Washington, D.C. (July 16, 2025)—The Independent Community Bankers of America (ICBA) today testified before Congress on the importance of community banks to the nation’s agriculture credit markets and how policymakers can enhance the new farm bill.
Testifying before the House Agriculture Committee’s Subcommittee on General Farm Commodities, Risk Management, and Credit, Brian Gilbert of First National Bank in Sioux Falls, S.D., thanked Congress for including several pro-agriculture provisions in the One Big Beautiful Bill Act, cited the importance of USDA guaranteed farm loan programs, and called on lawmakers to reject proposals to broadly expand Farm Credit System authorities into nonfarm lending.
“Community banks with under $10 billion in assets make approximately 78% of all agricultural loans made by commercial banks,” said Gilbert, the SVP and agriculture banking manager at First National Bank in Sioux Falls. “When Congress considers adopting new legislation, it is important to ensure these policies do not disadvantage community banks by granting nonbank competitors who have favorable tax and regulatory policies competitive advantages over community banks.”
In his testimony, Gilbert:
Relayed his experiences utilizing USDA farm programs to start his farming operation and the importance of ongoing access to these programs, particularly risk management programs such as crop and livestock insurance.
Outlined ICBA’s recommendations for a new farm bill, including raising loan limits on USDA guaranteed loans, providing quicker loan approvals on USDA guaranteed loans in line with ICBA’s proposed USDA Express program, streamlining paperwork requirements, and restricting conversions of guaranteed loans to direct loans to cases of bankruptcy or loan default.
Detailed several concerns with proposals to expand the Farm Credit System’s tax and regulatory advantages by increasing its authority to serve nonfarm borrowers.
Applauded passage of the ACRE Act, which could assist producers with lower loan rates due to a 25% tax exemption in the One Big Beautiful Bill Act, and called on Congress to raise the exemption for all interest earned on loans secured by agricultural land.
Urged lawmakers to place tighter restrictions on the FCS’s collection of uninsured deposits through “funds held” accounts, which allow the government-sponsored enterprises to operate like banks.
Thanked members of the committee for including higher reference prices in the One Big Beautiful Bill Act as well as provisions benefiting crop insurance.
Advancing policies that will help community banks create rural prosperity, food independence, and a stronger nation are key priorities of ICBA’s ‘Repair, Reform, and Thrive’ plan and open letter to the 119th Congress. ICBA looks forward to continuing to work with policymakers on a new farm bill and to advance policies that will support economic growth in rural communities nationwide.
About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.
As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.