BISMARCK, N.D.–North Dakota’s governor has sent a comment letter to NCUA urging it to remove language from its proposed 2022-2026 strategic plan that discourages credit unions from lending to farmers and ranchers.
The letter is similar in tone to that sent to NCUA by the Dakotas Credit Union Association, as CUToday.info reported here.
NCUA’s draft strategic plan cites “climate related financial risks” and assumes that changing weather patterns “will disproportionately affect farming communities,” suggesting that “to remain resilient credit unions may need to consider adjustments” to their membership.
In his comment letter, Gov. Doug Burgum noted that North Dakota’s 34 credit unions have 214,000 members and currently hold $748 million in agricultural loans, accounting for roughly one-quarter of their loan portfolios on average.
Agriculture “should be viewed as an industry uniquely positioned to capture and store carbon,” wrote Burgum, warning that discouraging ag lending would be counterproductive to carbon reduction goals.
‘Ill-Conceived and Politically Motivated’
“Given our administration’s goal of North Dakota becoming a carbon neutral state by 2030, we appreciate NCUA’s concern about climate change,” Burgum wrote. “However, carbon neutrality can be achieved only through innovation, not regulation – and certainly not by limiting access to credit for agricultural operations with natural carbon storage capacity.
“The plan’s proposed draft language under ‘Climate-Related Financial Risks’ is ill-conceived, politically motivated, anti-agriculture rhetoric that threatens to cause serious harm to the farmers and ranchers who form the backbone of rural America,” the letter continued. “We strongly urge that it be stricken from the proposed draft or significantly revised to encourage agricultural lending.”
The Dakotas Credit Union Association reported that Doug Goehring, North Dakota Department of Agriculture Commissioner, also sent a similar comment letter to NCUA.