation: We issued 

an informational memorandum to provide guidance for requesting certificates of good standing, 

authenticity, and merger or consolidation for Farm Credit institutions.

Capital request guidance: We issued an informational memorandum that provides guidance 

to System institutions on the process for submitting capital-related requests to FCA. This 

informational memorandum does not apply to Farmer Mac.

Farmer Mac capital framework: We issued an advance notice of proposed rulemaking to 

solicit comments on potential opportunities to amend and strengthen the regulatory capital 

framework for Farmer Mac.

FCS corporate activity and other prior approvals and clearances

In accordance with the Farm Credit Act and our regulations, we issue prior approvals for 

corporate and noncorporate applications. Corporate applications include requests from FCS 

institutions for us to issue new or amended charters, as well as to cancel charters because of 

mergers, consolidations, liquidations, or terminations of System status. 

Noncorporate applications include clearance and capital determination requests related to stock 

requirements and to offerings of preferred stock and subordinated debt. They also include 

requests for prior approval of funding, mission-related investments, and any new financially 

related services.

Corporate activities in FY 2023 and early FY 2024

On Nov. 1, 2022, two agricultural credit associations (ACAs) affiliated with CoBank merged: 

Farm Credit of Enid, ACA, and its subsidiaries merged with and into Farm Credit of Western 

Oklahoma, ACA, and its subsidiaries.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 44 —

On Jan. 1, 2023, two ACAs affiliated with AgFirst merged: Cape Fear Farm Credit, ACA, and its 

subsidiaries merged with and into AgCarolina Farm Credit, ACA, and its subsidiaries.

On Jan. 1, 2023, two ACAs affiliated with CoBank merged: Farm Credit West, ACA, and its 

subsidiaries merged with and into Northwest Farm Credit Services, an Agricultural Credit 

Association, and its subsidiaries. The name of the merged association was changed to AgWest, 

ACA.

On Apr. 1, 2023, two ACAs affiliated with AgFirst merged: Carolina Farm Credit, ACA, and its 

subsidiaries merged with and into AgSouth Farm Credit, ACA, and its subsidiaries.

On Oct. 1, 2023, two ACAS affiliated with CoBank merged: Farm Credit of New Mexico, ACA,

and its subsidiaries merged with and into American AgCredit, ACA, and its subsidiaries.

On Dec. 1, 2023, two ACAs affiliated with Texas merged: Ag New Mexico, Farm Credit Services, 

ACA, and its subsidiaries merged with and into Lone Star, ACA, and its subsidiaries. The name 

of the merged association was changed to AgTrust, ACA.

Projected mergers and FCS institution size

As of Jan. 1, 2024, the System had 56 direct-lender associations and four banks for a total of 60 

banks and associations. Eight service corporations and special-purpose entities (see pages 53

and 54) brings the total number of FCS institutions, including Farmer Mac, to 69. Because of

mergers and consolidations, the number of FCS associations has decreased by 33% since 2010, 

and the number of FCS banks has decreased by 20%.

Merger and combination activity has increased over the past two years. Therefore, we estimate 

that the number of direct-lender associations will continue to decrease. These mergers, coupled 

with asset growth, will increase the size of System entities. System institutions will also have 

more complex management systems and offer a broader range of financial services to their 

borrowers.

Securities offerings by individual associations during FY 2023

There were no securities offerings in FY 2023.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 45 —

Funding Corporation activity

The FCS raises funds for loans and investments primarily by selling Systemwide debt securities 

through the Federal Farm Credit Banks Funding Corporation, the fiscal agent for the FCS banks. 

In this way, funds flow from worldwide capital market investors to agricultural producers, 

agricultural cooperatives, and rural communities, providing them with efficient access to global 

resources. Systemwide debt securities are issued as discount notes, master notes, bonds, or 

designated bonds. As required by the Farm Credit Act, the System must obtain FCA approval for 

all debt issuances.

For the 12 months ended Sept. 30, 2023, the FCS issued $294 billion in Systemwide debt, 

compared with $420 billion in FY 2022 and $378 billion in FY 2021. Systemwide debt issuances 

decreased significantly in FY 2023 compared with FY 2022 primarily because of a steeply

inverted yield curve that caused a higher cost of funding for short-term debt instruments than 

that of most longer-term ones. As a result, issuance of short-term discount notes decreased 50 

percent, which caused the overall decrease in issuance for FY 2023. Call options exercised in 

FY 2023 totaled $10.2 billion, compared with $3.7 billion in FY 2022. The increase in callable 

activity occurred because the System issued a sizable amount of short-term, callable, floatingrate debt securities to meet investors’ market demands, and routinely exercised those call 

options despite the inverted yield curve.

Interest rates for Systemwide debt, compared with rates for U.S. Treasuries of similar maturities 

remained favorable for maturities of five years and less. However, interest rates for longer-term 

maturities and callable debt issuances experienced significant premiums due to persistent debt 

market volatility. Investor demand for FCS debt instruments remained strong, due in large part 

to the System’s long-standing solid financial performance, although market conditions were 

constraining at times for certain types of debt issuances. 

On Aug. 2, 2023, Fitch Ratings downgraded the long-term issuer default rating for the System 

banks to reflect the downgrade in the U.S. sovereign credit rating. However, the downgrade did 

not affect the System’s access to markets. Systemwide debt outstanding increased to $403 

billion for the fiscal year ending 2023, an increase of $25 billion from the end of FY 2022. 

At the same time, FCS debt outstanding decreased to 20.4% of the cumulative GSE debt 

outstanding at the end of FY 2023 compared with 21.4% at the end of FY 2022 because of 

outsized growth in other GSE debt outstanding, namely that of the Federal Home Loan Banks.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 46 —

The financial markets experienced significant volatility because of the rising interest rates, 

persistent inflation, negative events in the commercial banking sector, and geopolitical risks 

(wars in Ukraine and the Middle East). In 2022 and 2023, the Federal Reserve, along with other 

central banks, began aggressive actions to reduce and remove very accommodative monetary 

policies put in place during the global pandemic to try and subdue subsequent global 

inflationary pressures. In late FY 2023, global inflation pressures eased, and the Federal 

Reserve’s Summary of Economic Projections showed the potential for interest rates to decrease 

in FY 2024.
Part III 

Farm Credit System

_________________________________________________________________ _________________________________________________________________

Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 49 —

Profile of the Farm Credit System

The Farm Credit System consists of a network of borrower-owned cooperative financial 

institutions, along with related service organizations, the Federal Farm Credit Banks Funding 

Corporation, and the Federal Agricultural Mortgage Corporation. The Farm Credit System was 

created by Congress in 1916 to provide American agriculture with a dependable source of credit. 

It is the oldest of the government-sponsored enterprises (GSEs). As of Jan. 1, 2024, the System 

had four banks providing loan funds to

• 55 agricultural credit association (ACA) parent organizations, each of which generally 

has two subsidiaries — a production credit association (PCA) and a federal land credit 

association (FLCA), and

• 1 stand-alone FLCA.

The map in figure 3 shows each bank’s chartered territory.

