Statement  of Secretary of Agriculture Dan Glickman on  Supplemental Budget
Request Washington, D.C.  April 29, 1999
                                                               
                                                               
                                            Release No. 0183.99
 Statement                                by
                             
                 Secretary of Agriculture Dan Glickman on 
                           Supplemental Budget Request 
                        Washington, D.C. April 29, 1999

     "It's been two months since the President submitted a supplemental
spending request to Congress, which included $152 million for the Department
of Agriculture.  That money is sorely needed.  Many of our loan funds are
running dry, as the farm crisis has created four times the normal demand for
USDA farm loan programs.  The $152 million in the supplemental will allow us
to increase our loan capacity by more than $1 billion.  I can only begin to
describe how important this money is to farm families across the country.  

     "In the time that the supplemental spending request has been sitting,
waiting for Congress to act, our farmers and ranchers have been crying out for
help.  Since the President's request, USDA has received over 8,000
applications for loans from farmers and ranchers, which would require
approximately $550 million to fund.  We're receiving 150 applications for
direct and guaranteed loan assistance every day.  That's $10 million a day
being sought by family farmers.  And this isn't play money.  They need this
money to run their operations.

     "I think it's important that the American people understand how great
the need is out in farm country.  Demand for USDA loan programs is at
unprecedented levels. Use of our loan programs has increased by 65 percent
compared to a year ago at this time. During the first six months of FY 1999,
we obligated as much funding for direct and guaranteed loans as we did in all
of 1998 ($2.2 billion). So far, obligations of loan assistance in 1999 is $2.5
billion. 

     "At USDA we're doing all we can to help farmers and ranchers get through
this rough period.  On March 30, I  used my authority to transfer $30 million
which provided an additional $333 million for three of our loan programs. 
One of these programs has already exhausted all available funds and the other
two will be depleted by the end of this week.

     "But this kind of borrowing from ourselves will eventually catch up to
us.  That $30 million was transferred from a salaries account.  It can be
restored, if the supplemental is passed.  But if it's not, we will be looking
at office closings and furloughs.
     
     "The pressure on family farmers and ranchers is even more profound
because low commodity prices have made lenders more cautious in extending
credit without a USDA guarantee.  

     "The current economic situation is taking a particular toll on minority
and beginning farmers who have few credit alternatives other than USDA's
direct and guaranteed loan assistance.  We're doing what we can to make sure
these continuing credit needs are addressed, but there's only so much we can
do once the well runs dry.

     "On March 30, I also directed our Farm Service Agency to retain 700
temporary employees to help meet the extraordinarily heavy demand for farm
credit and to assist in other critical farm programs such as the crop loss
disaster assistance program.   Up until now, we've been able to keep those
employees on the rolls.  However, every day USDA finances these critically
needed employees in the current manner advances the date by which we will have
to consider additional widespread steps such as an agency-wide furlough. 
Currently, we estimate that our Farm Service Agency may have to furlough
nearly 20,000 employees for 10 days.  

     "The House and Senate passed separate versions of the supplemental
spending bill before their Easter recess.  It is time now to reconcile the two
bills and provide some badly needed relief.  Farmers and ranchers are hurting. 
They need all of us to act now.  This is not the time for the Congressional
leadership to drag its feet.  

     "Thank you."

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