FARM CREDIT SYSTEM LENDING
The Farm Credit System has asked for changes in its lending authority that would allow a wide expansion of its charter to offer loans and other financial services to more types of businesses. By becoming eligible borrowers in the Farm Credit System, these additional businesses could become recipients of tax, accounting and other financial-related services.
Examples of these newly eligible businesses would include hardware stores; truck and farm equipment dealers; transportation companies; and small manufacturers and the like who sell their goods and services to farmers. Given the government tax and funding advantages that Farm Credit System institutions enjoy, private sector accounting firms would find it difficult to compete with Farm Credit System institutions in this broad sector of business clients. The AICPA strongly opposed this change.
Congress ultimately passed the farm bill without the offending language. The president vetoed the farm bill on May 21. But due to a clerical error, one title of the bill was not in the bill sent to the president. The House and Senate overrode the veto of the titles of the bill that were sent to the president. The House and Senate also passed the entire farm bill, including the dropped title. The president is expected to once again veto the bill, and Congress is expected to override that veto. The Farm Credit System language is not in any of the bills that are being acted upon.