Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Proposed Rules 36261 

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Signing Authority 

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Department of Energy. 

[FR Doc. 2022–12787 Filed 6–15–22; 8:45 am] 

BILLING CODE 6450–01–P 

FARM CREDIT ADMINISTRATION 

12 CFR Parts 614 and 620 

RIN 3052–AD54 

Loan Policies and Operations 

AGENCY: Farm Credit Administration. 

ACTION: Proposed rule. 

SUMMARY: The purpose of the proposed 

rule is to increase direct lender 

associations’ Young, Beginning, and 

Small farmer and rancher (YBS) activity 

and reinforce the supervisory 

responsibilities of the funding banks, 

authorized by section 4.19 of the Farm 

Credit Act. The proposed rule requires 

direct lender associations to adopt an 

independent strategic plan for their YBS 

program. The direct lender association’s 

funding bank will approve each YBS 

strategic plan, annually. The direct 

lender association’s YBS strategic plan 

must contain specific elements that will 

be evaluated as part of a rating system 

to measure year-over-year internal 


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36262 Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Proposed Rules 

1 12 U.S.C. 2001. 

2 12 U.S.C. 2207. 

3The regulation was last amended in 2004. 69 FR 

16460 (Mar. 30, 2004). 

4 12 CFR 614.4165(e). 

5 12 CFR 614.4165(c)(1)–(4). 

6 12 U.S.C. 2207(a). 

progress. The rating system will enable 

the Farm Credit Administration (FCA) 

to compare the success of the direct 

lender association’s extension of credit 

and services to the YBS borrowing 

population to its peers both within and 

outside its bank district. 

DATES: You may send us comments on 

or before August 15, 2022. 

ADDRESSES: We offer a variety of 

methods for you to submit comments. 

For accuracy and efficiency, 

commenters are encouraged to submit 

comments by email or through FCA’s 

website. As facsimiles (fax) are difficult 

for us to process and achieve 

compliance with section 508 of the 

Rehabilitation Act, as amended, we are 

no longer accepting comments 

submitted by fax. Regardless of the 

method you use, please do not submit 

your comment multiple times via 

different methods. You may submit 

comments by any of the following 

methods: 

• Email: Send us an email at regcomm@fca.gov. 

• FCA website: https://www.fca.gov. 

Click inside the ‘‘I want to . . .’’ field 

near the top of the page; select 

‘‘comment on a pending regulation’’ 

from the dropdown menu; and click 

‘‘Go.’’ This takes you to an electronic 

public comment form. 

• Mail: Autumn R. Agans, Deputy 

Director, Office of Regulatory Policy, 

Farm Credit Administration, 1501 Farm 

Credit Drive, McLean, VA 22102–5090. 

You may review copies of comments 

we receive at our office in McLean, 

Virginia, by appointment by contacting 

the Office of Regulatory Policy contact 

listed below, or on our website at 

https://www.fca.gov. Once you are on 

the website, click inside the ‘‘I want to 

. . .’’ field near the top of the page; 

select ‘‘find comments on a pending 

regulation’’ from the dropdown menu; 

and click ‘‘Go.’’ This will take you to the 

Comment Letters page where you can 

select the regulation for which you 

would like to read the public comments. 

We will show your comments as 

submitted, including any supporting 

data provided, but for technical reasons 

we may omit items such as logos and 

special characters. Identifying 

information that you provide, such as 

phone numbers and addresses, will be 

publicly available. However, we will 

attempt to remove email addresses to 

help reduce internet spam. 

FOR FURTHER INFORMATION CONTACT: 

Technical information: Jessica Potter, 

Senior Policy Analyst, Office of 

Regulatory Policy, (703) 819–4667, TTY 

(703) 883–4056, potterj@fca.gov. 

or 

Legal information: Hazem Isawi, 

Senior Attorney, Office of General 

Counsel, (703) 883–4022, TTY (703) 

883–4056, isawih@fca.gov. 

SUPPLEMENTARY INFORMATION: 

I. Objectives 

The objectives of this proposed rule 

are to: 

• Increase direct lender associations’ 

YBS activity; 

• Reinforce the supervisory 

responsibilities of the funding banks, 

authorized by section 4.19 of the Farm 

Credit Act; 

• Require each direct lender 

association to adopt an independent 

strategic plan for their YBS program; 

and, 

• Provide elements that will be 

evaluated as part of a rating system to 

measure year-over-year YBS progress, 

allowing FCA to compare the success of 

the direct lender association to its peers 

with regard to extension of credit and 

services to the YBS borrowing 

population. 

