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Farm Credit Administration Independent Authority Act
3/26/2025, 1:51 PM
Summary of Bill HR 1063
The bill seeks to ensure that the FCA has the authority and autonomy to regulate and oversee the Farm Credit System without interference from other federal agencies. This includes the ability to establish regulations, conduct examinations, and enforce compliance with laws and regulations governing the System.
By affirming the FCA as the primary regulator of the Farm Credit System, the bill aims to streamline regulatory oversight and promote consistency in the supervision of these important agricultural lending institutions. This will help to ensure the safety and soundness of the System, protect the interests of borrowers and investors, and promote the stability of the agricultural sector. Overall, Bill 119 HR 1063 seeks to strengthen the regulatory framework governing the Farm Credit System and enhance the FCA's ability to fulfill its mission of supporting rural communities and agriculture through reliable and affordable credit.
Congressional Summary of HR 1063
Farm Credit Administration Independent Authority Act
This bill specifies that the Farm Credit Administration (FCA) is the sole regulator of the Farm Credit System (FCS) and establishes reporting requirements for FCS institutions (i.e., lenders).
Specifically, the bill states that the FCA is the sole and independent regulator of the FCS and exempts entities that are supervised by the FCA from the Equal Credit Opportunity Act (ECOA).
As background, the bill addresses a rule issued by the Consumer Financial Protection Bureau (CFPB) that implements provisions of the ECOA by requiring covered financial institutions, including FCS institutions, to collect and report to the CFPB data on credit applications for small businesses, including the principal owner's race, sex, and ethnicity. This 2023 rule has been challenged in court.
The bill also requires FCS institutions to (1) request that loan applicants and borrowers that are small farmers disclose information identifying their race, sex, and ethnicity; and (2) annually report the collected information to the FCA. The FCA must make the collected information available to the public on annual basis. If an FCS institution customer does not voluntarily report the requested information, the FCA may not require the institution to use other means to deduce the information.
In addition, the bill specifies that FCS institutions shall not be required to comply with the bill's requirements if financial institutions are not required to comply with the CFPB rule due to a court invalidating the rule or a repeal of the rule.
