Actions Needed to Make the Farmers Home Administration's Emergency Disaster and Emergency Livestock Credit Loan Programs More Equitable and Efficient

CED-78-136: Published: Aug 18, 1978. Publicly Released: Aug 18, 1978.

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A review of the operation and administration of the Farmers Home Administration's (FmHA) emergency disaster and emergency livestock credit loan programs in South Dakota showed that, although the programs helped eligible farmers and ranchers continue operations after physical disasters and during adverse economic conditions, FmHA needs to make the programs more equitable and efficient. The Secretary of Agriculture should direct the FmHA Administrator to adequately consider the borrowers' repayment ability in establishing repayment terms for emergency disaster loans and to reevaluate the agency's practice of providing loan guarantees only at the maximum legal limit for the emergency livestock credit program when these loans are made to refinance existing debts with participating lenders.

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