High Risk Series:
Farm Loan Programs
HR-95-9: Published: Feb 1, 1995. Publicly Released: Feb 1, 1995.
- Full Report:
GAO reviewed the Farmers Home Administration's (FmHA) management of its farm loan programs and properties obtained as a result of loan defaults, focusing on FmHA efforts to correct problems in these loan programs.
GAO found that: (1) although FmHA has taken steps to correct some problems in its farm loan programs such as providing credit and financial analysis training to field officers to improve the quality of loans, it has not addressed many basic problems in its farm loan programs; (2) FmHA field office officials have significantly improved their compliance with FmHA loan servicing standards, but these field officials still fail to follow established procedures for servicing outstanding direct loans and managing farm properties; (3) FmHA continues to allow delinquent and defaulted borrowers to receive new loans, reduce and forgive delinquent borrowers' outstanding debt without requiring payments, and sell farm properties at fixed prices to targeted purchasers; and (4) in 1992, Congress required FmHA to establish programs for beginning farmers and target a certain portion of its loans to them, but it did not provide FmHA with clear guidance on how to be a fiscally prudent lender while providing temporary credit assistance to high risk borrowers.
Below are the reports in this series:
High Risk Series: An Overview HR-95-1, Feb 1, 1995
High Risk Series: Quick Reference Guide HR-95-2, Feb 1, 1995
High Risk Series: Defense Contract Management HR-95-3, Feb 1, 1995
High Risk Series: Defense Weapons Systems Acquisition HR-95-4, Feb 1, 1995
High Risk Series: Defense Inventory Management HR-95-5, Feb 1, 1995
High Risk Series: Internal Revenue Service Receivables HR-95-6, Feb 1, 1995
High Risk Series: Asset Forfeiture Programs HR-95-7, Feb 1, 1995
High Risk Series: Medicare Claims HR-95-8, Feb 1, 1995
High Risk Series: Farm Loan Programs HR-95-9, Feb 1, 1995
High Risk Series: Student Financial Aid HR-95-10, Feb 1, 1995
High Risk Series: Department of Housing and Urban Development HR-95-11, Feb 1, 1995
High Risk Series: Superfund Program Management HR-95-12, Feb 1, 1995