The Farm Credit System

Transcription

1 The Farm Credit System REGINA GILL VP INVESTOR RELATIONS FEDERAL FARM CREDIT BANKS FUNDING CORPORATION DECEMBER /01/17

2 OVERVIEW OF THE SYSTEM Created by an Act of Congress (1916) Government Sponsored Enterprise (GSE) created to support rural communities and agriculture with reliable, consistent credit and financial services Network of cooperatives owned by its borrowers (farmers, ranchers, agricultural cooperatives and rural customers) Regulated and examined by the Farm Credit Administration (FCA), an independent agency in the Executive Branch of the US Government Federal Farm Credit Banks Consolidated Systemwide Debt Securities are issued to fund the System s loan portfolio, investments and operations The Farm Credit System funds approximately 41% of all US farm business debt. (November 2017, USDA ERS) Farm Credit supports rural communities and agriculture with reliable, consistent credit and financial services today and tomorrow. Part of the Farm Credit System 2

3 STRUCTURE/OWNERSHIP Part of the Farm Credit System 3

4 GROSS LOANS The System continues to experience moderate loan growth A variety of loan types are available to qualified borrowers Loan eligibility is based on credit, collateral AND repayment capacity/cash flow. ($ billions) Agriculture Export Finance Rural residential real estate and other loans Rural Infrastructure Agribusiness loans Production & intermediate-term loans Generally ag loanscollateralized by land 12/31/ /31/ /31/ /31/2016 9/30/2017 Part of the Farm Credit System 4

5 NONPERFORMING ASSETS Nonperforming assets represented 0.81% of the System s loans at 9/30/17. Nonaccrual loans represented 0.68% of the System s loans at 9/30/17. Credit risk of certain loans is reduced by off-farm income sources and crop insurance. 60.3% of nonaccruals were current as to principal and interest payment at 9/30/17. Nonperforming Assets ($ billions) /30/2017 Accruing - 90 Days or More Past Due Restructured Loans Nonaccrual Loans Other Property Owned As a Percentage of Loans & OPO 1.11% 0.86% 0.73% 0.82% 0.84% 6% 5% 4% 3% 2% 1% 0% Nonaccrual Loans (as a % of Total Loans) 0.68% * At 9/30/2017 Part of the Farm Credit System 5

6 FARM CREDIT SYSTEM LIQUIDITY System Banks are authorized to hold highly rated investments in an amount not to exceed 35% of the Bank s average loans outstanding for the quarter. Investments are generally classified as available-for-sale and carried at fair value. FCA regulations define eligible investments: ratings, maturities, percent of portfolio. Mortgage- and asset-backed investments must be rated AAA/Aaa/AAA. Ineligible investments must be reported to the FCA within 15 calendar days. Regulatory minimum liquidity = 90 days. As of 9/30/17, FCS liquidity position = 172 days ($ millions) FCS Investments Available-For-Sale (Fair Value at 9/30/17 by contractual maturity) Due in 1 year or less Due after 1 year - 5 years Due after 5 years - 10 years Due after 10 years Total Weighted Avg. Yield Commercial paper, CDs, bankers acceptances, and other securities 5, , % US Treasury securities 5,309 7,957 2, , US agency securities 934 1,128 1, , Mortgage-backed securities* 5 1,359 2,342 23,434 27, Asset-backed securities 37 1, , Total fair value $12,053 $11,738 $7,169 $24,104 $55, % Total amortized cost $12,050 $11,730 $7,219 $24,094 $55,093 * Agency collateralized ($24,856), Agency whole-loan pass through ($1,799), Non-agency ($28), Private label-fha/va ($380) Part of the Farm Credit System 6

7 NET INCOME Net Interest Spread* declined to 2.24% at 9/30/17 from 2.29% at 9/30/16. ($ billions) Net Interest Margin** was 2.47% at 9/30/17 unchanged from 9/30/16. $4.640 $4.724 $4.688 $4.848 $ /30/2017 For the Year Ended *Net Interest Spread = average rate on total earning assets average rate on interest bearing liabilities **Net Interest Margin = net interest income / average earnings assets Part of the Farm Credit System 7

