FCA launches small association webpage

News Release For Immediate Release Contact: Mike Stokke or Emily Yaghmour, 703-883-4056 Email: info-line@fca.gov FCA launches small association webpage McLEAN, Va., Feb. 25, 2022 — The Farm Credit Administration has created a new webpage regarding its efforts to identify and address the unique challenges facing small associations in the Farm Credit System. "Small System associations often face challenges that differ from those of large ones," said FCA Board Member Jeff Hall. "One of our top priorities is to understand and address those differences and adopt policies that are appropriate for all stakeholders and consistent with cooperative principles. The new webpage will provide a centralized source of information about our efforts on this front." In early 2021, FCA requested input from small associations on the following topics: The role they play in the cooperative structure of the Farm Credit System Their mission achievement The unique challenges they face In response to that request, small associations reported several challenges. For example, obtaining services — especially information technology services — can be costly and difficult. Also, regulatory and examination compliance can be more difficult for small associations because of time and resource constraints. "As the regulator of System institutions, FCA is in a unique position to gather and analyze data and to help develop workable policies that strengthen small associations," said FCA Board Chairman and CEO Glen Smith. Last month the agency formed a permanent work group to develop policies to address the challenges small associations face. The work group will consider regulatory burden and examination issues. It will also tackle issues related to the supervision and regulation of smaller System associations. The work group consists of employees from FCA's Offices of Regulatory Policy, Examination, and General Counsel. It will report periodically to FCA senior management and directly to the board. For more information, please contact smallassociations@fca.gov.   The Farm Credit Administration is the safety and soundness regulator of the Farm Credit System. The System consists of two government-sponsored enterprises — a nationwide network of cooperative banks and associations established in 1916, and a secondary market entity known as the Federal Agricultural Mortgage Corporation (Farmer Mac) that was established in 1988. The System's borrower-owned banks and associations provide credit to farmers, ranchers, residents of rural communities, agricultural and rural utility cooperatives, and other eligible and creditworthy borrowers. Farmer Mac provides a secondary market for agricultural real estate loans, rural housing mortgage loans, and certain rural utility loans. Note: FCA news releases are available on the web at www.fca.gov.

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