The desired outcome of these initiatives is to deregulate FCS institutions so that they will remain relevant to the ever-changing credit needs of agriculture and rural America. The FCA Board approved this philosophy statement in July 1998, after considerable research on System and market changes. The Agency has, in the interim, researched strategies that conform to the Farm Credit Act and maximize opportunities for borrowers in agriculture and rural America.
National charters enable associations to allow for greater diversity and improve risk management.
FCA will develop a streamlined charter application process that will be easy for associations to use. In order to be fair, FCA expects to coordinate approval of applications that are received by a set date so they become effective at the same time. Associations in Alabama, Louisiana, Mississippi, and New Mexico will hold stockholder votes to make their own decisions on customer choice. Local service areas will be established for each current territory to ensure adequate, constructive and sound credit is available in all locations. During discussions at the first meeting, the FCA Board noted that good progress is being made on Federal Land Bank Association conversions and all are expected to be completed by October 1.