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118410 1 (1982-05-14)

handle is hein.gao/gaobacxui0001 and id is 1 raw text is: 



                      UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548


COMMUNITY AND ECONOMIC                May 14, 1982
DEVELOPMENT DIVISION


     The Honorable  Richard E. Lyng
     Deputy  Secretary of Agriculture
                                                              118410
     Dear  Mr. Lyng:

           Subject:  Assistance to Beginning Farmers

           Within the last several years, concern  has been raised about
     the barriers  faced by beginning farmers  in obtaining financing to
     enter  agriculture.  This concern has been discussed  in Department
     of  Agriculture (USDA) and other publications  and has resulted in
     bills  being introduced in the Congress  and in laws being passed by
     States  to assist beginning farmers.  However,  organized information
     is  lacking on the magnitude of the beginning  farmer problem and
     the  extent to which current programs address  this problem.

           This report identifies USDA data  available nationwide within
     county  offices of the Agricultural Stabilization  and Conservation
     Service  (ASCS) and the Farmers Home Administration  (FmHA) which
     could  be used to help evaluate Federal  programs and legislative
     proposals  directed at beginning farmers.   We are recommending that
     USDA modify  ASCS farm data tabulation  to develop a beginning farmer
     profile.   Because the data already exists  this modification can most
     likely  be accomplished with existing  resources and without repro-
     graming  current USDA funding levels.  We  believe that this informa-
     tion  will not only help USDA describe  the elements of the problem
     and  evaluate the impact of existing programs  but could also improve
     the  Congress' ability to deliberate  the need for more specific
     legislation  targeted at beginning  farmers.

     OBJECTIVES,  SCOPE, AND METHODOLOGY

           Concern with the attrition of  farms in the United States as
      shown by USDA reports, Federal legislation,  and State programs
      prompted us to review the efforts  to help beginning farmers.  Our
      methodology for reviewing this  situation and the Federal response
      included literature and legislative  research; an analysis of
      county-level FmHA and ASCS records  and computation of farmer
      replacement rates in Morgan County,  Colorado; interviews with agri-
      cultural officials in the 50 States;  interviews with Colorado,
      Montana, and North Dakota farmers;  and interviews with USDA, Small
      Business Administration (SBA),  and Farm Credit Administration
      (FCA) officials.

                                                                (097410)

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