Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

 Glen R. Smith, Board Member

MINUTES OF THE REGULAR MEETING

OF THE

FARM CREDIT ADMINISTRATION BOARD

December 14, 2017 

These minutes reflect the business transacted at the December 14, 2017, Regular Meeting of the 

Farm Credit Administration Board (FCA Board) pursuant to the Government in the Sunshine Act, 

5 U.S.C. § 552b, and the regulations of the Farm Credit Administration (FCA) adopted thereunder.

The FCA Board meeting was held at the FCA office in McLean, Virginia, beginning at 9:00 a.m. and 

concluding at 10:26 a.m. Members of the Board present were:

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Member

 Glen R. Smith, Board Member

The above named constituted the entire Board of Directors.

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

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

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

Chairman Tonsager welcomed new FCA Board Member Glen R. Smith and conducted the official 

swearing in for Mr. Smith. 

Chairman Tonsager recognized that Office of Regulatory Policy Director Gary Van Meter will retire at 

the end of the month and thanked him for his service.

Chairman Tonsager then called the meeting to order.

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

requirements of the Government in the Sunshine Act. 

1
Chairman Tonsager reviewed the published Agenda. (A copy of the Public Announcement publishing 

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

Mr. Hall moved to adopt the Agenda as published. 

Mr. Smith seconded the motion.

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

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

Mr. Smith noted that the Agenda did include portions of the meeting that should be closed to the 

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

be closed at that point. 

Mr. Hall seconded the motion.

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

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

OPEN SESSION

Approval of Minutes

Minutes for November 9, 2017

(BM-14-DEC-17-01) 

Mr. Hall moved to approve the minutes for the November 9, 2017 FCA Regular Board Meeting. 

Mr. Smith seconded the motion.

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

The Secretary polled the Board Members and the motion carried unanimously. (BM-14-DEC-17-01) 

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

REPORTS

Quarterly Report on

Economic Conditions and Farm Credit System (FCS) Conditions

Dennis Shields of the Office of Regulatory Policy and Hal Johnson of the Office of Examination

presented the Quarterly Report on Economic Conditions and FCS Conditions. 

2
Chairman Tonsager asked if there were any questions or further discussion from the Board. 

There were no further questions or discussion. 

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

Semi-Annual Report on Office of Examination Operations

Hal Johnson of the Office of Examination presented the Semi-Annual Report on Office of Examination 

Operations.

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

There were no further questions or discussion. 

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

CLOSED SESSION

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

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

Examination in Closed Session. 

Chairman Tonsager convened the closed session of the meeting at 9:55 a.m. and instructed the 

Secretary to activate the electronic recording device so that the proceedings of the Closed Session 

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

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

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

properly closed to the public. 

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

Members of the Board present were:

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

Glen R. Smith, Board Member

The above named constituted the entire Board of Directors.

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

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

3
Office of Examination Quarterly Report

Robert Coleman and Roger Paulsen of the Office of Examination presented the update on OE 

Supervisory and Oversight Activities. 

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

There were no further questions or discussion. 

ADJOURNMENT

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

entertain a motion to adjourn the meeting.

Mr. Smith moved that the meeting be adjourned.

Mr. Hall seconded the motion.

Chairman Tonsager called the question. 

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

The meeting adjourned at 10:26 a.m.

NOTATIONAL VOTE ACTIONS 

There were two notational vote actions approved by the FCA Board from November 9, 2017, through 

December 13, 2017 as follows:

Item Number Action Date Voting Results Subject

NV 17-29 11/16/2017 Approved Farm Credit System Building Association 2018 Budget and Assessments 

NV 17-30 11/30/2017 Approved The board voted not to object to Compeer Financial, ACA’s payment 

of cash patronage and cash dividends and its retirement of certain 

purchased and allocated equities. The board took this vote under a 

condition of the recent merger involving the association.

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

Meeting of the Farm Credit Administration Board held on December 14, 2017. 

