FCA Rolls Back Diversity & Inclusion Rules for Farm Credit System

You might care about this because the Farm Credit Administration (FCA) has just finalized a new rule that changes how Farm Credit institutions plan their business. Essentially, the FCA is removing certain requirements that made these institutions include "diversity and inclusion" considerations in their business, human resources, and marketing plans. This action comes directly from a presidential Executive Order, number 14219, which was signed on February 19, 2025. This order told federal agencies, like the FCA, to look at all their regulations. The goal was to find and get rid of rules that didn't align with the current administration's policies, especially those that didn't have clear legal support. In this case, the FCA found that these specific diversity planning rules were inconsistent with another Executive Order, E.O. 14151, which aimed to stop all "diversity, equity, and inclusion" (DEI) mandates across the federal government. So, this new rule means that Farm Credit institutions no longer have to specifically assess diversity for their boards, create strategies for diversity in their workforce, or conduct outreach for diversity in their marketing efforts. This change simplifies their planning by removing these specific mandates. What makes this particularly interesting is how quickly a presidential Executive Order can reshape how government agencies operate and what they ask of the businesses they oversee. This isn't just a minor tweak; it's a direct response to a broader government initiative to roll back what the previous administration considered "diversity, equity, and inclusion" mandates. It shows the power of the executive branch to influence regulatory policy significantly. Another notable aspect is that the FCA made this rule without going through the usual process of asking for public comments. They did this by claiming "good cause," arguing that since the changes were legally required by the Executive Order, and public comments wouldn't change the outcome, seeking them would be unnecessary and a waste of resources. This highlights how certain legal provisions allow agencies to speed up rule changes under specific circumstances, especially when responding to presidential directives. It's a clear example of "deregulation" in action, where the government is actively removing requirements rather than adding new ones. People who would find this legal document most interesting include anyone involved with the Farm Credit System. This means the leadership, board members, human resources departments, and marketing teams at Farm Credit banks and associations will want to pay close attention, as their planning requirements have just changed. Farmers and ranchers who are customers of these institutions might also be interested, as these changes could subtly affect the culture and operations of their lenders. Additionally, legal professionals specializing in administrative law, particularly those focused on agency rulemaking and the impact of executive orders, will find this a relevant case study. Academics and researchers studying government policy, deregulation, or the evolution of diversity and inclusion initiatives in federal programs will also find this document valuable. Basically, anyone who cares about how government policies translate into practical changes for regulated entities, especially in the agricultural finance sector, will find this pertinent.