Kaine & Cornyn Introduce Legislation to Cut Red Tape for Farm Credit Institutions

WASHINGTON, D.C. - U.S. Senators Tim Kaine (D-VA) and John Cornyn (R-TX) introduced the Farm Credit Adjustment Act, legislation to extend the Farm Credit Administration's (FCA) audit schedule for low-risk institutions from every 18 months to up to every 24 months. This extension would reduce regulatory burdens and costs for farm credit institutions, helping ensure they have the ability to deliver for the hundreds of thousands of farmers, agribusinesses, and rural operations they serve.

"Agriculture is Virginia's largest private industry-making farms and our farmers an indispensable pillar of our economy," said Kaine. "I'm glad to be introducing this bipartisan legislation to cut red tape that can hold farm credit institutions back from providing the support farms across the country need to thrive. I encourage my colleagues to support this commonsense, bipartisan bill."

The Farm Credit Act of 1971 currently requires the FCA to examine all Farm Credit System institutions on a mandatory 18-month cycle. The regulatory burdens and costs associated with these audits negatively impact the ability of low-risk farm credit institutions to provide timely service. These audits often fall at the end of the calendar year when producers rely on their local farm credit institutions to help support their spring planting operations.

This bill would amend that requirement by giving the FCA the discretionary authority to extend the examination cycle to up to 24 months for institutions it deems low risk. Rather than mandating this extended timeline, the change is entirely at the FCA's discretion, meaning the agency retains full flexibility to examine any institution more frequently if circumstances warrant

The Farm Credit Adjustment Act has been introduced in the U.S. House of Representatives by Representatives Eugene Vindman (D-VA-07) and Pat Fallon (R-TX-04).

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