Senator Baldwin Asking Financial Regulators to Ease Banking Restrictions To Help Ag Businesses
Saturday, February 29th, 2020 -- 6:14 AM
With Wisconsin leading the nation in the number of farm bankruptcies during the past year, U.S. Senator Tammy Baldwin is asking financial regulators to ease the restrictions banks and credit unions must follow when making loan agreements with agricultural businesses.In a letter to the boards of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration, Baldwin and South Dakota Senator John Thune said many farmers have experienced financial stress due to declining net farm income, trade uncertainty and last year's difficult growing season. As a result, they feel is it important to give lending institutions more flexibility to help prevent more farm bankruptcies. Specifically, the senators are asking the federal government to lift regulatory restrictions on local financial institutions to ensure farmers have tools to be successful.
The letter further stated that banks should be given the incentive to work with their farm clients to restructure loans and maintain their farming operations in these challenging times. Baldwin and Thune say they are concerned that policies like arbitrary concentration limits on agriculture portfolios can restrict a bank's lending authority to help struggling farmers. (Wisconsin Ag Connection)
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