II. Background 

The Farm Credit System (System) is 

the oldest of the financial Governmentsponsored enterprises (GSEs). The 

objective of the System 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 farmrelated businesses.1 The System has a 

unique mission to serve YBS farmers 

and ranchers. Section 4.19 of the Farm 

Credit Act of 1971, as amended (Act),2

requires each System association to 

establish a program to furnish sound 

and constructive credit and related 

services to YBS farmers and ranchers. In 

addition, each affiliated association’s 

YBS program is subject to review and 

approval by their respective funding 

bank, which must report annually to 

FCA on the operations and 

achievements of their associations’ 

programs. 

YBS farmers and ranchers, like all 

those in agriculture, face a wide range 

of challenges, including access to 

capital and credit; the impact of rising 

costs on profitability; urbanization and 

the availability of resources like land, 

water, and labor; globalization; and 

competition from larger or more 

established farms. Although all 

agricultural producers face these 

challenges, the hurdles that YBS farmers 

and ranchers face are often greater due 

to their lack of an agricultural 

production history, inexperience in 

production agriculture, low capital 

position, or limited credit history. The 

FCA continues to believe the System’s 

YBS mission is important to enable 

small and start-up farmers and ranchers 

to make successful entries into 

agricultural production. Also, FCA 

believes it is important to ensure 

marketing and outreach efforts include 

all eligible and creditworthy persons, 

with specific outreach toward diversity 

and inclusion. The System’s YBS 

mission is also critical to facilitate the 

transfer of agricultural operations from 

one generation to the next. FCA remains 

committed to ensuring the System 

fulfills its important mission to YBS 

farmers and ranchers. 

Since FCA’s YBS regulation was first 

implemented in 1981, the agency has 

periodically strengthened the YBS 

framework through regulatory 

amendments,3 Board policy statements, 

bookletters, exam manual updates, 

public statements, and other initiatives 

to promote compliance and to highlight 

the System’s efforts to provide service to 

YBS farmers and ranchers. In recent 

years, a focus on YBS has been a regular 

feature of FCA strategic and 

performance plans. Nonetheless, there 

remain opportunities for further 

improvement. 

Pursuant to existing regulations, FCA 

receives YBS program information 

through associations’ operational and 

strategic business plans.4 To meet the 

requirements of the regulation, these 

plans must discuss forward-looking 

information such as program objectives, 

annual quantitative and qualitative 

targets, and proposed methods to ensure 

credit and services are provided in a 

safe and sound manner.5 However, as 

part of the existing planning process, 

there is no requirement for associations 

to report on past performance. Without 

this assessment, plans are unlikely to 

target deficient areas (e.g., outreach, 

budget resources, terms of extended 

credit) for improvement. This 

information would help the funding 

banks and FCA to identify trends. For 

these reasons, we believe associations 

should include assessments of their past 

performance in their YBS plans. 

As noted, a direct lender association’s 

funding bank serves a role in YBS plan 

development. Indeed, the Act assigns to 

the banks the role of reviewing and 

approving their affiliated direct lender 

associations’ YBS plans.6 Given this, 


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7The Department of Agriculture (USDA) reported 

in 2017 that the average age of U.S. farm producers 

was 57.5 years, up 1.2 years from 2012. USDA 

National Agricultural Statistics Service (NASS), 

2017 Census of Agriculture. 

and to parallel what is required of direct 

lender associations, we believe funding 

banks should implement internal 

controls that establish clear lines of 

responsibility for approving, reviewing, 

and monitoring of their affiliated 

associations’ YBS reporting and 

activities. 

On August 12, 2021, the FCA Board 

Chairman announced the agency’s work 

on a proposed YBS rule. The statement 

noted that while the System has made 

consistent efforts to serve YBS farmers, 

the average age of American farmers has 

continued to rise.7 On November 8, 

2021, FCA and the University of 

Nebraska-Lincoln held a symposium to 

enhance YBS decision-making at 

System institutions. More recently, on 

March 23, 2022, FCA and Colorado 

State University (CSU) co-hosted a 

national forum on serving the credit and 

related needs of YBS farmers and 

ranchers. The event covered a range of 

topics of interest to YBS producers and 

their lenders, with presentations by top 

industry stakeholders, experts from 

CSU, Farm Credit System 

representatives, and local agricultural 

producers. 

