Academic journal article ABA Banking Journal

S.D. Banker Testifies on Credit Issues Facing Rural America

Academic journal article ABA Banking Journal

S.D. Banker Testifies on Credit Issues Facing Rural America

Article excerpt

As Congress prepares to renegotiate a new Farm Bill in 2018, ABA recently testified at a hearing before the House Agriculture Committee. Nate Franzen, president of agribusiness at First Dakota National Bank in Yankton, S.D. and past chairman of ABA's Agricultural and Rural Bankers Committee, offered the industry's perspective on credit availability in rural communities, and outlined several changes ABA is seeking in the new bill.

Franzen highlighted the successes of the previous farm bill--in particular, the bill's improvement of crop insurance, the Conservation Reserve Program and removal of borrower term limits for the Farm Service Agency's guaranteed loan programs. He noted that the new bill must make "substantial changes" to keep pace with the changing agricultural landscape.

"The most important change that should be made to the next Farm Bill is an increase to the current loan limit on FSA Guaranteed Loans," Franzen said, referring to the current $1.399 million limit. "The formula for indexing the programs has not kept up with the increasing costs of agriculture. It is much more costly for a young, beginning or small farmer to get into agriculture, and the guaranteed loan programs need to reflect that reality. …

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