USDA Now Accepting Applications for Producers Seeking Trade, Tariff Relief

The United States Department of Agriculture is now accepting applications from farmers and ranchers that have been adversely affected by recent tariffs to receive relief under its Market Facilitation Program. The program will provide payments to eligible producers of corn, cotton, sorghum, soybeans, wheat, dairy or hogs.

To be eligible, producers must have an ownership interest in the commodity and be actively engaged in farming; have an average adjusted gross income for tax years 2014, 2015 and 2016 of less than $900,000 per year; be in compliance with certain conservation regulations; and be able to provide verifiable production records by crop, type, practice, intended use and acres if requested by the Farm Service Agency.

Payments will be based on 50 percent of the farmer or rancher’s production and will be capped at $125,000 per person or legal entity. Payments will be sent directly to the applicants. Bankers should direct their customers to farmers.gov/mfp for more information. For more information, contact ABA's Ed Elfmann.

Advertising Available in 2019 South Dakota Bank Directory

The South Dakota Bankers Association is currently offering advertising in its 2019 South Dakota Bank Directory, which is an indispensable reference tool for financial executives and those conducting business with financial decision makers in South Dakota.

A limited number of full-color ads are available on the directory's tabbed divider pages. Full-page and half-page black-and-white ads are also available in the front section of the directory. The deadline to place an ad is Friday, Sept. 28. Ads are due Oct. 15. More information and the advertising form.

Better Business Bureau Report Highlights Common Check Fraud Scams

Check fraud scams continue to cheat consumers out of thousands of dollars, and complaints to government agencies and consumer advocacy groups have doubled over the last three years, the Better Business Bureau said in a new report released yesterday. These scams can take many forms including mystery shopper scams, check overpayment scams, and nanny or caregiver scams.

Fake check scams often involve a scammer sending a bad check to a victim and then asking for some of the funds to be returned. After the money is sent back, the scammer’s original check bounces, and the victim is then liable for repaying the lost funds to the bank. The report noted that young people age 20 to 29 are particularly vulnerable to these scams; this cohort accounted for 21 percent of check fraud victims across all age groups.

ABA SVP Nessa Feddis represented ABA at a BBB press conference in Chicago, where the report was unveiled. Other participants in the press conference included Illinois Attorney General Lisa Madigan. The ABA Foundation and the Federal Trade Commission on Tuesday released an infographic that banks can use to help consumers recognize and prevent check fraud scams. Read the report. View the infographic.

ABA Issues CECL Discussion Paper on Financial Reporting Disclosures

ABA has issued a new discussion paper on the Current Expected Credit Loss standard aimed at educating bank investors, board members and auditors on what to look for under the new standard and the challenges bankers will have in addressing common questions from these stakeholders.

While most of the CECL implementation work in the industry has focused on performing CECL calculations, the association noted that “many bankers may then find additional challenges in designing systems that will inform investors and board members of the credit risk inherent in their loan and debt security portfolios and the changes in credit risk that have taken place during the period.”

The paper--along with ABA’s other resources on CECL--can be found online at aba.com/CECL. Bankers can also join the ABA CECL Network, an online discussion forum where bankers can share successes and challenges of CECL implementation. Read the discussion paper. For more information, contact ABA's Josh Stein.

The SDBA will offer the seminar “CECL From End to End: Discussion, Data Decisions” on Sept. 25 in Sioux Falls. This half-day CECL seminar will provide in-depth discussion of how to prepare for your bank’s CECL implementation. Learn more and register to attend.

ABA Seeks Examples of Credit Union Field-of-Membership Expansion Bids

The National Credit Union Administration’s latest rule easing field-of-membership limitations for federal credit unions took effect on Saturday, Sept. 1. The final rule, issued this summer, allows FCUs to use a “narrative” to apply for expansion of a community charter rather than relying on statistical benchmarks, and it places limits on the use of public hearings in granting expanded FOMs.

To help ABA monitor credit unions’ attempts to evade even modest limitations on their membership bases, bankers are encouraged to alert ABA staff to community meetings, local media notices and other indications that credit unions are seeking to expand their FOMs. ABA is also seeking examples of taxpaying banks losing loans or deposits due to expanded FOMs. To share information, contact ABA's Brittany Kleinpaste.

Correction on Reg Z Thresholds

Due to a typo in last week's eNews, a figure in an article on 2019 Regulation Z points and fees thresholds was mistakenly listed as $13,568 instead of $13,468. Read more.

Fall Financial Education Opportunities

The start of a new school year is a great time for your bank to get engaged with the youth in its community—and the ABA has two easy ways for you to do so. Get Smart About Credit and Lights, Camera, Save! are programs that challenge teens to expand their financial capabilities in fun, interactive ways.

Looking for an out-of-the-box way to encourage teens to be savvy with their money? Register to be a local host for this year’s Lights, Camera, Save! contest that encourages teens to use video to communicate the value of sound money management.

Get Smart About Credit is a volunteer opportunity for bankers to raise awareness about the importance of using credit wisely—with presentation guides on identity protection, money management, paying for college, careers in banking and more. Sign up to attend a free webinar on Thurs., Sept. 13, at noon CDT to learn more about the program, its free resources (available in both English and Spanish) and the new materials on careers in banking.

Learn More About South Dakota Certified Banking Vendor Manager

Understanding and managing vendor relationships continues to be a pain point for financial institutions. The key to making your vendor management program successful is understanding the processes, structuring and goals of the program.

SBS CyberSecurity is offering a webinar on Friday, Sept. 28, at 9:30 a.m. CDT to learn more about the South Dakota Certified Banking Vendor Manager. This short webinar will walk through what you and your organization can expect to gain from an investment in the Certified Banking Vendor Manager Onsite Course to be held Oct. 11-12 at Lake Area Technical Institute in Watertown. Offered by SBS, the course is co-sponsored by the South Dakota Bankers Association and Independent Community Bankers of South Dakota.

Compliance rules and regulations change quickly. For timely compliance updates, subscribe to Compliance Alliance’s email newsletters.

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call 888.353.3933 or email.

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Questions/Comments
Contact Alisa DeMers, SDBA, at 800.726.7322 or via email.