The Farm Credit Systems needs to be corralled, warns
the American Bankers Association in a report presented
at an industry conference.
“The Farm Credit System: Lending Everywhere But
on the Farm” was released recently at the ABA’s
2006 National Agricultural Bankers Conference in Las
Vegas.
”The banking industry has become increasingly
concerned since the release of the Horizons project by
the Farm Credit Council in January 2006. According to
the report, many of the proposals being advanced could
harm the very people Congress intended to help when FCS
was created 90 years ago – young, beginning and
small farmers,” warns the report.
Bert Ely, author of the report, recommends five steps
for Congress to bring the Farm Credit System back in
line:
Establish explicit public-policy goals for
the FCS
Publish the outcome of Farm Credit Agency
enforcement actions
Require the FCS to register
with the Securities and Exchange Commission
Limit
FCS agricultural lending to individuals and corporations
who report farming income
Claw back the taxpayer
subsidy now flowing to large, creditworthy FCS borrowers
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