Senators Chuck Grassley and Sherrod Brown introduced legislation this week to prevent foreign individuals from obtaining credit and financial services through the Farm Credit System. The Iowa Republican and Ohio Democrat content that currently, certain foreign individuals and entities are eligible to receive credit through this government-sponsored enterprise.
Grassley states, “The expansion of foreign-owned farmland is a justified cause for concern among many family farmers and ranchers. Brown adds, “American taxpayer dollars should not be used as a financing tool for foreign governments to undermine our national security and take our family farms.”
FCS was established in 1916 to provide credit to rural areas when commercial lenders were avoiding farm loans. It is mandated and limited by statute to serve agriculture. In 2021, FCS had a portfolio of roughly $210 billion in farm loans. Since 1997, regulations have allowed FCS associations to extend credit to certain foreign nationals who are not permanent residents of the United States and to foreign-owned entities.