Interim Report on the Implementation of the Farm Credit Act Amendments of 1980

GGD-83-26: Published: Mar 7, 1983. Publicly Released: Mar 7, 1983.

Additional Materials:

Contact:

Craig A. Simmons
(202) 512-8678
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO undertook a review of 13 programs pursuant to the provisions of the Farm Credit Act Amendments of 1980 which require GAO to conduct evaluations of the programs and activities authorized by the amendments and to make an interim report to Congress.

The 1980 amendments authorized the Farm Credit System's district Banks for Cooperatives to offer financial services related to exporting and importing agricultural commodities. GAO found that the Farm Credit Administration (FCA) and the Banks for Cooperatives encountered a number of problems in implementing the international banking services program. GAO found that FCA does not have the capability to independently evaluate country risk associated with the extensions of credit by the Central Bank for Cooperatives under the international banking services program. FCA needs this capability to adequately examine the Central Bank and to ensure its financial soundness and integrity. The 1980 amendments also sought to enhance the opportunity for commercial banks and other agricultural lenders to obtain funds by discounting agricultural loans with the Federal Intermediate Credit Banks. GAO found that certain aspects of these regulations lack specificity in defining eligibility for access to the discounting services. The 1980 amendments require that each association in the Farm Credit System prepare a program for furnishing credit and services to young, beginning, and small farmers and ranchers. GAO found that FCA has not given district banks specific guidance on various types of qualifying programs. Because a reporting system has not been developed for this program, program results may be difficult to measure.

Recommendations for Executive Action

  1. Status: Closed - Not Implemented

    Comments: FCA takes the position that young, beginning, and small farmers should be treated the same as other participants.

    Recommendation: The Governor, FCA, should disseminate information to district banks and associations on the types of programs they should consider in developing individual young, beginning, and small farmer programs.

    Agency Affected: Farm Credit Administration

  2. Status: Closed - Not Implemented

    Comments: FCA takes the position that young, beginning, and small farmers should be treated the same as other participants.

    Recommendation: The Governor, FCA, should study the current needs of young, beginning, and small farmers and ranchers and identify what programs would meet these needs.

    Agency Affected: Farm Credit Administration

  3. Status: Closed - Not Implemented

    Comments: FCA takes the position that young, beginning, and small farmers should be treated the same as other participants.

    Recommendation: The Governor, FCA, should evaluate past young farmer programs and identify what programs were successful.

    Agency Affected: Farm Credit Administration

  4. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Governor, FCA, as part of his responsibilities to supervise and examine the Farm Credit System, should closely monitor the implementation of the other financing institution program in each farm credit district to ensure that other financing institutions, which are significantly involved in agricultural lending and are otherwise eligible, are given the opportunity to enhance their utilization of the financial services of the Federal Intermediate Credit Banks and better serve the needs of agriculture. The monitoring should specifically include application of the regulations and policies dealing with agricultural loan volume, debt-to-capital ratio, access to national and regional money markets, investment in the Federal Intermediate Credit Bank, and gross loan-to-deposit requirements.

    Agency Affected: Farm Credit Administration

  5. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Governor, FCA, should determine the feasibility of using the results of the federal bank regulatory agencies' country risk studies or have FCA develop such studies on its own.

    Agency Affected: Farm Credit Administration

  6. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Governor, FCA, should establish minimum requirements which district Banks for Cooperatives must meet before they are allowed to undertake an international banking services program.

    Agency Affected: Farm Credit Administration

  7. Status: Closed - Not Implemented

    Comments: FCA takes the position that young, beginning, and small farmers should be treated the same as other program participants.

    Recommendation: The Governor, FCA, should establish specific program goals so that progress toward meeting these goals can be measured and reported.

    Agency Affected: Farm Credit Administration

 

Explore the full database of GAO's Open Recommendations »

Sep 21, 2016

Aug 3, 2016

Aug 1, 2016

Jul 14, 2016

Jul 5, 2016

Jun 30, 2016

Jun 28, 2016

Jun 23, 2016

Jun 22, 2016

Looking for more? Browse all our products here