Although legally separate, the ACA and its PCA and FLCA subsidiaries operate as an integrated 

lending business, with loans made through the subsidiaries appropriate to the authority of each 

subsidiary. The ACA, the PCA, and the FLCA are jointly and severally liable for the full amount 

of their indebtedness to the funding bank under a general financing agreement. In addition, the 

parent company and its subsidiaries pledge their respective assets as security for each other’s 

debts and obligations and share each other’s capital. 

The three associations have a common board and management and a common set of 

shareholders. Under the Farm Credit Act, ACAs make long-term agricultural mortgage loans 

and short- and intermediate-term operating loans. PCAs make short- and intermediate-term 

loans. FLCAs, which are organized as federal land bank associations, originate long-term 

agricultural mortgages. FLCAs are exempt from federal and state income taxes; ACAs and PCAs 

are not tax-exempt.

System institutions provide credit and financially related services to farmers, ranchers, 

producers or harvesters of aquatic products, and farmer-owned cooperatives. Institutions also 

make loans for agricultural processing and marketing activities, rural housing, certain farmrelated businesses, agricultural and aquatic cooperatives, rural utilities, and foreign and 

domestic entities in connection with international agricultural trade. The System raises its loan 

funds by selling debt securities in the national and international money markets. These 

securities are subject to FCA’s approval, but they are not guaranteed by the U.S. government.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 50 — 

Figure 3. The chartered territories of Farm Credit System banks as of Jan. 1, 2024

Note: CoBank, ACB, funds 16 associations in the indicated areas and serves cooperatives nationwide; Farm Credit 

Bank of Texas funds 13 associations; AgriBank, FCB, funds 11 associations; and AgFirst Farm Credit Bank funds 16 

associations. The Farm Credit System contains a total of 60 banks and associations as of Jan. 1, 2024. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 51 —

Additional System entities and service corporations

In addition to the System’s banks and associations, we are responsible for regulating and 

examining the Federal Agricultural Mortgage Corporation (Farmer Mac) and the Federal Farm 

Credit Banks Funding Corporation. We also regulate and examine the six service corporations 

organized under section 4.25 of the Farm Credit Act:3

• AgVantis, Inc.

• Farm Credit Leasing Services Corporation

• Farm Credit Financial Partners, Inc. 

• FCS Building Association

• Farm Credit Foundations

• SunStream Business Services 

Federal Agricultural Mortgage Corporation – Farmer Mac4 is a stockholder-owned, 

federally chartered instrumentality of the United States and an institution of the FCS. It was 

created in 1988 to establish a secondary market for agricultural real estate and rural housing 

mortgage loans. In May 2008, the Food, Conservation, and Energy Act of 2008 expanded 

Farmer Mac’s program authorities by allowing it to purchase and guarantee securities backed by 

rural utility loans made by cooperatives.

Farmer Mac conducts its operations through two lines of business:

• Agricultural finance, which includes Farm & Ranch and Corporate Agrifinance segments

• Rural infrastructure, which includes Rural Utilities and Renewable Energy segments

3 Section 4.25 of the Farm Credit Act provides that one or more FCS banks or associations may organize 

a service corporation to perform functions and services on their behalf. These federally chartered service 

corporations are prohibited from extending credit or providing insurance services.

4 Farmer Mac is established in law as a federal instrumentality of the FCS. However, Farmer Mac has no 

liability for the debt of any other System institution, and the other System institutions have no liability for 

Farmer Mac’s debt. Farmer Mac is organized as an investor-owned corporation, not a member-owned 

cooperative. Investors in voting stock may include commercial banks, insurance companies, other 

financial organizations, and FCS institutions. Nonvoting stock may be owned by any investor. Farmer Mac 

is regulated by FCA through the Office of Secondary Market Oversight. The director of this office reports 

directly to the FCA board on matters of policy.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 52 —

Federal Farm Credit Banks Funding Corporation: The Funding Corporation is owned by 

the System banks; it sells debt securities on behalf of the banks to raise funds for loans and other 

purposes. System banks and, indirectly, associations obtain the majority of their funds through 

the sale of these securities in the nation’s capital markets. These securities, chiefly in the form of 

bonds and discount notes, are offered by the Funding Corporation through a nationwide group 

of securities dealers and dealer banks. The Funding Corporation’s debt issuance programs 

provide the System banks with funds to lend to farmers, ranchers, agricultural cooperatives, 

rural homeowners, and rural utilities; debt issuances also provide the banks with funding for 

their other operations.

AgVantis, Inc.: AgVantis provides technology-related and other support services to 

associations in the CoBank, ACB, district. It was chartered by FCA in 2001 and is owned by 10

associations in the CoBank district. 

Farm Credit Leasing Services Corporation: The Leasing Corporation, owned by CoBank, 

provides equipment leasing services to eligible borrowers, including agricultural producers, 

cooperatives, and rural utilities.

Farm Credit Financial Partners, Inc.: Owned by four agricultural credit associations, Farm 

Credit Financial Partners provides support services to three associations affiliated with CoBank 

and two associations affiliated with AgriBank. 

FCS Building Association: The Building Association, which acquires, manages, and 

maintains facilities to house our headquarters and field office staff, was formed in 1981. It is 

owned by the System banks and is subject to the oversight and direction of the FCA board.

Farm Credit Foundations: Farm Credit Foundations provides human resource services to its 

employer-owners, including payroll processing, benefits administration, centralized vendor 

management, workforce management and operations services, corporate tax and financial 

reporting services, and retirement workshops. It is owned by 28 System entities (25 FCS 

associations, two service corporations, and one FCS bank).

SunStream Business Services: SunStream provides technology-related and other services 

to the bank and associations in the AgriBank district. Chartered by FCA in 2020, it is owned by 

the district bank, two district associations, and an ownership collaboration of eight district 

associations.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 53 —

FCS mission fulfillment

The System fulfills its overall mission by lending to agriculture and rural America. Through the 

System’s original authorization in the Federal Farm Loan Act of 1916 and subsequent revisions 

to the law, System lending authorities have evolved to include the following:

• Long-term agricultural real estate loans and rural home loans

• Short- and intermediate-term agricultural loans

• Loans to producers and harvesters of aquatic products

• Loans to certain farmer-owned agricultural processing facilities and farm-related 

businesses

• Loans to farmer-owned agricultural cooperatives

• Loans that finance agricultural exports and imports

• Loans for rural utilities

• Limited portions of loans to entities that qualify under the System’s similar-entity 

authority
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 54 —

Financial Condition and Performance

The FCS continued to be safe and financially sound, and was well-positioned to accomplish its 

mission of providing reliable credit and related services in support of agriculture and rural 

America. Through the first nine months of 2023, the System reported strong financial results,

including higher earnings, increased capital, and robust liquidity levels. The loan portfolio 

continued to perform well and nonperforming assets remained low. System growth slowed in 

2023 with loan demand affected by higher interest rates and tighter profits margins. FCS banks 

maintained reliable access to debt capital markets and held liquidity positions well above the 

regulatory minimum. 

