ICBA Urges Congress to Support Community Banks in Agriculture Sector

The Independent Community Bankers of America (ICBA) has testified before the House Agriculture Committee, emphasizing the importance of community banks in the nation's agriculture credit markets. ICBA's Senior Vice President and Agriculture Banking Manager, Brian Gilbert, highlighted the significance of USDA guaranteed farm loan programs and expressed concerns over proposals to expand the Farm Credit System's tax and regulatory advantages.

Key Takeaways:

• Community banks with under $10 billion in assets make approximately 78% of all agricultural loans made by commercial banks.
• ICBA recommends raising loan limits on USDA guaranteed loans, providing quicker loan approvals, and streamlining paperwork requirements.
• The ICBA 'Repair, Reform, and Thrive' plan prioritizes advancing policies that will help community banks create rural prosperity, food independence, and a stronger nation.
• ICBA supports the ACRE Act, which could assist producers with lower loan rates due to a 25% tax exemption in the One Big Beautiful Bill Act.
• The FCS's collection of uninsured deposits through "funds held" accounts needs tighter restrictions to prevent operation like banks.

Statistics:

• Community banks make 78% of all agricultural loans made by commercial banks.
• The ACRE Act features a 25% tax exemption for loans secured by agricultural land.
• ICBA's 'Repair, Reform, and Thrive' plan aims to create rural prosperity, food independence, and a stronger nation through policy advancement.

Sources:

• "ICBA Urges Congress to Build on Pro-Agriculture Policies in Testimony Before House Agriculture Committee." Independent Community Bankers of America, July 16, 2025.
• "About ICBA." Independent Community Bankers of America, 2025.