U.S. Senator, Jerry Moran of Kansas and U. S. Representative, Zach Nunn of Iowa led their colleagues in cautioning federal regulators on the harmful impact the proposed Basel III Endgame Banking Regulations would have on agriculture and energy industries. They fear the proposal would generate disincentives for prudent risk management strategies and drive up the cost of hedging for end-users and, ultimately, consumers who are already facing elevated prices from record levels of inflation will pay the price at the grocery store and the gas station.
They say with Americans already facing record high costs in grocery stores, at gas stations, and in their energy bills, the policy would push the consumer further away from being able to afford basic necessities. They believe having access to these types of hedging markets and risk management tools is a misguided approach when it comes to farmer and ranchers and, in the long run will negatively affect all Americans.
