Why It Matters

The Farm Credit Administration's leadership structure has a governance problem, according to a report from the Congressional Research Service updated September 17. The regulator is responsible for the safety and soundness of Farm Credit System institutions and Farmer Mac, making the condition of its governing board relevant to agricultural finance and federal oversight. One remaining member is serving beyond the end of his term, and the board lacks the quorum necessary to conduct business.

For the public, the issue is whether a regulator overseeing a large agricultural credit network can exercise its policymaking, regulatory, chartering, and examination functions with a board unable to formally conduct business.

The Big Picture

The Farm Credit Administration sets policies, regulations, charters, and examinations for entities connected to the Farm Credit System and Farmer Mac. The agency has about 300 employees in McLean, Virginia, and its operating expenses are paid through assessments on Farm Credit System banks and associations. Annual Agriculture Appropriations Acts limit those expenses to $106.5 million in fiscal year 2026, even though the agency’s operations are funded through assessments rather than a direct congressional appropriation.

The Farm Credit System is a privately owned, federally chartered nationwide financial cooperative that lends to farmers, farming-related businesses, rural homeowners, farmer-owned cooperatives, and certain rural utilities. Established in 1916 as a government-sponsored enterprise, the system operates without direct federal appropriations and includes four regional banks and 55 smaller credit associations. As of December 31, 2025, it had $457 billion in total loans outstanding, including $289 billion in agricultural loans, while the United States Department of Agriculture reported that it provided 46 percent of loans on the sector-wide farm balance sheet at the end of 2024.

The Bottom Line

Farmer Mac adds a separate channel for agricultural credit as a secondary market for agricultural mortgages. It purchases loans from originating lenders and provides other risk-management tools; Congress created it in 1987 as a privately funded government-sponsored enterprise. Its total business volume was $33 billion as of December 31, 2025.

Board terms last six years and are staggered so that one term begins every two years, and a member may continue serving until a replacement is confirmed. President Trump designated Jeffery S. Hall as chairman and chief executive officer on January 20, 2025, while Vincent Logan resigned on March 31, 2025, and Glen R. The administration nominated Carl Bednarski and John Grunewald II on June 23, and the nominations were referred to the Senate Committee on Agriculture, Nutrition, and Forestry, leaving congressional action as the next documented step in restoring the board’s operating capacity.

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