Farm Credit lenders are asking Congress in the upcoming farm bill to expand their authority to rural community facilities and fisheries projects, but some community bankers are worried the changes will siphon away their business. Farm Credit System lenders, unlike private banks, are exempt from federal, state, municipal and local taxes related to real estate. But the system's nearly 70 associations are restricted to lending money for agricultural real estate, farm equipment, agribusiness, rural home mortgages, and other specific agricultural and rural uses. Two new proposals supported by Farm Credit System institutions, however, would expand these authorities. One bill, the Fishing Industry Credit Enhancement Act, would allow Farm Credit System loans to go toward boat builders, gear manufacturers, bait suppliers and other businesses that “provide direct assistance to fishing operations.”

Read More...