ICBA pushes for more economic assistance to farmers

ICBA urged Congress to pass an additional farm economic assistance package.

Details: In a letter to members of Congress, ICBA said:

• A growing number of community bankers report that crop producers are experiencing severe financial distress.

• ICBA appreciates the administration’s recently announced $12 billion Farmer Bridge Assistance package for row crops and specialty crops, but that level of assistance is not sufficient because production costs are substantially above farmers’ expected revenues.

• As part of an additional farm assistance package, Congress should include an increase in USDA guaranteed farm loan limits to $3.5 million for farm real estate and $3 million for operating loans.

• Congress should act as soon as possible to ensure producers can manage the financial pressures that threaten their livelihoods.

Statement: In a national news release, ICBA President and CEO Rebeca Romero Rainey said the amount of additional aid needed could be one to two times as much as the recent FBA package before many producers would approach break-even.

Background: The Trump administration in December announced a farm aid package of $11 billion for basic crop commodities with an additional $1 billion being considered for specialty crops following ICBA advocacy.

Recent ICBA Support of Farmers:

• ICBA and 60 farm groups last week expressed opposition to crop insurance cuts during the budget process.

• ICBA last month said it supports favorable provisions of IRS guidance regarding the ACRE Act tax exclusion for interest earned on agricultural real estate loans.

• ICBA and other groups in October urged President Donald Trump to provide financial assistance to farmers as a bridge until market demand for agricultural commodities boosts prices.

• ICBA sent a letter in October to the Treasury and Agriculture departments urging the administration’s support for a farm aid package as large or larger than the $10 billion package adopted by Congress last year.