Member Login

THE MEMO

DAKOTA CREDIT UNION ASSOCIATION
  • Advocacy
    • Government Affairs
    • Grassroots Action Center >
      • Advancing Communities
      • Bill Tracking
    • Political Fundraising
    • Regulatory Advocacy
    • Preserving Financial Choice for North Dakotans
  • Compliance
    • Compliance Resources
    • Compliance Solutions >
      • AffirmX
      • CECL
      • ComplySight
      • CU CMS
      • CU PolicyPro
      • InfoSight
      • PayLynxs
      • RecoveryPro
      • Training
    • The Memo: Compliance
  • Member Resources
    • Awards >
      • DakCU Awards
      • CUNA Awards
    • CU Awareness (SWAP)
    • DakCU Foundation >
      • Donor Wall
      • Memorials
    • DakCU Health Benefits Trust
    • Financial Well-Being for All
    • Professional Development >
      • Chapters
      • Emerging Leader Program
      • Sales CU Training
      • Training
    • Strategic Partners >
      • CAP Program Directory
      • Compliance Solutions
      • Pee Wee and Friends®
  • News & Events
    • The Memo
    • Events Calendar
    • Annual Summit >
      • Agenda
      • Sponsors
    • CUNA GAC
    • MonDak
    • New Ideas
    • Sales CU Training
  • About Us
    • Board of Directors
    • Contact Us
    • Our Team

Legislative Update with Jay Kruse

12/22/2021

 
Picture
Rising inflation has a major effect on farmers and ranchers, but we are not in this alone! SD Senator Thune is urging regulators to monitor the impacts.  
Don’t blame Santa!

Everyone, including your local ag producer, is getting “less for more” this holiday season. Rising inflation hasn’t only affected the price or quantity of gifts sitting under the tree this year, it has also had a major effect on input costs for our local farmers and ranchers.

Many of our major ag lending credit unions are also concerned with rising costs and are stepping up to the plate to assist members by increasing operating lines of credit to help their borrowers cope with these swelling expenses that have the potential to squeeze margins as producers continue to battle through pandemic related supply chain issues into 2022. Unfortunately, it’s not always that easy for all lenders and ag borrowers. Typically, we focus mainly on yields and commodity prices to determine how the ag industry is preforming, but that focus has shifted, forcing producers to juggle both sides of their income statement.

There is some good news – we are not in this alone. Last week, Senator John Thune (R-SD) authored a letter to all the prudential regulators, including the National Credit Union Administration (NCUA), urging them to monitor the impacts of inflation on the agriculture economy and to ensure lenders have the flexibility needed to help borrowers through this period of heightened inflation.

The letter specifically points out, “Specific to agriculture, inflation is hiking the cost of doing business on everything from fertilizer to fuel to machinery, among a number of other things needed to keep farm and ranch operations running. To name just a few examples, fertilizer prices have increased by 265 percent since May 2020, and farm diesel prices and used farm machinery prices are up year-over-year by over 50 percent and 34 percent respectively. And these rising input costs are one of the factors contributing to declining optimism among farmers.”

Overall, the letter can be summarized with its concluding statement, “Therefore, as producers potentially seek greater amounts of credit, we urge you to not increase regulatory or examination burdens upon community financial institutions, which could interfere with their ability to extend credit to agriculture customers. We believe that community financial institutions have the necessary capital to help their farm and ranch borrowers keep up with rising input costs as profit margins tighten, while maintaining the proper safety and soundness considerations.”

​We appreciate Senator Thune’s leadership and willingness to stand up in support of our Dakota producers and credit unions alike. But, this is only the beginning, as we believe this will continue to be a major area of concern throughout 2022.

The good news is that we are all in this together! Lets all take these next two week to focus on the positives as we kick off 2022 and leave 2021 in the past. I wish you all a Merry Christmas, Happy Holidays, and Happy New Year!
As always, feel free to contact me with any advocacy questions or concerns. 

Comments are closed.

    The Memo

    The Memo is DakCU's newsletter that keeps
    ​credit union professionals updated on current news and information. ​

    Memo Home

    Want the Memo delivered straight to your inbox?
    Sign Up Now


    Archives

    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021


    Categories

    All
    Action Alert
    Advocacy
    Awards
    Awareness Campaign
    Compliance
    CUPAC/CULAC
    Dakota CUs Give Back
    Events
    Facebook Creeping
    Financial Well Being
    Foundation
    Fraud Alert
    Grants
    In The Spotlight
    Marketing Tips
    Member Solutions
    Miscellaneous
    ND Legislative Update
    News And Notes
    President's Perspective
    Press Releases
    SD Legislative Update
    Webinars

Copyright Dakota Credit Union Association.  All Rights Reserved.
2005 N Kavaney Dr - Suite 201 | Bismarck, North Dakota 58501
Phone: 
800-279-6328 | info@dakcu.org | sitemap | privacy policy
Picture
Picture
Picture
  • Advocacy
    • Government Affairs
    • Grassroots Action Center >
      • Advancing Communities
      • Bill Tracking
    • Political Fundraising
    • Regulatory Advocacy
    • Preserving Financial Choice for North Dakotans
  • Compliance
    • Compliance Resources
    • Compliance Solutions >
      • AffirmX
      • CECL
      • ComplySight
      • CU CMS
      • CU PolicyPro
      • InfoSight
      • PayLynxs
      • RecoveryPro
      • Training
    • The Memo: Compliance
  • Member Resources
    • Awards >
      • DakCU Awards
      • CUNA Awards
    • CU Awareness (SWAP)
    • DakCU Foundation >
      • Donor Wall
      • Memorials
    • DakCU Health Benefits Trust
    • Financial Well-Being for All
    • Professional Development >
      • Chapters
      • Emerging Leader Program
      • Sales CU Training
      • Training
    • Strategic Partners >
      • CAP Program Directory
      • Compliance Solutions
      • Pee Wee and Friends®
  • News & Events
    • The Memo
    • Events Calendar
    • Annual Summit >
      • Agenda
      • Sponsors
    • CUNA GAC
    • MonDak
    • New Ideas
    • Sales CU Training
  • About Us
    • Board of Directors
    • Contact Us
    • Our Team