Release No. 0199.99
The Need for Further Farm Loan Funding
Statement
                               by
                                
            Secretary of Agriculture Dan Glickman on
             The Need for Further Farm Loan Funding
                 Washington D.C.   May 6, 1999
                                
     "Widespread natural disasters and the weak farm economy have placed
unprecedented demands on the Department of Agriculture's (USDA) farm loan
programs.  The use of USDA direct and guaranteed farm loans has increased 65
percent over last year's level. USDA has more than 12,000 loan applications
pending for direct and guaranteed operating loans, for direct and guaranteed
farm ownership loans and for emergency loans.  As a result, all of these
direct and guaranteed farm loan programs as well as emergency loans are now
out of money, and guaranteed operating loans will be out of money by the end
of May.  Every day USDA receives 150 more loan applications for about $10
million; and every day Congress fails to approve the President's request, 150
more farmers do not get the financing they need to stay in business. 
     
     "On February 26, President Clinton asked Congress for $152 million in
emergency supplemental funding for farm credit and staffing needs.  But
because Congress has not passed the supplemental, we are unable fund the loan
requests of thousands of farmers and ranchers.  The recent tornado devastation
in Oklahoma and Kansas will swell those numbers, but because Congress
continues to delay,  we are forced to say no to every request for an emergency
loan.
     
     "In March, I used my emergency authority to transfer $30 million to fund
loans while waiting for Congress to act on the supplemental request putting at
great risk USDA's ability to administer its regular farm programs later this
year.  Congress is now back in session, USDA's loan accounts are depleted, and
our farmers and ranchers are waiting, anxiously.  I can't say it more clearly:
this is a crisis that deepens with every day of delay.  The time to act is
now."
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