Date: 1986-05-13
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. this is a very timely resolution in view of the terrible traumatic times that rural America and the producers of our food and fiber are experiencing at this point in time in our history. Mr. Speaker. I urge every Member of the House to vote to suspend the rules and pass House Concurrent Resolution 310. as amended. This legislation represents the strong feeling among the many Members in Congress who cosponsored it that wherever it is possible for Farm Credit System agencies to help farmers avoid foreclosure. everybody benefits by arrangements that keep the farmer on the land while he repays his debts. I want to thank ED MADIGAN. the ranking minority member of the Committee on Agriculture. and ED JONES and TOM COLEMAN. the chairman and ranking minority member of the Subcommittee on Conservation. Credit. and Rural Development. for their actions in facilitating timely consideration of the resolution. Also. I commend LINDSAY THOMAS of Georgia. the author of the resolution. for his tireless efforts in support of our Nations farmers. Last year. thousands of farmerborrowers of the Farm Credit System went into bankruptcy or foreclosure under their farm credit loans. These loan liquidations and other adverse factors caused the Farm Credit System. the Nations largest agricultural lender. to lose an unprecedented $2.7 billion. The financial crisis facing the agricultural industry has continued unabated in 1986. Many more farmers are threatened with foreclosure or liquidation this year. With respect to the Farm Credit System itself. if its loan losses increase. the System will be facing disaster and the prospect of a Federal bailout. Under the plan proposed by the resolution. the Farm Credit System would consider restructuring of loans if the costs associated with foreclosure equal or exceed the costs of restructuring. This approach would reduce both the number of farm foreclosures and the losses to the Farm Credit System. In addition. under the amendment to the resolution that is incorporated into this suspension. the Farm Credit Administration would be encouraged to give System institutions more flexibility in setting interest rates to farmers at levels that reflect market conditions and that will allow System institutions to be more competitive. While this legislation shows compassion toward hardpressed farmers. it also makes good sense. It is far better to allow a dedicated farmer. if at all possible. to stay on the land and work his way out of his difficultieswhich in many cases are not of his makingthan to move to foreclosurewhen the farmer loses. the lender loses. and the rural community they both live in suffers. Adoption- of this resolution will send a strong signal to the Farm Credit System from Congress that we expect the System to prudently adjust its operating procedures to reflect the realities of the current severe depression in the agricultural economy. Farmers. their lenders. and the Government must work together to overcome present adversities. The plan advanced by this resolution is a sound contribution toward meeting that challenge. I urge speedy approval of the resolution. For some it may be too late. to them we can only say. "we tried." To all the others. we pledge our concern and our cooperation within the art of the possible. We have limited resources and. yes. very limited areas.wherein we can help. but the issue is of such magnitude and importance to all the American people. that we see it as a moral obligation to help. Hence. we try. and we try. and we try. and with the people of the United States behind us and the good Lord on our side. we hope to help as many as we can. Mr. Speaker. I yield such time as he may consume to the author of the resolution. our distinguished colleague. the gentleman from Georgia .