Two bankers testified August 3 at a public hearing held by the Farm Credit Administration (FCA) on ways to enhance the ability of Other Financial Institutions (OFIs) to access funding from the Farm Credit System (FCS). Gary Weirauch, president, Citizen's State Bank, Loyal, Wisconsin, and William Knox, chief financial officer, Bank of Whitman, Colfax, Washington, discussed impediments their OFIs have experienced and made a number of recommendations that FCA could adopt. They noted that there are significant barriers to entry for most OFIs as well as unwarranted fees that raise the cost of funding and limit the volume growth of OFIs. They noted that several current obstacles are regulatory impediments not required by statute and that they should immediately be eliminated. The suggest making the OFI program similar to the FHLB program.
Testimony by Gary Weirauch
Testimony by Bill Knox