III. Section-by-Section Analysis 

A. Overview 

FCA proposes revisions to our 

regulations located in 12 CFR 614.4165 

to reinforce the supervisory 

responsibilities of the funding banks, 

require each direct lender association to 

adopt an independent strategic plan for 

its YBS program, and provide elements 

that will be evaluated as part of a rating 

system to measure year-over-year YBS 

progress. This proposed rule reflects 

FCA’s expectation of bolstering YBS 

program planning and increasing both 

lending and non-lending YBS activity. 

FCA also proposes to revise § 620.5(k)(2) 

to update referencing. 

B. Definitions [Proposed § 614.4165(a)] 

No substantial changes are proposed 

for the definitions in paragraph (a). We 

propose grammatical changes, including 

removing the word ‘‘and’’ between 

‘‘farmers’’ and ‘‘ranchers,’’ and adjusting 

punctuation. Similar changes are made 

to the term throughout the regulatory 

text. 

C. Farm Credit Banks Oversight 

[Proposed § 614.4165(b)] 

We propose changing the paragraph 

heading in paragraph (b) from ‘‘Farm 

Credit bank policies’’ to ‘‘Farm Credit 

banks oversight.’’ While direct lender 

associations have autonomy from their 

funding banks, section 4.19(a) of the Act 

clearly states that YBS programs are 

subject to bank review and approval. As 

such, this paragraph is more 

appropriately titled to include such 

oversight. We believe funding banks are 

in a unique position to know the YBS 

activities of all their affiliated direct 

lender associations and see how those 

associations respond to the needs of 

their respective borrowers. Funding 

banks can use this knowledge to 

encourage associations to enhance their 

YBS programs through best practice 

sharing among their direct lender 

associations. Further, funding banks 

serve as the YBS data collection center 

for their direct lender associations and, 

ultimately, are responsible for reporting 

to FCA. As a result of this structure and 

crucial data reporting, funding banks are 

positioned not only to help FCA in our 

YBS oversight but also to provide 

assistance to associations seeking to 

bolster their YBS programs. 

Proposed paragraph (b)(1)(i) requires 

each funding bank to adopt written 

policies that direct their affiliated 

associations to establish an annual 

strategic YBS plan. The creation of a 

YBS strategic plan is explained further 

in the discussion about proposed 

paragraph (c). Since a strategic plan is 

a newly-proposed requirement for direct 

lender associations, it is appropriate 

that the bank adopt written policies 

directing affiliated associations to 

establish a plan. It is also consistent 

with the statutory structure of section 

4.19 of the Act, which requires 

associations to have YBS programs 

‘‘under policies’’ of Farm Credit Bank 

boards. We propose grammatical edits to 

the reference to ‘‘young, beginning, and 

small farmers, ranchers, and producers 

or harvesters of aquatic products,’’ 

which will continue to be referred to in 

the shorthand as ‘‘YBS farmers and 

ranchers’’ or ‘‘YBS.’’ 

Paragraph (b)(3) of the existing 

regulation requires each funding bank to 

adopt written policies that direct each 

affiliated direct lender association to 

provide a YBS operations and 

achievements report to the funding 

bank. Proposed paragraph (b)(1)(iii) 

replaces references to the operations 

and achievements reports with the 

proposed YBS strategic plan, along with 

any other information deemed necessary 

by the bank. The strategic plan should 

contain the elements previously 

submitted in the operations and 

achievements reports; thus, the intent of 

the requirement continues forward 

through the YBS strategic plan. 

Receiving the YBS strategic plan should 

also aid the funding bank in its 

oversight role as described previously, 

as well as supplementing data collection 

and reporting. In paragraph (b)(1)(iv), 

we propose a grammatical change from 

‘‘agency’’ to ‘‘FCA.’’ We propose moving 

the review and approval requirements 

from existing paragraph (d) to proposed 

paragraph (b)(2). The existing regulation 

requires bank review and approval of 

each direct lender association’s YBS 

program, but limits the review and 

approval to a determination that the 

YBS program contains required 

elements as set forth in existing 

paragraph (c). With the proposed 

requirement of a YBS strategic plan, we 

also propose adding bank review and 

approval of such plan. Further, we 

propose that the bank’s review ensure 

all elements in proposed paragraphs (c) 

and (d) are contained in the plan and 

program, and remove existing 

limitations on the bank to only review 

for the presence of the required 

elements. This would provide funding 

banks with the opportunity to become 

more involved with their respective 

associations’ efforts to enhance YBS 

programs. 

