According to NFBC’s Gaining Ground, There a general lack of commercial credit on Tribal lands due to: land use restrictions, administrative process delays, legal challenges, and loan readiness.

What does credit access look like in Indian Country, and why is it important?

Efforts to improve credit access in Indian Country often involve a combination of financial education, community development initiatives, partnerships with responsible lenders, and policies that support economic growth and self-sufficiency. Accessing credit for Tribal producers is difficult because:

Historical Disadvantages: Native American communities have a history of systemic disadvantages, including forced displacement, colonization, and policies that have inhibited economic development. These historical factors have contributed to disparities in education, employment, and income, making it difficult for many individuals and tribes to access credit.

Limited Infrastructure: Many Native American communities are located in remote or rural areas, which can lead to limited access to traditional banking institutions. The lack of physical bank branches and other financial services infrastructure can make it challenging for residents to access credit and financial resources.

Sovereignty and Legal Complexity: Tribal governments have a unique legal status in the United States due to their inherent sovereignty. This can create complexities when it comes to financial regulations, lending laws, and jurisdiction. Lenders may be hesitant to provide credit in Indian Country due to uncertainties related to legal jurisdiction and enforcement.

Economic Challenges: Economic opportunities can be limited in Indian Country, leading to higher unemployment rates and lower median incomes compared to the general population. These economic challenges can make it difficult for American Indian/Alaska Native individuals to establish creditworthiness.

Lack of Collateral and Credit History: Traditional credit assessment methods often rely on collateral and credit history. However, many in Indian Country may lack the necessary collateral, and the absence of a credit history can make it challenging to secure credit from mainstream lenders.

High Poverty Rates: Many Native American communities experience high poverty rates, which can lead to a cycle of financial instability. Limited financial resources can make it difficult to meet basic needs, let alone access credit for investment or emergencies.

Cultural Considerations: Native American communities often have unique cultural values and practices. Financial institutions that do not understand or respect these cultural aspects may struggle to establish trust and effectively serve these communities.

It is important for Tribal producers to have access to the same credit avenues as non-Native producers because access to credit is crucial for economic development and self-sufficiency in Indian Country. It can support small businesses, infrastructure projects, housing initiatives, and education, all of which contribute to improving the overall well-being of these communities. Strengthening credit access also supports Tribal governments’ ability to exercise self-determination and manage their own economic development.

Find the Native Farm Bill Coalition’s priorities for the next Farm Bill here.


Marker Bills Regarding Credit



S. 231- Emergency Conservation Program Improvement Act of 2023

This bill amends the Agricultural Credit Act of 1978 to remove barriers to agricultural producers in accessing funds to carry out emergency measures under the emergency conservation program.

S. 2035- Noninsured Crop Disaster Assistance Program Enhancement Act of 2023

The bill amends the Federal Agriculture Improvement and Reform Act of 1996 to make additional coverage for crops and grasses used for grazing under the Noninsured Crop Disaster Assistance Program.


H.R.5113, Rural and Tribal Economic Development Improvement Act of 2023

To amend the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 to establish a budgetary Tribal Government consultation process at the Department of Agriculture, and for other purposes.

H.R. 1020 BAITS Act

This bill expands the Livestock Indemnity Program (LIP) to eligible producers of farm-raised fish. (LIP provides indemnity payments to eligible livestock producers for loss or reduced sales price due to specified events.)
Specifically, the bill adds farm-raised fish to the LIP definition of livestock, expanding LIP indemnity payments to farm-raised fish producers due to (1) an attack by an animal reintroduced into the wild by the federal government or protected by federal law (e.g., avian predators) or (2) disease.
Under current law, LIP also provides indemnity payments to eligible livestock producers due to adverse weather. This bill prohibits LIP from making payments to producers of farm-raised fish due to adverse weather.
Bill amends certain applicant requirements for USDA Direct Farm Ownership Loan Program – reduces three-year farm experience requirement to one year and expands eligible experience.