Two banking groups announced plans Tuesday to sue the Farm Credit Administration for allowing its members to finance farm-related services.

The American Bankers Association and the Independent Bankers Association of America are upset over a rule that took effect this week, allowing Farm Credit System lenders to offer loans to businesses that supply products to farmers, such as equipment dealers. Currently, member institutions only offer loans directly to farmers, who use the proceeds to buy seed, livestock, equipment, and land.

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