mr. spearman. mr. tonsager. your role as chairman of farm credit system is to ensure farm credit funds in order to safeguard the timely payment of danceable and adjust on the debt issued by the system banks. this funding comes from a collective of premiums and system banks that issue noted in your written testimony and 2013 when times are pretty good, the farm credit system insurance corporation and the federal financing banks entered into a 10 billion-dollar line of credit please explain what financial conditions prompted this decision when we were in a much better situation and what authority exists allowing the insurance corporation to take out this line of credit? >> the line of credit can only be used in times of economic emergency for the united states in general, not for agriculture specifically. it is a liquidity line designed to ensure the flow of capital to the farm credit system should there be an event similar to 2008 that might occur again. so we simply cannot use it unless the federal funding bank

mr. spearman. mr. tonsager, your role as chairman of the farm credit system insurance corporation is to insure proper maintenance of the farm credit insurance fund in order to safeguard the timely payment of principal and interest on the debt issued by the system banks. this funding comes from a collection of premiums from system banks. as you noted in your written testimony in 2013 when time were pretty good, the farm credit system insurance corporation and the federal financing bank entered into a $10 billion line of credit agreement. please explain what financial conditions within the farm credit system prompted this decision when we were in a much better situation, and what authority exists allowing the insurance corporation to take out this line of credit? >> the line of credit can only be used in times of economic emergency for the united states in general, not for agriculture specifically. it is a liquidity line designed to assure the flow of capital to the farm credit system should there be an

mr. spearman. mr. tonsager. your role as chairman of farm credit system is to ensure proper maintenance of the farm credit funding order to safe guard the timely payment. this funding comes from a collection of premiums on the system banks. as you noted in your written testimony in 2013 when times were pretty good the farm credit system insurance corporation and the federal financing bank entered into a $10 billion line of credit agreement. please explain what financial conditions within the farm credit system prompted this decision when we were in a much better situation, and what authority exists allowing the insurance corporation to take out this line of credit? >> the line of credit can only be used in times of economic emergency for the united states in general, not for agriculture specifically. it is a liquidity line designed to assure the flow of capital to the farm credit system should there be an event similar to 2008 at might occur again. and so we simply cannot use it unless the federal funding bank a

mr. spearman. mr. tonsager. your role as chairman of farm credit system is to ensure farm credit funds in order to safeguard the timely payment of danceable and adjust on the debt issued by the system banks. this funding comes from a collective of premiums and system banks that issue noted in your written testimony and 2013 when times are pretty good, the farm credit system insurance corporation and the federal financing banks entered into a 10 billion-dollar line of credit please explain what financial conditions prompted this decision when we were in a much better situation and what authority exists allowing the insurance corporation to take out this line of credit? >> the line of credit can only be used in times of economic emergency for the united states in general, not for agriculture specifically. it is a liquidity line designed to ensure the flow of capital to the farm credit system should there be an event similar to 2008 that might occur again. so we simply cannot use it unless the federal funding bank

mr. spearman. mr. tonsager, you will as chairman of the farm credit system insurance corporation is to ensure proper maintenance of the farm credit insurance fund. in her to safeguard the time of been a principal in this on the debt issued by the system banks. is funding comes from a collection of premiums from system banks. as you noted in your written testimony, in 2013 when times were pretty good, the farm credit system insurance corporation at the federal financing bank entered into a $10 billion light of credit. please explain what financial conditions within the farm credit system prompted this decision when we are in a much better situation. and what authority exist allowing insurance corporation to take out the line of credit? >> the line of credit can only be used in times of economic emergency for the united states in general, not for agriculture specifically. it is a liquidity line designed to assure the flow of capital to the farm credit system, should there be an event similar to 2008 that