Last month, the House Agriculture Committee passed an updated farm bill with some Democratic support. The bill includes community-bank industry supported provisions that modernize the USDA guaranteed loan programs, strengthen the crop insurance program and improve commodity price supports. Unfortunately, provisions that benefit Farm Credit System (FCS) lenders were included, which reduce small business lending data reporting standards required by the CFPB’s Section 1071 final rule and expand FCS non-farm lending.
Last week, Senate Republicans released a framework for Senate legislation that is similar to what the House committee passed. IBAT has expressed support for provisions that benefit rural and ag-based customers of community banks while ensuring that there is a more level playing field with tax-advantaged FCS lenders.
Congress is not likely to pass a new farm bill before the existing authorization expires on September 30. Senate Democrats have their own framework for the farm bill legislation and a limited legislative calendar may result in a short-term extension of the current farm bill, up to two years in length.