8 SYSTEM CAPITAL Regulatory Capital Requirements (at September 30, 2017) CET 1 Capital Tier 1 Capital Total Capital Tier 1 Leverage Permanent Capital Minimum Requirement 4.5% 6.0% 8.0% 4.0% 7.0% Minimum Requirement w/ Conservation Buffer 7.0% 8.5% 10.5% 5.0% -- Banks 10.4% % % 15.4% % 5.7% - 7.5% 14.4% % Associations 12.5% % 12.5% % 13.3% % 11.0% % 13.0% % $ billions $42.60 System Capital (at December 31st) $45.71 $48.83 $52.31 $ /30/2017 Capital-to-asset Ratio 16.3% 16.2% 16.1% 16.4% 17.3% Note: Systemwide Debt Securities are the general unsecured joint and several obligations of the Banks and are not the direct obligations of the Associations. The System combined capital reflects Association capital which may not be available to support principal or interest payments on Systemwide Debt Securities. The amounts of combined Bank capital, combined Association capital and the Insurance Fund is reflected on page 34 of the Quarterly Information Statement of the Farm Credit System 3 rd Q Part of the Farm Credit System 8

9 NEW CAPITAL REGULATIONS Effective 1/1/17 the FCA published their new regulatory capital requirements to: Modernize System capital requirements to assure sufficiency as a GSE Increase transparency Align the requirements to the Basel III framework while recognizing the cooperative structure of the System Farm Credit System Capital (at September 30, 2017) Ratio Primary Components of Numerator Denominator Minimum Requirement Min. Req. w/ Conservation Buffer Banks Associations CET1 Capital Tier 1 Capital Unallocated retained earnings ( URE ), Common stock (subject to certain conditions) CET1 Capital, Non-cumulative perpetual preferred stock Risk-weighted Assets 4.5% 7.0% 10.4% % 12.5% % Risk-weighted Assets 6.0% 8.5% 14.1% % 12.5% % Total Capital Tier 1 Capital, Allowance for Loan Losses, Other equity securities not included in Tier 1 Capital Risk-weighted Assets 8.0% 10.5% 15.4% % 13.3% % Tier 1 Leverage Tier 1 Capital (1.5% must be URE or URE equivalents) Total Assets 4.0% 5.0% 5.7% - 7.5% 11.0% % Permanent Capital Retained earnings, common stock, noncumulative perpetual preferred stock and subordinated debt Risk-adjusted assets 7.0% % % 13.0% % *for additional information see p. 33 of Q3 FCS Information Statement Part of the Farm Credit System 9

10 INSURANCE CORPORATION & FUND Farm Credit System Insurance Corporation Created in 1988 through an amendment to the Farm Credit Act Primary responsibility is managing the Farm Credit Insurance Fund Secured a $10B liquidity line to be used in exigent market circumstances that threaten our ability to pay maturing obligations. Farm Credit Insurance Fund Primarily to insure the timely payment of principal and interest on Systemwide Debt Securities (provides additional protection for investors) Funded by premiums assessed on System Banks, which may be passed on to the Associations Insurance Fund target is 2% of aggregate outstanding insured debt (primarily Systemwide Debt Securities outstanding) Insurance Fund invested only in U.S. Government guaranteed securities Assets of $4.7 billion in the Insurance Fund (at 9/30/17) Insurance Fund has never been used for the payment of principal or interest on Systemwide Debt Securities. Part of the Farm Credit System 10

11 TOTAL CAPITAL AND ALLOWANCE FOR LOAN LOSSES Measure of risk bearing capacity Total risk funds as a percentage of loans = 22.7% (as of 9/30/17) (additional paid-in-capital + allowance + Insurance Fund + surplus + preferred stock + capital stock + participation certificates) Surplus continues to grow due to net income earned and retained ($ billions) Additional paid incapital Allowance for Loan Losses Restricted Capital- Insurance fund Surplus /30/2017 Preferred Stock, Capital and Participation Certificates Total Risk Funds as a Percentage of Loans 21.8% 21.6% 21.2% 21.6% 22.7% Part of the Farm Credit System 11

