[Weekly Compilation of Presidential Documents Volume 32, Number 7 (Monday, February 19, 1996)]
[Pages 259-260]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.

[[Page 260]]

    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.