Testimony of Tony Hotchkiss Before the House Ag Committee on the Financial Conditions in Farm Country

Chairman Thompson, Ranking Member Scott, and members of the Committee, my name is Tony Hotchkiss. I am the current chairman of the American Bankers Association's Agricultural and Rural Bankers Committee and testify in that capacity today. I have worked in agricultural banking for 41 years, including the past 10 years as Director of Agriculture for Regions Bank based in Clayton, Missouri, from which I recently retired. Before Regions, I worked at a number of community banks helping to lead their agricultural lending. Agricultural bankers have a deep appreciation for the important role producers play in our economy and the unique challenges they face. I appreciate the opportunity to present the views of the ABA on Financial Conditions in Farm Country.

The American Bankers Association (ABA) is the voice of the nation's $24 trillion banking industry, which is composed of small, regional and large banks that together employ approximately 2.1 million people, safeguard $19 trillion in deposits and extend $12.4 trillion in loans. ABA is uniquely qualified to comment on agricultural credit issues as banks have provided credit to the agriculture industry since the founding of our country. At year-end 2023, 3,808 banks –83% of all banks nationwide– reported agricultural loans on their books with a total outstanding portfolio of more than $198.6 billion.

The Farm, Food, and National Security Act of 2024 (H.R. 8467), commonly known as the "2024 Farm Bill", includes comprehensive risk management tools for farmers and ranchers, loan guarantees for agricultural loans, rural development projects, nutrition support and investments in conservation. Banks play a critical role in rural America, and this legislation provides a vehicle for the banking industry to help meet the financial needs of farmers, ranchers, and agricultural communities across the country. The meaningful changes proposed in the 2024 Farm Bill will allow bankers to better serve their customers and ensure they have high levels of credit availability in the years to come.

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