Loan Performance Categories and Financial Reporting

What it does

The Farm Credit Administration (FCA, we, or our) amends our regulatory high-risk loan performance categories by removing "Formally restructured loans (TDR)," also known as troubled debt restructurings. In 2022, changes in generally accepted accounting principles (GAAP) eliminated the accounting guidance for TDRs, enhanced disclosure requirements for certain loan refinancings and restructurings undertaken when a borrower is experiencing financial difficulty and changed existing vintage year disclosure requirements for public business entities. This final rule removes TDRs from our regulatory loan performance categories to reflect changes in GAAP. Because FCA regulations require Farm Credit System (System) institutions to prepare financial statements and reports in accordance with GAAP, retaining TDRs as a regulatory loan performance category is no longer consistent with current accounting standards. In addition to making conforming technical changes, the rule also makes minor technical and organizational revisions to ensure internal consistency within the regulation. In addition, FCA determined that no regulatory amendments are necessary to implement GAAP's enhanced disclosure requirements for loan modifications to borrowers experiencing financial difficulty or for amended vintage year disclosures, as existing FCA regulations already require GAAP-compliant financial reporting.

The Farm Credit Administration's summary, as published in the Federal Register.

What changed in the regulation

1 part of Title 12 of the Code of Federal Regulations:

12 CFR 621

Compared with

The Farm Credit Administration has published 6 final rules in 2026 so far, compared with 2 in all of 2025.

Counted by the Tribune from Federal Register records since Jan. 1, 2025.

Before this

1 earlier Federal Register document under regulation identifier 3052-AD63 since Jan. 1, 2025.

• Dec. 5, 2025 Proposed rule and request for comment. Loan Performance Categories and Financial Reporting

Since then:

• Aug. 26, 2026 Final rule; confirmation of effective date. Loan Performance Categories and Financial Reporting

What happens next and when

This regulation will be effective 30 days after publication in the Federal Register during which either or both Houses of Congress are in session. We will publish a document announcing the effective date in the Federal Register.

The agency's dates, word for word.

Check it yourself

• The document in the Federal Register
• Title 12 on eCFR

The record as published

Source: the Federal Register (public domain). The document in the Federal Register