[Congressional Record Volume 150, Number 119 (Tuesday, September 28, 2004)]
[Senate]
[Pages S9813-S9814]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself and Mr. Johnson):
  S. 2851. A bill to amend the Farm Credit Act of 1971 to establish 
certain conditions under which a Farm Credit System institution can 
terminate its status as a System institution; to the Committee on 
Agriculture, Nutrition, and Forestry.
  Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page S9814]]

                                S. 2851

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. TERMINATION OF FARM CREDIT SYSTEM STATUS.

       Section 7.10 of the Farm Credit Act of 1971 (12 U.S.C. 
     2279d) is amended by adding at the end the following:
       ``(c) Conditions for Certain Termination.--Notwithstanding 
     subsections (a) and (b), if the Farm Credit Administration 
     Board receives an official notification that a Farm Credit 
     System institution seeks to terminate its status as a System 
     institution, the Farm Credit Administration--
       ``(1) shall hold not less than 1 public meeting or hearing 
     in each of the States served, as of the date of receipt of 
     the notification, by the institution; and
       ``(2) shall not approve or disapprove the termination of 
     the institution as a System institution under subsection 
     (a)(2) until on or after the date that is 180 days after the 
     date of receipt of the notification.''.

  Mr. JOHNSON. Mr. President, I rise today in support of a bill I am 
cosponsoring with Senator Daschle. This important piece of legislation 
would affect the way the Farm Credit Administration, FCA, handles any 
possible sale of one of its member institutions. This bill would 
require the FCA to hold hearings in all the States affected by the 
sale, which is what my good colleague from South Dakota and I have been 
advocating since the time this proposed termination was announced. 
Additionally, the bill would prohibit the FCA from approving the 
termination plan no earlier than 6 months after the initial proposal is 
submitted. I am pleased to cosponsor this legislation with Senator 
Daschle as it will give the Farm Credit System, FCS, and affected 
parties adequate time to discern long-term implications and 
consequences of the possible sale of an FCS institution.
  This bill is very timely, in that Rabobank, a Dutch bank, has made a 
bid to purchase Farm Credit Services of America, a Farm Credit System 
member bank. This transaction is moving ahead at a rapid pace without 
any hearings in the affected region of the country which happens to 
include my home State of South Dakota. One of my greatest concerns 
about the operation of the FCS is for farmers and ranchers to have the 
ability to ask questions about the transaction and decide if it is in 
their best interest to allow the transaction to occur. We must ensure 
that producers will always be able to have access to affordable credit, 
and that they are well-informed before they are obligated to vote on 
the potential termination of the Farm Credit Services of America, FCSA.
  The Farm Credit System has been in operation in the United States for 
88 years and has been serving farmers well. The system was formed to 
allow farmers and ranchers easy access to credit for purchases that are 
fundamental to their day-to-day operations. Given the myriad of 
challenges producers face in our agricultural communities across 
America, I am greatly concerned that this acquisition would place yet 
another burden on our ranchers and farmers. I am fully committed to 
ensuring our producers have adequate access to reliable credit, and 
support this legislation as a means to achieve that goal. I am hopeful 
that my Senate colleagues will support this commonsense and imperative 
legislation.
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