Banks Ask Congress for Closer Scrutiny of Farm Credit System

Banking industry groups are asking Congress to examine what they consider “mission creep” within the Farm Credit System.

Rob Nichols, the president of the American Bankers Association, said in a press release the credit system designed for farmers has “not only used its taxpayer subsidies to undercut competition from local banks, but has, at the same time, moved far beyond its mission.” He said the system needs to be changed so it can serve farmers instead of “entities that have little, if anything, to do with farming.”

The House Agriculture Committee held a hearing Dec. 2 to review the system ...