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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

May 10, 2018

These minutes reflect the business transacted at the May 10, 2018, 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 10:30 a.m. Members of the Board present were:

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Member

Glen R. Smith, Member

The above named constitute the full Board.

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

Board; staff of the FCA and the Farm Credit System Insurance Corporation; and five members of 

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

Chairman Tonsager welcomed 15 Associate Examiners, and three instructors, from the Office of 

Examination, who were observing the Open Session of the Board Meeting.

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

the requirements of the Government in the Sunshine Act. 

Board Chairman 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, Board Chairman Tonsager called the question.

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

closed as shown on the Agenda.

Mr. Hall seconded the motion.

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

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

OPEN SESSION

Approval of Minutes

Minutes for April 12, 2018

(BM-10-MAY-18-01)

Mr. Hall moved to approve the minutes for the April 12, 2018, FCA Regular Board Meeting.

Mr. Smith seconded the motion.

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

The Secretary polled the Board Members and the motion carried unanimously. (BM-10-MAY18-01)

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

New Business

Standards of Conduct Proposed Rule

(BM-10-MAY-18-02)

Jacqui Melvin of the Office of Regulatory Policy (ORP), and Mary Alice Donner of the 

Office of General Counsel (OGC) presented the Standards of Conduct Proposed Rule.

Board Chairman Tonsager opened the discussion for questions by the board.

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

their recommendation. Staff provided their recommendation.

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

Mr. Smith moved to approve the Standards of Conduct Proposed Rule as recommended by staff.

Mr. Hall seconded the motion.

Board Chairman Tonsager asked if there was any further discussion.

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

The Secretary polled the Board Members and the motion carried unanimously. (BM-10-MAY18-02)

(A copy of the official “Board Action Item” is attached as Exhibit D.)
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Investment Eligibility Final Rule

(BM-10-MAY-18-03)

J.C. Floyd and David Lewandrowski of ORP and Richard Katz of OGC presented the 

Investment Eligibility Final Rule.

Board Chairman Tonsager opened the discussion for questions by the board.

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

their recommendation. Staff provided their recommendation.

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

Mr. Hall moved to approve the Investment Eligibility Final Rule as recommended by staff.

Mr. Smith seconded the motion.

Board Chairman Tonsager asked if there was any further discussion.

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

The Secretary polled the Board Members and the motion carried unanimously. (BM-10-MAY18-03)

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

CLOSED SESSION

Board Chairman Tonsager noted that this was a Closed Session and ensured that nonessential 

staff were not in the room so the Board could meet in Closed Session with the Office of 

Secondary Market Oversight.

Board Chairman Tonsager convened the closed session of the meeting at 9:31 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. 

Board 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.)

Office of Secondary Market Oversight Periodic Report

Laurie Rea and Bill Bravenec of the Office of Secondary Market Oversight presented the 

OSMO Periodic Report.

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

Board.

There were no further questions or discussion. 
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ADJOURNMENT

There being no further business to come before the Board, 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.

Board Chairman Tonsager called the question.

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

The meeting adjourned at 10:30 a.m.

NOTATIONAL VOTE ACTIONS

There were three notational vote actions approved by the FCA Board from April 13, 2018, 

through May 9, 2018 as follows:

Item 

Number

Action 

Date

Voting 

Results

Subject

NV 18-05 05/02/2018 Approved Delegation for reporting of the director of the Office of Secondary 

Market Oversight

NV 18-06 05/03/2018 Approved No objection to a proposed offering circular of the Farm Credit 

Bank of Texas for the issuance of stock

NV 18-07 05/07/2018 Approved Modification to FCA’s Locality Rates

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

Meeting of the Farm Credit Administration Board held on May 10, 2018.

