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ical motivation behind the decision, although there is language in the Farm Credit Act that encourages the FmHA to restructure loans,” Mr. Delano, a Richmond County grain farmer, explained. “Maybe this is going a little beyond the intent of the act.”
Mr. Delano said the rules being drafted would write off about half of the $14 billion debt owed to the FmHA, the nation’s second-largest farm-lending institution. “I think the intent is to look at an individual farmer who owes in excess of his assets or what his land would bring if a sale would occur.
“The FmHA will write it down to the farm’s value, under the present-day conditions. If the farm will cash-flow', then they would WTite off the excess amount that the farmer just couldn’t handle.”
Despite objections to the plan, Mr. Delano’s advice to farmers planning to sell out is, “Wait until we see exactly how the procedure will be developed and administered before making a decision.”
Farm Bureau has supported the FmHA in past measures to restructure farmers’ debts, but has not advocated forgiving the debt.
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