Frequently Asked Questions
Click on a category below for FAQs on the respective topic.
The Basics How FCSIC insurance works The Farm Credit System The Insurance Fund Premiums FCSIC operations Troubled System InstitutionsFCSIC operations
Is FCSIC part of the Farm Credit Administration (FCA)?
No. Congress created FCSIC as an independent, government-controlled corporation to insure repayment of FCS insured debt. FCA is the independent U.S. government agency with the primary responsibility for regulating and supervising the FCS. In creating FCSIC, Congress recognized the importance of having the federal insurance entity be separate from the System’s primary regulator. However, to promote efficiency and reduce costs, Congress directed FCSIC to rely on FCA resources for examination and other services where appropriate. FCSIC shares the same three member, presidentially appointed and Senate confirmed, board with FCA; however, the same person cannot be chair of both entities and FCSIC management is independent from FCA and reports directly to the FCSIC Board.
Who runs FCSIC?
FCSIC is governed by a board of directors composed of the presidentially appointed, Senate-confirmed, members of the FCA Board. The Chair of FCSIC’s Board — selected by vote of the three board members — must be a Board member other than the Chair of the FCA Board. Jeffery Hall currently serves as Chairman of the FCSIC board and Glen Smith and Vincent Logan serve as members of the Board. The FCSIC Board selects the FCSIC Chief Operating Officer and other senior officials to manage FCSIC’s operations.
Does FCSIC receive annual appropriations from Congress? If Congress cannot pass an annual budget, does FCSIC shut down with the rest of the U.S. government?
No and no. FCSIC’s administrative expenses are paid from the Farm Credit Insurance Fund, and it does not receive any annual appropriation from Congress. Payment of annual premiums by FCS banks replenish the Insurance Fund along with earnings on the Insurance Fund’s investments.
How much does FCSIC spend on administrative expenses?
FCSIC spent $4.4 million in 2023 on administrative expenses. This represents about 6 basis points (.06%) of assets under FCSIC management. As is typical, FCSIC earned enough on its investments in the first two weeks of this year to cover all of its operating expenses for the entire year. FCSIC operates with a cost-efficient business model, maintaining a small core staff of 10 employees and outsourcing support functions to other government agencies and private entities.