SENATE BILL REPORT

SJM 8016

BYSenator Hansen

Requesting the strengthening of the Farm Credit System to assist Washington farmers.

Senate Committee on Agriculture

Senate Hearing Date(s):March 3, 1987

Majority Report:  Do pass.

      Signed by Senators Hansen, Chairman; Bauer, Vice Chairman; Anderson, Bailey, Barr, Gaspard.

Senate Staff:Tom McDonald (786-7404)

                  March 20, 1987

AS PASSED SENATE, MARCH 20, 1987

BACKGROUND:

The farming community in the State of Washington is experiencing a financial credit problem.  A large section of the community relies on the sources of credit through the Farmer's Home Administration and the Farm Credit System.

The Farm Credit System is experiencing difficult times with an increase in delinquencies and a decrease in surplus capital.  The Farmer's Home Administration has received an allocation which cuts deeply into available credit for direct insured loans to farmers and only increases sources to guarantee loans, which farmers must receive from commercial lenders.

The federal lending institutions are needed to keep credit available to farmers during these times when many farmers are experiencing severe financial problems.  The consistent and reliable availability of credit through these institutions is essential to the state's farming community.

SUMMARY:

Based on the financial condition of the farming community in this state and the lack of available credit through the lending institutions, the United States Congress is requested to take appropriate action to assure the stability and survival of the Farmer's Home Administration and the Farm Credit System, and to take those steps necessary to increase the availability of credit through these institutions for the Washington State farmers.

Fiscal Note:      none requested

Senate Committee - Testified: Karl Kottman, Washington State Council of Farmer Cooperatives