Midwestern community banks are lining up to take advantage of new guidelines that make it easier for agriculture lenders to join the Federal Home Loan Bank System.

The new rule, which took effect Wednesday, lets banks use a wider range of assets as collateral for Home Loan bank advances. As a result, 40 community banks have applied for membership in the Federal Home Loan Bank of Des Moines, and at least 100 are expected to join by yearend, according to Thurman C. Connell, president of the Des Moines bank.

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