Existing paragraph (f) requires 

internal controls for direct lender 

associations. In paragraph (b)(3), we 

propose that banks also have internal 

controls in place to establish clear lines 

of responsibility in fulfilling their role 

regarding direct lender association YBS 

strategic plans, programs, and reporting. 

In the past, internal controls over YBS 

data reporting processes have been 

weak, resulting in inaccurate reporting 

to FCA. As the primary collectors, 

reviewers, and submitters of YBS data, 

internal controls are key to the funding 

banks’ ability to provide reliable data. 

As with every area of operations, a 

strong internal control environment is 

essential. 

D. Direct Lender Association YBS 

Strategic Plan [Proposed § 614.4165(c)] 

The existing YBS regulation requires 

the YBS program to be included in the 

direct lender association’s annual 

operational and strategic business plan 

under § 618.8440. Proposed paragraph 

(c) requires the adoption of an 

independent strategic plan specific to 

the direct lender association’s YBS 

program. While direct lender 

associations have long been required to 

have a YBS program, limited emphasis 

has been placed on strategically 

planning, analyzing, and assessing such 

a program. Just as most direct lender 

associations require YBS borrowers to 

submit a business plan for their 

operation, we believe that business 


khammond on DSKJM1Z7X2PROD with PROPOSALS
36264 Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Proposed Rules 

planning is important when it comes to 

YBS programs. Direct lender 

associations plan their YBS programs to 

varying degrees. This proposed strategic 

plan requirement will add consistency 

to longer-term planning and program 

development at each institution, while 

also requiring performance analysis, all 

of which should strengthen the direct 

lender association’s YBS program. 

The Farm Credit System, as a GSE, 

maintains a special responsibility to 

YBS, which is a mission-critical lending 

segment. For this reason, we propose 

the creation of an independent 

document that stands alone and 

separate from the operational and 

strategic business plan. Similar to the 

operational and strategic business plan 

required by § 618.8440, we propose that 

the YBS strategic plan must be forward 

looking by 3 years and submitted no 

later than 30 days after the 

commencement of each calendar year. 

This should allow direct lender 

associations to complete their entire 

planning process at one time. 

We propose that the YBS strategic 

plan contain minimum elements 

detailed in proposed paragraph (d). 

Paragraph (e) of the existing regulation 

requires targets and goals be included in 

the direct lender association’s strategic 

operational plan for the succeeding 3 

years. We propose moving this 

requirement to paragraph (c)(2), and 

instead of including such goals in the 

operational and strategic business plan, 

they will be included in the standalone 

YBS strategic plan. YBS components 

will no longer be required as part of 

§ 618.8440. 

Further, we propose that the YBS 

strategic plan analyze performance. It is 

important for the direct lender 

association to use actual results when 

setting goals and developing the future 

years’ YBS program. We also propose 

that the direct lender association 

discuss variances that occurred between 

actual performance and goals and 

provide the reasons for such variances. 

This analysis should also be helpful in 

ensuring the YBS program is relevant 

and appropriately serving the needs of 

the YBS segment. In proposed 

paragraph (c)(3)(iii), we propose that the 

YBS strategic plan identify how the 

efforts of the direct lender association, 

through its YBS program, are assisting 

YBS farmers and ranchers with 

receiving both credit and education. 

Also, under proposed paragraph 

(c)(3)(iv), we propose that the YBS 

strategic plan also assess the 

effectiveness in providing credit and 

services. This should discuss how the 

direct lender association’s YBS 

planning, and program efforts are 

resulting in new and expanding YBS 

borrower operations and how the credit 

is being provided to these YBS 

borrowers. 

E. Direct Lender Association YBS 

Program [Proposed § 614.4165(d)] 

We propose redesignating existing 

paragraph (c) as paragraph (d) and 

reorganizing and revising its containing 

paragraphs. The YBS strategic plan 

outlined in proposed paragraph (c) will 

guide the development and 

implementation of the direct lender 

association’s YBS program. 

