The Farmers Home Administration's Guaranteed Farm Loan Program
T-RCED-90-31: Published: Feb 20, 1990. Publicly Released: Feb 20, 1990.
- Full Report:
GAO discussed the Farmers Home Administration's (FmHA) guaranteed farm loan program. GAO noted that: (1) FmHA made most direct loans to financially stressed borrowers who could not obtain credit from private lenders, and most borrowers would need continued direct loan financing to stay in business; (2) guaranteed loan losses have increased at a faster rate since 1984 than the amount of guaranteed loans; and (3) FmHA inadequately assessed borrowers' financial conditions before approving guaranteed loans and did not adequately oversee lenders' servicing of loan guarantees after approval.