In 2023, high inflation had eased, with sharply higher interest rates cooling the economy and 

slowing the labor market. Consumer spending remained strong despite such signs of stress as 

increasing default rates on consumer debt and higher credit-card balances. Rising interest rates 

had a negative impact on many finance-heavy sectors, including commercial real estate, 

banking, and farming. Higher mortgage rates caused a decline in residential housing starts, 

which in turn, slowed demand in housing-related sectors such as forestry and nursery

operations.

The farm economy continued to be resilient despite volatile market conditions, elevated interest 

expenses, labor-availability issues, and tighter profit margins. Net farm income in 2023 is 

expected to remain above the historic average, but margin compression has hampered 

profitability. Weaker commodity prices drove down projected cash receipts for major crops and 

livestock sectors, apart from cattle. Meanwhile, farm expenses rose as higher costs for interest, 

labor, and seed purchases offset lower fertilizer and fuel costs. Drought in the Western U.S. 

eased considerably in 2023, but dry conditions continued to challenge both crop and livestock 

producers in certain regions.

Note: All financial data in this section are as of Sept. 30, 2023, unless noted otherwise.

Earnings

The FCS earned $5.507 billion in the first nine months of 2023, a 1.1% increase from the $5.449 

billion earned in the same period last year. As table 16 shows, net income increased in 2023 

because of higher net interest income and noninterest income, although gains were mostly offset 

by higher provisions for credit losses and increased noninterest expenses.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 55 — 

Table 16. Net income (dollars in millions)

System net income First 9 

months of 

2022 

First 9 

months of 

2023 

Dollar 

change

Percent 

change

Net interest income $7,836 $8,481 $645 8.2

− Provision (reversal) for 

loan losses

(9) 464 473 (5,255.6)

= Net interest income 

after loss provision 

(reversal)

$7,845 $8,017 172 2.2

+ Noninterest income 636 781 145 22.8

− Noninterest expense 2,880 3,149 269 9.3

= Pretax income $5,601 $5,649 48 0.9

− Provision for income tax 152 142 (10) (6.6)

= Net income $5,449 $5,507 $58 1.1

Source: Third Quarter 2023 Quarterly Information Statement of the Farm Credit System, p. F-3 

Higher average interest-earning assets, which increased to $466.7 billion for the nine months 

ended Sept. 30, 2023, from $437.2 billion a year earlier, was the primary reason for the increase 

in net interest income. Net interest margin increased 3 basis points to 2.42% compared with the 

the same period a year ago (table 17). Net interest spread decreased 26 basis points to 1.95%. 

The change in net interest spread was driven by a 225-basis-point increase in the annualized 

rate on interest-bearing liabilities, which was partially offset by a 199-basis-point increase in the 

rate on total interest-earning assets.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 56 — 

Table 17. Interest margin in annualized percentages

Net interest margin First 9 

months 

of 2022 

First 9 

months 

of 2023 

Change 

(bps)

Total interest-earning assets 3.48 5.47 199

Total loans 3.91 5.84 193

Investments and other assets 1.55 3.87 232

Total interest-bearing liabilities 1.27 3.52 225

Net interest spread 2.21 1.95 (26)

Impact of noninterest-bearing items 0.18 0.47 29

Net interest margin 2.39 2.42 3 

Source: Third Quarter 2023 Quarterly Information Statement of the Farm Credit System, p.16; bps = basis points.

As table 18 shows, profitability ratios were mostly lower in 2023. The return on average assets 

declined in all districts compared with the prior year; return on average capital decreased in the

AgFirst and Texas districts but increased in the AgriBank and CoBank districts.

Table 18. Profitability across System districts for the first nine months of year

Profitability ratios AgFirst AgriBank Texas CoBank

Percentage return on average assets 2022 1.60 1.54 1.58 1.43

2023 1.22 1.51 1.36 1.38

Percentage return on average capital 2022 10.39 9.35 12.21 11.78

2023 8.84 9.60 11.29 11.97

Source: Third Quarter 2023 Quarterly Information Statement of the Farm Credit System, p. F-66. 

Note: The financial ratios are for the district bank and affiliated associations combined.

System growth

The System reported moderate year-over-year growth. FCS assets were up $28.1 billion or 6.0% 

to $492.8 billion. Much of the increase resulted from growth in the System’s loan portfolio, 

which grew by $23.5 billion or 6.5%.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 57 — 

Balances for all major loan categories (real estate mortgage, production and intermediate-term, 

agribusiness, and rural infrastructure) were up in 2023 compared with the same period a year 

ago. Production and intermediate-term and rural infrastructure lending, which increased 11.9% 

and 25.3% respectively, were the largest contributors to portfolio loan growth.

All System districts reported year-over-year increases in portfolio loan balances. The AgriBank 

district reported the largest percentage increase in volume, with loan balances growing 8.3% 

year over year. Provided in table 19 are the gross loan volume and the percentage change in 

volume for System districts.

Table 19. Gross loan growth by district and Systemwide (dollars in millions)

District Sept. 30, 2022 Sept. 30, 2023 Change in 

dollars

Percent 

change

Gross 

loans

Percent 

total

Gross 

loans

Percent 

total

AgFirst $37,493 10.4 $39,818 10.3 $2,325 6.2

AgriBank 147,849 40.9 160,168 41.6 12,319 8.3

Texas 35,999 9.9 37,336 9.7 1,337 3.7

CoBank 146,371 40.5 154,191 40.0 7,820 5.3

Insurance 

Fund and 

IntraSystem 

Eliminations

(6,033) (1.7) (6,368) (1.6) (335) 5.6

Total for 

System $361,679 100.0 $385,145 100.0 $23,466 6.5

Source: Third Quarter 2022 Quarterly Information Statement of the Farm Credit System, p. F-52; and Third Quarter 

2023 Quarterly Information Statement of the Farm Credit System, p. F-62.

As noted in figure 4 below, the System’s total assets increased by 6.0% during the 12-month 

period, down from 13.2% for the same period a year ago.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 58 — 

Figure 4. Year-over-year percent change in System assets, September 2013 – 2023 

Source: Quarterly Information Statements of the Farm Credit System.

Matching data table for figure 4

Year Year-over-year percent 

change in System assets

2013 5.5

2014 7.3

2015 7.4

2016 7.9

2017 2.3

2018 4.2

2019 5.7

2020 8.7

2021 6.7

2022 13.2

2023 6.0

5.5%

7.3% 7.4%

7.9%

2.3%

4.2%

5.7%

8.7%

6.7%

13.2%

6.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 59 —

Assets – Investments

The System’s investments totaled $76.7 billion, up 4.6% from a year earlier. As shown in table 

20, investments available-for-sale totaled $72.3 billion. Investments held-to-maturity were $4.4 

billion, including $2.5 billion for mortgage-backed securities. 

The System increased its holdings of money market instruments, U.S. agency securities, 

mortgage-backed securities, asset-backed securities, and other securities but reduced its 

holdings of U.S. Treasury securities.

During the most recent 12-month period, the weighted average yield on investments availablefor-sale increased from 2.20% to 3.64%, with yields increasing on all available-for-sale 

segments. For investments held-to-maturity, the yield increased from 1.87% to 5.45% mainly 

because of an increase in the yield on mortgage-backed securities and asset-backed securities.