We propose moving language in 

existing paragraph (c)(4) that reads, 

‘‘safe and sound manner and within a 

direct lender association’s risk-bearing 

capacity,’’ to the main body of 

paragraph (d). In addition to the 

requirement that each YBS program 

must operate in a safe and sound 

manner within the direct lender 

association’s risk-bearing capacity, such 

operation must be done ‘‘while meeting 

the unique needs of YBS farmers and 

ranchers.’’ There can be actual and 

perceived risk in lending to the YBS 

segment. These borrowers often lack 

certain credit elements such as 

abundant repayment capacity, liquidity, 

or collateralization. Generally, loans to 

YBS borrowers can be made in a safe 

and sound manner despite some 

increased risk relative to non-YBS 

borrowers. 

Next, we propose adding paragraph 

headings to paragraphs (d)(1) 

(‘‘Qualitative factors’’), (d)(1)(i) 

(‘‘Corporate governance’’), (d)(1)(ii) 

(‘‘Credit and related services’’), 

(d)(1)(iii) (‘‘Marketing, outreach, and 

education’’), and (d)(2) (‘‘Quantitative 

goals’’). We propose moving the mission 

statement requirement in existing 

paragraph (c)(1) to proposed paragraph 

(d)(1)(i)(A), as a component of the 

Corporate Governance. Other than 

relocation, the requirement has not 

changed. We also propose moving the 

internal control requirement in existing 

paragraph (f) of current regulations to 

proposed paragraph (d)(1)(i)(B) and 

adding to its coverage the YBS strategic 

plan. We propose moving the related 

services requirement in existing 

paragraph (c)(3)(i) to proposed 

paragraph (d)(1)(ii)(A), and moving 

coordination requirements in existing 

paragraph (c)(3)(ii) to proposed 

paragraph (d)(1)(ii)(B). We also propose 

streamlining this requirement by 

striking the words, ‘‘take full advantage 

of opportunities for coordinating,’’ and 

replacing it with ‘‘coordination.’’ We 

propose to move outreach requirements 

in existing paragraph (c)(3)(iii) to 

proposed paragraph (d)(1)(iii). We 

propose minor changes to this 

requirement by replacing ‘‘Implement’’ 

with ‘‘Implementation’’ and adding the 

word ‘‘retain.’’ Further, we propose 

adding the consideration of a YBS 

mentoring program to the list of 

examples of outreach programs to better 

serve and understand the needs of this 

lending segment. 

Within proposed paragraph (d)(2), we 

propose replacing instances of ‘‘targets’’ 

with ‘‘goals’’ to be more consistent with 

the terminology used in the remainder 

of the quantitative text section. We also 

propose adding the requirement that 

direct lender associations identify the 

sources of data used to establish the 

goals. Lastly, we propose replacing 

‘‘targets may’’ with ‘‘goals must.’’ The 

regulatory text in proposed paragraphs 

(d)(2)(i)–(ii) remains the same as 

existing paragraphs (c)(2)(i)–(iv). 

F. Annual Report Information 

Concerning YBS [Proposed 

§ 620.5(k)(2)] 

FCA proposes to revise § 620.5(k)(2) 

to update referencing. Specifically, we 

propose to change the paragraph’s crossreference from § 614.4165(c) to instead 

point to § 614.4165(d) which reflects the 

proposed reordering of text in that 

section. The rest of § 620.5(k)(2) remains 

unchanged. 

IV. Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.), FCA hereby certifies that the 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities. Each of the 

banks in the Farm Credit System, 

considered together with its affiliated 

associations, has assets and annual 

income in excess of the amounts that 

would qualify them as small entities. 

Therefore, Farm Credit System 

institutions are not ‘‘small entities’’ as 

defined in the Regulatory Flexibility 

Act. 

List of Subjects 

12 CFR Part 614 

Agriculture, Banks, banking, Flood 

insurance, Foreign trade, Reporting and 

recordkeeping requirements, Rural 

areas. 

12 CFR Part 620 

Accounting, Agriculture, Banks, 

banking, Reporting and recordkeeping 

requirements, Rural areas. 

