ICBA - Publications - ICBA Asks FCA to Drop FCS Non-Farm Lending Idea

ICBA Asks FCA to Drop FCS Non-Farm Lending Idea

WWR Article
October 31, 2003


The ICBA this week urged the Farm Credit Administration to drop consideration of a proposal by the Farm Credit System to allow FCS lenders to engage in unrestrained non-farm loans regardless of a borrower's farming activities. ICBA's letter (available at www.icba.org) reminded the FCA that no demonstrable need has been shown that consumers lack credit for non-farm credit purposes, which is amply provided by community banks. ICBA also urged FCA to tighten the current definition of a "bona fide farmer," the legal category that forms the basis for most FCS lending, instead of allowing anyone that owns land to qualify.

The FCA did agree to a request by ICBA to delay the public comment deadline until December 22 on two other pending regulations, one that would allow FCS lenders to offer farm management and agricultural trust services, and a second that contains provisions to revamp an unused "farm notes" program to allow open-ended lending to consumers and merchants.