FmHA Amendments of 1987

Summary

FmHA Amendments of 1987 - Amends the Consolidated Farm and Rural Development Act to require the Secretary of Agriculture to restructure, rather than foreclose, a delinquent Farmers Home Administration (FmHA) loan if foreclosure costs would exceed restructuring costs. Requires the Secretary, if the estimated liquidation value of the securing property exceeds 70 percent of the loan value, to provide independent support for such estimate. Requires the Secretary to pay losses incurred when a guaranteed lender restructures a loan as provided for by this Act. Requires the Secretary to continue to release living and operating expenses to a borrower until FmHA takes title and possession of the land and determines that such borrower is ineligible for leaseback of the property. Provides that emergency loans made to family farmers shall be refinanced at the same interest rates as FmHA real estate or operating loans made for the same purpose. Revises farmland disposition provisions to establish the following order of priority: (1) sale or lease with purchase option to previous owners of such land; (2) sale or lease with purchase option to previous operators of such land; and (3) sale or lease with purchase option to family-farm sized operators. Revises homestead protection provisions to: (1) include out buildings in homestead property; and (2) extend authority beyond the current December 23, 1988, cut-off date. Requires the Secretary to provide all FmHA borrowers with written descriptions of available loan service programs. Suspends collection activities until the Secretary has issued final loan restructuring regulations. Expresses the sense of the Congress that: (1) the Secretary should ensure through FmHA that farmland held in inventory which is suitable for use by eligible persons be properly classified and offered for sale to eligible buyers; and (2) such land should be classified as suitable unless the Secretary demonstrates that it is unlikely that it could be profitably farmed.

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1 official file

• Introduced in House

  summary · EN · 8 May 1987

  Open at official source

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