DCUC Calls for Congressional Action to Strengthen Credit Union Support for Livestock Producers

​WASHINGTON, D.C. – The Defense Credit Union Council (DCUC) sent a letter, co-signed by the Dakota Credit Union Association, to the House Agriculture Committee to address critical regulatory barriers limiting credit unions’ ability to support livestock producers. The letter highlighted the vital role credit unions play in providing essential financial services to rural communities, military families, and agricultural producers nationwide.

that farmers, ranchers, and agribusiness owners have access to affordable, responsible, and member-focused financial services,” says Jason Stverak, DCUC Chief Advocacy Officer. “However, restrictive policies and unfair competition from the Farm Credit System (FCS) hinder our ability to fully serve America’s livestock industry.”
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The letter outlined key challenges facing credit unions in agricultural lending, including field of membership restrictions, the arbitrary 12.25% cap which limits credit unions’ capacity to offer essential agricultural financing, regulatory burdens through complex oversight, and unfair competition from the Farm Credit System. Originally designed to assist small farmers, the FCS benefits from government-backed advantages while increasingly serving large agribusinesses and non-farm enterprises.

DCUC and the Dakota Credit Union Association also proposed several policy solutions, suggesting exempting or raising the MBL cap for agricultural loans would allow credit unions to better support livestock producers; expanding credit union access to agricultural communities ensures more producers receive affordable financial services; strengthening partnerships with the Farm Service Agency (FSA) would provide more options for small and beginning farmers; greater transparency and accountability would prevent FCS from diverting resources away from small and mid-sized farmers; and expanding financial literacy initiatives can help livestock producers manage risk and sustain long-term operations.

For more information, please contact Jason Stverak at [email protected] and visit
dcuc.org/advocacy.