_________/s/________________ _________/s/________________

Dallas P. Tonsager Dale L. Aultman

Board Chairman and Chief Executive Officer Secretary to the Board

 Approved: _January 11, 2018___

4
Exhibit A

Page 1 of 2 

STAFF PRESENT AT THE 

FCA REGULAR BOARD MEETING

December 14, 2017

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

 Glen R. Smith, Board Member

OFFICE

OPEN 

SESSION

CLOSED 

SESSION

Office of the Board

Aultman, Dale X X

Batta, Todd X X

Kramp, Kevin X X

Calhoun, Gaye X

Corey, Kathryn X

Buccolo, Deb X

Stokke, Mike X X

COO

Hoffman, William X X

OIT

Golley, Jerry X X

OCPA

Delancey, Toni X X

Middleton, Russell X

Quinn, Chris X X

OSMO

Rea, Laurie X X

Hudson, Bruce X X

Bravenec, Bill (OE Rotational) X X

Greenlee, Angela (OE Rotational) X X

OGC

Rawls, Charles X X

Donner, Mary Alice X

Strickland, Joy X X

5
 Exhibit A

Page 2 of 2

OFFICE OPEN 

SESSION

CLOSED 

SESSION

OE

Coleman, Robert X X

Paulsen, Roger X X

Johnson, Hal X X

OIG

Laguarda, Wendy X X

Cerne, Sonya X X

ORP

Mardock, Barry X X

Koenig, Steve X X

Shields, Dennis X X

Johansen, Mark X X

OCFO

Smith, Stephen X X

Gandy, Doug X X

OAS

Fowlkes, Jerome X X

Bell, Vonda X X

FCSIC

Rubin, Howard X X

Wynn, Wade X X

Pfitzinger, Rick X X

GENERAL PUBLIC 5

6
Exhibit B 

Farm Credit Administration Farm Credit Administration

 1501 Farm Credit Drive McLean, Virginia 22102-5090

 

PUBLIC ANNOUNCEMENT OF

MEETING SUBJECT TO THE GOVERNMENT IN THE SUNSHINE ACT

Farm Credit Administration Board

Regular Meeting

December 14, 2017 

Summary: Notice is hereby given, pursuant to the Government in the Sunshine Act (5 U.S.C. Sec. 552b(e) (1)), of the 

forthcoming regular meeting of the Farm Credit Administration Board.

Date and Time: The regular meeting of the Board will be held December 14, 2017. The meeting is scheduled to be held 

at the office of the Farm Credit Administration in McLean, Virginia, from 9:00 a.m. until such time as the Board may 

conclude its business.

Address: Farm Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102-5090. Submit attendance 

requests via e-mail to VisitorRequest@FCA.gov. See SUPPLEMENTARY INFORMATION for further information about 

attendance requests. 

For Further Information Contact: Dale L. Aultman, Secretary to the Farm Credit Administration Board (703) 883-4009. 

TTY is (703) 883-4056.

Supplementary Information: Parts of this meeting of the Board will be open to the public (limited space available), and 

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

In your e-mail include: name, postal address, entity you are representing (if applicable), and telephone number. You will 

receive an e-mail confirmation from us. Please be prepared to show a photo identification when you arrive. If you need 

assistance for accessibility reasons, or if you have any questions, contact Dale L. Aultman, Secretary to the Farm Credit 

Administration Board, at (703) 883-4009. The matters to be considered at the meeting are:

OPEN SESSION

Approval of Minutes

1 November 9, 2017 

Reports

2 Quarterly Report on Economic Conditions and FCS Conditions

3 Semi-Annual Report on Office of Examination Operations

CLOSED SESSION

4 Office of Examination Quarterly Report1

_ _December 4, 2017_______ _________/s/________________

 Date Dale L. Aultman

 Secretary to the Board

_________________________

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

7
Exhibit C 

Farm Credit Administration 1501 Farm Credit Drive

 McLean, Virginia 22102-5090

 (703) 883-4000

BOARD ACTION ITEM

 

FCA BOARD ACTION ON

Minutes for November 9, 2017 Regular Board Meeting

BM-14-DEC-17-01

Effective Date: December 14, 2017

Effect on Previous Action: None

THE FCA BOARD HEREBY:

 

Approves the minutes for November 9, 2017, Regular Board Meeting as submitted.

