Farm Credit System
You will
recall that the banking industry was successful in keeping Congress from
adopting the
Farm Credit System’s
“Horizon’s Project” out of the Farm Bill recently adopted.
Unfortunately, the Farm Credit Administration (FCA) has issued a
proposal that would give Farm Credit System lenders more authority to
finance nonfarm projects such as hotels and hospitals. In a recent
letter to FCA Chairman Leland A. Strom, leaders of the House Financial
Services Committee said they are concerned the proposal would steer the
government-sponsored lenders too far from their mission of primarily
providing credit to farmers and ranchers. And they said any substantial
changes to the Farm Credit System's policies should be decided by
Congress, not the system's regulator.
The new proposal, called the Rural Community Investments Proposal, is in
a 60-day comment period and would make permanent a pilot program that
allows the system's lenders to invest in bonds for nonfarm projects in
communities with populations of less than 50,000. It would let them buy
stakes in venture capital funds that invest in rural development, and
includes a "catch-all" provision that would let the lenders finance
other rural projects with approval from their regulator, which would
examine requests on a case-by-case basis.
Your
help is needed by sending your letter to the FCA requesting a withdrawal
of this proposal by clicking the icon at right. A copy of your letter
will be sent to your Congressional representatives as well. Please call
GBA’s
Elizabeth Chandler at 404.420.2027 with questions.
Questions? Email the Webmaster.
GBA's professional staff represents the membership at the both the state and federal levels. Contact any of them with questions about issues:
Joe Brannen,
President
Elizabeth Chandler, Senior Vice President - Government Relations
Don Browne, Legislative Consultant