About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

CED-80-84 1 (1980-03-28)

handle is hein.gao/gaobabakh0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 ' '( ( COMMUNITY AND ECONOMIC DEVESLOPMENT DIVISION B-198066 MARCH 28,1980 The Honorable Bob Bergland ~ The Secretary of Agriculture 111923 Dear Mr. Secretary: Subject: 6ie Farmers Home Administration's Economic Emergency Loan Program Could Be More Effectivej (CED-80-84) On January 31, 1980, we testified before the Subcommittee on Conservation and Credit, House Committee on Agriculture, on the effectiveness of the Farmers Home Administration's (FmHA's) economic emergency loan program. (See enc. I.) Since then we have completed our review and are now able to recommend ways to improve the program. The economic emergency loan program was authorized by the Emergency Credit Adjustment Act of 1978. Our review of the program was conducted in 10 States--California, Idaho, Illinois, Iowa, Missouri, Nebraska, New York, North Carolina, Oklahoma, and Wisconsin. (See enc. II.) Our analysis of 101 loan files in those States indicated that the main purpose of the loans was to increase the borrowers' current cash flow and assist with current operations. Loan proceeds did accom- plish these purposes; however, it was too soon to tell if the temporary loan program should be continued. The short-term help in meeting current operating needs was evident, but in- creasing the farmers' indebtedness could have an adverse long- term effect which is compounded by such things as weather conditions, cost-price squeezes, and the grain embargo. PROBLEMS WITH DELINQUENCY RATES AND LOAN GUARANTEES We did find indications that the delinquency rate on this program may be a problem and that only a small percentage of the loans were guaranteed. Information obtained from the (069210)

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most