12 THIRD PARTY CAPITAL OUTSTANDING Issue Date Amount Dividend Rate and Security Type Preferred Stock AgFirst June M LIBOR plus 1.13% non cumulative perpetual, payable quarterly Redeemable on 6/15/17, and each five year anniversary thereafter AgriBank Oct % non-cumulative perpetual, payable quarterly. Beginning 01/01/14, dividends will accrue at an annual rate of 3M LIBOR % Redeemable on 01/01/24, and any dividend payment date thereafter CoBank April % non cumulative perpetual, payable semi-annually. Beginning 10/1/26, dividends will accrue at the annual rate 3M LIBOR % Nov % non cumulative perpetual, payable quarterly. Beginning 1/1/25, dividends will accrue at the annual rate 3M LIBOR % Redeemable on 10/1/26 and any dividend payment date thereafter Redeemable on 1/1/25 and any dividend payment date thereafter April % non cumulative perpetual, payable quarterly. Redeemable on 7/1/18 and any dividend payment date thereafter Oct % non cumulative perpetual, payable quarterly. Beginning 10/1/22, dividends will accrue at an annual rate of 3M LIBOR % Redeemable on 10/1/22 and any dividend payment date thereafter Jan M LIBOR plus 1.18% non cumulative perpetual, payable quarterly Redeemable on 7/10/17, and each five year anniversary thereafter Texas July % non-cumulative perpetual payable quarterly. Beginning 9/15/23, dividends will accrue at annual rate of 3M LIBOR plus 4.01% Redeemable on 9/15/23 and any dividend payment date thereafter Aug % non cumulative subordinated, perpetual payable semi annually Redeemable after the dividend payment date in 6/20/20 Agstar Financial Services, ACA May % non-cumulative perpetual payable quarterly. Beginning 8/15/23, dividends will accrue at an annual rate of 3M LIBOR plus 4.58% Redeemable at any time upon the occurrence of certain defined regulatory events. As of 6/20/2017 Part of the Farm Credit System 12

13 FARM CREDIT RATINGS Fitch Moody's S&P Farm Credit System Long-term AAA Aaa AA+ Short-term F1+ P-1 A-1+ Outlook Stable Stable Stable BCA (baseline credit assessment) a1 SACP (stand-alone credit profile) aa AgFirst Issuer ratings - LT AA- AA- Noncumulative preferred BBB BBB+ Agribank Issuer ratings - LT AA- Aa3 AA- Subordinate debt A+ A2 A- Noncumulative preferred BBB Baa1 BBB+ CoBank Issuer ratings - LT AA- AA- Subordinate debt A+ A- Noncumulative preferred BBB BBB+ Farm Credit Bank of Texas Issuer ratings - LT AA- Aa3 Subordinate debt A+ A2 Noncumulative preferred BBB Baa1 Part of the Farm Credit System 13

14 GEOGRAPHIC DIVERSIFICATION Farm Credit System lends in all 50 states, the Commonwealth of Puerto Rico and U.S. territories Loan portfolio has broad geographic diversification Highest concentration is less than 11% Geographic diversification minimizes overall effects of local agricultural events STATE % California Texas 6.87 Iowa 5.29 Illinois 5.11 Minnesota 4.66 Ohio 3.79 Nebraska 3.76 Wisconsin 3.03 Indiana 2.99 Kansas 2.92 Michigan 2.72 Missouri 2.61 South Dakota 2.53 North Carolina 2.52 Georgia 2.37 New York 2.30 Washington 2.29 Farm Credit System Loan Portfolio (percent of total loan volume at 12/31/16) STATE % North Dakota 2.26 Colorado 2.12 Florida 2.00 Tennessee 1.95 Kentucky 1.92 Arkansas 1.92 Virginia 1.78 Idaho 1.59 Pennsylvania 1.58 Oregon 1.38 Oklahoma 1.35 Alabama 1.15 Mississippi 1.13 Maryland 1.01 South Carolina 0.99 All other states 9.88 Source: Farm Credit System Annual Information Statement Part of the Farm Credit System 14

15 AGRICULTURAL DIVERSIFICATION Broad diversification within the Farm Credit System loan portfolio Highest concentration is 17% Diversification minimizes concentration risk Farm Credit System Loan Portfolio Horticulture 1% Food products (meat, dairy and bakery products) 7% General farms, primarily livestock 2% Dairy farms 7% (at 12/31/16) Rural home loans, farm landlords and part-time farms 6% Ag export finance 2% Forestry 6% Cotton 1% Field crops (sugar beets, potatoes and vegetables) 6% Cattle 9% General farms, primarily crop 4% Other livestock 1% Tree fruits, nuts and grapes 5% Farm supplies and marketing 4% Cash grains (corn, wheat and soybeans) 17% Other 3% Energy & Water/Waste Water 9% Ag services and fish 3% Poultry and eggs 3% Rural Comm 2% Hogs 2% Source: Based on loans described in the Farm Credit System Annual Information Statement 2016 Part of the Farm Credit System 15

