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2007 Articles December 21, 2007 FCA Receives Almost $2 Million Budget Increase The Consolidated Budget Act of 2007 increases FCA's spending limitation from $44,250,000 to $46,000,000. At first glance, none of the Farm Credit Act amendments appear to have made it into the final bill. December 19, 2007 FCS Annual Conference at Disneyworld The festivities are scheduled for January 20 - 22, 2008. The agenda is heavy with FCA (the FCS's "independent" regulator) speakers, including Chairman Nancy Pellett, and the big three of General Counsel Charlie Rawls, Chief Examiner Tom McKenzie, and rulemaker in chief, Andrew Jacob. December 16, 2007 Pig Farms Linked to Human MRSA Epidemic Michael Pollan writes in the NY Times that antibiotics given to livestock (90% of nursery pigs receive antibiotics) are largely responsible for the sudden rise in antibiotic-resistant staph deaths in humans. He cites a recent CDC report that MRSA from animals is responsible for 20% of all human MRSA in the Netherlands. December 14, 2007 Farmed Salmon May Cause Extinction of Wild Salmon A Canadian report found that parasitic sea life that infect farmed salmon kill so many wild salmon that the wild salmon in affected rivers and streams may be wiped out in eight years. December 11, 2007 FCA Dropped From Federal Register Regulatory Plan As of this fall, FCA's Unified Agenda will not be included in the Governments's cumulative published version. To see FCA's Agenda you must now go to reginfo.gov. We will analyze FCA's Agenda at a future date. December 10, 2007 The limited agenda consists of three reports: a report on previous 2007 Bookletters, a report from the Farm Credit System Building Association Quarterly Report, and a report from the Office of Secondary Market Oversight on Farmer Mac. Interestingly, the agenda was posted only three days before the day of the meeting; not eight days as set forth in FCA's rules. November 17, 2007 An Ohio District Court judge dismissed 14 foreclosure actions because the assignee bank could not show that it actually held assignments of the mortgage notes. Apparently, banks have long ignored the "technicalities" of formal assignments in the secondary market. This failure is now coming home to roost. In dismissing the foreclosures, the court said, "this Court possesses the independent obligations to preserve the judicial integrity of the federal court and to jealously guard federal jurisdiction. Neither the fluidity of the secondary mortgage market, nor monetary or economic considerations of the parties, nor the convenience of the litigants supersede those obligations." November 15, 2007 The effect of the amended rule would be to require the external auditor of the Federal Farm Credit Banks Funding Corporation (Funding Corporation) to express an opinion on the effectiveness of internal control over financial reporting instead of reporting on management’s assessment of internal control over financial reporting. A "direct final rule" is not a final rule, but combines the proposed and final rules into one document and can become final only if there are no significant adverse comments. If a commenter submits an adverse comment, the agency must withdraw the rule. Commenters have until December 17, 2007 to register any objections. November 8, 2007 The new rule will allow Farm Credit System institutions 90 days after the end of the fiscal year to distribute copies of their annual reports to shareholders, however, institutions will be required to file electronic copies of the reports with FCA and to post them on their Web sites within 75 days of the end of the fiscal year. The rule will be effective 30 days after publication in the Federal Register during which either house of Congress is in session. October 15, 2007 Farmer Mac Investments In a press release dated October 11, FCA announced that it had approved, by notational vote, a delegation of authority to the director of the Office of Secondary Market Oversight "to approve divestiture plans for certain investments." According to FCA regulations at 12 CFR 652.45, divestiture plans are required only for ineligible investments. The rule also requires that Farmer Mac "must divest of an ineligible non-program investment or security within 6 months unless we [FCA] approve, in writing, a plan that authorizes you to divest the instrument over a longer period of time." October 15, 2007 Amazing, but true. The former head of the American Farm Bureau condemns subsidies in today's op-ed page of the New York Times. His comments emphasize the negative effect of subsidies on global trade. October 6, 2007 CAUTIONARY TALE DOJ secret torture memo scandal demonstrates what happens when government lawyers are co-opted by their bosses. According to James B. Comey, the former deputy attorney general, “It takes far more than a sharp legal mind to say ‘no’ when it matters most. It takes moral character." October 1, 2007 Glut depresses prices according to the New York Times. Economist Neal Harl says, “The end of the ethanol boom is possibly in sight and may already be here. This is a dangerous time for people who are making investments.” September 27, 2007 Bill Zimmerman, GC of the Farm Credit Bank of Texas, To Retire The long-time General Counsel of the Texas FCB (the only Farm Credit Bank never to have merged) has announced his retirement effective February 1, 2008. During Bill's 27 years of service, he has guided the Bank through the intense litigation brought on by the agricultural credit crisis of the 80's, including the issues surrounding the Jackson receivership and the so-called "exclusive territory" for long-term lending in Alabama, Mississippi, and Louisiana. September 26, 2007 FCA Board Adopts and Publishes Two Rules September 11, 2007 The first is a final rule on joint and several liability and the second is a "direct final rule" on priority of claims.
