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Farmers Home Administration: Use of Loan Funds by Farmer Program Borrowers

RCED-90-95BR Published: Feb 08, 1990. Publicly Released: Feb 08, 1990.
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Highlights

Pursuant to a congressional request, GAO submitted information on borrowers' use of Farmers Home Administration (FmHA) loan funds, focusing on: (1) four major types of farmer program loans during fiscal year 1988; (2) the extent to which farmers used loan funds to refinance existing debts; and (3) lenders' views on using FmHA loan guarantees.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should consider the use of funds as it deliberates on how FmHA fulfills its mission as the lender of last resort to the nation's farmers in the upcoming debate on the 1990 farm bill or other FmHA-related legislation. Issues that should be considered include the extent to which assistance continues to be used by FmHA and commercial lender existing customers versus new customers, and the level to which such assistance is used to refinance existing debts versus new credit purchases.
Closed – Not Implemented
There is a similar recommendation in a more current and comprehensive report, RCED-92-86.

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Topics

Agricultural programsDirect loansFarm creditFarm income stabilization programsGovernment guaranteed loansLending institutionsLoan accounting systemsLoan defaultsLoan interest ratesLoan repayments