[Query Regarding Availability of Natural Disaster Emergency Loans]

GAO was asked whether the Farmers Home Administration (FmHA) has been unlawfully limiting the availability of natural disaster emergency loans authorized under the Consolidated Farm and Rural Development Act. GAO stated that the FmHA practice of basing loan eligibility on countywide, rather than individual, crop losses violates the act. GAO was also asked to review the loan program's authorizing legislation as to the legality of the FmHA practice. GAO believes that FmHA is conducting the program in a manner which is inconsistent with congressional intent and in violation of the act.