Agricultural Producer and Farm Credit System Borrower Act of 1987

Agricultural Producer and Farm Credit System Borrower Act of 1987 - Title I: Farm Credit System Liability and Insurance - Amends the Farm Credit Act of 1971 to provide that after December 31, 1992: (1) each Farm Credit System (FCS) institution shall be individually liable for its notes and other obligations; and (2) FCS institutions will no longer be jointly and severally liable.

Establishes a Farm Credit System Insurance Corporation (Corporation) which shall insure the full payment of FCS institution interest and principal. States that the Farm Credit Reserve Fund Board (established by this Act) shall act as the Corporation's board of directors until its termination, upon which the Farm Credit Administration Board shall assume such duties.

Sets forth Corporation powers.

Prohibits an FCS institution from joining with other institutions in issuing consolidated obligations payable after December 31, 1992, unless it is insured by the Corporation.

Funds the Corporation through institution insurance premiums and stock sales. Directs the Corporation to set uniform premium levels.

Authorizes the Corporation, pursuant to enumerated conditions, to terminate an institution's insured status for uncorrected status or operations violations.

Directs the Corporation to maintain a general reserve, and after the Reserve Board's termination, permits it to supplement such reserve through the issuance of federally-guaranteed bonds and other obligations. Caps such obligations at $1,000,000,000. Stipulates that such supplemental reserves may only be used for insurance purposes.

Requires institutions to maintain adequate capital. Directs the Farm Credit Administration (FCA) to periodically consult with the Corporation regarding capitalization levels.

Provides that the Corporation shall serve as a receiver for an insured institution in receivership. Sets forth related provisions.

Sets forth Corporation fund provisions, including investment provisions.

Authorizes the Corporation to make loans to, or purchase the assets of, an institution if the Board determines such action is necessary to reopen a closed institution or prevent the failure of an operating institution.

Title II: Financial Assistance-Subtitle A: Farm Credit Reserve Fund and Financial Assistance - Amends the Farm Credit Act of 1971 to establish a Farm Credit Reserve Fund Board to temporarily administer Federal assistance to FCS institutions and oversee the loan restructuring process.

Grants emergency powers through 1989 to the Board to permit it to manage financially-troubled institutions. Requires an annual report to the Congress.

Establishes a Farm Credit Reserve Fund which shall be available to the Board to carry out its operations. Funds such Fund through: (1) guaranteed debt obligations; (2) assessments; (3) Capital Corporation asset transfers; (4) revolving fund transfers; (5) Farmers Home Administration (FmHA) land assets transfers; and (6) appropriated funds. (Provides initial funding through institution assessments.)

Requires: (1) each FCS district to establish a special credit unit to review and make final disposition of all nonaccrual and high risk loans held by institutions within its district; and (2) each unit to develop a loan disposition plan which emphasizes the importance of keeping farmers on their land through deferrals and restructuring.

Subtitle B: Termination of Capital Corporation and Reserve Fund - Directs FCA to terminate the Farm Credit System Capital Corporation: (1) 90 days after enactment of this Act; or (2) earlier, upon the recommendation of the Board of Directors of such Corporation. States that the Farm Credit Reserve Fund Board shall succeed to the Capital Corporation's rights, assets, and obligations.

Title III: Stock Protection and Capitalization - Amends the Farm Credit Act of 1971 to require that through December 31, 1992, retired institution stock shall be redeemed at par value in interest-bearing notes, unless the borrower requests a cash payment. Provides for post-1992 payment only in cash.

Requires institutions to adopt a capitalization plan that meets FCA minimum requirements and is based on generally accepted accounting principles.

Title IV: Structural Changes in the Farm Credit System - Subtitle A: Mergers of Farm Credit System Institutions - Amends the Farm Credit Act of 1971 to make FCS structural changes regarding: (1) the merger of banks within a district; (2) the merger of like banks in different districts; (3) transfers by production credit associations to banks; (4) transfers by Federal land banks to Federal land bank associations; (5) the merger of associations into banks; (6) the merger of like and unlike associations; (7) institutional termination and dissolution; (8) the merger of service organizations; (9) prior approval of information disclosure and issuance of charters; and (10) the taxation (or exemption) of merged banks and associations.

Requires the establishment of a FCS-wide finance committee.

Subtitle B: General Provisions - Authorizes a Federal land bank association or production credit association to have on its board of directors a person who is not otherwise connected with FCS institutions.

Authorizes such associations to borrow and lend money without the supervision or assistance of a Federal land bank.

Authorizes an FCS institution to operate outside its normal service territory.

Subtitle C: Effective Date - Makes this title effective 30 days after enactment of this Act.

Title V: Agricultural Mortgage Secondary Market - Amends the Farm Credit Act of 1971 to establish a federally-chartered Federal Agricultural Mortgage Corporation to: (1) develop uniform underwriting, security appraisal, and repayment standards for qualified loans; (2) determine the eligibility of agricultural mortgage marketing facilities for credit enhancement of specific mortgage pools; and (3) provide credit enhancement for the repayment of qualified loan pool principal and interest.

Sets forth provisions regarding: (1) the temporary and permanent boards of directors; (2) powers and duties; (3) capitalization through stock issuances; (4) agricultural mortgage marketing facilities' certification; (5) credit enhancement of qualified loans and the establishment of uniform underwriting, security appraisal, and repayment standards.

Authorizes the Mortgage Corporation to charge fees to cover operating and credit enhancement expenses.

Title VI: Export Financing and OFI Authorities - Amends the Farm Credit Act of 1971 to make permanent: (1) Federal intermediate credit banks' lending authority; and (2) cooperative banks' authority to finance certain import and export transactions.

Authorizes Federal land banks to make loans and provide related financial assistance to other financing institutions.

Title VII: Disposition of Acquired Property - Amends the Farm Credit Act of 1971 to express the sense of the Congress that FCS institutions: (1) should sell foreclosure-acquired property unless such sale would have a detrimental effect on farm land value; and (2) should try to make such sales to local people.