Bill Overview
Title: Farm Credit Administration Independent Authority Act
Description: This bill prohibits the Consumer Financial Protection Bureau from issuing, implementing, or continuing any policy or guidance issued after January 1, 2021, that affects the Farm Credit Administration (FCA), Farm Credit System, or FCA Board.
Sponsors: Rep. Davis, Rodney [R-IL-13]
Target Audience
Population: Individuals involved in or dependent on the agricultural sector worldwide
Estimated Size: 6500000
- The Farm Credit Administration regulates and examines the Farm Credit System, which provides credit to farmers, ranchers, and agricultural producers.
- The Consumer Financial Protection Bureau (CFPB) provides oversight and guidance on financial practices, which can include those impacting the agriculture sector.
- Policies and guidance from CFPB that have implications for the FCA could affect farmers' and agricultural producers' access to credit and financial services.
- By prohibiting the CFPB from affecting the FCA, the bill might influence the financial regulations governing agricultural credit availability.
Reasoning
- The policy primarily affects individuals in the agricultural sector, especially those reliant on credit from the Farm Credit System.
- The direct audience is relatively small compared to the national population, around 6.5 million people in the U.S.
- Most affected individuals may work in farming, ranching, or related agricultural professions.
- There are indirect effects on professionals working in financial services that cater to agriculture.
- Support services to agriculture (e.g., equipment suppliers) might see secondary impacts from changes in financial credit availability.
Simulated Interviews
Corn Farmer (Iowa)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I'm concerned that less oversight could lead to riskier lending practices by the Farm Credit System.
- Historical stability of credit availability has been essential to my operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Organic Vegetable Farmer (California)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I hope this policy could reduce unnecessary bureaucratic hurdles for getting loans.
- Environmental impact considerations should still remain part of lending procedures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Ranch Owner (Nebraska)
Age: 62 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I'm uncertain how this will benefit small ranchers like me. We need stable credit rates.
- Could lead to lesser focus on ranch-specific financial needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Bank Loan Officer (Texas)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This could introduce competition among local banks and the Farm Credit System, affecting my loan packages.
- Unclear on how this impacts credit evaluation standards.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Agricultural Equipment Supplier (Ohio)
Age: 48 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- Stable credit means more sales for us, but I worry about an unstable credit atmosphere.
- We've relied on consistent policy support to maintain market predictability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 2 |
Crop Insurance Agent (Illinois)
Age: 36 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Changes in credit guidelines might also affect how we assess risk for our clients,
- Could indirectly shift our business operational trajectory.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Farmers Market Organizer (Georgia)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Farmers around here might have better market conditions with this policy, freeing up their financial barriers.
- Expect to hear how open new credits will affect them directly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Urban Agriculture Advocate (New York)
Age: 25 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- Not directly affected, but changes in rural agriculture might indirectly hint at urban farming dynamics.
- Interested in how major policy changes ripple through the sector.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Regulatory Consultant (Florida)
Age: 41 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Could potentially simplify regulatory landscapes for my clients.
- Concerns embed deeper systemic risks in standardizing long-term evolutions in credit systems.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Wheat Farmer (North Dakota)
Age: 38 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- Any shift in credit reliability can derail my expansion plans.
- Hopeful that this will secure favorable credit terms promptly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 3 |
Cost Estimates
Year 1: $5000000 (Low: $2000000, High: $10000000)
Year 2: $5000000 (Low: $2000000, High: $10000000)
Year 3: $5000000 (Low: $2000000, High: $10000000)
Year 5: $4000000 (Low: $2000000, High: $8000000)
Year 10: $4000000 (Low: $2000000, High: $8000000)
Year 100: $1000000 (Low: $500000, High: $2000000)
Key Considerations
- The FCA's regulatory autonomy could affect how flexible agricultural credit institutions are in lending practices, impacting agricultural growth.
- The interaction of CFPB and FCA guidance is critical; while reduced oversight might lower compliance costs, it could also increase financial risk without CFPB safeguards.