DATED THIS 14th DAY OF DECEMBER 2017 

BY ORDER OF THE BOARD

 

____________/s/__________________

Dale L. Aultman

Secretary to the Board 

8
FCA Board Meeting 

December 2017

Quarterly Report on 

FCS Condition

December 14, 2017

Dennis Shields

Hal Johnson Exhibit D

9
Economic Conditions Affecting 

the Farm Credit System

Dennis A. Shields

Senior Agricultural Economist

Office of Regulatory Policy

10
Overview

 Current favorable macroeconomic conditions

 Farm income in 2017 near historical average, but debt 

servicing and liquidity remain a concern

 Lower land values in Midwest and Great Plains

 Commodity outlook: large supplies, strong export 

competition, demand is key 

 Trade agreements and farm policy under review

3

11
Global economic growth is underway 

in U.S. agricultural markets

2.0 1.7

5.9

1.5 1.3 1.6

2.6

1.8

0

1

2

3

4

5

6

7

World U.S. China Canada Mexico Japan South Korea Europe

Real gross domestic product per capita

% change 2015 2016 2017F 2018F

4

Source: USDA/ERS using data and forecasts from Global Insight, International Monetary Fund, and Oxford Economics. 

7-year global expansion underpins agricultural export demand

12
U.S. agricultural exports rebound 

from 2016; “bulk” volume expands 

141.1 152.3 139.8

129.6

140.5 140.0

0

50

100

150

FY2013 2014 2015 2016 2017 2018F

$ billion

Record 

U.S. total

exports = 

Bulk 

exports

Million metric tons of wheat, rice, coarse grains, soybeans, cotton, and unmanufactured tobacco.

Recent low =

5

93.5 134.6 134.8 142.0 157.2 149.1

Source: USDA/ERS Outlook for U.S. Agricultural Trade. 

13
Favorable trends for U.S. personal 

income and unemployment rate

6

% change %

2016 1.4 4.9

2017F 1.4 4.4

2018F 2.4 4.1

Source: Consensus Economics, Inc.

U.S. real 

disposable 

personal income

Unemployment 

rate

14
Farm input cost indicators remain 

mostly in check

7

Percent, 10-year Treasury rate

Sources: Federal Reserve Bank of St. Louis and U.S. Bureau of Labor Statistics. 

Producer price index (1979 = 100), nitrogen fertilizer

15
2017 

forecast = 

$96.9

$55

$75

$95

$115

$135

$155

$175

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Real net cash income

Average 1960-2016

Real farm income settles on 

long-term average

8

$ bil. (adj. to 2017)

Source: USDA/ERS. 

16
2017 

forecast =

3.97

0

1

2

3

4

5

6

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Debt / net cash income

Average 1960-2016

Farm debt remains high relative to 

net cash income

9

Ratio

Source: USDA/ERS. 

17
Cropland values continue to decline 

in the Corn Belt and Northern Plains

10

0

2,000

4,000

6,000

8,000

2007 09 11 13 15 17

Cropland values

U.S. average

Corn Belt

Pacific

N. Plains

$/acre

Source: USDA/NASS.

 U.S. average cropland 

value is unchanged in 

2017

 Declines in Corn Belt 

and Northern Plains

 Increases in most other 

regions

18
Rented farmland dominates major 

producing areas 

11

Share of farmland that is rented  Rented farmland is 

concentrated in several 

areas, including the Midwest 

and Great Plains

 Small declines in cash rent 

for 2017

 Cash renters have fewer 

options when facing liquidity 

problems

Source: USDA/ERS using 2012 Census of Agriculture. 

19
Crop outlook: Farm prices for fruit 

and tree nuts remain elevated

12

Index of prices received by growers, 2011=100

Source: USDA/NASS.

 Upward trend in fruit and 

tree nut prices through 

2014

 Volatile vegetable prices

 Labor availability/cost is 

a major concern

20
Corn and bean prices move sideways

13

Corn price, $ per bushel

Sources: USDA/NASS; USDA baseline projections (crop year) released 11/28/17.

