ABA Statement for the Record re: Farm Bill (H.R. 8467)

On behalf of the members of the American Bankers Association (ABA), please see below our views on the Farm, Food, and National Security Act of 2024 (H.R. 8467), sponsored by Chairman GT Thompson (R-PA), which is scheduled for consideration by the Committee on May 23, 2024. Thank you for the opportunity to express our views on these measures.

Banks continue to be one of the first places farmers and ranchers turn to when seeking agricultural loans. Banks that offer agricultural credit products typically finance a wide array of customers, including large and small farms, urban farmers, beginning farmers, and USDA-defined historically underserved farmers, which include women and minority farmers and ranchers. Agricultural lending is critical to our economy, and the banking industry stands ready to provide credit to agricultural producers.

Summary

The Farm, Food, and National Security Act of 2024, 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. 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.

As set forth in greater detail below, the ABA commends the Committee for including many of ABA's priorities in this important legislation, including modernizing FSA loan guarantee limits, clarifying bona-fide operator rules for beginning farmer programs, modernizing and raising limits for the down payment assistance program, and providing robust risk management tools that allow our customers to have greater stability and predictability for each growing season.

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