1ST FARM CREDIT SERVICES

The board of directors is responsible for the general control and direction of the affairs of the associations,
which make up this Farm Credit Association. The ultimate level of success achieved by the institution in
fulfilling its mission is dependent upon the performance of the board in fulfilling its responsibilities and
duties. With this in mind, this document is intended to serve as a means to record and communicate the
major areas of director responsibility.

Qualifying Characteristics: Each director must meet the qualifications established under the bylaws of
the Association whether he or she is an elected, appointed or outside director. All should have an avid
interest in agriculture and be interested in the long-term success of the institution of which he or she was
elected or appointed to serve. A director should be able to understand complex financial statements and
reports, basic credit principles, business cycles, management philosophies and sound business practice.
Directors should have time available to prepare for meetings, attend them faithfully and be an active
participant. A director should strive to attend director training functions. Additionally, a director must be
able to set aside personal interests for the long-term interests of the institution. Directors should exercise
reasonable care and independent judgment in carrying out responsibilities. Lastly, a director must
maintain confidentiality with regard to board and client matters and information.

Duties and Responsibilities:

         Elect a Chief Executive Officer
         1. Set standards for job requirement.
         2. Select a CEO and set salary.
         3. Prescribe CEO duties and authorities.
         4. Periodically, evaluate CEO performance against objectives and established direction.

         Set Business Direction
         1. Set FCS policies including a planning policy.
         2. Participate in FCS planning activities.
         3. Set Strategic Objectives and goals for the institution.
         4. Approve an annual business plan and budget.

         Monitor and Evaluate Operations
         1. Require and review adequate reports on business operations and results at board meetings.
         2. Assess reporting systems to the membership, Bank and FCA.
         3. Assure safe and sound business practices are employed throughout the organization.
         4. Review and consider periodic internal and external review and audit results.
         5. Assure the Association is in compliance with the Farm Credit Act, FCA regulations, state and
            federal laws and district policies.

         1. Act as a board rather than individually.
         2. Become aware of customer needs, changes in the marketplace, attitudes, FCS image and
            other issues relating to the long and short term strategies and operating results of the
         3. Assure strong board leadership is in place at all times.
         4. Establish needed committees to accomplish necessary board work.
         5. Participate in the Communications Advocacy Program or other similar programs designed to
            create awareness of the Farm Credit System and its mission among elected officials.

Revised and approved 7-23-08

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