Though the goals for passing of the reintroduced Enhancing Credit Opportunities in Rural America Act of 2021, commonly known as ECORA, haven’t changed much over the last few years, this Congress may have a better shot at leveling the playing field between farm banks and Farm Credit System lenders, ultimately giving struggling farmers and ranchers greater access to affordable credit options. ABA SVP Ed Elfmann details the importance of ECORA’s passage.
The American Bankers Association today expressed support for the Enhancing Credit Opportunities in Rural America Act, which would end taxation of interest earned from agricultural real estate loans.
Reps. Ron Kind (D-Wis.) and Randy Feenstra (R-Iowa) yesterday introduced the American Bankers Association-backed Enhancing Credit Opportunities in Rural America Act. The bill, H.R. 1977, would end the taxation of interest earned from agricultural real estate loans.
In the latest Farm Credit Watch, Bert Ely highlights the notable lack of transparency around Farm Credit Administration board meetings. While government agencies are required to be open and accessible to the public except under certain circumstances, Ely raised concerns that FCA has been requiring attendees to its public virtual meetings to pre-register, which he said “represents a deliberate attempt by the regulatory body to discourage the monitoring of its actions.”
Kansas Gov. Laura Kelly yesterday signed into law a bill that will help ensure greater parity at the state level
between banks and the government-sponsored Farm Credit System.
The Senate yesterday confirmed Tom Vilsack to serve as agriculture secretary by a bipartisan vote of 92 to 7. Vilsack previously served in the role during the Obama administration.
Rep. David Scott (D-Ga.) will serve as chairman of the House Agricultural Committee for the 117th Congress, with Rep. Glenn “GT” Thompson (R-Pa.) serving as ranking member. Sen. Debbie Stabenow (D-Mich.) will chair the Senate Agricultural Committee, with Sen. John Boozman (R-Ark.) serving as ranking member.
For ag lenders, credit quality and the deterioration of agricultural loans, competition from other lenders and weak loan demand remain the top three concerns. For producers, lenders continued to be most concerned about the liquidity, income and leverage of their ag borrowers.
By Bert Ely As bankers and other FCW readers know all too well, American agriculture…
Amid ongoing stresses in the ag sector and economic dislocation from the COVID-19 pandemic, lenders reported that just under 51% of their agricultural borrowers were profitable in 2020, a decline of six percentage points from the prior year, according to the latest agricultural lenders survey conducted by the American Bankers Association and Farmer Mac.