Perspectives From the Field: Risk Management, Credit and Rural Business Views on the Agricultural Economy

American Bankers Association

Chairman Boozman, Ranking Member Klobuchar, and members of the Committee, my name is Caleb Hopkins. I am the current chairman of the American Bankers Association's Agricultural and Rural Bankers Committee and testify in that capacity today. I am currently based out of Halbur, Iowa. I have worked in agricultural banking for 13 years, including the past 2 years as a Loan Production Officer for Dakota Mac, a subsidiary of First Dakota National Bank in Yankton, South Dakota. Before First Dakota National Bank, I worked at a small community bank helping to lead their agricultural lending. Agricultural bankers have a deep appreciation for the important role producers play in our economy and the unique challenges they face. I appreciate the opportunity to present the views of the ABA for the hearing titled "Perspectives From the Field: Risk Management, Credit and Rural Business Views on the Agricultural Economy."

The American Bankers Association (ABA) is the voice of the nation's $24.1 trillion banking industry, which is composed of small, regional and large banks that together employ approximately 2.1 million people, safeguard $19.2 trillion in deposits and extend $12.7 trillion in loans. ABA is uniquely qualified to comment on agricultural credit issues as banks have provided credit to the agriculture industry since the founding of our country. At year-end 2024, 3,725 banks –82 percent of all banks nationwide– reported agricultural loans on their books with a total outstanding portfolio of more than $204 billion.

Over the past year, ABA has supported the passage of a long-term Farm Bill. Bankers were in constant conversation with both the House Committee on Agriculture and the Senate Committee on Agriculture during the development of a 2024 Farm Bill. In addition to the 2024 Farm Bill, bankers worked with Members of Congress to provide information on the need for economic assistance for our farmers and ranchers. Bankers continue to monitor the agricultural economy, and we are very cognizant of how economic headwinds affect our customers. Congress has several tools to help the farm economy – starting with the passage of a strong Farm Bill. Additionally, outside this committee's jurisdiction, bankers believe the Access to Credit for our Rural Economy (ACRE) Act of 2025 is a solution that will provide another form of economic relief for farmers, ranchers and rural homeowners by lowering the cost of credit for these customers.

To the American Bankers Association, fostering the next generation of producers goes further than a program – it's part of what drives our lenders in rural communities every day.

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