Soybean price, $ per bushel

2015 2016 2017F 2018F

Price ($/bu.) 3.61 3.36 3.20 3.30

Market return 

above variable 

cost ($/acre)

271 253 232 236

2015 2016 2017F 2018F

Price ($/bu.) 8.95 9.47 9.30 9.40

Market return 

above variable 

cost ($/acre)

256 320 287 279

21
Wheat prices remain under pressure

14

Wheat price, $ per bushel

2015 2016 2017F 2018F

Price ($/bu.) 4.89 3.89 4.60 4.60

Market return 

above variable 

cost ($/acre)

96 89 98 100

Sources: USDA/NASS; USDA baseline projections (crop year) released 11/28/17.

22
Calf prices rebound from 2016 lows; 

hog prices strengthened in mid-2017

15

Calf price, $ per hundredweight Hog price, $ per hundredweight

2015 2016 2017F 2018F

Price ($/cwt) 263 166 169 167

Return above 

variable cost 

($/head)

265 -30 54 -34

2015 2016 2017F 2018F

Price ($/cwt) 53.53 49.64 52.31 48.07

Return above 

variable cost 

($/head)

7.26 0.10 17.26 10.96

Sources: USDA/NASS; USDA baseline projections released 11/28/17; margins from Informa Economics IEG.

23
Milk prices stay between decade’s 

highs and lows 

16

Milk price, $ per cwt

2015 2016 2017F 2018F

Price ($/cwt) 17.12 16.30 17.70 17.35

Return above 

total cost 

($/cwt)

0.16 0.04 1.28 -0.09

Sources: USDA/NASS; USDA baseline projections released 11/28/17; margins from Informa Economics IEG.

24
Managing farm risk: Government 

assistance following natural disasters

17

Hurricanes, floods, drought, and wildfires in 2017

 Federal crop insurance indemnity depends on coverage 

selected by producer

 Noninsured Crop Disaster Assistance Program (NAP) is 

generally available where crop insurance is not

 Disaster programs for livestock-related losses, trees and 

vines, and farmland rehabilitation

 Agriculture Risk Coverage revenue program has a county 

yield component

 Emergency loans are available in disaster counties
Farm policy review on the horizon

Farm Bill deliberations in 2018

 Possible “tweaks” to improve operation of farm 

programs

 Challenges to crop insurance subsidies

 Possible credit title

 Calls for more agricultural research dollars

18

26
U.S. agricultural trade policy in flux

 Administration halted U.S. participation in 

Trans-Pacific Partnership agreement

 New emphasis on bilateral agreements

 Renegotiation of North American Free Trade 

Agreement

 Some customers reportedly seeking alternative 

suppliers

19

27
Potential issues that could cause 

some pain (or gain) in 2018

 Demand for agricultural commodities

 Geopolitical risks; oil or other shocks that drive up input 

costs and/or adversely affect trade and farm prices

 Rise in interest rates that boosts expenses and reduces 

land values 

 Changes in crop insurance subsidies and farm policy

 Trade policy that shifts U.S. export potential to 

competitors 

Low-cost U.S. producers continue to prosper

20

28
Questions

THANK YOU

29
Farm Credit System 

Condition and Performance

as of 

September 30, 2017

Hal Johnson

Senior Financial Analyst

Office of Examination

30
Topics

23

 System Growth

 Loan Portfolio

 Earnings

 Capital

 FIRS

31
System growth slows in 2017

Source: FCS Quarterly Information Statements 24

186

214 215

230 230

247

261

283

304

320 322

143

161 165 175 175

192

201

217

236

249 251

$ billions

 Total System Assets

Total Gross Loans

13.5%

15.7%

4.3%

0.8%

5.4%

2.5%

5.4% 6.1% 5.4%

8.4%

3.5%

9.4%

10.6%

0.5%

2.2%

-2.7%

6.2%

1.2%

3.5%

4.5%

2.6% 1.0%

% Change - YTD Ave. Earning Assets

% Change - YTD Loan Balances

32
Loan balances up slightly in 2017; growth 

rates lag 2016 for most loan types

25 Source: FCS Quarterly Information Statements

District YTD-'15 YTD-'16 YTD-'17

AgFirst District (11%) 4.2% 3.9% 2.8%

AgriBank District (39%) 3.6% 3.0% 1.6%

CoBank District (41%) 5.2% 1.7% -0.5%

Texas District (9%) 6.1% 4.4% 3.6%

Total FCS 4.5% 2.6% 1.0%

Loan Growth by District 

(% change year-to-date through September)

