The Congressman Introduced This Bipartisan Legislation After Hearing from Virginia Farmers, Producers, Ranchers, & Agribusiness Owners During a Five-Stop Farm Tour in Central Virginia
Washington, D.C. — U.S. Representatives Eugene Vindman (D-Va.-07), Pat Fallon (R-Texas-04), and Ronny Jackson (R-Texas-13) introduced bipartisan legislation to cut red tape for America’s farm credit institutions — which provide critical financial support to farmers and producers in Virginia and across the United States.
The bipartisan Farm Credit Adjustment Act would extend the Farm Credit Administration’s (FCA) audit schedule for low-risk institutions from every 18 months to every 24 months.
Currently, the FCA must conduct safety audits and soundness examinations of farm credit institutions at least once every 18 months. The regulatory burdens and costs associated with these audits negatively impact the ability of low-risk farm credit institutions to provide timely service. Furthermore, these audits often fall at the end of the calendar year — when producers rely on their local farm credit institutions to help support their spring planting operations.
This six-month extension would reduce regulatory burdens and costs for farm credit institutions and make sure they have the bandwidth to deliver for the thousands of farmers, agribusinesses, and rural operations they serve.
“This week, I toured farms with Farm Credit of the Virginias and saw firsthand how vital Farm Credit institutions are to the success of our farms, agribusinesses, and rural communities,” said Vindman. “That’s why I’m proud to be leading a bipartisan bill with Congressman Fallon and Congressman Jackson to cut needless red tape and ensure Farm Credit can continue financing the growth of rural America. As the only Virginian on the House Agriculture Committee, I’m dedicated to protecting the interests of our farmers and producers so they have the tools they need to thrive.”
“I am proud to co-lead the Farm Credit Adjustment Act. This legislation would allow the Farm Credit Administration to extend audits for smaller, low-risk institutions, like Legacy Ag Credit in my district, from 18 to 24 months,” said Fallon. “The FCA’s current staffing shortages has created audit backlogs, causing delays and late fees that burden our farmers, particularly during critical planting seasons. By reducing regulatory burdens and streamlining oversight, this act ensures our agricultural community thrives, fostering economic stability and supporting the next generation of farmers.”
“I am proud to co-lead the Farm Credit Adjustment Act and support America’s rural communities,” said Jackson. “This critical piece of legislation cuts through burdensome red tape and gives our agricultural lenders the flexibility they need to provide critical financial support to our farmers and ranchers.”
The bipartisan Farm Credit Adjustment Act is supported by Colonial Farm Credit and Farm Credit of the Virginias.
“Farm Credit applauds the leadership of Congressman Vindman by introducing the Farm Credit Adjustment Act this Congress,” said Jennifer Cuthbertson, Chair of the Board of Directors, Colonial Farm Credit, ACA. “This legislation aims to reduce regulatory burdens by allowing the Farm Credit Administration appropriate flexibility to examine Farm Credit associations they deem low risk every 24 months.”
“This legislative adjustment provides low-risk Farm Credit institutions the ability to focus on serving customers instead of performing duplicative regulatory functions. Farm Credit appreciates Representative Vindman’s efforts on this issue and looks forward to working with him on the Farm Bill this fall,” added Kevin Carun, Chair of the Board of Directors, Farm Credit of the Virginias, ACA.
Click here for the bill text.
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