For the reasons set out in the 

preamble, FCA proposes to amend 12 

CFR parts 614 and 620 as follows: 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Proposed Rules 36265 

PART 614—LOAN POLICIES AND 

OPERATIONS 

■ 1. The authority citation for part 614 

continues to read as follows: 

Authority: Secs. 1.3, 1.5, 1.6, 1.7, 1.9, 1.10, 

1.11, 2.0, 2.2, 2.3, 2.4, 2.10, 2.12, 2.13, 2.15, 

3.0, 3.1, 3.3, 3.7, 3.8, 3.10, 3.20, 3.28, 4.12, 

4.12A, 4.13B, 4.14, 4.14A, 4.14D, 4.14E, 4.18, 

4.18A, 4.19, 4.25, 4.26, 4.27, 4.28, 4.36, 4.37, 

5.9, 5.10, 5.17, 7.0, 7.2, 7.6, 7.8, 7.12, 7.13, 

8.0, 8.5 of the Farm Credit Act (12 U.S.C. 

2011, 2013, 2014, 2015, 2017, 2018, 2019, 

2071, 2073, 2074, 2075, 2091, 2093, 2094, 

2097, 2121, 2122, 2124, 2128, 2129, 2131, 

2141, 2149, 2183, 2184, 2201, 2202, 2202a, 

2202d, 2202e, 2206, 2206a, 2207, 2211, 2212, 

2213, 2214, 2219a, 2219b, 2243, 2244, 2252, 

2279a, 2279a–2, 2279b, 2279c–1, 2279f, 

2279f–1, 2279aa, 2279aa–5); 12 U.S.C. 2121 

note; 42 U.S.C. 4012a, 4104a, 4104b, 4106, 

and 4128. 

■ 2. Section 614.4165 is revised to read 

as follows: 

§ 614.4165 Young, beginning, and small 

(YBS) farmers and ranchers. 

(a) Definitions. (1) For purposes of 

this subpart, the term ‘‘credit’’ includes: 

(i) Loans made to farmers, ranchers, 

and producers or harvesters of aquatic 

products under title I or II of the Act; 

and 

(ii) Interests in participations made to 

farmers, ranchers, and producers or 

harvesters of aquatic products under 

title I or II of the Act. 

(2) For purposes of this subpart, the 

term ‘‘services’’ includes: 

(i) Leases made to farmers, ranchers, 

and producers or harvesters of aquatic 

products under title I or II of the Act; 

and 

(ii) Related services to farmers, 

ranchers, and producers or harvesters of 

aquatic products under title I or II of the 

Act. 

(b) Farm Credit banks oversight. (1) 

Each Farm Credit Bank and Agricultural 

Credit Bank must adopt written policies 

that direct: 

(i) The board of each affiliated direct 

lender association to establish an annual 

strategic plan, which includes the 

details of a program to provide sound 

and constructive credit and related 

services to young, beginning, and small 

farmers, ranchers, and producers or 

harvesters of aquatic products (YBS 

farmers and ranchers or YBS); 

(ii) Each affiliated direct lender 

association to include in its YBS 

program provisions ensuring 

coordination with other System 

institutions in the territory and other 

governmental and private sources of 

credit; 

(iii) Each affiliated direct lender 

association to submit to its funding bank 

its annual YBS strategic plan as 

described in paragraph (c) of this 

section and any other information 

regarding its YBS program, as described 

in paragraph (d) of this section, deemed 

necessary by the bank to meet the 

requirements of this paragraph (b); and 

(iv) The bank to provide the FCA a 

complete and accurate annual report 

summarizing the YBS program 

operations and achievements of its 

affiliated direct lender associations. 

(2) Annually, the direct lender 

association’s YBS strategic plan and 

program are subject to the review and 

approval of its funding bank. The 

funding bank’s review and approval 

must determine if the YBS strategic plan 

and program contain all required 

components as set forth in paragraphs 

(c) and (d) of this section. Any 

conclusion by the bank that a YBS 

strategic plan or program is deficient 

must be communicated to the direct 

lender association in writing. 

(3) The Farm Credit Banks and 

Agricultural Credit Bank must 

implement internal controls that 

establish clear lines of responsibility for 

approving, reviewing, and monitoring of 

affiliated direct lender association YBS 

strategic plans, programs, and reporting. 

(c) Direct lender association YBS 

strategic plan. (1) No later than 30 days 

after the commencement of each 

calendar year, the board of directors of 

each direct lender association must 

adopt a 3-year YBS strategic plan to 

develop and guide its YBS program. The 

YBS strategic plan is an independent 

document submitted to the FCA along 

with the annual operational and 

strategic business plan required by 

§ 618.8440 of this chapter. 