16 LOANS BY DOLLAR SIZE Farm Credit System lends to qualified borrowers of all sizes 88% borrowers between $1,000 and $499,000 Range ($ thousands) Farm Credit System Loan Portfolio (at 12/31/16) Amount Outstanding ($ millions) % of Portfolio # of Borrowers % of Portfolio (# of borrowers) $1 -- $249 32, , $ $499 21, , $ $999 24, ,917 6 $1, $4,999 53, ,450 5 $5, $24,999 37, ,774 <1 $25, $99,999 32, <1 $100, $249,999 21, <1 Over $250,000 25, <1 TOTAL 248, , Source: Based on loans described in the Farm Credit System Annual Information Statement 2016 Part of the Farm Credit System 16

17 FINANCIAL SUMMARY (as of 9/30/17) (In billions) 9/30/17 12/31/16 12/31/15 12/31/14 12/31/13 Total assets $321.6 $319.9 $303.5 $282.8 $260.8 Total loans $251.2 $248.8 $235.9 $217.1 $201.1 Cash and investments $60.9 $62.6 $59.4 $57.8 $51.9 Net income $3.72 $4.8 $4.7 $4.7 $4.6 System combined capital Farm Credit Insurance Fund $55.5 $52.3 $48.8 $45.7 $42.6 $4.7 $4.5 $4.0 $3.7 $3.5 Capital to assets ratio 17.3% 16.4% 16.1% 16.2% 16.3% Nonaccrual loans as a percentage of total loans Total risk funds as a percentage of total loans.68%.64%.56%.63%.86% 22.7% 21.6% 21.2% 21.6% 21.8% Part of the Farm Credit System 17

18 DEBT SECURITIES OVERVIEW Issued by the 4 System Banks on a joint and several basis Aaa/P-1 rating by Moody s, AAA/F1+ by Fitch and AA+/A-1+ rating by S&P on Systemwide Debt Securities Interest is generally exempt from state, local and municipal income taxes 20% BIS (Bank for International Settlements) risk-weighting (Basel II, June 2006; Basel III, July 2013) Name diversification in fixed income portfolios Supported by Selling Group of 30 investment firms A broad range of investors purchase Systemwide Debt Securities Part of the Farm Credit System 18

19 FARM CREDIT DEBT (as of 11/30/17) Discount Notes Floating Rate Callables Bullets Designated Bonds Maturity 1 to 365 days 1 to 30 years Issued Daily Daily and/or as needed Periodically Settlement Cash/regular 5 to 7 business days 5 to 7 business days Typical Maturity Range O/N-30 days 1 3 years 1 5 years 1 5 years 2 10 years Indices/Call Feature N/A LIBOR, Prime, T-Bills, Fed Funds (monthly, quarterly, daily, weekly resets) American, Bermudan, European (3mo or longer lockouts) N/A Fixed Floating Callable Avg. Issuance size (YTD) N/A $ 191.0MM $ 51.5MM $ 69.9MM N/A Outstanding $24.9 B $95.5 B $71.5 B $68.4 B $1.0 B YTD Issuance Distribution Method $159.4 B (total) $109.6 B (o/n) 10 member core group $45.7 B $18.6 B $17.3 B $0.0 B 30 Member Selling Group (Auction/Negotiated) Syndicate Bloomberg FFCB<go>, Reuters FFCB07, FFCB08 Part of the Farm Credit System 19

20 DISCOUNT NOTES (as of 11/30/17) Maturity Range Outstanding 2017 YTD Issuance WAM YTD Issuance 1 to 365 days $24.9 B $49.8 B (excludes o/n maturities) $109.6 B (o/n maturities) 48 days (includes o/n) Generally issued daily Sizes and maturities posted to the window at 4pm EDT Priced next morning Investor orders receive priority Remaining DNs are allocated on a first come first served basis Reverse inquires considered Distributed through 10 member core group, available to entire selling group with re-allowance Insurance Companies, 13% Reported Orders (December 1, 2016 November 30, 2017) Other, 21% Investment Managers, 62% State & Local Gov'ts, 4% Maturity (days) Discount Notes Issuance 2017 YTD (%) 2016 (%) O/N (69 o/n) 68 (65 o/n) > Part of the Farm Credit System 20

