The Funding Corporation is governed by a highly qualified management team responsible for our day-to-day operations and a Board of Directors responsible for strategic planning. Together they represent decades of senior-level experience in the fields of finance and banking, accounting, risk management and agriculture.
Board of Directors and Leadership Team
The Funding Corporation Board of Directors is defined by statute and is comprised of nine voting members and one nonvoting member:
- Seven inside board members are elected by the Farm Credit System Banks - three members are current Bank CEOs or Presidents and four are current or former Bank directors.
- Two outside board members are appointed by the seven inside members in consultation with the Secretary of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System.
- The tenth (and nonvoting) member is the President and CEO of the Funding Corporation, appointed by the Board.
- The President and CEO and the Leadership Team implement strategy, manage operations, and ensure that the Funding Corporation carries out its mission effectively.
- Board members serve on the Funding Corporation's Audit, Corporate Governance and Compensation Committees. Please see bios for details.
System Audit Committee
The System Audit Committee is comprised of five members, all of whom are appointed by the Board of Directors of the Funding Corporation. The Committee oversees the internal controls and reporting process of the Farm Credit System, ensuring the integrity of the public Information Statements released by the Funding Corporation on the System's behalf. The System Audit Committee Charter sets forth the Committee's composition and responsibilities.
System Disclosure Committee
The System Disclosure Committee is responsible for ensuring that the financial and non-financial information disclosed by the Funding Corporation on behalf of the System is complete, accurate, properly summarized, and reported on a timely basis in the form of quarterly and annual Information Statements. The Disclosure Committee Charter sets forth the Committee's composition and responsibilities.
Code of Ethics
The Funding Corporation's Code of Ethics applies to the Chief Executive Officer and finance and accounting professionals who prepare financial statements and maintain the financial records supporting them. The Code sets forth standards for confidentiality, legal compliance, and personal and professional integrity.
Third Amended and Restated Market Access Agreement
The Funding Corporation and the Banks have entered into the Market Access Agreement. The Market Access Agreement establishes criteria and procedures for the Banks that provide oversight and control over a Bank's access to System funding if the creditworthiness of the Bank declines below certain agreed-upon levels. If the criteria are not met, the Market Access Agreement may require the Bank to provide certain additional information and, under specified circumstances, restrict or prohibit an individual Bank's participation in issuances of Farm Credit Debt Securities. The Market Access Agreement promotes the identification and resolution of individual Bank financial problems in a timely manner and discharges the Funding Corporation's statutory responsibility for determining conditions for each Bank's participation in each issuance of Farm Credit Debt Securities. Under the Market Access Agreement, if certain financial criteria are not met, a Bank may be placed in one of three categories, each of which imposes certain requirements and/or restrictions on the affected Bank. The criteria under the Market Access Agreement are the Contractual Interbank Performance Agreement (CIPA) scores, the Tier 1 Leverage ratio, and the Total Capital ratio of a Bank. The categories are progressively more restrictive: a "Category I" Bank is subject to additional monitoring and reporting requirements; a "Category II" Bank's ability to participate in issuances of Farm Credit Debt Securities may be curtailed; and a "Category III" Bank may not be permitted to participate in issuances of Farm Credit Debt Securities.
Amended and Restated Contractual Interbank Performance Agreement
The Banks and the Funding Corporation have also entered into the Contractual Interbank Performance Agreement, or the CIPA. Under provisions of the CIPA, a CIPA score is calculated that measures the financial condition and performance of each District using various ratios taking into account the District's and Bank's capital, asset quality, earnings, interest-rate risk and liquidity. The CIPA score is compared against the agreed-upon standard of financial condition and performance that each District must achieve and maintain. The measurement standard established under the CIPA is intended to provide an early-warning mechanism to assist in monitoring the financial condition of each District.