We were chartered by Congress in 1987 as a corporate instrumentality of the United States. The President of the United States appoints five of our fifteen Board members, including the Chairman of the Board. We have the ability to borrow up to $1.5 billion from the U.S. Treasury to fulfill our guarantee obligations.

The second business segment is the Farmer Mac 2 USDA Guaranteed Loan Program. Under this program Farmer Mac’s subsidiary, Farmer Mac 2, purchases in the secondary market, the USDA-guaranteed portion of private sector loans from an originating lender. Our family shares a passion for cooking and eating good, wholesome homemade food and enjoying it with friends and family. Nothing tastes better than fresh homegrown food whether it is an heirloom tomato vine-ripened in the central Indiana sunshine or meat pastured on alfalfa and green grass.

We are regulated by the Farm Credit Administration (FCA), an independent agency in the executive branch of the United States government. Congress has oversight over Farmer Mac through the following Congressional committees: Senate Committee on Agriculture, Nutrition and Forestry; House Committee on Agriculture; House Committee on Financial Services.

The United States Federal Reserve Bank (the central bank of the U.S.) serves as our depositary and fiscal agent, and we have access to the book-entry system of the Federal Reserve System. We are subject to periodic reviews by the U.S. Government Accountability Office (GAO). Farmer Mac has a 15-member Board of Directors.

Five of the 15 members are appointed by the President of the United States with the advice and consent of the Senate and serve at the pleasure of the President with no defined term. Media go for mac free download. No more than three of the appointed members can be from any one political party. An additional five Board members are elected by the financial institutions who own Class A voting common stock.

Five Board members are also elected by the Farm Credit System institutions who own Class B voting common stock. The ten elected directors serve for one year terms, but can be re-elected each year with no limit on the number of terms served. Although Farmer Mac was created by the U.S.

Congress and is regulated by an independent agency in the executive branch of the U.S. Government, the U.S. Government does not guarantee payments due on Farmer Mac’s guaranteed securities, debt or equity securities, dividend payments on preferred or common stock, or profitability. As a corporation chartered by Congress to serve a public purpose, Farmer Mac’s debt securities and assets subject to a Farmer Mac guarantee or Long Term Standby Purchase Commitment, carry a 20 percent capital risk weighting for federally regulated entities. Farmer Mac is regulated by the Farm Credit Administration (FCA), an independent agency in the executive branch of the U.S. FCA, acting through the Office of Secondary Market Oversight (OSMO), has general regulatory and enforcement authority over Farmer Mac and is responsible for an annual safety and soundness examination of Farmer Mac. Farmer Mac is required to file quarterly reports on its financial condition with FCA and is also required to comply with the periodic reporting requirements of the Securities Exchange Act of 1934.

The primary purpose of our investment portfolio is to provide liquidity in the event that we are unable to access the capital markets. Our federal charter authorizes us to maintain reasonable amounts of liquid investments for business operations, including adequate liquidity. Additionally, FCA regulations require us to maintain sufficient liquid investments to provide at least 90 days of liquidity. We invest in assets that both comply with FCA regulations and are in accordance with policies established by our Board, including dollar amount, issuer concentration and credit quality limitations. Farmer Mac is required by its charter to maintain capital equal to the greater of the statutory minimum capital requirement or the risk-based capital requirement. The statutory minimum capital requirement is calculated based on 2.75 percent of on-balance sheet assets plus 0.75 percent of off-balance sheet obligations.

The risk-based capital requirement is a calculation prescribed by FCA that determines the capital necessary for Farmer Mac to maintain positive capital during 10 years of sustained defaults and losses plus severe interest rate shocks. Historically, the minimum capital requirement has always been the higher of the two requirements. The amount of capital held by Farmer Mac that is greater than the capital requirement is deemed to be the capital surplus.