Pub. 7 2012-2013 Issue 6

www.nebankers.org 22 Extraordinary Service for Extraordinary Members. rarely critical of the FCS and often are among its loudest cheerleaders? Well, here is one reason. On Feb. 12, Co- Bank, one of the four remaining FCS banks funding FCS associations as well as the FCS’ sole authorized lender to ag cooperatives, announced that it was contributing $5 mil- lion to “support more than 30 land grant universities and other institutions [actually 31] focused on agriculture.” The CoBank news release stated that “recipient institutions were selected based on a wide range of criteria, including . . . existing relationships with CoBank, its customers, and [FCS] association partners across the country. . . CoBank is designing each contribution in collaboration with the school as well as customers and [FCS] associations from the surrounding area.” The message to potential recipients: If you have an FCS critic on your faculty, don’t bother to ap- ply. That message seems to have pierced the ivory towers. Kansas Bankers Make Valiant Attempt to Tax the FCS The Kansas Bankers Association made a valiant but unfortunately unsuccessful attempt in February to elimi- nate one state-level tax exemption the FCS enjoys: an exemption from Kansas’ .26 percent mortgage registration fee. This exemption is in addition to the FCS’ exemption from federal and state income taxes on the profits the FCS earns from its real-estate lending. Similar mortgage- registration, recording fee, and other state and local tax exemptions exist in other states. A Kansas Senate com- mittee was ready to consider a bill that would eliminate the FCS exemption, but tax policy experts working for the Kansas Legislature opined that the FCS’ federal preemp- tion from state and local taxation (except real estate taxes) is “virtually untouchable.” That legal opinion effectively killed the legislation. Needless to say, the six Kansas FCS associations whined about being subject to a relatively small tax, the proceeds of which would remain in Kansas, for the benefit of all Kansans. Report FCS Lending Abuses Bankers are continuing to send Farm Credit Watch reports of FCS lending abuses such as FCS loans for rural estates, weekend getaways, and hunting preserves. Email reports of similar lending abuses in your market to green- acres@ely-co.com . Please provide as much detail as pos- sible about any loan that violates the spirit, if not the law, governing FCS lending. Z Q Revolt Against FCA — continued To contact Bert Ely, email bert@ely-co.com ; fax (703) 836-1403; phone (703) 836-4101; or mail PO Box 320700, Alexandria, Va. 22320. Make your bank’s opportunity a “done deal” ... fast! Contact Gene Uher in Sioux Falls at 605.201.1864 or guher@bellbanks.com 3100 13th Ave. S. | Fargo, ND 2999 Call us for a quick response, competitive rates and flexible underwriting. Compete with the “big guys!” r 1BSUJDJQBUJPO MPBOT DPNNFSDJBM BHSJDVMUVSBM DPOTUSVDUJPO PQFSBUJOH MJOFT BOE UFSN MPBOT r #BOL TUPDL PXOFSTIJQ MPBOT r #BOL CVJMEJOH GJOBODJOH r #VTJOFTT QFSTPOBM MPBOT GPS CBOLFST r .VMUJ GBNJMZ MPOH UFSN QFSNBOFOU GJOBODJOH .FNCFS '%*$