Ineligible investments held by the System totaled $501 million at fair value, down from $545 

million a year ago.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 60 — 

Table 20. FCS investments (dollars in millions)

Investment classification Sept. 30, 2022 Sept. 30, 2023 Change

Amount WAY 

(%) 

Amount WAY 

(%) 

Dollars Percent WAY 

(bps)

Available 

for sale 

(fair value)

Money market 

instruments

$9,722 3.27 $10,954 5.63 $1,232 12.7 236

U.S. Treasury 

securities

22,171 1.61 17,036 2.44 (5,135) (23.2) 83

U.S. agency 

securities

1,739 2.60 2,199 3.22 460 26.5 62

Mortgagebacked 

securities

31,212 2.22 34,139 3.63 2,927 9.4 141

Asset-backed 

securities

4,235 2.53 5,881 3.83 1,646 38.9 130 

Other 

securities

1,673 2.16 2,066 3.13 393 23.5 97

Total $70,752 2.20 $72,275 3.64 $1,523 2.2 144

Held-tomaturity 

(amortized 

cost)

Mortgagebacked 

securities

$1,548 2.09 $2,465 5.17 $917 59.2 308

Asset-backed 

securities

985 1.36 1,932 5.80 947 96.1 444

Other 

securities

38 6.28 31 6.25 (7) (18.4) (3) 

Total $2,571 1.87 4,428 5.45 $1,857 72.2 358

Total All FCS 

investments $73,323 2.19 $76,703 3.74 $3,380 4.6 155

Source: Third Quarter 2022 Quarterly Information Statement of the Farm Credit System, pp. F-10 – 12; and Third 

Quarter 2023 Quarterly Information Statement of the Farm Credit System, pp. F-14 – 16. 

WAY = weighted average yield; bps = basis points.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 61 — 

Loan quality

System loans continued to perform well in 2023 and portfolio credit risk remained low. As of 

Sept. 30, System nonperforming assets totaled $2.042 billion or 0.53% of total loans and other 

property owned, as compared with $1.830 billion or 0.51% a year earlier. Prior to the System’s 

adoption of the current expected credit loss accounting guidance on Jan. 1, 2023, 

nonperforming assets included accruing restructured loans. At Sept. 30, 2022, accruing 

restructured loans and related accrued interest equaled $259 million.

In the first nine months of 2023, the System reported net loan charge-offs of $130 million 

compared with $16 million for the same period a year ago. The allowance for credit losses 

increased to $1.668 billion in the first nine months of 2023, up 8.3% from the same period in 

2022. See table 21 for additional information about the allowance for credit losses — loans and 

other loan quality measures. The System also reported $203 million of allowance for credit 

losses on unfunded commitments and $6 million of allowance for credit losses on available-forsale investments.

Although portfolio loan quality is strong, agricultural producers will likely face increased 

pressure on profitability as margins tighten. High-cost producers and those with significant 

leverage will be the most vulnerable to financial stress.

Table 21. FCS loan quality

Loan quality Sept. 30, 2022 Sept. 30, 2023 Change in 

percentage 

points 

Nonperforming assets as percentage of total 

loans and other property owned

0.51% 0.53% 0.02

Nonperforming assets as percentage of 

capital

2.64% 2.83% 0.19

Nonaccrual loans as percentage of total loans 0.36% 0.47% 0.11

ACLL as percentage of total loans 0.43% 0.43% 0.00

ACLL as percentage of nonperforming assets 84.2% 81.7% (2.50)

ACLL as percentage of nonaccrual loans 119.3% 92.2% (27.10)

Source: Third Quarter 2022 Quarterly Information Statement of the Farm Credit System, p. 21 and 24; and Third 

Quarter 2023 Quarterly Information Statement of the Farm Credit System, pp. 22 and 26. 

ACLL = allowance for credit losses — loans
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 62 — 

Liabilities, funding, and liquidity

The System’s total liabilities increased by 6.4% to $420.5 billion. See table 22 below. Short-term 

debt securities (due within one year) increased 4.7% to $143.5 billion. Systemwide debt 

securities due after one year increased 7.6% to $258.3 billion. Short-term debt securities 

represented 34.1% of the total Systemwide liabilities, down from 34.7% a year earlier.

Table 22. Systemwide debt (dollars in millions)

System debt by maturity Sept. 30, 2022 Sept. 30, 2023 Change

Dollars Percent

Systemwide discount notes due 

within one year

$26,529 $16,738 ($9,791) (36.9)

Systemwide bonds, medium-term 

notes, and master notes due within 

one year

110,520 126,785 16,265 14.7

Total short-term liabilities $137,049 143,523 6,474 4.7

Systemwide bonds, medium-term 

notes, and master notes due after 

one year

240,105 258,331 18,226 7.6

Other liabilities 18,102 18,626 524 2.9

Total liabilities $395,256 $420,480 $25,224 6.4 

Source: Third Quarter 2022 Quarterly Information Statement of the Farm Credit System, p. F-2; and Third Quarter 

2023 Quarterly Information Statement of the Farm Credit System, p. F-2.

Liquidity risk management is necessary for the Farm Credit System to ensure its ability to meet 

its financial obligations. These obligations include the repayment of Systemwide debt securities 

as they mature, the ability to fund new and existing loans, and the ability to fund operations in a 

cost-effective manner. The banks’ aggregate liquidity position increased slightly to 176 days 

from 172 days a year earlier. Each bank met the three tiers of the liquidity reserve requirements 

and exceeded the regulatory minimum of 90 days of liquidity.5

5 The first tier of the liquidity reserve must consist of enough cash and cash-like instruments to cover each 

bank’s financial obligations for 15 days. The second tier must contain enough cash and highly liquid 

instruments to cover a bank’s obligations for the next 15 days, and the third tier of the liquidity reserve 

must contain enough cash and highly liquid instruments to cover a bank’s obligations for the next 60 days.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 63 — 

The aggregate duration gap for the FCS (the sum of the banks’ duration gaps) was a positive 3.0 

months compared with a positive 3.4 months a year earlier. A duration gap of a positive six 

months to a negative six months generally indicates a small exposure to interest rate risk. An 

institution’s overall exposure to interest rate risk is a function not only of its duration gap but 

also of the financial leverage inherent in the institution’s capital structure.

Capital

System capital levels increased in 2023, with total capital as of Sept. 30 amounting to $72.3 

billion, compared with $69.4 billion a year earlier (see table 23). Retained earnings as a 

percentage of total capital declined to 80.5% compared with 83.2% a year ago. The System’s 

capital-to-assets ratio dropped to 14.6% compared with 14.9% a year ago, with asset growth 

exceeding capital growth over the past 12 months. 

