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Crooanng saia, notes ot tarm borrowers for operating purposes would be sold to investors who, in turn, would be insured against loss on the notes. The investors’ money would replenish a revolving fund and would be available for more loans, as is the case now with farm ownership loans. “In addition, we are hopeful that in this fiscal year 1972, private credit sources will cooperate by lending $250 million to our farm ownership borrowers. This, plus our $350 million budget, makes $600 million in credit available. Projections show there should also be an added $150 million in private money for families who participate in our $275 million farm operating credit program.
“When we add these sums to the $140 million emergency farm loan program, wq’re looking at more than a billion dollar program - double the credit available to family farmers through FHA in 1971. A third qf this amount will have been provided directly by the private enterprise system,” Mr. Goodling said.
Mr. Goodling points out that the plan is favorably received by commercial lenders, and private participation is expected to rise sharply.
“It is our policy to assist people in finding the credit needed to begin farming or to help finance farm operations,” he said. “We therefore commit government funds only when we cannot involve private money to serve agriculture’s credit needs.
“To assure this, county supervisors of the Farmers Home Administration are required to contact another lender with respect to every application for farm ownership or operating funds.
“WE are pleased with the fine cooperation extended by banks and other credit sources to make this plan work,” he concluded.
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