Pub. 6 2017 Issue 1

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 22 Real Estate Lending Workshop From Start to Finish February 28, 2017 Salina, Holiday Inn Attending this timely workshop will arm you with all the latest information on all relevant phases - Origination, processing, underwriting, closing and follow-up. First, the report perpetuates the double and triple counting of YBS lending – a loan to a farmer who is 35 or younger (a young farmer), with ten or less years of farming experience (a beginning farmer), and with gross annual agricultural sales of less than $250,000 is counted three times in the FCS tally of its lending to YBS farmers. Second, although the report noted that YBS data is reported annually on the volume of newYBS loans made during the year as well as outstanding YBS loans at year end, the report given to FCA board only presented data on new YBS loans as a percentage of all new FCS loans. No data was provided on a much more important statistic – the amount of loans outstanding at yearend to YBS borrowers as a percentage of total FCS loans outstanding. As the June FCW reported, even with the FCS’s double-and triple-counting of its FCS lending, FCS lending to YBS farmers and ranchers has declined in recent years, which is not surprising given the FCS’s increase in very large loans. AgriBank interimCEO gets the job outright As the August FCW reported, on July 29, AgriBank, one of the four FCS banks providing funding and other services to FCS associations, announced the sudden “departure” of its long-time CEO, Bill York. No reason was given at the time as to why the 62-year-old CEO suddenly departed the bank. AgriBank’s retired vice president and general counsel, William Throne, was named interim CEO on August 1. On November 15, AgriBank announced that Throne would “assume the role of CEO,” effective December 1. There was no indication of the nature of search process that led to Throne’s designation as CEO or any explanation as to why York suddenly departed AgriBank in July. Report FCS lending abuses to: green-acres@ely-co.com Bankers are continuing to send FCW reports of FCS lending abuses, such as FCS loans for rural estates, weekend getaways, and hunting preserves. You can email reports of similar lending abuses in your market to: green-acres@ely-co.com Holiday Greetings and Best Wishes for the NewYear FCWwishes its readers as well as their families, friends, associates, and customers the very best for the Holiday Season and the NewYear. I join withAmerica’s taxpaying bankers in hoping that the FCAwill become more aggressive in 2017 in cracking down on FCS lending violations as well as other FCS violations of the Farm Credit Act, especially those committed by CoBank. Hopefully Congress will impose the appropriate constraints on FCS lending when it enacts the next farm bill.