Table 23. FCS capital composition (dollars in millions)

System capital Sept. 30, 2022 Sept. 30, 2023 Change

Dollars Percent

Preferred stock $3,816 $3,426 ($390) (10.2) 

Capital stock and participation 

certificates

2,119 2,115 (4) (0.2)

Additional paid-in capital 4,533 6,995 2,462 54.3

Restricted capital (Insurance Fund) 6,483 7,249 766 11.8

Accumulated other comprehensive 

income (loss)

(5,299) (5,715) (416) 7.9

Retained earnings 57,744 58,200 456 0.8

Total capital $69,396 $72,270 $2,874 4.1

Source: Data from the Third Quarter 2022 Quarterly Information Statement of the Farm Credit System, p. F-2; and 

Third Quarter 2023 Quarterly Information Statement of the Farm Credit System, p. F-2.

Note: FCA does not include the Insurance Fund as a capital component in its capital regulations. In addition, FCA 

regulations treat earnings that have been allocated to members as equities, not retained earnings. Unallocated 

retained earnings make up most of the System’s retained earnings category.

All System institutions were in compliance with FCA’s regulatory minimum capital 

requirements: 

• Common equity tier 1 capital (CET1) ratio of 4.5% of risk-adjusted assets 

• Tier 1 capital ratio of 6.0% of risk-adjusted assets 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 64 — 

• Total capital ratio of 8.0% of risk-adjusted assets

• Tier 1 leverage ratio of 4.0% of total assets, of which at least 1.5% must consist of 

unallocated retained earnings (URE) and URE equivalents

• Permanent capital ratio of at least 7.0% of risk-adjusted assets

The regulatory capital framework includes a capital cushion (capital conservation buffer) of 

2.5% above the CET1 ratio, tier 1 capital ratio, and total capital ratio requirements. The 

regulations also require a leverage capital buffer of 1.0% above the tier 1 leverage ratio 

requirements. If capital ratios fall below these buffer thresholds, FCA must approve capital 

distributions and certain discretionary compensation payments before the distributions are 

made. Table 24 shows that all banks exceeded all minimum capital regulatory requirements. 

Table 24. Regulatory capital ratios of FCS banks

Regulatory capital ratios AgFirst AgriBank Texas CoBank

Common equity tier 1 

ratio

9/30/2022 15.4 16.5 8.7 12.0

9/30/2023 14.3 16.3 8.3 11.7

Tier 1 capital ratio 9/30/2022 15.4 17.1 13.6 14.0

9/30/2023 14.3 16.8 13.0 13.4

Tier 1 leverage ratio 9/30/2022 6.0 5.1 5.9 7.0

9/30/2023 5.8 5.1 5.7 6.8 

Permanent capital ratio 9/30/2022 15.4 17.1 13.6 14.1

9/30/2023 14.3 16.8 13.0 13.5

Total capital ratio 9/30/2022 15.5 17.1 13.7 14.9

9/30/2023 14.6 16.9 13.2 14.3

Change (0.9) (0.2) (0.5) (0.6) 

Source: Data from the Third Quarter 2022 Quarterly Information Statement of the Farm Credit System, p. F-47; the 

Third Quarter 2023 Quarterly Information Statement of the Farm Credit System, p. F-57; and the Third Quarter 2022 

and 2023 Quarterly Shareholder reports for FCS banks.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 65 —

System associations also exceeded all minimum requirements, and reported capital levels as 

follows:

• CET1 capital ratio: 9.9% to 32.6%

• Tier 1 capital ratio: 12.1% to 32.6%

• Tier 1 leverage ratio: 10.4% to 32.4%

• Permanent capital ratio: 12.2% to 33.0%

• Total capital ratio: 12.5% to 33.9%
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 66 —

Young, Beginning, and Small Farmers and Ranchers

FCA supports the Farm Credit System’s mission to serve young, beginning, and small (YBS) 

farmers, ranchers, and producers and harvesters of aquatic products. As of year-end 2021, we 

defined young farmers as those who are 35 years old or younger, beginning farmers as those 

who have been farming for 10 years or less, and small farmers as those with less than $250,000 

in annual sales. 

Effective Jan. 1, 2024, FCA raised the small farmer definition from $250,000 to $350,000. Also 

in 2024, FCA will transition to a new YBS reporting system to provide a clearer picture of YBS 

lending by allowing the agency to better break down and categorize loan data. The new reporting 

system will also provide greater consistency in reporting, leverage the Farm Credit System’s 

existing data systems, and reduce the regulatory reporting burden for institutions over the long 

term.

The System’s YBS mission is outlined in the Farm Credit Act, and we have adopted regulations 

to implement the YBS provisions of the act. The Farm Credit Act and FCA regulations stipulate 

that each FCS bank must have written policies that direct each of the associations it supervises 

to have the following:

• A program for furnishing sound and constructive credit and financially related services 

to YBS farmers

• A mission statement describing the program’s objectives and specific means to achieve 

the objectives

• Annual quantitative targets for credit to YBS farmers

• Outreach efforts and annual qualitative goals for offering credit and related services that 

meet the needs of YBS farmers

An association’s board oversight and reporting are key parts of every YBS program. Each 

association must report annually to its supervisory bank on the operations and achievements of 

its YBS program, and each bank must provide to FCA an annual summary of its district 

associations’ reports. Each association also must establish an internal controls program to 

ensure that it provides credit in a safe and sound manner.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 67 —

In addition, FCA regulations require association business plans to include a marketing plan and 

strategies with special emphasis on diversity and inclusion within each market segment. 

Operational and strategic business plans must include the goals and targets for the association’s 

YBS lending. System associations must also coordinate with other government and private 

sources of credit in implementing their YBS programs. FCA’s oversight and examination 

activities monitor each institution’s assessment of its performance and market penetration in 

the YBS area.

In October of 2023, the Farm Credit Administration issued a final rule that improves Farm 

Credit System YBS programs by

• increasing direct-lender associations’ YBS activity to a diverse population of borrowers;

• reinforcing the supervisory responsibilities of the funding banks, authorized by section 

4.19 of the Farm Credit Act; and

• requiring each direct lender association to enhance the strategic plan for its YBS 

program. 

This regulation becomes effective whichever is later: Feb. 1, 2024, or at least 30 days after 

publication in the Federal Register during which either or both Houses of Congress have been in 

session. 

We continue to work with stakeholders to further improve financing opportunities for YBS 

farmers and ranchers.

Results

The following information summarizes the System’s 2022 lending service to YBS farmers, 

ranchers, and producers or harvesters of aquatic products. (See tables 25 and 26.)

In 2022, the System made a total of 313,439 new loans, totaling $134.5 billion. The total number 

of outstanding loans at year-end 2022 was 957,161, amounting to $383.3 billion.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 68 — 

Table 25. YBS loans made during 2022

YBS 

category

Number 

of loans

Percentage of 

total number of 

System loans

Dollar 

volume of 

loans in 

millions

Percentage of 

total dollar 

volume of 

System loans

Average 

loan size

Young 56,100 17.9% $13,085 9.7% $233,248

Beginning 78,742 25.1% $21,532 16.0% $273,451

Small 129,288 41.2% $19,105 14.2% $147,775

Table 26. YBS loans outstanding (as of December 31, 2022)

YBS 

category

Number 

of loans

Percentage of 

total number of 

System loans

Dollar 

volume of 

loans in 

millions

Percentage of 

total dollar 

volume of 

System loans

Average 

loan size

Young 188,756 19.7% $39,338 10.3% $208,407

Beginning 305,742 31.9% $70,857 18.5% $231,753

Small 473,549 49.5% $70,322 18.3% $148,500

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

banks. 