2.6%

4.9%

-1.1%

1.0%

2.6%

1.0%

2.8%

0.1%

-3.4%

1.3%

Total Gross

Loans

Real Estate

 Mortgage

[47%]

Production &

 Intermediate

[20%]

Agribusiness

[15%]

Other

[18%]

YTD '16 YTD '17

2017 Loan Growth by Loan Type

(% change year-to-date through September) 

33
Loan quality remains favorable

26 Source: FCS Quarterly Information Statements

2,416

3,535 3,386

2,997

2,608

2,040

1,737 1,629

1,962 2,036

1.50%

2.14% 1.93% 1.72%

1.36%

1.01% 0.80% 0.69% 0.79% 0.81%

 Nonaccrual Loans ($M)

 Other Nonperforming Loans ($M)

Nonperforming Loans as a % of Gross Loans

Nonperforming Loans as a % of Gross Loans

• Nonperforming loans equaled 

0.81% of System loans outstanding 

• 93.6% of System loans were 

classified acceptable 

• Loan delinquencies were 0.22% of 

accruing loans

• The System’s allowance for loan 

losses equaled 79% of 

nonperforming loans

• Total capital and the allowance for 

loan losses was 22.7% of System 

loans at quarter-end

Portfolio Credit Quality

as of September 2017

34
System’s financial condition is 

sound; earnings stable

27 Source: FCS Quarterly Information Statements

2,370 

2,018 

2,633 

2,994 3,158 

3,499 3,569 3,481 3,589 3,716 

124 

733 

474 

352 

188 

9 7 87 

218 188 

System Net Income

Provisions for Loan Losses

Year-to-date through September ($M)

• For the 1st nine months of 2017, 

System net income equaled $3.7 

billion, up 3.5% from the same 

period a year ago

• YTD loan loss provisions remained 

low at $188 million, down slightly 

from the same period a year ago

• Net interest spread decreased 5 

basis points, primarily due to debt 

costs rising faster than the rate on 

earning assets

Earnings

YTD through September 2017

35
Stable earnings support 

increased capital levels

28 Source: FCS Quarterly Information Statements

• System capital as a percentage of 

total assets was 17.3% compared 

to 16.7% at September 2016

• Retained earnings as a percentage 

of total capital equaled 78.5% 

• System liquidity equaled 172 days 

of coverage. At September 30, days 

of available liquidity for the four 

funding banks ranged from 145 to 

205 days

Capital and Liquidity

as of September 2017

33.0 

35.9 

38.5 

41.7 

45.8 

48.9 

52.4 

55.5 

15.0%

15.8%

16.1%

16.5% 16.9% 16.8% 16.7%

17.3%

Restricted Capital

Total Capital less Restricted

Restricted capital represents capital associated with the Insurance Fund.

Capital-to-Asset Ratio

Total System Capital ($B)

36
System FIRS ratings

29

FIRS Ratings

• Composite FIRS ratings reflect 

the System’s sound financial 

condition and favorable portfolio 

credit quality 

• Almost 95% of System Banks 

and Associations have a 

Composite FIRS rating of 1 or 2

• 3 rated institutions account for 

less than 1.5% of total System 

assets

Source: FCA's FIRS ratings database

29 30 37 43 44 46 44 44 42 39 

46 44 

38 31 32 29 31 31 29 30 

12 12 10 8 3 3 2 2 3 4 

2 1 1 

1 

Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Mar-17 Jun-17 Sep-17

1 Rated 2 Rated 3 Rated 4 Rated

Composite FIRS Ratings - System Banks & Associations

Ratings Trend Current Year Ratings

37
Summary and final points

 Risks for agriculture:

