Community Banker Alert

With your continued help and contacts, PACB and ICBA once again managed to defeat attempts by the Farm Credit System (FCS) to vastly expand their lending capability at the expense of community banking. In a huge victory for community banking, the Senate passed its version of the Farm Bill without the power grab by the FCS into nonfarm mortgage and commercial lending. At this point in the process, the bill now moves to a House-Senate conference committee where PACB and ICBA will continue fighting to keep the FCS proposal out of the final farm bill.

On a related front, there is an attempt by the farm credit system to amend state law that currently limits a certain agricultural loan guarantee program to taxpaying depository institutions as eligible lenders. PACB is fighting this state legislation arguing that there are plenty of lenders willing to make loans and the farm credit institutions as tax-subsidized, retail government sponsored enterprises should be not be permitted to participate in the program.

As always, please contact either Dave Transue or me if you have any questions or concerns.