Agricultural prosperity is critical to our nation’s economy yet farmers and ranchers in rural America are struggling to get the credit they need due to a decline in net farm income. One way to increase the availability of credit to farmers and ranchers is to remove taxes earned on profits and income from farm real estate loans.
Without access to traditional banking services, state-legal cannabis businesses are forced to operate on a cash-only basis, creating a dangerous environment for consumers, employees, business owners and local communities alike. Lawmakers should allow state-licensed cannabis businesses to participate in the banking system and remove the risk of criminal prosecution for banks that serve legitimate state cannabis businesses and their service providers.
During the Covid-19 pandemic, banks’ balance sheets grew significantly and unexpectedly as they offered support to consumers and small businesses. This unique circumstance affected banks’ leverage ratios- a major indicator of a healthy bank. To offer banks breathing room to facilitate economic recovery, Congress lowered the expected CBLR to 8% in 2020. However, now that relief programs have ended, the CBLR is now 9% and this could affect a bank’s ability to support economic recovery.