• Low cash grain prices, softening Midwest cropland values, 

rising interest rates, farm debt and income levels, agricultural 

trade policies, supply vs. demand for agricultural commodities

 The System is financially strong and well-capitalized

 Portfolio loan quality continues to be good, but certain 

agriculture sectors under stress

 System institutions are well-positioned for the current 

challenges facing agriculture and have substantial 

risk-bearing capacity

30

38
Questions

THANK YOU

39
FCA Board Meeting 

December 2017

Semi-Annual Report on 

Office of Examination 

Operations

December 14, 2017

Hal Johnson

Office of Examination

Exhibit E

40
Highlights of OE Operations

2

 Operating Plan Objectives

 OE Budget Performance Results

 Staffing Update

 Summary

41
2017 Operating Plan Objectives

Risk Supervision & Examination Activities

• Onsite at 66 associations (90%), all funding banks, 6 other 

System entities, Farmer Mac, and the National Cooperative Bank

• Issued 57 Reports of Examination and 42 Interim Activity Letters

• 4 institutions are under a higher level of supervisory oversight

• Completed 2017 Compliance Horizontal Examination Activity (HEA)

• Issued in FY 2017: 

o 2016 Compliance and Cyber security HEA results

o 2016 Shared Assets Report and

o 2016 Loan Underwriting Standards Report 3

42
2017 Operating Plan Objectives

 Risk Supervision & Examination Initiatives

• New Capital Regulations

o Issued IM on Implementation of Capital Framework with 

new FIRS benchmarks (November 10, 2016)

o Updated related Examination Manual sections & workpapers

o Issued Talking Points and provided examiner training 

o Completed systemic analysis of the new capital ratios 

o Reviewed and validated System capital ratio calculations

• Internal controls

o Issued ICFR Talking Points (1)

o Lending and loan servicing controls

(1) ICRF – Internal Control over Financial Reporting 4

43
2017 Operating Plan Objectives

 Risk Supervision & Examination Initiatives (cont.)

• Credit and collateral risk:

o Talking Points on collateral risk, risk ID and loan servicing 

o Systemic risk analysis report and Talking Points

o Memorandum to FCS on Attributed Customer Exposures

• Examination Manual modules

o Information Technology & Security

o Affirmative Action Program Plan

o Corporate Governance

o Criminal Referral

• Informational Memorandum

s

5
2017 Operating Plan Objectives

 Public Mission as GSE

• Updated YBS Examination Manual module and related tools

 Human Capital 

• Integrated Job Analysis results into Commissioning Program 

• Reviewed Career Path Directive 52

• Supported Agency human capital goal

 Operational Efficiency & Effectiveness

• Continued focus on developing and leveraging available 

technology (e.g., Loan Database, EDGe, and risk project tools)

6

45
OE Budget Results (Fiscal Year 2017)

7

$31.5 $31.3 

Budget Actual

Fiscal Year 2017 

Actual OE 

spending 

within 

Operating 

Budget 

parameters

($ millions)

 Travel Budget

♦ FY 2017 Travel Dollars Used 95.2%

89.5%

 FTEs

♦ Budgeted Full Year FTE's 177.8

♦ Actual Full Year FTE's 175.7

(Over)/Under Budget 2.1

♦ FY 2017 Travel Days Used

46
Staffing Update

8

Total OE Staff Actual Planned Variance

Beginning FY 2017 177 178 (1)

Attrition / Retirement (1) (17) (19) 2

Hirings 10 19 (9)

Ending FY 2017 170 178 (8)

Commissioned Examiners Actual Planned Variance

Beginning FY 2017 90 90 0

Attrition / Retirement (2) (10) (8) (2)

Hirings 0 0 0

Newly Commissioned (3) 4 8 (4)

Adjustments (1) 0 (1)

Ending FY 2017 83 90 (7)

(1) There have been 3 additional staff departures since September 30.

(2) One of the 3 additional staff departures noted above was a commissioned examiner 

(3) Three examiners were newly commissioned in October.

47
Summary

 Accomplished examination objectives as planned while 

maintaining a strong onsite risk supervision and oversight 

presence

 Significant program activities, examination guidance, 

System communications, and risk analyses were completed 

as part of accomplishing our OE operating objectives 

 Recruiting and developing staff remains a priority

 Executed OE operating objectives within approved budget 

parameters

9

48
Discussion

THANK YOU

49
Exhibit F 

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

 

 

CERTIFICATE OF CLOSED MEETING

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

hereby certifies that the Farm Credit Administration Board regular meeting of December 14, 2017, 

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

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

and (9).

 

 ___________/s/____________________ Date: December 14, 2017 

 Charles R. Rawls

General Counsel 

50