Pub. 11 2016-2017 Issue 3

www.nebankers.org 18 Extraordinary Service for Extraordinary Members. Bert Ely’s FARM CREDIT WATCH ® Shedding Light on the Farm Credit System, America’s Least Known GSE © 2016 Bert Ely Iowa Congressional Candidates Speak Out About the FCS O N AUG. 11, SEVERAL IOWA CONGRESSIONAL CANDIDATES expressed concerns about the Farm Credit System at a candidates’ forum, as reported by several Iowa media outlets. Their concerns reflect the is- sues raised at the House and Senate Agriculture Committee hearings held over the last year examining the Farm Credit System’s (FCS’) activities and the effectiveness of the Farm Credit Administration (FCA), the FCS’s regulator. Veteran GOP Senator Charles Grassley, a long-time member of the Senate Agriculture Committee, said “he supports the [FCS], but it has operated outside its charter.” He added, “They came to my office to talk to me and I brought up some of the loans that were very questionable loans. I got the feeling that they were very embarrassed by the issues that I brought up with them.” Iowa is served by Farm Credit Services of America (FCSAmerica), the largest FCS association and one of themost aggressive in its lending and banking activities. Former Iowa Ag Secretary Patty Judge, the Democrat who is challenging Grassley this year, stated: “There are probably reforms that need to be made and I would suggest to you that we are going to have a real opportunity to do that next year as we write the new Farm Bill.” Republican Congressman Steve King, a member of the House Agriculture Committee, said the FCS needs to refocus on helping farmers and agribusinesses to “stay afloat.” King went on to say, “They write their own mission statement. I asked the chair of the [FCA] board [about] that before an Ag Committee hearing some time back and, you know, my message to that was: ‘We may have to help you write that mis- sion statement.’” Democrat Kim Weaver, who is challenging King, said “she’s troubled by the [FCS’] loan to Cracker Bar- rel. Even though it has a rather rustic appeal, it isn’t exactly a farm-related business. I would look at actually having a little bit more monitoring of that because I really don’t think it’s fair.” GOP congressman David Young, who is on the Agri- culture Appropriations Subcommittee, said the FCS must be held to its original mission. “Choice is good out there, but one of the choices out there is backed by the taxpayer, in a sense . . . have they been operating outside of their purview?” Jim Mowrer, Young’s Democratic opponent, stated that “when you look at some of the [FCS’] recent activities, like the Verizon loan that they made, this is way outside of its intended scope of purpose.” GOP congressman Rod Blum, who is not on the House Ag Committee, but is a member of the House Oversight and Government ReformCommittee, said, “There’s probably still a role for the [FCS], but we need to make sure that they’re not competing in the areas that they’re not supposed to be in. . . . They’ve made some very big loans to some very large and profitable customers that whether they’re ag related is very, very questionable.” Taken together, these comments reflect the value of the Senate and House Agriculture Com- mittees holding periodic oversight hearings where FCA of- ficials and representatives of the FCS face tough questioning about FCS activities. These hearings will become even more important as Congress begins work on the next Farm Bill.