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111425 1 (1980-01-31)

handle is hein.gao/gaobadykp0001 and id is 1 raw text is: 




               UNITED STATES GENERAL ACCOUNTING OFFICE

                       WASHINGTOn, D.C. 20548


                                       FOR RELEASE ON DELIVERY
                                       EXPECTED AT 2:00 P.M. EST
                                       THURSDAY, JANUARY 31, 1980
    111425
                            STATEMENT OF
                      HENRY ESCHWEGE, DIRECTOR
             CO!MUNITY AND ECONOMIC DEVELOPMENT DIVISION
         BEFORE THE SUBCOMMITTEE ON CONSERVATION AND CREDIT
                               OF THE
                      COMtMITTEE ON AGRICULTURE      o16)
                      HOUSE OF REPRESENTATIVES
          f .ON
          FARMERS HOME ADMINISTRATION'S ECONOMIC EMERGENCY
                             LOAN PROGRAMJ

         MR. CHAIRMAN AND MEMBERS OF THE SUBCOMMITTEE:

         WE ARE HERE AT YOUR REQUEST TO DISCUSS OUR CURRENT RE-

    VIEW OF THE FARMERS HOME ADMINISTRATION'S (FmHA'S) ECONOMIC

IiO lERGENCY LOAN PROGPR. THE REVIEW IS NOT YET COMPLETED, BUT

    IN VIEW OF YOUR PENDING DECISION ON THE FUTURE OF THE PROGRAM,

    vqE ARE GLAD TO PROVIDE YOU SOME OF OUR TENTATIVE FINDINGS

    AND OBSERVATIONS.

    BACKGROUND

         THE ECONOMIC EMERGENCY LOAN PROGRAM STARTED ON AUCUST 4,

    1978, AtID IS SCHEDULED TO TERMINATE MAY 15, 1980. LOANS ARE

    TO BE :lADE TO FARMERS AND RANCHERS WHO HAVE A REASONAELE PROS-

    PECT FOR SUCCESS WITH THE ASSISTANCE OF A LOAN AND WHO NEED

    THE CREDIT TO MAINTAIN A VIABLE OPERATION. BORROWERS MAY BE

    ELIGIBLE IF THEY CANNOT GET CREDIT AT REASONABLE RATES AND

    TERMS FROM NORIAL CREDIT SOURCES DUE TO NATIONAL OR AREAWIDE

    ECONOMIC STRESSES OR, UNFAVORABLE RELATIONSHIPS BETWEEN COSTS


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