Farm Credit Adjustment Act
- Bill Number
- S. 4655
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2026-06-02: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Last Updated
- 2026-06-16T13:23:07Z
AI-Generated Summary
Summary of S. 4655: Farm Credit Adjustment Act
Purpose
This legislation aims to provide the Farm Credit Administration with greater flexibility in scheduling examinations for certain Farm Credit System institutions by allowing longer intervals for those deemed low-risk.
Key Provisions
- The bill amends Section 5.19(a) of the Farm Credit Act of 1971 (12 U.S.C. 2254(a)).
- It changes the language regarding mandatory examination timing by replacing "in no event" with "not" in the first sentence.
- It adds an exception permitting the Farm Credit Administration, at its sole discretion, to extend the examination cycle for low-risk institutions to a maximum of 24 months.
- The changes take effect on October 1, 2026.
Significant Changes to Existing Law
- Current law requires examinations within a stricter timeframe, with no exceptions noted for low-risk status.
- The amendment introduces an optional 24-month cycle specifically for institutions the Farm Credit Administration classifies as low-risk, shifting from a uniform shorter cycle to a risk-based approach.
Potential Impacts
- On government agencies: The Farm Credit Administration may allocate examination resources more efficiently by focusing on higher-risk institutions.
- On citizens: Borrowers and users of Farm Credit System institutions could experience reduced regulatory oversight costs if their institutions qualify as low-risk.
- No direct effects on international relations are outlined in the legislation.
Main Stakeholders Affected
- The Farm Credit Administration, as the regulatory body with new discretionary authority.
- Farm Credit System institutions, particularly those classified as low-risk.
- Agricultural borrowers and related entities served by these institutions.
Notable Legal, Constitutional, or Political Implications
- The bill grants broad discretion to a federal agency in determining examination schedules, which could raise questions about regulatory oversight consistency.
- It represents a targeted adjustment to existing financial regulatory requirements without altering broader constitutional authorities or introducing new mandates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-06-02: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- 2026-06-02: Introduced in Senate
Bill Versions
- Farm Credit Adjustment Act — issued 2026-06-02 — PDF (2 pages)