Davis works to support Farm Credit System

U.S. Rep. Rodney Davis (R-IL) continues to work toward building an efficient Farm Credit System that promotes constituents’ access to credit, despite the U.S. House Agriculture Committee last week not advancing his bipartisan legislation that would prevent over-regulating of the system.

“While I am glad to see several bills move through this committee today… I’m disappointed that my bill was not included in this markup,” Rep. Davis said May 17 during the committee’s markup session. “Rural America’s access to credit, and a well-working Farm Credit System, is key to our supply chains, and I’m disappointed that this hasn’t been made a priority in our markup today.”

H.R. 7768 is not dead yet, however, as it is also under consideration in the U.S. House Financial Services Committee. 

Rep. Davis on May 13 sponsored the Farm Credit Administration Independent Authority Act, H.R. 7768, with four original cosponsors, including U.S. Rep. Jimmy Panetta (D-CA) to affirm that the Farm Credit Administration is the sole and independent regulator of the Farm Credit System, a nationwide network of borrower-owned lending institutions and specialized service organizations.

If enacted, H.R. 7768 would prevent the Consumer Financial Protection Bureau (CFPB) from issuing policies affecting the Farm Credit Administration, Farm Credit System and Board and would stop the CFPB from implementing its proposed rule on Small Business Lending Data Collection under the Equal Credit Opportunity Act, according to a bill summary provided by the congressman. 

If the proposed rule goes forward, it would limit the availability of credit in rural areas due to additional staffing and IT infrastructure upgrades that would be required to comply with the CFPB’s proposal, the summary says.

“In these challenging economic times with record inflation and rising ag input costs, we need to do everything we can to ensure burdensome regulations are not hindering economic growth,” Rep. Davis said on Tuesday in a statement. “More than ever, farmers and ranchers in the Midwest need good farm policy across the board, not more bureaucratic Biden Administration red tape.”

Rep. Davis said the Farm Credit System is a key part of the economy in rural America. “The Biden administration’s attempt to impose additional financial regulations on the system will make credit less available to farm families and rural communities,” he added.