21 FLOATING RATE BONDS (as of 11/30/17) Typical Maturity Outstanding YTD Issuance Indices (YTD Issuance) 1 to 3 years $95.5 B $45.7 B 1ML 71% 3ML 5% 6ML 0% PRIME 11% T-Bills 6% Fed Funds 7% 1 to 2 year Floating Rate Bonds are typically auctioned 2+ years Floating Rate Bonds typically negotiated Issuance practices are responsive to market conditions $millions Issuance (December 1, 2016 November 30, 2017) FRNs Fed Funds 1M LIBOR 3M LIBOR 6M LIBOR Prime 3M TBill Recent Trades (November) Structure Trade Date Size ($ MM) Index Coupon (Spread) 2-year 11/7/ Prime year 11/9/ M LIBOR year 11/14/ Fed Funds Years 1.7-year 11/20/ M LIBOR -8 2-year 11/20/ D Tbill year 11/21/ M LIBOR 1 9-month 11/27/ M LIBOR -13 Part of the Farm Credit System 21

22 FIXED RATE NON-CALLABLE BONDS (as of 11/30/17) Typical Maturity Outstanding YTD Issuance Average Issuance Size (YTD) 1 to 5 years $68.4 B $17.3 B $69.9 M Offerings vary in size and maturity Auctioned as needed Reopen outstanding issues when possible May be swapped back to floating (2016 issuance swapped to LIBOR=25%) Issuance (December1, 2016 November 30, 2017) $ millions Recent Trades (November) Bullets Structure Trade Date Size ($ MM) Coupon (%) Years 4.9-year 11/8/ year 11/14/ year 11/17/ year 11/27/ year 11/27/ year 11/27/ year 11/30/ Part of the Farm Credit System 22

23 FIXED RATE CALLABLE BONDS (as of 11/30/17) Typical Maturity Outstanding YTD Issuance Average Issuance Size (YTD) Possible Call Feature 1 to 5 years $71.5 B $18.6 B $51.5 M American, Bermudan, European Offerings vary in size and maturity Auctioned as needed Reopen outstanding issues when possible Predominantly American Calls $ millions Issuance (December 1, 2016 November 30, 2017) Callables Recent Trades (November) Structure Trade Date Size ($ MM) Coupon (%) 4Y NC 1Y 11/8/ Y NC 3Y 11/9/ Y NC 3M 11/20/ Y NC 1Y 11/20/ Y NC 3M 11/20/ Years 20Y NC 1Y 11/20/ Y NC 3M 11/30/ Part of the Farm Credit System 23

24 DESIGNATED BONDS (as of 11/30/17) Maturity Structure Outstanding YTD Issuance Minimum Sizes 2 to 10 years Non-Callable, Callable and Floating-Rate Bonds $1.0 B $0.0 B $1B Bullets $500 M Callables Issued as needed May be fixed, callable or floating rate Majority of fixed rate offerings are swapped back to 1 or 3-month LIBOR Syndicated offerings (2 to 3 lead managers), bonds made available to the entire selling group Reported Orders 4/12/16 4/18/18 Bank & Credit Union 10% Other/ Undisclosed 1% Central Banks 7% Investment Managers 41% Outstanding Issues Coupon Issue Date Size ($ B) Maturity Date % 4/12/ /18/2018 State & Local Gov'ts 41% Part of the Farm Credit System 24

25 SYSTEMWIDE DEBT SECURITIES OUTSTANDING ($ billions) $ $ $ $ $261.5 $ Other* Floating-Rate Bonds Fixed-Rate Non Callable Bonds Fixed-Rate Callable Bonds Designated Bonds Discount Notes 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 11/30/17 Please note columns may not total due to rounding *Includes Linked Deposits and Retail Bonds Part of the Farm Credit System 25

26 APPENDIX U.S. AGRICULTURE USDA 2017 Forecasts 160 $ Billions per fiscal year Agricultural Trade Balance Ag trade balance remains positive Increasing exports led by soybean, livestock, poultry and dairy products. Anticipate improvement in world per capita GDP in 2017 with improving per capita growth income in key emerging markets Trade Balance Exports Imports 30.0 Top U.S. agricultural export destinations $U.S. value by fiscal year 25.0 $ Billions China Canada Mexico Japan European Union F 2018F Source: USDA Outlook for U.S. Agricultural Trade 8/29/17 Part of the Farm Credit System 26

