Farm Bureau Ditches Red Tape to Ease Farmer Paperwork Woes
Published Date: 3/3/2025
Rule
Summary
The Farm Credit Administration is cutting down on confusing and costly rules for Farm Credit System institutions, including Farmer Mac. After hearing from these groups in 2022, they're making changes to simplify regulations and reduce unnecessary paperwork. These updates start March 3, 2025, aiming to save time and money for farms and lenders across the country.
Analyzed Economic Effects
8 provisions identified: 4 benefits, 4 costs, 0 mixed.
Troubled Debt Restructuring (TDR) Reporting Updated
FCA says Generally Accepted Accounting Principles changed so the TDR loan performance category is no longer required under GAAP after January 1, 2023, and FCA issued an Informational Memorandum on December 30, 2022 explaining that change. FCA also plans to propose updating Sec. 621.6(b) to reflect the GAAP change.
Electronic Delivery Remains Opt‑In for Shareholder Reports
FCA declined to remove the requirement in Sec. 620.2(c) that shareholder reports may be delivered electronically only with shareholder agreement (an "opt-in"). That means institutions must obtain shareholder agreement before using electronic delivery instead of mailing hard copies for reports covered by Part 620.
Criminal Referral Rules and Portal Use Remain
FCA affirmed that institutions must refer known or suspected criminal violations within 30 calendar days using the FCA referral form and explained Bookletter BL-073 guidance on what constitutes "known or suspected" activity. FCA said it is considering updates to the online criminal referral portal but did not change the referral requirements.
Independent Credit Judgment Required for Loan Purchases
When an institution purchases an interest in a loan participation, Sec. 614.4325(e) requires the purchasing institution to independently evaluate creditworthiness and document a credit analysis independent of the originating lender; it may use originating information but must independently evaluate it.
Permanent Capital Ratio ARS Disclosure Under Review
FCA plans to address the comment requesting removal of the permanent capital ratio from the Annual Report to Shareholders (Sec. 620.5) as part of its proposed permanent capital rulemaking listed in the Fall 2024 Regulatory Projects Plan.
Similar Entity Rulemaking Underway
FCA is engaged in a rulemaking and published an Advanced Notice of Proposed Rulemaking on September 6, 2024, to consider comments about Sec. 613.3300 (the similar entity participation limit and how the 50 percent test is applied).
No Separate Call Report for Farm Credit Leasing
FCA determined that Farm Credit Leasing Corporation (FCL), a wholly owned service corporation of CoBank, is no longer required to prepare and file a separate Call Report because CoBank's reporting is sufficient. FCA may require a separate Call Report in the future if FCL's structure or reporting changes.
Ballots Must Be Retained Until Director's Term Ends
FCA confirms Sec. 611.340 requires retention of ballots, proxy ballots, and election records at least until the end of the term of office of the director, including undeliverable, late, and invalid ballots.
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Key Dates
Department and Agencies
Related Federal Register Documents
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The Farm Credit Administration is updating how it stores records by switching from paper to electronic files. This change won’t affect your privacy rights or how you access your info, but it makes record-keeping safer and more modern. These updates take effect now and don’t cost you anything, just a smoother, tech-savvy system!
2026-07903, Assessment and Apportionment of Administrative Expenses
The Farm Credit Administration wants to update how it splits administrative costs among its banks and associations to make things fairer based on their size and setup today. These changes won’t affect the overall budget or other groups outside the main System. If you’re part of these banks or associations, you can share your thoughts by June 22, 2026!
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2024-31573, Internal Control Over Financial Reporting
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2026-18073, Informational Meeting
Notice of the forthcoming Farm Credit Administration informational meeting is hereby given.
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