IBAT, along with ICBA, is calling on members to weigh in with their members of Congress on items of importance in the pending Farm Bill, including opposition to proposals for the expansion of the Farm Credit System (FCS).
Currently, lawmakers are debating whether the FCS should gain expanded lending authorities, all of which focus on non-farm financing. One such proposal would allow FCS to cease obtaining regulator’s authorization to approve loans on essential community facilities, allowing FCS lenders to significantly increase these types of loans. The FCS also seeks to expand its lending authority for essential community facilities from 10 to 15 percent of total loans.
Further, the FCS also requests authority to lend to businesses (trucking companies, retail stores, etc.) minimally serving aquaculture producers and harvesters. This authority would give the FCS loopholes to expand lending authorities into non-farm business lending.
Finally, the FCS seeks exemption from the Consumer Financial Protection Bureau’s Section 1071 rule on small business data collection and a 24-month exam cycle for lenders deemed “low risk.”
The call to action also includes bankers’ support for an increase in USDA-guaranteed farm loan limits and an expedited turnaround time for USDA Express loans. Bankers can take action on these issues using the ICBA Grassroots Action Center.
