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Farmers Home Administration: Federally Acquired Farm Property Presents a Management Challenge

RCED-86-88 Published: Jun 13, 1986. Publicly Released: Jun 13, 1986.
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Highlights

In response to a congressional request, GAO examined the increase in the number of farms that the Farmers Home Administration (FmHA) acquired as a result of loan foreclosures and other actions, specifically: (1) why the increase occurred; (2) the financial impact on the government; and (3) how well FmHA is managing the properties.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FmHA, to intensify the selling efforts for inventory property through more extensive use of advertising.
Closed – Implemented
FmHA regulations were revised to require that maximum publicity be given to the sale of inventory property. Specific guidance on when, where, and how to advertise was also provided.
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FmHA, to issue a policy directive to FmHA state personnel stating that, when suitable property is not sold within a specified time, perhaps 1 year, because of a lack of eligible buyers or economic conditions, it should be reclassified as surplus property.
Closed – Not Implemented
Due to concerns expressed by members of the Senate Agriculture Committee over the historic mission of FmHA to hold inventory property for potential family farm buyers for 3 years, FmHA withdrawed the proposed revision to its regulations.
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FmHA, to issue a policy directive to FmHA state personnel stating that farm real estate in inventory should neither be leased nor operated for the production of surplus agricultural commodities.
Closed – Implemented
FmHA regulations were revised to provide the Administrator with authority to restrict leasing of property which could be used to produce agricultural products in surplus supply.

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Topics

Agricultural programsFederal procurementFederal propertyFederal property managementLoan defaultsReal propertyReal propertyMortgage marketFarm loan regulationsAdvertising