Note: Because the YBS mission is focused on each borrower group separately, data are reported separately for each 

of the three YBS borrower categories. Since some loans fit more than one category, adding the loans across 

categories does not produce an accurate measure of the System’s YBS lending. As noted above, FCA will transition 

to a new reporting system next year to eliminate cross reporting and allow the totals to be added.

Young: The System reported making 56,100 new loans to young farmers in 2022, and the 

volume of these loans amounted to $13.1 billion. The new loans made to young farmers in 2022 

represented 17.9% of all loans the System made during the year and 9.7% of the dollar volume of 

loans made. At the end of 2022, the System reported 188,756 loans outstanding to young 

farmers, totaling $39.3 billion. 

Beginning: In 2022, the System reported making 78,742 loans to beginning farmers. The 

volume of total new loans to beginning farmers amounted to $21.5 billion in 2022. The loans 

made to beginning farmers in 2022 represented 25.1% of all System loans made during the year 

and 16.0% of the dollar volume of loans made. At the end of 2022, the System reported 305,742 

loans outstanding to beginning farmers, totaling $70.9 billion. 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 69 —

Small: In 2022, System institutions reported making 129,288 loans, totaling $19.1 billion, to 

small farmers. The loans in 2022 to farmers in this category represented 41.2% of all loans made 

during the year and 14.2% of the dollar volume of loans made. At the end of 2022, the System 

reported 473,549 loans outstanding to small farmers, totaling $70.3 billion.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 70 —

Market Share of Farm Debt

According to the U.S. Department of Agriculture’s December 2023 forecast, total farm debt is 

estimated to have topped $520 billion at the end of 2023, up 5.0% from a year earlier and up 

39% since 2016. Commercial banks and the Farm Credit System are the primary suppliers of 

credit to farmers; other providers include life insurance companies, USDA programs, Farmer 

Mac, individuals, and merchants and dealers.

The System’s share of the $496 billion farm debt market at the end of calendar year 2022 was 

45.9%, up from 45.3% at the end of 2021. The market share for commercial banks stood at 

35.2% at the end of 2022, up from 35.0% at the end of 2021. The combined share of other lender 

groups decreased by 0.9%.

Historically, except for the high credit-stress period of the 1980s and various market 

adjustments in the 1990s, FCS institutions have typically held the largest share of the farm real 

estate debt market, while commercial banks have held the largest share of non-real estate farm 

debt. At year-end 2022, the share of farm debt secured by farm real estate was 49.1% for the 

System and 31.9% for commercial banks. At year-end 2022, the share of farm debt secured by 

collateral other than farm real estate was 39.1% for the System and 42.0% for commercial banks.
Part IV 

Performance Budget

FY 2025

_________________________________________________________________

Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 73 — 

Performance Budget Overview

Our FY 2025 performance budget reflects our commitment to maintaining a flexible regulatory 

environment that meets current and future agricultural credit needs while ensuring the safety 

and soundness of the FCS. FY 2025 will be our third year operating under the strategic plan for 

FYs 2022 to 2026. Our two core program activities, which are essential to carrying out our 

agency’s mission, remain unchanged. Our strategic goals encompass these core program 

activities:

• Policy and regulation: This program tracks the costs of achieving a regulatory 

environment that enables the System banks and associations and Farmer Mac to fulfill 

their public missions.

• Safety and soundness: This program tracks the product and service costs of 

identifying risks and mitigating those risks in a timely fashion.

For purposes of our performance budget, we established a third program activity for our 

reimbursable activities. We track these activities separately from the two agency mission 

program budgets for policy and regulation and safety and soundness.

The total performance budget for FY 2025 (see table 27) is $100.88 million and reflects a 6.5%

increase from FY 2024. 

Table 27. FCA performance budget, FYs 2023 – 2025 

Program areas FY 2023

revised budget

FY 2024

revised budget

FY 2025

proposed budget

Policy and regulation $20,815,174 $18,219,465 $19,285,196

Safety and soundness 66,997,656 75,279,997 80,371,010

Reimbursable activities* 1,097,170 1,250,538 1,218,794

Total $88,910,000 $94,750,000 $100,875,000

* In contrast to the reimbursement numbers in table 5, these totals include indirect costs.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 74 —

Policy and regulation

Our performance budget includes approximately $19.3 million for the policy and regulation 

program, a 5.8% increase from FY 2024. Most of the funds requested for policy and regulation 

in FY 2025 will support regulatory projects that were published in the Unified Agenda in the fall 

of 2023.

We will also use these funds to support other statutory and regulatory activities, including policy 

studies and market research; management of our Consolidated Reporting System, which stores 

the financial information submitted by the System institutions; and approvals of corporate 

applications, System funding requests, and mission-related investment programs.

Safety and soundness

The performance budget includes approximately $80.4 million for the safety and soundness 

program, a 6.8% increase from FY 2024. This increase is necessary because we have reallocated 

resources from reimbursable activities to meet System examination needs.

By statute, we are required to examine each FCS institution at least once every 18 months except 

Farmer Mac, which we must examine at least once a year. Examiners evaluate the overall 

condition and performance of these institutions and communicate the results to the institutions’ 

boards of directors and management through discussions and reports of examination. The 

Financial Institution Rating System ratings are evaluated and assigned to individual institutions 

at least quarterly. In FY 2025, budgeted monies will continue to support development of 

examination guidance and systemic risk oversight of System institutions, including Farmer Mac.

Reimbursable activities

During FY 2025, we expect to perform approximately $1.2 million in reimbursable work for the 

following organizations.

• Farm Credit System Insurance Corporation — We will provide services to support 

examination, information technology, human resources, and communication and public 

affairs. We will also help complete one premium audit.

• National Consumer Cooperative Bank (NCB) — We will oversee the NCB’s safety and 

soundness examinations. Costs have been negligible due to our reliance on an agreement 

with the Office of the Comptroller of the Currency.

Table 28 summarizes the costs associated with our program activities, broken down by products 

and services.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 75 — 

Table 28. FY 2025 proposed budget and full-time equivalents for program activities

Program activity Products and services Budget 

amount

FTEs

Policy and regulation Regulation and policy development $ 13,644,292 37.00

Statutory and regulatory approvals 5,640,904 15.13

Total for policy and regulation $ 19,285,196 52.13

Safety and soundness Examination $ 73,149,428 265.83

Economic, financial, and risk analysis 6,871,332 16.74

FCS data management 350,250 0.81

Total for safety and soundness $ 80,371,010 283.38

Reimbursable activities Total for reimbursable activities $ 1,218,794 4.61

All program activities Total $100,875,000 340.12
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 76 —

Our Strategic Plan Framework

The strategic goals outlined in our FY 2022 – 2026 strategic plan provide an overarching 

framework for achieving our public mission. They are clear statements of what FCA wants to 

achieve to advance its mission and address relevant national problems, needs, challenges, and 

opportunities. 

