HOUSE BILL REPORT

SJM 8016

BYSenator Hansen

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

House Committe on Agriculture & Rural Development

Majority Report:  Do pass.  (12)

      Signed by Representatives Rayburn, Chair; Baugher, Bristow, Brooks, Chandler, Grant, Holm, Jacobsen, McLean, Moyer, Nealey and Rasmussen.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE APRIL 16, 1987

BACKGROUND:

The federal Farmers Home Administration provides loans and loan guarantees principally under the Consolidated Farm and Rural Development Act and title V of the Housing Act of 1949.  Among the loan programs authorized are those for farm ownership and for farm operations.

The federal land banks and land bank associations, federal intermediate credit banks, and banks for cooperatives make up the Farm Credit System regulated by the Farm Credit Administration.  It is a system of borrower owned banks, associations, and service organizations.

SUMMARY:

Congress is requested: to take appropriate action to assure the stability of the Farmer's Home Administration and the Farm Credit System and to increase the availability of direct credit through these institutions; and to require a study of the Farm Credit System and take action to guarantee its survival and efficient administration.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Karl Kottman, Washington State Council of Farmer Cooperatives.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The heart of the farmer controlled credit system is at stake when Congress takes up this issue this spring.  The bill sends a message of support for the underlying principles of the system.

House Committee - Testimony Against:      None Presented.