________/s/______________

Dallas P. Tonsager

Board Chairman and Chief Executive Officer

________/s/_____________

Dale L. Aultman

Secretary to the Board

Approved: _June 14, 2018__
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Exhibit A

STAFF PRESENT AT THE

FCA REGULAR BOARD MEETING

May 10, 2018

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

Kramp, Kevin X X

Morris, James X X

Batta, Todd X X

Corey, Kathryn X

Roque-Brehm, Awilda X

Calhoun, Gaye X

COO

Hoffman, William X X

OIT

Golley, Jerald X X

OCPA

Stokke, Michael X X

OSMO

Rea, Laurie X X

Connor, Joe X

Bravenec, Bill X X

OGC

Rawls, Charles X X

Grahn, David X

Donner, Mary Alice X

Katz, Richard X

OE

Coleman, Robert X X

Paulsen, Roger X X

Adolfson, Stephen X

Austin, Danielle X

Beemer, Evan X

Buckley, Alex X

Burkhard, Rachel X

Dombrowski, Lori X

Harder, Brent X

Heitzer, Sam X

Littleton, Morgan X

Martinez, Eric X

Ready, Cole X

Rodriguez, Sylvia X

Strayer, Daniel X

Stroud, Carly X
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OFFICE OPEN 

SESSION

CLOSED 

SESSION

Wayland, Tiffany X

Wilhite, Sharon X

Hanson, Angela X

Muller, Jody X

OIG

Laguarda, Wendy X X

ORP

Johansen, Mark X X

Mardock, Barry X X

Lewandrowski, David X

Melvin, Jacqui X

Floyd, J.C. X

OCFO

Smith, Stephen X X

OAS

Fowlkes, Jerome X X

FCSIC

Rubin, Howard X X

Pfitzinger, Rick X X

GENERAL PUBLIC 5 N/A
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Exhibit B

Farm Credit Administration 1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

PUBLIC ANNOUNCEMENT OF

MEETING SUBJECT TO THE GOVERNMENT IN THE SUNSHINE ACT

Farm Credit Administration Board

Regular Meeting

May 10, 2018

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 May 10, 2018. 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. 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 April 12, 2018

New Business

2 Standards of Conduct - Proposed Rule

3 Investment Eligibility - Final Rule

Closed Session

4 OSMO Periodic Report1

______April 30, 2018______

Date

______________/s/_____________

Dale L. Aultman

Secretary to the Board

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

Farm Credit Administration

BOARD ACTION ITEM

1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

FCA BOARD ACTION ON

Minutes for April 12, 2018 Regular Board Meeting

BM-10-MAY-18-01

Effective Date: May 10, 2018

Effect on Previous Action: None

THE FCA BOARD HEREBY:

Approves the minutes for April 12, 2018, Regular Board Meeting as submitted.

DATED THIS 10th DAY OF MAY 2018

BY ORDER OF THE BOARD

___________/s/___________________

Dale L. Aultman

Secretary to the Board
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Exhibit D

Farm Credit Administration

BOARD ACTION ITEM

1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

FCA BOARD ACTION ON

Standards of Conduct Proposed Rule

BM-10-MAY-18-02

Effective Date: May 10, 2018

Effect on Previous Action: None

THE FCA BOARD HEREBY:

• Approves the proposed rule that would replace FCA’s regulations in 

Part 612, Subpart A, with a new rule to require Farm Credit System 

institutions to develop a Standards of Conduct Program and adopt a 

Code of Ethics that puts into practice core ethical values as part of its 

corporate culture; and

• Authorizes staff to make any technical or grammatical changes that 

may be necessary prior to publication in the Federal Register.

DATED THIS 10th DAY OF MAY 2018

BY ORDER OF THE BOARD

____________/s/__________________

Dale L. Aultman

Secretary to the Board
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Exhibit E

Farm Credit Administration

BOARD ACTION ITEM

1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

Investment Eligibility Final Rule

BM-10-MAY-18-03

Effective Date: May 10, 2018

Effect on Previous Action: None

THE FCA BOARD HEREBY:

• Approves the final rule that would amend FCA regulations at Part 

615, Subpart E, governing eligible investments and investment 

management at Farm Credit banks and associations, and make 

conforming changes to other regulations in parts 611 and 615; 

and

• Authorizes staff to make any technical or grammatical changes

that may be necessary prior to publication in the Federal Register.

DATED THIS 10th DAY OF MAY 2018

BY ORDER OF THE BOARD

__________/s/____________________

Dale L. Aultman

Secretary to the Board
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Exhibit F

Farm Credit Administration 1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

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 

May 10, 2018, 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).

____May 10, 2018_________

Date

___________/s/______________

Charles R. Rawls

General Counsel