assurance that we will not be driven off the land, rather we can lease back our land and rebuild the operation. Previous owners must be given this right if we are to preserve the fabric of rural America. Both my neighbors and myself currently face many of the problems addressed by this legislation. Commercial lenders should not have to completely liquidate a farmer before the Farmers Home Administration will make payment on a guaranteed loan. We need the burden lightened for retaining the homestead so that farm families are not displaced from their homes and removed from their only source of income. We can't allow FmHA to take our living and operating money, starving us off the farm, while they proceed with foreclosure. We need laws which would make FmHA responsible for informing us of loan servicing options and determining eligibility. This Committee visited North Dakota and other Midwestern States in February and saw first hand some of the problems we face with FmHA. You learned of the proposed rule changes which could have eliminated thousands of borrowers from FmHA eligibility. At that time Senator Leahy promised us prompt action from this Committee to reverse what is happening to FmHA borrowers. With this in mind, I would urge you to include Senator Conrad's reform legislation as part of a comprehensive credit package which addresses the problems faced by borrowers in all lending institutions. Towards this end, the Dakota Resource Council supports the principles outlined in the testimony of Cecil Huff of the National Save the Family Farm Coalition. I could be one of the farmers saved by this reform legislation. For too long it has been all or nothing with the Farmers Home Administration. As farmers, we face daily the problems which this legislation addresses. We also see every day the need for these reforms. STATEMENT OF DORTHEA J. SCHULTZ ON S. 1179 ON BEHALF OF My name is Dorthea Schultz. I was born and raised in the Hardin, Montana area and have spent all my sixty-nine years in the ranching business, I'm a small cattle operator and an FHA borrower. I am writing as Chairperson of the Big Horn Rural Alliance of Hardin, Montana and as a board member of the Northern Plains Resource Council. We have been studying S.1179 introduced by Senator Conrad and find its reform proposals a must. The debt restructuring must be done without question, immediately. It must and will cover most delinquent farmers and ranchers as all we need is a fair chance to try to recoup our losses and in so doing repay our loans in an orderly fashion. County committee people are dedicated to their constituent's needs, but many we have talked to, say their suggestions are very seldom used, if ever. We need to make County Supervisors abide by the rules and be accountable, as committee people are suppose to have a very important role in the decision making. It's hard to get good people in this job, as they say it's a "thankless, payless job and the Supervisor doesn't use our ideas anyway." The "Right of First Refusal" and buy or lease back is very important, to give farmer owners the chance to stay in farming until the economy turns around and he can again buy his land back. To require FmHA to notify borrowers of their rights is also a must, as is independent appeals judges, homestead protection, and FmHA to inform borrowers of their servicing options. One option I'm going to suggest adding is that when a County Supervisor or other official who is to be relieved of his duty because of negligence, misconduct or a job undone that he be fired not elevated to a better higher paid job still with FmHA. We'll be watching this Bill (S.1179) closely and hope that it will pass in its entirety and things will soon be looking up for all of us. We strongly urge the Committee to include this excellent FmHa reform package as part of comprehensive legislation to help all farm borrowers. It is essential for this Committee to understand that until farm prices are raised all farm borrowers will continue to be in economic trouble. We urge this Committee to enact the Family Farm Act and turn around our entire rural economy. this good bill. Thank you for Senator CONRAD. We will also hold the record open for the testimony of the North Dakota Farmers Union, the three tribes of North Dakota, and others who may wish to enter into the record additional testimony. Thank you all. [Whereupon, at 12:37 p.m., the committee was adjourned, subject to the call of the Chair.] [Material submitted for inclusion in the record follows:] We sincerely appreciate your invitation to have us appear before the Senate Agriculture Committee on Tuesday, June 9. Unfortunately, because of both scheduling and budgetary considerations we are not able to do so. However, enclosed you will find our statement for submission for the hearing record. We would appreciate if you would submit it on our behalf for the record. As indicated in our testimony, we have been analyzing Chapter 12 bankruptcy filings in our state, and some of the preliminary data from that study, especially as it relates to FmHA, is outlined in the testimony. As you are aware we specifically began this study for the purpose of substantiating the need for FmHA reform and the specific need for debt write-downs without a total liquidation prerequisite. We are pleased that you may be able to use some of this data in support of your bill. We only wish we would have had our report on our findings completed for this hearing. Please feel free to use the information and testimony in whatever way you feel benefit your bill and the furtherance of FmHA reforms. |