(2) At a minimum, the strategic plan 

must detail the operations of the YBS 

program, including all components in 

paragraph (d) of this section. Goals 

outlined in paragraph (d)(2) of this 

section must be included in each direct 

lender association’s YBS strategic plan 

covering at least the succeeding 3 years. 

(3) The YBS strategic plan must: 

(i) Analyze the association’s 

performance in the previous year 

toward achieving the components in 

paragraph (d) of this section; 

(ii) Discuss variances and reasons for 

the results; 

(iii) Identify how the efforts in 

paragraph (d) of this section assist YBS 

farmers and ranchers with both 

receiving credit and education; and 

(iv) Assess the direct lender 

association’s effectiveness in providing 

these efforts that result in new and 

expanding YBS operations to which 

credit is now provided. 

(d) Direct lender association YBS 

programs. The board of directors of each 

direct lender association must establish 

a program to provide sound and 

constructive credit and services to YBS 

farmers and ranchers in its territory. 

Each YBS program must operate in a 

safe and sound manner and within the 

direct lender association’s risk-bearing 

capacity, while meeting the unique 

needs of YBS farmers and ranchers. 

Such a program must include the 

following minimum components: 

(1) Qualitative factors—(i) Corporate 

governance. 

(A) A mission statement describing 

program objectives and specific means 

for achieving such objectives. 

(B) Internal controls that establish 

clear lines of responsibility for YBS 

strategic plan development and the 

corresponding YBS program 

implementation, tracking YBS program 

performance, and YBS quarterly 

reporting to the association’s board of 

directors. 

(ii) Credit and related services. (A) 

Efforts to offer credit and related 

services, either directly or in 

coordination with others, that are 

responsive to the needs of the YBS 

farmers and ranchers in the territory. 

Examples include customized loan 

underwriting standards, loan guarantee 

programs, fee waivers, or other credit 

enhancements commensurate with the 

credit risk approved by the board of 

directors. 

(B) Coordination with other System 

institutions in the territory and other 

governmental and private sources who 

offer credit and services to YBS farmers 

and ranchers. 

(iii) Marketing, outreach, and 

education. Implementation of effective 

outreach programs to attract and retain 

YBS farmers and ranchers, which may 

include the use of advertising 

campaigns, educational programs, and 

advisory committees comprised of YBS 

farmers and ranchers and/or a YBS 

mentoring program to better serve and 

understand the needs of this lending 

segment. 

(2) Quantitative goals—(i) Annual 

quantitative goals. Annual quantitative 

goals for credit to YBS farmers and 

ranchers based on an understanding of 

reasonably reliable demographic data 

for the lending territory. Direct lender 

associations must identify the sources of 

data used to establish the goals. Such 

goals must include at least one of the 

following: 

(A) Loan volume and loan number 

goals for YBS farmers and ranchers in 

the territory; 

(B) Percentage goals representative of 

the demographics for YBS farmers and 

ranchers in the territory; 


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36266 Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Proposed Rules 

(C) Percentage goals for loans made to 

new borrowers qualifying as YBS 

farmers and ranchers in the territory; or 

(D) Goals for capital committed to 

loans made YBS farmers and ranchers in 

the territory. 

(ii) Board of directors approval and 

review. Goals must be approved by the 

direct lender association’s board of 

directors and reviewed quarterly with 

adjustments made as needed. 

PART 620—DISCLOSURE TO 

SHAREHOLDERS 

■ 3. The authority citation for part 620 

continues to read as follows: 

Authority: Secs. 4.3, 4.3A, 4.19, 5.9, 5.17, 

5.19 of the Farm Credit Act (12 U.S.C. 2154, 

2154a, 2207, 2243, 2252, 2254); sec. 424 of 

Pub. L. 100–233, 101 Stat. 1568, 1656; sec. 

514 of Pub. L. 102–552, 106 Stat. 4102. 

■ 4. Revise § 620.5(k)(2) to read as 

follows: 

§ 620.5 Contents of the annual report to 

shareholders. 

* * * * * 

(k) * * * 

(2) Each direct lender association 

must provide a description of its young, 

beginning, and small (YBS) farmers and 

ranchers program, including a status 

report on each program component as 

set forth in § 614.4165(d) of this chapter 

and the definitions of ‘‘young,’’ 

‘‘beginning,’’ and ‘‘small’’ farmers and 

ranchers. The discussion must provide 

such other information necessary for a 

comprehensive understanding of the 

direct lender association’s YBS program 

and its results. 