September 11, 2007 As Chairman Pellett's term draws to an end (May 21, 2008 for those of you who are counting), FCA has scheduled 10 regulatory actions for the coming months. The controversial Processing and Marketing amendments are scheduled for a January 2008 vote. September 6, 2007 Article in Ethanol Producer Magazine proposes expanding the charter of Farmer Mac or the Federal Home Loan Bank System to permit them to purchase renewable energy loans and to establish a Renewable Energy Government Loan Corporation (Reggie Mac) that has a mission of purchasing renewable energy loans from lenders. Query, who would regulate Reggie Mac? August 29, 2007 Are Rabobank and the Funding Corp. Cozy Neighbors? In an ironic development, Rabobank has leased 73,000 square feet of office space at 10 Exchange Place in Jersey City, NJ, the same building where the Federal Farm Credit Banks Funding Corporation, also know as the Funding Corp., is located. The Funding Corp. issues debt on behalf of the FCS. Rabobank, an FCS competitor, is the Dutch banking giant that unsuccessfully tried to acquire one of the FCS' largest lenders in 2004. Those elevator rides must be interesting! August 22, 2007 In an inspection report dated July 31, 2007, the IG concludes that, "the Agency should be better prepared to exercise its enforcement authority should the need arise." The report also considered the current policy of lodging enforcement responsibility in the Office of Examination (OE). Prior to 1997, FCA's enforcement function was in an office independent of OE. Thus, all non-legal aspects of potential actions were vetted by non-OE staff. In 1997, the FCA Board transferred this function to OE. The report states that a former FCA attorney noted that, "prior to 1997 there was more certainty and balance in the enforcement process, which provided “a broader perspective and less chance for bias.” The report did not, in the end, make any recommendations regarding the continued independence of the enforcement process. Instead, the report states, "The FCA Board will establish policy guidance and thresholds that ensure decisions concerning the Agency’s use of enforcement authority are brought to the attention of the FCA Board, or an intermediate decision-making body, when certain criteria are met." August 17, 2007 Pursuant to Federal law, every agency must submit an annual statement designating which of its jobs are "inherently governmental" (cannot be contracted out) and which are "commercial" (can be contracted out). Interestingly, eight positions in the Office of Regulatory Policy are designated as "commercial" (because only the summary statement is online, it's not possible to identify the exact policy positions that are affected). August 9, 2007 Without benefit of notice and comment, FCA has broadened the lending rules for YBS farmers. The revised Bookletter authorizes FCS lenders to treat a "part-time" YBS farmer as a "full-time" farmer if he has "demonstrated intent to progress toward farming as his primary business and vocation." Under the new "rules" for "other credit needs," the part-time YBS farmer who has only limited farm income may now be eligible for apparently unlimited non-farm financing. August 8, 2007 In an amazing irony, the New York Times reports that the jump in farm real estate prices spurred by the ethanol market has made it much more difficult, if not impossible, for young farmers to purchase farmland. July 31, 2007 Iowa has the largest number of hog factory farm polluters in the nation and is number two behind Nebraska for cattle pollution according to factoryfarmmap.org. July 27, 2007 House Deletes FCS Provisions From Farm Bill (HR 2419) In the only major floor change to the 2007 Farm Bill, the House agreed by voice vote to an amendment offered by Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, to remove a proposed expansion of FCS lending authorities from the bill. Rep. Frank adopted the position of community banks who argued that FCS lenders wanted to move beyond their mission into the bank's business of commercial lending. The amended Farm Bill was ultimately adopted by a vote of 231-191. July 12, 2007 July 11, 2007 Several AA rated bonds are downgraded. Interestingly, in 1999, FCA relaxed its rules to permit Farm Credit institutions to invest in AA mortgage securities. July 11, 2007 Ann Jorgensen to speak at Iowa Women in Agriculture Conference on July 25-26. July 5, 2007 New rule on institution annual reports to shareholders on