Letter, dated March 4, 1986, to Mike C. Turpen, attorney general, State capitol, Oklahoma City, OK, from Geary Danielsen, manager-legislative Schultz, Dorthea J., rancher, Hardin, MT, chairperson, Big Horn Rural Alli- ance and board member, Northern Plains Resource Council, prepared state- ADDITIONAL MATERIAL SUPPLIED FOR THE RECORD North Dakota Farmers Union, Alan Bergman, president, with attached map of distribution of chapter 12 filings by county. Pay, Donald, Technical Information Project, Pierre, SD... Environmental assessment and finding of no significant impact by Comments submitted by Technical Information Project on the above.. Reprint of S. 1179, a bill to amend the Consolidated Farm and Rural Develop- ment Act to improve the administration of Farmers Home Administration loans, and for other purposes...... Transcript of a fact finding forum on Indian Agriculture, before Hon. Kent Conrad, U.S. Senator, taken at the Civic Center, New Town, ND, Tuesday, 4. Written statement of Kenneth J. Fredericks, Sr., with attachments 5. Letter, dated August 11, 1987, case history, with attached addendum, 7. Questions submitted to BIA, letter dated August 21, 1987, to Al Spang, Superintendent, Bureau of Indian Affairs, from Hon. Kent Conrad, REFORM AND MODERNIZATION OF THE TUESDAY, JUNE 9, 1987 U.S. SENATE, COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY, Washington, DC. The committee met, pursuant to notice, at 9 a.m., in room SR332, Russell Senate Office Building, Hon. Kent Conrad presiding. Present or submitting a statement: Senators Conrad, Melcher, Harkin, and Daschle. STATEMENT OF HON. KENT CONRAD, A U.S. SENATOR FROM NORTH DAKOTA Senator CONRAD [presiding]. The hearing before the Senate Committee on Agriculture, Nutrition, and Foresty will come to order. This hearing involves the Reform and Modernization of the Farmers Home Administration, S. 1179. I want to publicly thank Chairman Leahy for calling this important hearing on the future of Farmers Home Administration. The reform and modernization of FmHA is essential to rebuilding family farm agriculture in the Plains States. We also appreciate the witnesses who have agreed to testify on this pressing issue this morning. The issue before the committee is not just the future of FmHA, but the future of family farming in this country. FmHA is faced with a lingering recession in agriculture-the most difficult challenge FmHA has faced in its 51 year history. In my home State of North Dakota, income from farm production-including Government supports-has fallen to the lowest level in 7 years. Since 1980, farmland values have dropped from 35 to 65 percent in the Plains States. The Economic Research Service of USDA predicts another 10-percent decline in 1987. Rural communities are faced with declining populations, failing businesses, closing schools, and a bleak future. Young people see no future in farming or rural communities and are leaving in droves. In Senate hearings which we held across the Upper Midwest in February and during town meetings throughout the State of North Dakota, problems with the administration of the FmHA were raised time and time again. Over half of the case work my office handles and half of the letters concerning agriculture deal with FmHA problems. That is (1) what prompted me to draft this legislation and bring it to the attention of the Senate Agriculture Committee. Before we begin with our first witnesses, I want to briefly review the 10 sections of this bill so that we know what the elements of this legislation are. Section 1 requires the Secretary to writedown farm operating and ownership loans to the market value of the collateral when doing so would return at least as much to the Federal Government as liquidation or bankruptcy proceedings. Sections 2 and 3 provide standards for loan servicing eligibility and loan servicing reform. It requires FmHA to notify the borrower of all loan servicing options. Most of these sections may now be moot due to recent court rulings. Section 4 provides for reform of the county committees election procedure. Section 5 provides for a formal appeals procedure similar to that of other Federal agencies. Section 6 requires FmHA to participate in credit dispute resolutions as required by various State laws and directs the Secretary to follow a specified preference order in selling acquired land. Section 7 sets out certain standards for the leaseback of land to the former owner or owners. Section 8 requires the Secretary to release borrower income sufficient to assure a reasonable standard of living for the borrower and the borrower's family and to pay all necessary farm operating expenses. Section 9 provides direction to the Secretary in providing borrowers the opportunity to buy back the family farm homestead buildings. Section 10 establishes State Farmers Home Administration policy boards elected by county committees to analyze and oversee the effects of Federal and State FmHA policies and to determine the level of lending needed by farmers of the various States. That is the broad outline of this legislation, and I am very pleased that Mr. Clark is here. And let us begin with the Administrator, Mr. Clark. Again, thank you for coming, Vance. We appreciate that. [The prepared statement of Senator Conrad and a section by section summary submitted by Senators Kent Conrad, Thomas A. Daschle, and Tom Harkin on S. 1179, the Farmers Home Administration Reform and Moderization Act of 1987 follows:] SENATOR KENT CONRAD HEARING: Farmers Home Administration Reform and Modernization 9:00 a.m., June 9, 1987 OPENING STATEMENT I want to publically thank Chairman Patrick Leahy for calling this important hearing on the future of the Farmers Home Administration. The reform and modernization of FmHA is essential to rebuilding family farm agriculture in the Plains States. We also appreciate the witnesses who have agreed to testify on this pressing issue. The issue before the Committee is not just the future of the Farmers Home Administration, but the future of family FmHA is faced with a lingering recession in farming. *In my home state of North Dakota, income from farm production (including government supports) has fallen to the lowest level in seven years. Since 1980, farm land values have dropped by 35 to 65% in the Plains States. The Economic Research Service of USDA predicts another 10 percent decline in 1987. KENT CONRAD. PAGE 2. Rural communities are faced with declining populations, closing schools, and a bleak failing businesses, Young people see no future in farming or rural and are leaving in droves. future. communities In Senate hearings throughout the upper midwest in February and during town meetings throughout the State of North Dakota, problems with the administration of the FmHA were raised time and time again. Over half of the case work my office handles and half of the letters concerning agriculture deal with Farmers Home Administration problems. Farm organizations ranging from the Farm Bureau, National Farmers Organization, National Farmers Union, and the Save the Family Farm Coalition support changes in FmHA. Based on the testimony of farm organizations and the Attorneys General from North Dakota, Minnesota, South Dakota, Iowa, Nebraska, and Illinois, we prepared legislation to provide FmHA with the authority and direction to more efficiently and effectively handle the current farm recession. Subsequently, Senators Daschle, Harkin, and I introduced S. 1179, "The Farmers Home Administration Reform and Modernization Act of 1987." The bill is cosponsored by Senators Fowler and Grassley. |