Community Bankers Association of Illinois

Farm Bill Heads to House Floor with FCS Measures!

After ending late and last-minute debate yesterday over how to fund proposed increases in federal agricultural program spending over the next five years, the House Agriculture Committee reported out its draft of the 2007 farm bill, according to a statement by the committee. The bill ( H.R. 2419) contains provisions ICBA vigorously opposed that would significantly expand the non-farm lending authority of the Farm Credit System (FCS), requiring community bankers to oppose the FCS provisions on the House floor and possibly in the Senate. No specific vote was taken on the FCS provisions during the Ag committee, they simply had an "up or down vote" on the total Farm Bill package. H.R. 2419 is on track to reach the House floor next week, possibly Thursday. U.S. House Committee on Financial Services Chairman, Barney Frank (D-Ma) and Ranking Member Spencer Bachus (R-Al) plan to introduce a House floor amendment to eliminate the FCS provisions, according to ICBA staff.

The FCS provisions would allow government-subsidized FCS lenders to provide business loans to a wide array of companies with any slight connection to "renewable energy" production. They would also broaden the authority of government-favored FCS lenders to provide home loans and allow the FCS lender for cooperatives, CoBank, to provide non-agricultural loans to businesses in addition to cooperatives. CBAI will need your assistance next week to contact lawmakers for their support of the Franks-Bachus Amendment! Please contact CBAI's Department of Governmental Relations with any questions, concerns or updates regarding this issue by calling 217/529-2265.

  800.736.2224 (IL) | 217.529.2265  
  DISCLAIMER: The association is not responsible for and has no control over the subject matter, content, information, or graphics when viewing links attached to this association's site.