    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book I)]
    [February 10, 1996]
    [Page 225]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Signing the Farm Credit System Reform Act of 1996
    February 10, 1996

        Today I have approved H.R. 2029, the ``Farm Credit System Reform Act
    of 1996,'' which will reform and expand the activities of the Federal
    Agricultural Mortgage Corporation (Farmer Mac), as well as provide
    regulatory relief to members of the Farm Credit System.
        This bill should lower the cost of credit for farmers and ranchers
    by passing along the benefit of Farmer Mac's lower interest rates to
    local banks. Other changes also will make it more attractive for county
    and regional banks to participate in the Farmer Mac program, which will
    link these local banks to national and international credit markets.
        This bill is an example of the kind of reinventing government that I
    have encouraged in all areas of government. Under this new law, banks
    and farmers will have less paperwork, and the auditing programs will be
    freer to target areas of major concern.
        As Farmer Mac takes on new business responsibilities as a mortgage
    purchaser and an issuer of securities, it will be important for the Farm
    Credit Administration and the Treasury Department to monitor the use of
    these new authorities to ensure the continued safety and soundness of
    this government-sponsored enterprise. Similarly, the relevant
    congressional committees have requested the Farm Credit Administration,
    working with the Treasury, to conduct periodic evaluations of Farmer
    Mac.
        I also note that H.R. 2029 maintains a common board of directors for
    the Farm Credit System Insurance Corporation and the Farm Credit
    Administration, which serves as a regulator of the system. As previously
    proposed by the Administration, the Congress should reconsider this
    structure in the future to provide more independence for the board.
        I am pleased to sign this bill in order to expand opportunities and
    lower costs for the ranchers and farmers of America.

                                                          William J. Clinton

    The White House,

    February 10, 1996.

    Note: H.R. 2029, approved February 10, was assigned Public Law No. 104-
    105.