Cornyn and Kaine propose extended audit cycle for low-risk farm lenders
U.S. Senators John Cornyn and Tim Kaine have introduced a bipartisan bill aimed at reducing regulatory pressure on farm credit institutions.
The proposed Farm Credit Adjustment Act seeks to extend the audit cycle for low-risk institutions regulated by the Farm Credit Administration. The current law requires audits every 18 months, but this bill would allow the agency to extend that period to 24 months when appropriate.
This change would help farm credit organizations save time and reduce compliance costs. It would also allow them to focus more on serving farmers, agribusinesses, and rural communities that depend on agricultural financing.
“Farmers are the backbone of our country, and it’s imperative that their operations are not held up by burdensome or arbitrary federal regulations,” said Sen. Cornyn. “I’m proud to introduce the Farm Credit Adjustment Act, which would extend the Farm Credit Administration’s schedule for auditing low-risk institutions and ensure the agriculture community can continue producing the food, fuel, and fiber that Americans rely on.”
“Agriculture is Virginia’s largest private industry—making farms and our farmers an indispensable pillar of our economy,” said Sen. Kaine. “I’m glad to be introducing this bipartisan legislation to cut red tape that can hold farm credit institutions back from providing the support farms across the country need to thrive. I encourage my colleagues to support this commonsense, bipartisan bill.”
Senator Tim Kaine added that agriculture is a key industry and supporting farm credit institutions is critical to strengthening rural economies. He noted that reducing regulatory hurdles would enable lenders to better support farm operations across the country.
Currently, audits often occur during critical financial periods when farmers prepare spring planting. These reviews can create delays and strain resources at a time when timely support is essential.
The bill would give the Farm Credit Administration full authority to decide which institutions qualify as low risk and adjust their audit schedules accordingly. It does not mandate changes but provides flexibility for better decision making.
In the House of Representatives, the proposal is supported by Representatives Eugene Vindman and Pat Fallon, who are leading similar efforts.
If passed, the legislation could improve efficiency in farm lending systems while ensuring continued oversight and accountability in the agriculture finance sector.