GAO STUDY OF RURAL CREDIT COST AND AVAILABILITY.

SEC. 1842. GAO STUDY OF RURAL CREDIT COST AND AVAILABILITY. (a) Study.— The Comptroller General of the United States shall conduct a study of certain matters related to the cost and availability of credit in rural America, including a study of— (1) the relationship of the role and lending volume of the Farm Credit System to the ability of the System to repay the assistance provided under the Agricultural Credit Act of 1987 (Public Law 100–233) and amendments made by such Act; (2) the ability of Farm Credit System institutions to be competitive taking into consideration the costs of rebuilding capital, repaying assistance, and capitalizing the Farm Credit Insurance Fund established under section 5.60 of the Farm Credit Act of 1971 (12 U.S.C. 2277a–9); (3) the rates Farm Credit Banks charge for credit and the rates prevailing in the market for credit of comparable risk and maturity; 104 STAT. 3836 (4) the potential for credit pricing practices of rural lending institutions to adversely affect the financial soundness of other lending institutions that provide agricultural credit; (5) the pricing practices of commercial lending and insurance institutions and whether the practices adequately address the level of risk in agricultural lending; (6) whether the assistance authorized under the Agricultural Credit Act of 1987 and the amendments made by such Act, is being utilized in accordance with the purposes intended by Congress; (7) the availability and adequacy of credit in rural America for the purpose of financing agricultural production, infrastructure development (including development of roads, bridges, and water systems), and rural development; (8) the prudence and desirability for commercial lenders and Farm Credit System institutions who serve primarily agriculture to broaden lending activity to provide diversity in their portfolios; (9) the level of competitiveness among the major sector lenders in agriculture, whether competition among such lenders has increased or decreased in the last 5 years, and whether American producers have benefited from the competitive situation; and (10) the level of farm lending activity, in relation to the total asset level, of agricultural lending institutions in rural America and the level of investment by the institutions outside of the rural community or area in which the lending institutions are located. (b) Report.— Not later than 2 years after the date of enactment of this Act, the Comptroller General shall submit a report on the study conducted under subsection (a) (including any related recommendations) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.