February 11, 2009

Honorable,

On behalf of the Georgia Fruit & Vegetable Growers Association (GFVGA) representing the more than 2,000 growers in Georgia we write this letter asking Congress not take any action that will interfere with the ability of the Farm Credit System to continue to serve Georgia’s specialty crop growers.  As you may know, fruit and vegetable production in Georgia is valued in excess of $800 million at the farm gate. As the state’s number two cash crop, most Georgia fruits & vegetables are grown for the fresh market to be sold and consumed in other states.  This brings new money into Georgia’s communities, with an impact of over $2.2 billion to Georgia’s economy.

Congress has charged the Farm Credit System with ensuring that farmers, ranchers, agricultural cooperatives and others in rural America have access to competitively priced credit in good times and bad.  That mission remains critically important today especially during the current financial crisis.

As Congress sharpens its focus on solutions to addressing the ongoing distress in our nation’s financial markets, we are concerned that the Farm Credit System could be swept up in any broad effort to resolve problems with Fannie Mae, Freddie Mac or the commercial banking or securities regulatory structure.  Including Farm Credit in these legislative initiatives could undermine the mission that the Agriculture Committees gave Farm Credit some 90 years ago and challenge our ability to continue to fulfill that mission into the future.

The House and Senate Agriculture Committees have done an excellent job over the years ensuring that Farm Credit maintains strong capital levels, has strict regulatory oversight, and closely serves it statutory mission.  The Agriculture Committees have put in place a substantial insurance fund to protect those purchasing Farm Credit System securities and established a true arms-length safety and soundness regulator, the Farm Credit Administration.

The important reforms put in place by Congress over a generation ago positioned the Farm Credit System to be there for agriculture in good times and bad.  While Fannie Mae and Freddie Mac collapsed and the world’s credit markets seized, Farm Credit has continued to ensure that an ample supply of credit is available for agriculture.  While the Congress is sure to consider reforms to the financial industry and Fannie Mae and Freddie Mac, we ask your help in working with your

colleagues in Congress to focus their attention on those in need of repair – and not those who are successfully accomplishing their mission and posing no threat to the financial system.

Agriculture is facing a challenging environment with increased input costs, weakening commodity prices and a resurgent dollar.  Rural America, more than ever, needs the Farm Credit System as a reliable provider of credit services.  The best way to assure this outcome is to be

certain the Farm Credit System does not get swept up in an effort to overhaul financial regulation and the housing GSEs.  That old adage of not attempting to fix things that are not broken clearly applies here.

GFVGA appreciates your leadership as we work together to ensure Georgia growers have access to the credit necessary to successfully supply fruits & vegetables to consumers.  Thank you for your support of our growers.

Sincerely,

Charles T. Hall, Jr.

Executive Director