South Dakota banker testifies in support of higher FSA loan limits

First National Bank in Sioux Falls Senior Vice President Brian Gilbert recently called for increasing Farm Service Agency loan limits during his testimony before the House Agriculture Committee Subcommittee on General Farm Commodities, Risk Management and Credit. .Gilbert’s July 16 testimony was on behalf of the Independent Community Bankers of America and as Congress continues to consider passing a new, five-year farm bill. The current legislation, which passed in 2018, has been updated several times since. The current version is now set to expire Oct. 1. He supports a provision in the last proposed farm bill introduced in May 2024 that would increase the maximum FSA-guaranteed agriculture real estate loan to $3.5 million and $3 million for ag-guaranteed operating loans. Gilbert also supports the proposed USDA Express program. If approved, the program would require the Farm Service Agency to approve guaranteed loan applications within a couple days in exchange for having a lower guarantee amount of 50 percent to 75 percent for loans up to $1 million. Gilbert also described an ag leadership program at his bank. Farmers ’N Bankers brings together area producers for sessions, trips and leadership events to prepare to transition their operations to the next generation. Launched in 2016 by now-Chief Credit Officer Joe Miller, the program includes an ag advisory board, FSA loan officers, a tax specialist, wealth management and commodity brokers.The program also includes taking farmers through case studies, showing them the decisions bankers have to make for farmers of a similar age and letting them make the decision on whether they would have approved the loans. Those participants are still bank customers. “We’re not trying to increase our bottom line, what we’re trying to do is make our lenders and agents more knowledgeable to help our farmers through that, through the ups and downs,” Gilbert said. The nearly 90-minute hearing focused on the need to pass a new farm bill. The farm safety net is especially important as producers face high input costs and supply chain disruptions, said Subcommittee Ranking Member Sharice Davids, a Democrat from Kansas. Davids expressed concern over the age composition of Kansas producers, noting that less than 10 percent are under the age of 35. Farm bill programs help farmers weather downturns, said Subcommittee Chair Austin Scott, a Republican from Georgia. Scott said loan programs no longer reflect modern priorities. Montana farmer John Russell Wicks predicted farmers will continue facing major economic stress as long as corporate monopolies remain unchecked. He advised Congress to strengthen the connection between the USDA and antitrust law enforcement agencies and pass the Meat and Poultry Specialty Investigator Act. If passed, the law would establish an office within the USDA to investigate and punish violations of a 1921 law on anticompetitive practices in the meat and poultry industry. Wicks also supports reinforcing country-of-origin labeling and implementing right-to-repair for farmers.