The American Bankers Association today presented a list of banker priorities to be included in the 2026 Farm Bill ahead of a House Agriculture Committee markup of the legislation.
In a letter to the committee, ABA noted that banks remain one of the primary sources of credit for U.S. agricultural producers. “Banks play a critical role in rural communities, and this bill includes meaningful policy reforms that will enhance lenders’ ability to serve their customers in the years ahead, as producers face ongoing economic challenges, rising input costs and volatile markets,” the association said.
Still, ABA recommended that lawmakers amend the bill to add several longstanding priorities in the agriculture lending space. They include:
- Modernizing Farm Service Agency loan guarantee limits to meet rising input costs and real estate prices across the country;
- Clarifying bona fide operator rules for beginning farmer programs, ensuring modern business structures have appropriate access;
- Updating and modernizing the FSA Down Payment Assistance Program by removing the arbitrary cap on loan size and instead setting the limit at 45% of the lesser of the purchase price or appraised value;
- Providing reliable risk management tools to help producers navigate unpredictable market and climate conditions;
- Revising the Farmer Mac statute to replace outdated acreage limitations and enable all qualified farmers and ranchers to benefit from the competitive pricing and stability of Farmer Mac’s secondary market.
ABA also said it was concerned by language stipulating that the Farm Credit Administration shall be the sole, independent regulator of Farm Credit Services.
“This provision could create disparate compliance burdens among lenders in the market due to the uneven regulatory scrutiny of lenders by varying federal agencies,” ABA said.
The committee is scheduled to begin markup on the bill today.
