Arkansas’ Boozman urges continued access to credit for farmers and ranchers

In a letter sent Feb. 7 to National Credit Union Administration Chairman Todd Harper, Sen. John Boozman (R-Ark.) and colleagues called for continued access to credit for agricultural producers.

The senators questioned language included in NCUA’s Draft Strategic Plan that could lead to regulatory discrimination against credit unions that lend to farmers, ranchers, and agricultural businesses in the name of addressing “climate-related financial risks.”  

Boozman, ranking member of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, joined this effort led by Sen. John Hoeven (R-N.D.) because, he said, regulators should be working to ensure that credit-worthy businesses receive banking services they need rather than abusing financial regulation to further certain environmental and social policies.

“American farmers, ranchers, and producers across the country work tirelessly to grow the highest quality, lowest-cost food supply in the world,” the members wrote. “We are concerned that recent actions and statements by the NCUA could lead to the establishment of a regulatory environment that threatens the ability of farmers, ranchers, agri-businesses, and rural communities to access credit… Placing increased regulations on those that serve the agricultural industry will threaten to restrict access to credit in rural communities, which could have serious consequences for an industry that is already facing high inflation and increased input costs.” 

Vicky Salkeld Dahinden, executive director of the Arkansas Credit Union Association, the political arm of Cornerstone League, agreed with the spirit of the letter.

“NCUA’s commitment to transparency and the opportunity for comment is appreciated,” said Salkeld Dahinden. “We continue to push for regulatory relief instead of increased regulatory burdens. Arkansas credit unions strive to support their fields of membership, including those in rural communities and the agricultural industry.”