This edition of Farm Credit Watch examines multiple issues, including the Farm Credit Service’s debt rating, possible Senate and House and banking and financial services committee oversight of FCA’s capital rules, and how FCA’s board should consider issuing written reports as well as releasing video recordings following its monthly meetings.
Browsing: Farm Credit System
Sens. Jerry Moran (R-Kan.), John Boozman (R-Ark.), Mike Rounds (R-S.D.), Kevin Cramer (R-N.D.) and Roger Marshall (R-Kan.) today introduced S. 2202, the American Bankers Association-backed Enhancing Credit Opportunities in Rural America Act of 2021, which would end the taxation of interest earned from agricultural real estate loans.
The Farm Credit Administration has proposed a potentially dangerous relaxation of its regulation governing the appraisal procedures FCS institutions rely on in making lending decisions.
Farmers, ranchers and producers across the country have stood strong during a year of extreme economic disruption and tumult. America needs them to sustain agriculture, and they need all of the support they can get. At this time, in particular, withholding any would be irresponsible. Reps. Ron Kind (D-Wis.) and Randy Feenstra (R-Iowa) introduced the Enhancing Credit Opportunities in Rural America (ECORA) Act of 2021 in the House of Representatives, bringing it a step closer to law.
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.
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.
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…
ABA told the Farm Credit Administration today that proposed changes to regulatory capital rules could potentially destabilize financial markets and increase risks to the safety and soundness of Farm Credit System institutions.