Bill Overview
Title: Farm Credit for Americans Act of 2022
Description: This bill makes foreign persons ineligible for any credit or financial services provided by a Farm Credit System institution, with specified exceptions. The bill takes effect on January 1, 2024.
Sponsors: Sen. Grassley, Chuck [R-IA]
Target Audience
Population: Foreign persons utilizing Farm Credit System services
Estimated Size: 0
- The Farm Credit System provides credit and financial services to agricultural and rural communities in the United States.
- Agricultural producers and related agricultural businesses rely on credit from the Farm Credit System to finance their operations.
- Credit and financial services are crucial for the sustainability and growth of the agricultural sector.
- Foreign persons currently utilizing Farm Credit System services will be directly impacted by the ineligibility for credit or financial services starting January 1, 2024.
Reasoning
- The Farm Credit for Americans Act of 2022 restricts foreign entities from accessing credit within the US agricultural sector, affecting those who rely on such financial assistance. The primary direct impact is on non-US citizens currently benefiting from these services. Hence, US citizens (American farmers and rural businesses) are unlikely to experience negative effects directly attributed to this policy. Instead, they could potentially benefit from reduced foreign competition for these resources.
- However, indirect effects include changes in market dynamics due to reduced foreign competition and potential shifts in product sourcing. Further considerations include monitoring for unintended consequences on diverse local economies interacting with affected foreign-owned businesses.
- The wellbeing impacts are simulated focusing on directly affected foreign persons relying on the Farm Credit System. We anticipate variances in wellbeing scores largely due to resulting operational adjustments, and not directly financial given the service nature of credit access change itself.
- Given that funding for implementation is nil, impact is more about service availability than resource allocation. In year one through year ten, the policy indirectly might see a shift in resource availability or market share, impacting the strategic operations of US-based farmers and related businesses.
Simulated Interviews
Farm Owner (Fresno, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I don't think this is going to affect my operations directly. It might even help lessen competition, which means better prices for inputs.
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 | 7 | 7 |
Agricultural Consultant (Iowa City, IA)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- This could mean fewer foreign operators in the game, freeing up more opportunities for local farmers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Farm Equipment Supplier (San Antonio, TX)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This might slow business with my international clients who rely on these credits.
- I might need to shift focus to domestic farmers if they expand.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 7 | 6 |
Investment Analyst (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- My concern is the potential reduction in opportunities for international investment collaborations.
- Monitoring legislative adjustments becomes crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
International Agricultural Trade Lawyer (Seattle, WA)
Age: 27 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The policy might reduce the scale of operations for some of our international clients.
- We might see an increase in compliance advisory demand.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 6 |
Corn Farmer (Des Moines, IA)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I don't see any direct impact for us since we don't deal with foreign credits.
- Though, monitoring how this shifts the competitive landscape will be key.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Soybean Exporter (St. Louis, MO)
Age: 40 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This might reduce some of our foreign partners' capacities.
- However, domestic growth might counterbalance this.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Business Analyst for a Global AgriTech Firm (New York, NY)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- We're analyzing to see how this policy affects foreign clients reliant on these credits.
- There's potential for policy-driven advisory services boosting demand.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 7 |
CEO of an Agribusiness Consulting Firm (Tulsa, OK)
Age: 49 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Loss of clientele from foreign entities could mean a dip in short-term revenues.
- Might need to pivot strategies towards more domestic clientele.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Startup Founder in Renewable Farming (Atlanta, GA)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 1/20
Statement of Opinion:
- International funding might get tighter with restrictions on credit access.
- Will need to find alternative partnerships if current clients are affected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $0 (Low: $0, High: $1000000)
Year 2: $0 (Low: $0, High: $1000000)
Year 3: $0 (Low: $0, High: $1000000)
Year 5: $0 (Low: $0, High: $1000000)
Year 10: $0 (Low: $0, High: $1000000)
Year 100: $0 (Low: $0, High: $1000000)
Key Considerations
- The act primarily impacts foreign persons' access to Farm Credit System services, not American farmers.
- The policy might unintentionally impact investment or collaborative ventures involving foreign partners in American agricultural projects.
- Monitoring and compliance costs could increase for Farm Credit System institutions.