The Independent Community Bankers of America (ICBA) is urging Congress to ensure that the farm bill, crop insurance and guaranteed business and industry loan programs receive necessary funding.
The ICBA reacted in response to President Trump’s proposed budget, which includes agriculture-related budget cuts that would threaten farmers and rural communities at a time of increasing financial stress in the farm sector.
“ICBA appreciates the administration’s efforts to rein in spending and put us on a path towards a balanced budget,” ICBA President and CEO Camden Fine said. “However, the [United States Department of Agriculture’s] USDA’s projection for net farm income this year is slightly over $62 billion, about one-half of the peak in 2013. Farm bill programs, crop insurance, guaranteed farm loans, Business and Industry loans and other rural development programs all play an important part in ensuring a strong farm safety net,” Fine added.
ICBA said that reducing funding for these programs as the nation faces the threat of a farm credit crisis due to producer cash-flow problems is not prudent. Eliminating the guaranteed business-and-industry loan funds while increasing USDA direct spending in other areas in lieu of providing for additional loan guarantees from private-sector community banks is another example of the budget missing the mark, association officials stated.
ICBA said it looks forward to communicating its concerns and recommendations to Congress and the Administration.