The Sidney herald., 1955-02-24
New Provisions
Expedite FILA
Ownership Loans
THE SIDNEY HERALD
VI Thursday Feb. "a 1855

Building improvement loans
and faster service in getting loans
approved and procesSed are some
Of the new developments in the
Farm Ownership loan program
carried on by the Farmers Home
Administration, Merle A. Peter
son, the agency'S county super
visor serving Richland county,
said this week. Insured funds ad-
vanced by banks and other pri-
vate lenders are being used to a
greater extent.
The building improvement loan,
made available only recently, is
for the farmer who has an ade-
ouate farm but needs to construct
or repair essential buildings. Loans
can be made to build or remodel
farm dwellings, barns, milk hous-
es, OF other outbuildings needed
to carry out sound farm manage
ment practices.
The agency supplements rather
than completes with private or CO.
operative credit. No farm owner
ship loan Of any type, or loans for
soil conservation or farm oper-
atoms can be made to farmers
who are able to get the necessary
credit from other lenders at rea-
sOnable rates and terms.
Other types of farm ownership
loans include: ID farm purchase,
for renters, sharecroppers, or farm
laborerS - usually veterans or
other young farm families who
are ready for farm ownership; (2)
farm development loans for farm
erS whose farms need, for exam
pie, such land developments as
pasture improvement, gully fill
ing, reorganization of fields and
fencing, and some repair or re-
modelling of farm buildings; and
CD farm enlargement loans for
those who need more acres to
make their farm efficient.
Farm ownership loans are am
ortized over a 40-year period ex-
cept building improvement loans
which may be for 5, 10, Is, 20, Is
or 40 years. Farm ownership Dor
rowers may make repayments at
any time, and interest is charged
on the outstanding principal bal
ance. Borrowers are required to
refinance their loans as soon as
they have accumulated enough
equity to qualify for private or
cooperative credit
Farm ownership loans are made
primarily from funds advanced by
private lenders and are fully in
Sured by the Farmers Home Adj
miniStratiOn. Insured loans are
made for not more than 90 percent
of the fair and reasonable value
of the farm. Investments by pri-
vate lenders in this program are
increasing.
Direct farm ownership loans
from appropriated funds are made
only when eligible farmers need
to borrow more than 90 per cent
Of the value of the farm. Most of
of the applicants in this situation
T young veterans wanting to
become established as farmer
owners.
AS a means Of speeding up ser
vices to farm families and cutting
costs at the same time, appraisers
who are also qualified as county
supervisors T located in county
offices throughout the state. They
are more accessible for appraisal
work than were the more limited
number who formerly were sta
toned in the state office.
Elimination of a triple agree
ment that required signatures of
the insured lender, the borrower,
and a representative of the Farm
ers Home Administration has
helped speed UP loans. Discontin-
uing other forms and files found
to be unnecessary has also helped.
Farmers apply for loans at the
county Farm Home Admins
tration office located in the base
ment Of the Postoffice building in
Sidney. Applications are referred
70 the agency's local county COM
mittee. This 3-member committee
decides on the applicants eligibil-
ity for the loan. Veterans with
farming experience have prefer
nce. In determining eligibility
the committee considers character,
ability, and whether the appli-