Strategic Goal 1: Ensure a sound financial system that provides a sustainable 

source of credit for agriculture and rural America. 

This strategic goal directly reinforces FCA’s mission to ensure that Farm Credit System 

institutions and Farmer Mac are safe, sound, and dependable sources of credit and related 

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

This goal also addresses three focus areas for the current planning cycle: 

• First, FCA will consider the challenges facing the System’s small versus large associations 

when evaluating merger proposals and administering its examination and regulatory 

program. 

• Second, FCA will evaluate the effectiveness of the contingency plans of System 

institutions and Farmer Mac in addressing the weather and other environmental threats 

to agriculture that have been identified through scenario testing. 

• Third, FCA will assess the preparedness of System institutions and Farmer Mac for 

cybersecurity threats and events.

Strategic Goal 2: Foster the long-term viability of the U.S. agricultural 

economy, while supporting young, beginning, and small (YBS) farmers, 

ranchers, and aquatic producers. 

This strategic goal underscores the importance of continued agricultural production in the 

United States. FCA is committed to continue promoting the long-term viability of the U.S. 

agricultural economy and encouraging Farm Credit System institutions to support young, 

beginning, and small (YBS) farmers, ranchers, and aquatic producers.

The supporting strategic objectives for each strategic goal reflect the outcome or management 

impact the agency intends to achieve. Each objective is tracked through performance goals and 

other indicators. Table 29 is a matrix of the strategic objectives associated with each strategic 

goal.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 77 — 

Table 29. FY 2025 strategic goals and strategic objectives

Strategic goal Strategic objectives

1. Ensure a sound financial system 

that provides a sustainable source of 

credit for agriculture and rural 

America.

1.1 Support a continued safe and sound System as a 

continued viable source of credit and related services for 

creditworthy and eligible borrowers.

1.2 Ensure the System makes available products and 

services to all creditworthy and eligible borrowers in a fair 

and impartial manner. 

1.3 Ensure Farmer Mac provides secondary market 

programs that increase the availability of credit and liquidity 

to agriculture, rural communities, and infrastructure.

1.4 Promote opportunities for stakeholder engagement when 

establishing and reviewing regulatory and policy proposals.

1.5 Promote System lending for, and investments in, rural 

infrastructure to foster vitality of rural communities.

1.6 Encourage board and workforce diversity at System 

institutions and Farmer Mac.

1.7 Ensure the System and Farmer Mac identify and 

implement safeguards to mitigate the potential impact of 

established and emerging risks.

2. Foster long-term viability of the 

U.S. ag economy while supporting 

young, beginning, and small (YBS) 

farmers, ranchers, and aquatic 

producers.

2.1 Promote access to YBS lending programs and financial 

services for eligible borrowers.

2.2 Encourage effective outreach by System institutions that 

promote the success of YBS farmers, ranchers, and aquatic 

producers.
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 78 — 

Performance goals and measures

Measuring the achievements

Tables 30 and 31 show the measures we will use to evaluate our efforts to carry out our mission 

in FY 2025. 

Table 30. Strategic Goal: Ensure a sound financial system that provides a sustainable 

source of credit for agriculture and rural America

Strategic 

objectives

Performance goals Measures

SO1.1 – Support a 

continued safe and 

sound System as a 

continued viable 

source of credit and 

related services for 

creditworthy and 

eligible borrowers.

SO1.1.1 – Ensure policy and 

regulatory requirements address 

safety and soundness and their 

objectives. 

SO1.1.2 – Evaluate each merger 

or re-affiliation application for 

continued safety and soundness 

for the institution and the System 

and further the objectives of the 

Farm Credit Act. 

SO1.1.3 – Employ examination 

oversight activities to ensure the 

continued safety and soundness 

of individual institutions and the 

System. 

SO1.1.a – Whether most objectives 

listed in the preamble of each final rule 

were met on the 2-year anniversary of 

the rule’s effective or implementation 

date. (Target: Yes)

SO1.1.b – Percentage of System 

institutions where supervisory 

agreement requirements are at least 

substantially complied within 18 months 

of execution. (Target: >80%)

SO1.1.c – Percentage of institutions 

with satisfactory audit and review 

programs, including institutions with 

acceptable corrective action plans. 

(Target: 100%)

SO1.1.d – Percentage of System assets 

with a 1 or 2 composite FIRS rating. 

(Target: >98%)

SO1.2 – Ensure the 

System makes 

available products 

and services to all 

creditworthy and 

eligible borrowers in 

a fair and impartial 

manner.

SO1.2.1 – Identify and eliminate 

unnecessary regulatory burdens 

and other barriers to the System’s 

ability to serve the needs of all 

eligible borrowers.

SO1.2.2 – Ensure lending 

programs continue to serve 

creditworthy and eligible to 

borrowers.

SO1.2.a – Percentage of FCS 

institutions providing products and 

services that serve creditworthy and 

eligible persons and perform outreach 

to enhance diversity and inclusion. 

(Target: 100%)

SO1.2.b – Whether FCA solicits 

comments from the public and other 

interested parties on certain guidance 

and all regulations issued by the 

agency. (Target: Yes)

SO1.2.c – Percentage of direct-lender 

institutions with satisfactory consumer 

and borrower rights compliance. 

(Target: > 90%)
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 79 — 

Strategic 

objectives

Performance goals Measures

SO1.3 – Ensure 

Farmer Mac 

provides secondary 

market programs 

that increase the 

availability of credit

and liquidity to 

agriculture, rural 

communities, and 

infrastructure.

SO1.3.1 – Develop and 

implement a dynamic 

examination, oversight, and riskmonitoring program that ensures 

the safety and soundness of 

Farmer Mac. 

SO1.3.2 – Emphasize Farmer 

Mac’s public purpose and mission 

through the evaluation of Farmer 

Mac’s mission achievement.

SO1.3.3 – Assess regulatory and 

policy guidance for Farmer Mac 

as new risks emerge, with focus 

on capital and stress testing 

policies that promote long-term 

resiliency.

SO1.3.a – Whether the Office of 

Secondary Market Oversight (OSMO) 

effectively identifies emerging risks as 

part of the examination and oversight 

process. (Target: Yes)

SO1.3.b – Whether OSMO takes 

appropriate supervisory and corrective 

actions to effect change. (Target: Yes)

SO1.3.c – Whether OSMO evaluated if 

Farmer Mac’s business plan contains 

strategies to promote and encourage 

the inclusion of all qualified loans 

(including loans to small farms and 

family farmers) in its secondary market 

programs. (Target: Yes)

SO1.3.d – Whether OSMO evaluated 

Farmer Mac’s progress toward 

achieving their mission to provide a 

source of long-term credit and liquidity 

for qualified loans. (Target: Yes)

SO1.3.e – Whether OSMO assessed 

the need for new or revised regulatory

and policy guidance for Farmer Mac as 

new risks emerged. (Target: Yes)

SO1.4 – Promote 

opportunities for 

stakeholder 

engagement when 

establishing and 

reviewing regulatory 

and policy 

proposals. 