27 APPENDIX U.S. AGRICULTURE Production and Demand Larger global grain production pushes prices lower. Dollars per bushel 2014/ / /17F 2017/2018F Wheat $5.99 $4.89 $3.90 $4.40-$4.80 Corn $3.70 $3.61 $3.40 $2.80-$3.60 Soybean $10.10 $8.95 $9.55 $8.45-$10.15 Dollars per cwt F 2018F Cattle $ $ $ $113-$122 Hogs $50.23 $46.16 $49.01 $43-$47 Broilers $90.5 $84.30 $93.8 $85-$92 Milk $17.12 $16.24 $17.65-$17.75 $16.90-$17.80 Million MTs 3,000 Grain Production and Use 30% 2,500 25% 2,000 20% 1,500 15% 1,000 10% 500 5% 0 0% F Source: USDA WASDE 11/09/17 Part of the Farm Credit System 27

28 APPENDIX U.S. AGRICULTURE Farm Income 2017 Forecasts 2017 Net cash income expected to increase 3.9% compared to 2016 forecast. Net farm income expected to increase 2.7% compared to 2016 forecast. Total production expenses forecast to increase 1.5% after 2 years of declines Debt-to-Asset ratio remains near historical levels unchanged from $ Billion Emergency Payments Commodity/Conservation programs Net Cash Income Net Cash Income less government payments Net Cash Income 25% Debt-to-Asset Ratio 20% 15% 10% 5% 10 Year Average 30 Year Average 0% Source: USDA U.S. Farm Income Data 11/29/2017 Part of the Farm Credit System 28

29 APPENDIX U.S. AGRICULTURE 2017 Cropland Values by State Dollars per acre and Percent Change from year % change 6% Cropland values vary widely across the U.S. Farm Credit generally uses benchmarking to evaluate loans (not sale price) Average cropland value remained unchanged at $4,090 per acre from previous year 4% 2% 0% -2% -4% -6% Average U.S. Cropland Value per Acre $2,530 $2,760 $2,670 $2,700 $2,980 $3,550 $3,810 $4,100 $4,130 $4,090 $4,090 Source: USDA Land Values, 2017 Summary, August 2017 Part of the Farm Credit System 29

30 APPENDIX U.S. AGRICULTURE Farm Bill Negotiations for 2018 Farm Bill began in 2017 Projected 2014 Farm Bill Allocations (over 10 years) 5% 6% 1% The Agricultural Act of 2014 (H.R. 2642) Eliminated direct payments Maintained crop insurance programs - Price Loss Coverage or - Agricultural Risk Coverage options Established the Dairy Margin Protection program Established a permanent livestock disaster program Maintained USDA Rural Development programs. Majority of Farm Bill supports/funds non-farm programs (nutrition, etc.) 9% 79% Food Stamps and Nutrition, $756B Crop Insurance, $90B Conservation, $58B Commodity Programs, $44B Other, $8B Source: House Committee on Agriculture, 2/7/2014 Part of the Farm Credit System 30

31 DISCLAIMER This overview is provided for general information purposes only. It is not an offer to sell or a solicitation of an offer to buy any Systemwide Debt Securities. Debt Securities are offered only in jurisdictions where permissible by offering documents available through our Selling Group. Systemwide Debt Securities may not be eligible for sale in certain jurisdictions or to certain persons and may not be suitable for all types of investors. All statements made in this overview are qualified in their entirety by the information in the most recent Federal Farm Credit Banks Consolidated Systemwide Bonds and Discount Notes Offering Circular, including the financial and other Systemwide information incorporated therein, and other offering documents. Copies of offering documents can be obtained, if permitted by applicable law, by calling the Funding Corporation at (201) , through selling group members, and through the Funding Corporation s website at Any forward-looking statements in this presentation are based on current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from expectations due to a number of risks and uncertainties. More information about these risks and uncertainties is contained in the System s most recent Annual and Quarterly Information Statements. The System undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Part of the Farm Credit System 31

32 NEW NATIONAL MESSAGING CAMPAIGN The One Mission. Many Voices. national messaging campaign brings Farm Credit s mission to life through the many voices of its customers, directors, employees, and others. Please visit to learn more. Part of the Farm Credit System 32