Farm Finance:

Provisions for Secondary Markets for Farm Real Estate Loans in H.R. 3030

RCED-88-55FS: Published: Nov 5, 1987. Publicly Released: Nov 5, 1987.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO provided information on the proposed Agricultural Credit Act of 1987, focusing on its: (1) creation of a secondary market for agricultural mortgage loans; (2) improvement of existing secondary market operations for Farmers Home Administration (FmHA)-guaranteed loans; and (3) creation of a secondary market program exclusively for Farm Credit System (FCS) loans.

GAO found that the proposed legislation would establish the Federal Agricultural Mortgage Corporation to: (1) certify agricultural mortgage marketing facilities; (2) provide secondary marketing arrangements for farm real estate mortgages to increase the availability of long-term agricultural credit at a stable interest rate; (3) provide greater liquidity and lending capacity to lenders for agricultural real estate; and (4) provide for new lending to facilitate capital market investments in long-term agricultural funding. GAO also found that the proposed legislation would: (1) allow the Secretary of Agriculture to guarantee pool certificates backed by FmHA-guaranteed loans; (2) attract a larger universe of potential buyers through the addition of a formal mechanism to aggregate loans and sell government-guaranteed loan pools; and (3) authorize FCS banks to issue securities backed by pooled loans, excluding long-term agricultural loans.

Oct 2, 2017

Aug 24, 2017

Aug 14, 2017

May 15, 2017

May 11, 2017

Apr 28, 2017

Mar 16, 2017

Feb 13, 2017

Dec 7, 2016

Nov 28, 2016

Looking for more? Browse all our products here