Jackson advocate., 1961-09-30

pands and improves the super
vised credit service of the Farm
ers Home Administration.
Operating loans for equip
ment, livestock, feed seed, ferti-
lizer and similar items can now
be made in amounts up to $685.
900. The previous limit was
$4,000.
Loans to buy and enlarge
farms may now be made on any
family farm if the total indebt-
edness on the farm is not more
than 100000 when the loan is
closed. Previously these loans
had been limited to farms whose
value was no greater than that
of the average family farm in
the county.
Loans may now be made to
farmers with off-farm income
to buy and enlarge small farms.
Previously, such loans could be
made only on farms large
enough to support a family with
out the aid of off-farm income.
Small loans for farm real es-
tate improvement can now be
made without taking a mort
gage on the farm. The authority
to make real estate loans solely
for refinancing has been placed
on a permanent basis.
Loans to groups of farmers
for the development of rural
community water systems, irri-
cation and drainage systems now
have a ceiling of 100000 when
made from appropriated funds
and 81 million when insured
loan funds are used. The pre-
vious limit was S25O,OO0 on both
direct and insured loans.
Rural community water sys-
TENS may now be made to as
sociations serving farmers and
rural residents without the prior
restriction that farmers be the
main users of the water supply
system.
Emergency loans can now be
made to farmers who need credit
as the result of a natural dis
aster in areas where the dis
aster - such as a flash flood
was not widespread enough
to warrant an emergency area
designation.
"The increase in the operating
loan limits will enable the
agency to more adequately serve
the credit needs of family farm
ers," Mr.. Fatherree said. "The
technical revolution has greatly
increased the amount of capi-
tai farmers have to invest in
their operations. Many young
farmers who are getting started,
and established farmers who
need to make major adjustments
in their operations will benefit
from the undermining Of this
credit regulation.
"The broadening of the auth
ority to make farm purchases
and enlargement loans will also
others. In the past many young
help young farmers, as we'll as
farmers were unable to obtain
loan to buy their family farm
simply because the farm was
worth more than the avearge
family farm in the county in
which it is located.
Cali of the provisions of the
new law, to the extent that
they make the program more
flexible and enable the Farmers
Home Administration to serve
the credit needs of family farm
ers who were previously ineli-
gitle, will increase the effec-
tiveness Of supervised credit in
rural areas development. One
new provision that should prove
especially useful in growing
communities is the authority to
buy and enlarge small farms.
There are many instances where
young farmers who have off
farm employment to supplement
their farm income can use such
loans to gradually acquire the
land resources they need for
successful farming.
"The expansion in the maxi
mum size of association loans
for domestic and irrigation wat
er systems will cut the cost per
association member and permit
service to groups whose eff
cient operation required invest