July agenda. July 5, 2007 FCA finally publishes 2006 report. June 21, 2007 FCA invites comments on capital requirements for Farm Credit institutions in light of changes in banking and capital markets. Ace FCA attorney Rebecca Orlich is once again leading the legal review of this rulemaking. June 19, 2007 Guidance includes compliance date info. June 13, 2007 June 6, 2007 Fitch assigns AgFirst an 'AA-' long-term Issuer Default Rating and an 'A' rating to it's $250 million class B subordinated preferred stock. However, Fitch cautions that "future ratings actions rely on the FCS' continued GSE status and continued political support for the agricultural industry." May 23, 2007 Frank and Bachus send strong letter to House Ag Committee. May 17, 2007 Two FCA employees filed discrimination complaints in the first 3 months of 2007 compared with none in 2004, one in 2005, and one in 2006. The new complaints are based on race, color, national origin, and disability. May 17, 2007 FCA authorizes System Banks to pay up to $48,815 annual compensation to directors. May 10, 2007 Board chooses Jerold Harris as Chairman and outside director. May 8, 2007 Rating is based on Fitch's belief "that if the System were in need of support, it is extremely likely that it would be provided [by the US Government]." May 2, 2007 The Farm Credit System today reported combined net income of $654 million for the quarter ended March 31, 2007, as compared with combined net income of $554 million for the same period of the prior year.
May 1, 2007 FCA's regulatory agenda identifies only two new proposed rules. The first includes revisions to the regulations governing eligibility, scope of lending, and the definition of "moderately priced" for determining rural housing limits. Note that this project has been on the agency's agenda, in one form or another, for most of this decade. The second is a revision to the calculation for determining Farmer Mac's risk based capital requirement. April 30, 2007 "We urge Congress to reject Farm Credit's expansion plan." April 24, 2007 April 24, 2007 Read Martin Pollan's NY Times article on affect of subsidies on US obesity crisis. April 21, 2007 April 20, 2007
April 17, 2007
Supreme Court upholds OCC's Authority. April 17, 2007 Pressure builds to replace corn with cellulose. April 12, 2007 April 5, 2007 Amendments to 12 CFR §§ 611.210(a)(2), 611.220(a)(2)(i) and (ii), 611.325, and 620.21(d)(2) effective today. April 3, 2007 March 30, 2007 The Court held that, while “[t]he statute may be imperfect, ... the [SEC] has no power to correct flaws that it perceives in the statute it is impowered to administer." March 30, 2007 USDA says farmer's plan to plant 15% more corn in 2007 than 2006. March 27, 2007 Asks for amendments to Farm Credit Act. March 26, 2007 On March 27, representatives from the System will present Congress with their plan for improving service to rural America. March 22, 2007 Regulators told that they failed to stop abuses. March 18, 2007 Broin partners with farmers to qualify for Farm Credit loans. March 12, 2007 FCA proposes to provide priority rights to Farm Credit System banks if they make payments under an inter-Bank reallocation agreement instead of the statutory joint and several requirement. The comment period closes May 11. March 7, 2007 Witnesses representing small banks, the farm credit system, venture capitalists, investors and project developers shared their perspectives.
March 4, 2007 Farmland values increased 50% nationswide from 2002 through 2005. February 21, 2007 It's Minnesota v. Wisconsin In a Knock Down Brawl! Click above to read United's press release. CoBank earnings increase to $335 million. February 17, 2007 "Six months ago, it was an even bet whether there would be a new farm bill in 2007. The big commodity farmers, and the interest groups that represent them, were hoping that Congress would simply extend the 2002 Farm Bill, a regressive grab bag for big agriculture. These hopes have now been disappointed. Mike Johanns, the secretary of agriculture, has unveiled his proposals for a new farm bill, which on the whole seems remarkably promising."
February 15, 2007 US BioEnergy Corp., a Minnesota-based ethanol company opened a new plant in northwest Iowa that will make 100 million gallons of ethanol a year from 36 million bushels of corn. February 14, 2007 February 13, 2007 New York Times article about opposition to first wind farm in Virginia. |
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