House Agriculture Subcommittee on General Farm Commodities, Risk Management, and Credit Chairman Austin Scott (GA-08) delivered the following opening statement at today’s hearing: “Financing Farm Operations: The Importance of Credit and Risk Management."
Remarks as prepared:
"This hearing of the General Farm Commodities, Risk Management, and Credit Subcommittee will now come to order. Today, we will hear from lenders representing diverse regions across the country, along with a producer, all of whom bring firsthand insight into the challenges farmers face when seeking the capital necessary for success.
"The reality is that farming is getting tougher every year. Input costs are up and market prices are down. If we don’t support today’s farmers, there won’t be a next generation ready to step in. We must ensure the resources available to those who provide capital to our producers can meet the moment.
"This is why farm bill programs matter. They form the foundation of affordable, reliable credit for producers.
"Lending tools and risk management programs – like crop insurance and commodity programs - work hand in hand to help farmers withstand downturns and sustain their operations.
"From loan programs to the farm safety net, it is critical that producers and their lenders have as many tools in the toolbox as possible to ensure dependable access to capital. This is essential to maintaining the safest, most abundant food supply in the world.
"Over the past six years, we’ve seen nearly $130 billion in ad hoc assistance flow to producers. While that support was necessary in times of crisis, it’s no substitute for a durable, predictable safety net. We owe it to farmers and lenders alike to build a system that doesn’t rely on ad hoc assistance every time disaster strikes.
"That is exactly what the One Big Beautiful Bill does. We’ve strengthened the farm safety net – increased references prices, expanded access to crop insurance, and the opportunity to add additional base acres are just a few of the real improvements that will bring more certainty to producers and reduce risk for lenders. Additionally, the bill significantly raises the federal estate tax exemptions and creates permanence in tax codes, allowing farmers more clarity to plan for their future.
"But we know the work cannot stop there. Today, our loan programs don’t reflect the realities of the modern family farm. Loan limits are outdated, and the lending process is often slow and burdensome. We must ensure that the credit programs at the Farm Service Agency are improved to serve both producers and lenders.
"That is why today’s hearing is so important. The discussion today will help guide the next steps in our farm bill reauthorization process and ensure that the credit title complements the changes we made in the One Big Beautiful Bill. It will also underscore the need to support our producers who take the risk to grow the food, fiber, and fuel our country depends on.
"I want to thank our witnesses for being here and for all the work you do every day. Your insight is critical to helping this Committee get it right.
"With that, I yield to Ranking Member Davids, for any opening remarks she would like to make. "
