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Agriculture News Release - 1994-05-12 University of Texas Rio Grande Valley ScholarWorks @ UTRGV Kika de la Garza Congressional Papers - Agriculture Committee News Releases Kika de la Garza Congressional Papers 5-12-1994 Agriculture News Release - 1994-05-12 United States. Congress. House. Committee on Agriculture E. De la Garza Follow this and additional works at: https://scholarworks.utrgv.edu/ kikadelagarzaagriculturecomitteenews Part of the Agricultural Economics Commons Recommended Citation Kika de la Garza Congressional Papers - Agriculture Committee News Releases, UTRGV Digital Library, The University of Texas – Rio Grande Valley This Book is brought to you for free and open access by the Kika de la Garza Congressional Papers at ScholarWorks @ UTRGV. It has been accepted for inclusion in Kika de la Garza Congressional Papers - Agriculture Committee News Releases by an authorized administrator of ScholarWorks @ UTRGV. For more information, please contact [email protected], [email protected]. COMMITIEE ON AGRICULTURE (NR94-041) U.S. HOUSE OF REPRESENTATIVES For further information: Room 1301, Longworth House Office Building Jim Davis, Press Secretary Washington, DC 20515 (202) 225-2171 FAX (202) 225-3158 COMMITTEE MEMBERS INTRODUCE BILL TO ENHANCE FARM EXPORT, RISK MANAGEMENT AUTHORITIES FOR FARM CREDIT SYSTEM For immediate release, Thursday, May 12, 1994 WASHINGTON -- Legislation to enhance the agricultural export and risk management authorities of Farm Credit System institutions was introduced in the House of Representatives this week by House Agriculture Committee Chairman Kika de la Garza, D-Texas, and four other Committee members. "The common goal of those of us who are sponsors of this legislation is to help American agriculture and our rural communities better compete in today's global economy. This legislation provides Congress with a starting point in our deliberations over the appropriate Mure role the banks for cQop"lratives can play in promoting the export of U.S. agricultural commodities and products," said Rep. de la Garza. H.R. 4379, the Farm Credit System Agricultural Export and Risk Management Act, would amend the Farm Credit Act of 1971 in two principal ways: • H.R. 4379 would enhance the lending authorities of the farmer-owned banks for cooperatives to facilitate exports of agricultural exports. It would allow the banks for cooperatives to participate in financing arrangements with other domestic or foreign businesses to promote the export of U.S. agriculture-related products. lt would also allow the banks for cooperatives to finance joint ventures, partnerships and similar arrangements by eligible U.S. agricultural cooperatives, with certain limitations. The bill specifically prohibits these institutions from financing the relocation of a plant or facility from the United States to another country. • H.R. 4379 would also allow Farm Credit System banks and associations to better manage the risk in their loan portfolios. The bill would authorize Farm Credit System institutions to purchase and sell loan participations with non-System lenders, thus reducing their concentration of risk by geography and industry. The availability of export financing is vital to the orderly marketing and expansion of U.S. agricultural exports. Since 1980, the National Bank for Cooperatives, better known as CoBank, a part of the Farm Credit System, has been authorized to finance the sale of agricultural exports for the benefit of our nation's agricultural cooperatives. However, current law does not allow the Farm Credit System's banks for cooperatives, including CoBank, to fully participate in financing arrangements by U.S. farmer-owned cooperatives with other business entities. "I look forward in the days ahead to working with the Farm Credit System, CoBank and commercial bankers for enactment of this legislation," said the Committee's Ranking Minority Member Pat Roberts, R-Kans., also a cosponsor of H.R. 4379. Other original cosponsors of H.R. 4379 are: Reps. Tim Johnson, O-S.O., Larry Combest, R-Texas, Tim Penny, O-Minn., and Wayne Allard, R-Colo. # NOTE: The House Agriculture Committee has available copies ofthe following new agriculture,­ related reports. Mail requests for copies to Jim Davis, 1301 LHOB, Washington, DC 20515. For more expeditious delivery you may fax requests to 202-225-3158: CRS 94-336 EPW Health Care Reform: Managed Competition in Rural Areas by Beth C. Fuchs CRS 94-393 ENR Federal Crop/nsurance: 1heAdministration ProposaL by Ralph M Chite.
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