Opinion ID: 545560
Heading Depth: 2
Heading Rank: 4

Heading: The Conference Report

Text: 76 The Conference Report reiterated the broad goal of the Act previously expressed in the House and Senate reports. The 1987 Act was enacted, first and foremost, to provide credit assistance to farmers. H.R.Conf.Rep., 100th Cong., 1st Sess. 1 (1987). Chairman of the Conference Committee, Representative de la Garza of Texas, in reading the Conference Report to the House, clearly expressed what the Conference Committee thought to be the driving force for enactment of the Act: the terrible problem that our farmers and ranchers in rural America have experienced during the past several years. 133 Cong.Rec. H11869 (1987). He went on to say: 77 Mr. Speaker, I hope that my colleagues will join with us to send the message at this point that we care, that we would like for them to have another tool at their disposal, which is credit of an acceptable nature so that they could continue providing us with the excellent food and fiber that they have done in the past. 78 Id. (emphasis added). 79 Senator McClure (R-Idaho), upon the return of the Conference Report to the Senate and just before final passage of the Act, expressed the sentiment of Congress in terms that few could misunderstand: 80 The most important part of this legislation ... is the restructuring of farm loans of financially stressed farmer-borrowers of the System. In order to keep these farmers on the land it is necessary for System banks and associations to change their attitude toward debt restructuring. In the past if a farmer was delinquent or late in payment, it was almost automatic that the bank or association began foreclosure or liquidation action. The banks and associations were not focused on helping the farmer through restructuring. With mounting losses, it became clear that doing business as usual would not suffice. A more lenient attitude was needed. Because this was not forthcoming from the System, Congress made restructuring an integral part of the financial assistance package. If System banks were to receive assistance from the Congress, they must restructure farmer loans where it is cheaper. This legislation requires restructuring of farmer loans if it is the least cost alternative. 81 133 Cong.Rec. S18458, S18469-70 (1987) (emphasis added). 82 In light of the above, there certainly can be no quarrel that Congress viewed the Act as responsive to the needs of farmer-borrowers in ways that earlier Farm Credit Acts were not. Moreover, the Act clearly manifests Congress' intent to provide borrowers with the ability to enforce procedures granted to protect them from unjustified foreclosure. This can only be done by implying a private right of action for borrowers. See infra section G. 83 Implying a private right of action for borrowers to enforce carefully defined procedures mandated by the language of the Act is also consistent with the additional goal of the 1987 Act to strengthen and stabilize the Farm Credit System. The Act requires lenders to make cost-effective decisions concerning the possibility of restructuring. See Harper v. Federal Land Bank, 878 F.2d at 1175 (the 1987 Act is further reinforced by the fact that a borrower's right to restructure a delinquent loan is limited to situations in which the cost of restructuring is less than or equal to the cost of foreclosure). Granting borrowers a private right for injunctive relief requires lenders to weigh the costs of restructuring against the costs of foreclosure before resorting to the latter. Injunctive relief strengthens, rather than weakens, the Farm Credit System by requiring lenders to make a decision based on a thorough review of all factors and procedures deemed important by Congress.