Dallas Tonsager, chairman and CEO of the Farm Credit Administration died of lymphoma on May 21; he was 64. Tonsager was appointed to the FCA board by President Barack Obama on March 13, 2015, and designated by President Obama as chairman and CEO on November 22, 2016. Tonsager grew up on a dairy farm near Oldham, S.D., and later graduated from South Dakota State University with a Bachelor of Science degree in agriculture. Apart from serving on the FCA board, Tonsager’s public service included serving as the USDA’s undersecretary for rural development, a director of the Commodity Credit Corporation and USDA’s state director for rural development in South Dakota.
Author Bert Ely
Farm Credit Watch: In Reporting Record Income for 2018, the FCS May Be Underestimating Future Loan Losses
In its recently issued Annual Information Statement for 2018, the FCS reported after-tax profits for 2018 of $5.33 billion and $272 billion of loans outstanding at Dec. 31, 2018, up 5.1 percent from year-end 2017.
On Aug.1, Farm Credit Mid-America (MidAm), the second largest FCS association, announced at a PGA Tour event that it was rebranding its consumer lending division.
By Bert Ely In the June 2015 Farm Credit Watch, I reported that Frontier Communications Corp. had entered into a $350 million “credit agreement” with CoBank to partially finance Frontier’s $2 billion acquisition of AT&T’s wireline business in Connecticut. Frontier is an investor-owned, Nasdaq-listed telecommunications company with $24.7 billion of assets at March 31, 2018;
So far, the 2018 House and Senate Farm Bills now pending in Congress would have a minor impact on the Farm Credit System, which is good news for bankers.
espite the Farm Credit System’s supposed emphasis on lending to young, beginning and small farmers and ranchers, data in the FCS’s annual information statement for 2017 documents the declining importance of small borrowers to the FCS over the last several years. Although total FCS lending from year-end 2015 to year-end 2017 increased $22.9 billion, or
By Bert Ely everal readers noted that last month’s Farm Credit Watch, issue #240, marked the 20th anniversary of the monthly publication of the FCW, which triggered a look-back at the FCW’s accomplishments over the last 20 years, and there have been a few. Perhaps the most significant has been educating bankers and other readers
By Bert Ely As last month’s Farm Credit Watch reported, the major tax bill Congress enacted at the end of last year added a new section 199A to the Internal Revenue Code, one portion of which would greatly benefit agricultural cooperatives at the expense of investor-owned grain companies of all sizes — not only Cargill
Hopefully an unintended consequence of the major tax legislation enacted in December will be the triggering of a fundamental review of the taxation of the FCS and agricultural co-ops relative to banks and other investor-owned businesses.
One unintended effect of the wide-ranging tax legislation Congress enacted last month was a slight reduction in the competitive edge the FCS has long had for loans secured by real estate.