* * * * * 

Dated: June 9, 2022. 

Ashley Waldron, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 2022–12803 Filed 6–15–22; 8:45 am] 

BILLING CODE 6705–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2022–0680; Project 

Identifier MCAI–2021–01415–T] 

RIN 2120–AA64 

Airworthiness Directives; Airbus SAS 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to 

supersede Airworthiness Directive (AD) 

2020–22–03, which applies to all Airbus 

SAS Model A330–200, –200 Freighter, 

and –300 series airplanes. AD 2020–22– 

03 requires revising the existing 

airplane flight manual (AFM) to 

incorporate procedures to be applied if 

an engine bleed over-temperature occurs 

when the associated engine bleed valve 

is jammed open, and provides for the 

optional embodiment of updated flight 

warning computer (FWC) software, 

which terminates the AFM revision. 

Since the FAA issued AD 2020–22–03, 

new maintenance actions and software 

related to over-temperature failure 

conditions were developed. This 

proposed AD would continue to require 

the actions specified in AD 2020–22–03, 

would require accomplishing the new 

maintenance tasks and corrective 

actions, and would mandate 

embodiment of the updated FWC 

software for certain airplanes, as 

specified in a European Union Aviation 

Safety Agency (EASA), which is 

proposed for incorporation by reference. 

This proposed AD would also prohibit 

the installation of affected FWC 

software. The FAA is proposing this AD 

to address the unsafe condition on these 

products. 

DATES: The FAA must receive comments 

on this proposed AD by August 1, 2022. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For material that will be incorporated 

by reference (IBR) in this AD, contact 

EASA, Konrad-Adenauer-Ufer 3, 50668 

Cologne, Germany; telephone +49 221 

8999 000; email ADs@easa.europa.eu; 

internet www.easa.europa.eu. You may 

find this material on the EASA website 

at https://ad.easa.europa.eu. You may 

view this material at the FAA, 

Airworthiness Products Section, 

Operational Safety Branch, 2200 South 

216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

It is also available in the AD docket at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2022–0680. 

Examining the AD Docket 

You may examine the AD docket at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2022–0680; or in person at Docket 

Operations between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. The AD docket contains this 

NPRM, the mandatory continuing 

airworthiness information (MCAI), any 

comments received, and other 

information. The street address for 

Docket Operations is listed above. 

FOR FURTHER INFORMATION CONTACT: 

Vladimir Ulyanov, Aerospace Engineer, 

Large Aircraft Section, International 

Validation Branch, FAA, 2200 South 

216th St., Des Moines, WA 98198; 

telephone and fax: 206–231–3229; 

email: vladimir.ulyanov@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

The FAA invites you to send any 

written relevant data, views, or 

arguments about this proposal. Send 

your comments to an address listed 

under ADDRESSES. Include ‘‘Docket No. 

FAA–2022–0680; Project Identifier 

MCAI–2021–01415–T’’ at the beginning 

of your comments. The most helpful 

comments reference a specific portion of 

the proposal, explain the reason for any 

recommended change, and include 

supporting data. The FAA will consider 

all comments received by the closing 

date and may amend this proposal 

because of those comments. 

Except for Confidential Business 

Information (CBI) as described in the 

following paragraph, and other 

information as described in 14 CFR 

11.35, the FAA will post all comments 

received, without change, to https://

www.regulations.gov, including any 

personal information you provide. The 

agency will also post a report 

summarizing each substantive verbal 

contact received about this NPRM. 

Confidential Business Information 

CBI is commercial or financial 

information that is both customarily and 

actually treated as private by its owner. 

Under the Freedom of Information Act 

(FOIA) (5 U.S.C. 552), CBI is exempt 

from public disclosure. If your 

comments responsive to this NPRM 

contain commercial or financial 

information that is customarily treated 

as private, that you actually treat as 

private, and that is relevant or 

responsive to this NPRM, it is important 

that you clearly designate the submitted 

comments as CBI. Please mark each 

page of your submission containing CBI 

as ‘‘PROPIN.’’ The FAA will treat such 

marked submissions as confidential 


khammond on DSKJM1Z7X2PROD with PROPOSALS