Farm Bill
Farm Credit supports a strong Farm Bill that maintains a strong safety net and meets the diverse needs of American agriculture. We encourage Congress to pass the Farm Bill at the earliest opportunity.
Farm Credit supports a strong Farm Bill – and urges Congress to pass a Farm Bill at the earliest opportunity
Farm Credit is committed to supporting rural communities and agriculture, today and tomorrow. As Congress considers legislation, Farm Credit advocates for passing a strong Farm Bill that maintains a strong safety net and meets the diverse needs of American agriculture.
Farm Credit encourages Congress to support rural communities and agriculture by:
- Strengthening the federal crop insurance program
- Boosting development of critical rural community facilities
- Modernizing FSA loan programs to increase loan limits
- Providing more credit opportunities for the commercial fishing industry
Read Farm Credit Council’s statement ahead of the House Agriculture Committee’s markup of the Farm, Food and National Security Act of 2024.
Support a Strong Farm Safety Net and Crop Insurance
A successful public-private partnership, crop insurance is federally regulated and delivered by the private sector to help farmers maintain the country’s safe, affordable food supply.
As a lender, Farm Credit understands the critical role crop insurance plays in the success of our customers. It provides farmers and ranchers the confidence to forward market their commodities throughout the year, allowing them to take advantage of higher off-season prices and lock in profitability. It also allows lenders to finance many of those agriculture producers, particularly young and beginning farmers and ranchers, who typically have less collateral and equity.
Investing in Rural America Act
Hospitals, senior care centers, walk-in clinics, schools, childcare and other community facilities are critical to the viability of rural communities. Unfortunately, many rural communities lack these essential facilities, and many existing facilities need modernization.
Farm Credit has been partnering with commercial lenders through USDA’s Community Facilities program to finance these projects, but the process has become inefficient and unnecessarily burdensome.
The Investing in Rural America Act would boost development of vital community facilities by clarifying Farm Credit institutions’ authority to invest in rural community facilities projects and encourage financing partnerships on these projects with community banks.
Producer and Agricultural Credit Enhancement (PACE) Act
Farmland values and input costs have soared in recent years, making it more expensive for farmers and ranchers to finance land and their agricultural operations.
Since the 2018 Farm Bill, USDA reports a more than 25% increase in cropland prices. Operating costs for farmers also soared, with USDA suggesting production expenses increased by more than 34% in 2023 compared to the prices paid in 2018. In the same timeframe, FSA guaranteed loan limits only increased by 16%.
Beginning farmers and ranchers already face hurdles in starting agricultural operations. Congress should modernize the FSA lending programs to help support the next generation.
The Producer and Agricultural Credit Enhancement (PACE) Act would modernize Farm Service Agency (FSA) loan programs, including increased loan limits that reflect the current costs of production agriculture.
Fishing Industry Credit Enhancement Act
Farm Credit has a long history of providing credit to U.S. commercial fishing operators in the same way Farm Credit provides credit to agricultural producers.
To support the businesses providing services directly to agricultural producers, Congress directed Farm Credit to provide financing to “farm-related” businesses (custom harvesters, equipment repair, veterinarians, etc.) and those businesses enjoy consistent access to competitively priced credit irrespective of economic cycles.
This update to Farm Credit’s lending authority would allow Farm Credit lenders to better support the needs of this important natural resource-based industry and the rural communities where they operate. More financing providers creates competition – benefiting those seeking the capital needed to sustain and grow their businesses.
