Farm Credit Administration Independent Authority Act

Bill Number

H.R. 1063

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Agriculture and Food

Status

Introduced

Latest Action

2025-03-07: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.

Last Updated

2026-02-27T09:06:49Z

AI-Generated Summary

Purpose of the Legislation

This bill, titled the "Farm Credit Administration Independent Authority Act," aims to affirm that the Farm Credit Administration (FCA)—a federal agency that oversees the Farm Credit System (FCS), a government-sponsored network providing loans to farmers, ranchers, and agricultural producers—is the sole and exclusive regulator of the FCS. It focuses on standardizing the collection of demographic data for small farmer loans while ensuring FCA's independent authority over FCS institutions, without interference from other regulators.

Key Provisions

• Data Collection Requirements: FCS institutions must request voluntary disclosure of race, sex, and ethnicity from loan applicants and borrowers who qualify as "small farmers" (defined as small-scale farmers, ranchers, producers, or harvesters of aquatic products under existing law). They must collect, maintain, and annually report this data to the FCA.
• FCA's Role: The FCA must compile the reported data and make it publicly available each year. However, it cannot force institutions to guess or observe a customer's demographics (e.g., based on appearance or name) if the customer declines to provide the information voluntarily.
• Privacy Protections: Any public reporting by the FCA must anonymize the data to prevent identifying individual applicants or borrowers.
• Effective Date: These data collection rules apply only to loan applications received and loans made at least one year after the bill's enactment.
• Contingent Cessation: If a related federal regulation on demographic data collection for other financial institutions (under subpart B of part 1002 of title 12, Code of Federal Regulations) is invalidated by a court or repealed, FCS institutions would no longer need to follow the new data rules.

Significant Changes to Existing Law

• Amendment to the Farm Credit Act of 1971: Adds a new section (4.20) mandating demographic data collection specifically for small farmer loans within the FCS, tying it explicitly to affirming FCA's sole regulatory authority.
• Amendment to the Equal Credit Opportunity Act (ECOA): Modifies ECOA (a law prohibiting credit discrimination) by exempting FCA-supervised entities from certain reporting requirements that apply to other financial institutions, reinforcing FCA's independence.
• These changes carve out the FCS from broader financial regulations, potentially limiting overlap with agencies like the Consumer Financial Protection Bureau (CFPB), which enforces ECOA for non-FCS lenders.

Potential Impacts

• On Government Agencies: Strengthens the FCA's autonomy, potentially reducing administrative burdens from dual oversight by multiple regulators. It could streamline operations for the FCS while requiring the FCA to handle new data compilation and public reporting duties.
• On Citizens: Small farmers and borrowers in the FCS may face voluntary requests for personal demographic information during loan processes, which could help track lending equity but raises privacy concerns. Non-compliance with data requests won't affect loan eligibility, as participation is optional.
• On International Relations: No direct impacts, as the bill focuses on domestic agricultural lending.

Main Stakeholders Affected

• Farm Credit System Institutions: Banks and lenders within the FCS, who must implement data collection and reporting, potentially increasing compliance costs but gaining regulatory clarity.
• Small Farmers and Borrowers: Primarily rural agricultural producers seeking FCS loans, who will be asked to provide demographic data voluntarily.
• Farm Credit Administration: Gains affirmed independent authority and new responsibilities for data oversight and publication.
• Other Regulators (e.g., CFPB): Indirectly affected by the exemption of FCS from certain ECOA rules, which may limit their influence over agricultural lending.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Reinforces statutory independence for the FCA, potentially preempting future regulatory conflicts. The voluntary nature of data disclosure and privacy safeguards align with existing anti-discrimination laws like ECOA, reducing risks of legal challenges over privacy or coercion. The contingent cessation clause ties compliance to the fate of similar rules for other lenders, which could lead to litigation if broader regulations change.
• Constitutional Implications: No direct challenges to constitutional principles, though it upholds federalism in agricultural policy by centralizing oversight in a specialized agency.
• Political Implications: Supports rural and agricultural interests by tailoring regulations to farming needs, possibly in response to broader debates on financial data collection (e.g., similar to Home Mortgage Disclosure Act requirements). It may spark discussions on equity in lending access for underserved small farmers without imposing mandatory reporting.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Finstad, Brad [R-MN-1]

Cosponsors (14)

Rep. Panetta, Jimmy [D-CA-19], Rep. Miller, Mary E. [R-IL-15], Rep. Baird, James R. [R-IN-4], Rep. Fischbach, Michelle [R-MN-7], Rep. Moolenaar, John R. [R-MI-2], Rep. Self, Keith [R-TX-3], Rep. Stauber, Pete [R-MN-8], Rep. Huizenga, Bill [R-MI-4], Rep. Bergman, Jack [R-MI-1], Rep. Gray, Adam [D-CA-13], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Barr, Andy [R-KY-6], Rep. Schmidt, Derek [R-KS-2]

Recent Actions

• 2025-03-07: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
• 2025-02-06: Referred to the Committee on Agriculture, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-06: Referred to the Committee on Agriculture, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-06: Introduced in House
• 2025-02-06: Introduced in House

Bill Versions

• Farm Credit Administration Independent Authority Act — issued 2025-02-06 — PDF (4 pages)