SO1.4.1 – Continue 

communication with our 

stakeholders through meetings, 

briefings, and written 

communication. 

SO1.4.a – Whether FCA requested 

input from persons outside of FCA for 

most pre-rulemaking projects and 

proposed rules. (Target: Yes)

SO1.5 – Promote 

System lending for, 

and investments in, 

rural infrastructure 

to foster vitality of 

rural communities.

SO1.5.1 – Reinforce the 

importance of Farm Credit 

System serving rural 

infrastructure needs.

SO1.5.a – Whether FCA mentions 

importance of rural infrastructure in 

congressional testimony and public 

communications. (Target: Yes)

SO1.5.b – Whether FCA evaluated 

System institution requests for 

compliance with agency regulations and 

guidance regarding investments in rural 

infrastructure. (Target: Yes)
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 80 — 

Strategic 

objectives

Performance goals Measures

SO1.6 – Encourage 

board and workforce 

diversity at System 

institutions and 

Farmer Mac.

SO1.6.1 – Identify policy and 

regulatory obstacles for board 

and workforce diversity. 

SO1.6.2 – Ensure System 

institutions’ and Farmer Mac’s 

human capital plans, as part of 

the annual business planning 

process, incorporate board and 

workforce diversity initiatives.

SO1.6.a – Whether FCA solicits 

comments from the public and other 

interested parties on guidance and 

regulations issued by the agency. 

(Target: Yes)

SO1.6.b – Percentage of System 

institutions and Farmer Mac with 

objectives for addressing board and 

workforce diversity within the annual 

business plan. (Target: 100%)

SO1.7 – Ensure the 

System and Farmer 

Mac identify and 

implement 

safeguards to 

mitigate the 

potential impact of 

established and 

emerging risks.

SO1.7.1 – Ensure System 

institutions and Farmer Mac 

incorporate contingency plans to 

address weather and other 

environmental threats to 

operations.

SO1.7.2 – Ensure System 

institutions and Farmer Mac 

establish controls to address 

cybersecurity threats and events.

SO1.7.3 – Enhance risk analysis 

and incorporate findings in 

policymaking and examination.

SO1.7.a – Percentage of System 

institutions and Farmer Mac with 

contingency plans to ensure continued 

capital adequacy, earnings capacity, 

and access to funding. (Target: 100%) 

SO1.7.b – Percentage of System 

institutions and Farmer Mac addressing 

cybersecurity threats and controls in 

risk assessments and internal audit 

plans. (Target: 100%) 

SO1.7.c – Whether FCA publishes a 

semiannual Unified Agenda that 

outlines the agency’s planned 

regulatory actions. (Target: Yes)
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 81 — 

Table 31. Strategic Goal: Foster the long-term viability of the U.S. agricultural economy 

while supporting young, beginning, and small (YBS) farmers, ranchers, and aquatic 

producers

Strategic 

objectives

Performance goals Measures

SO2.1 – Promote 

access to YBS 

lending programs 

and financial 

services for eligible 

borrowers.

SO2.1.1 – Ensure lending 

programs continue to serve 

creditworthy and eligible YBS 

borrowers. 

SO2.1.2 – Identify best practices 

through enhanced YBS reporting. 

SO2.1.3 – Evaluate YBS 

regulations and guidance to 

support programming that meets 

the credit and financial services 

needs of eligible YBS borrowers.

SO2.1.4 – Continue to enhance 

YBS data analysis to better 

evaluate and rate the 

effectiveness of System institution 

programs in serving YBS 

borrowers and to identify further 

opportunities for improving 

service to these borrowers.

SO2.1.a – Percentage of direct-lender 

institutions with YBS programs in 

compliance with YBS regulations. 

(Target: 100%) 

SO2.1.b – Whether FCA publishes a

semiannual Unified Agenda that 

outlines the agency’s planned 

regulatory actions, including YBS, for 

the next 12 to 24 months. (Target: Yes)

SO2.1.c – Qualitative and quantitative 

improvements to YBS data quality.

(Target: Yes)

SO2.2 – Encourage 

effective outreach 

by System 

institutions that 

promote the 

success of YBS 

farmers, ranchers, 

and aquatic 

producers.

SO2.2.1 – Promote outreach 

efforts and the sharing of best 

practices to promote the success 

of YBS farmers and ranchers and 

other agricultural producers by 

System institutions. 

SO2.2.a – Percentage of System 

institutions identifying outreach efforts 

for YBS in the annual business plan. 

(Target: > 90%) 

SO2.2.b – Whether FCA facilitates 

sharing of YBS effective practices 

among System institution decision 

makers. (Target: Yes)
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 82 — 

Budgets

We track the associated costs of executing our strategic goals and objectives using two of the 

three program activities discussed earlier:

• Policy and regulation program: We established the policy and regulation program to 

track the costs of achieving a regulatory environment that enables the System, including 

Farmer Mac, to fulfill its public mission. We track costs associated with the following 

products and services:

— Regulation and policy development 

— Statutory and regulatory approvals

• Safety and soundness program: We established the safety and soundness program to 

track the product and service costs of identifying risk and taking timely corrective action. 

We track costs associated with the following products and services:

— Examination

— Economic, financial, and risk analysis

— FCS data management

Tables 32 and 33 provide the budgeted amounts for FYs 2023 to 2025 in support of our mission 

and primary program areas.

Table 32. Budgets to achieve policy and regulation program

Budget item FY 2023

revised budget

FY 2024

revised budget

FY 2025

proposed budget

Regulation and policy development $15,117,314 $12,899,998 $13,644,292 

Statutory and regulatory approvals 5,697,860 5,319,467 5,640,904

Total $20,815,174 $18,219,465 $19,285,196 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 83 — 

Table 33. Budgets to achieve safety and soundness program

Budget item FY 2023

revised budget

FY 2024

revised budget

FY 2025

proposed budget

Examination $62,614,825 $68,500,250 $73,149,428 

Economic, financial, and risk analysis 3,075,497 6,443,944 6,871,332

FCS data management 1,307,334 335,803 350,250

Total $66,997,656 $75,279,997 $80,371,010 
Farm Credit Administration FY 2025 Proposed Budget and Performance Plan

— 84 —

Performance Measurement and Reporting

Our performance measurement system evaluates our progress in achieving the goals outlined in 

our Strategic Plan for FYs 2022 to 2026. The system provides a balanced view of our overall 

performance, considering the inputs used, the products and services produced, and the 

achievement of desired outcomes. As we have shown in this report, the agency-level measures 

are tracked at the program activity level and linked to our strategic goals.

Our chief executive officer, with assistance from our chief of staff and designated office 

directors, is responsible for measuring performance by collecting and analyzing performance 

data. The chief executive officer monitors the agency’s progress and results relative to the 

agency-level measures on a quarterly basis. Periodic performance reports are provided to the 

FCA board. The annual performance report is incorporated in the FCA Performance and 

Accountability Report, which is submitted to the president and Congress

Copies are available from

Office of Congressional and Public Affairs

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

703-883-4056 

www.fca.gov

0324/50