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Show September 1971 UTAH Jarman Testifies at tention by a wise spectrum of knowledgeable persons to surface any bugs that may be there. My personal opinion is that it needs serious study. Your committee should examine this phase of the bill most carefully. Let me again express my appreciation for you listening to me. me to be -- 1 dont want to use the word hypocritical, but the most unusual procedure Ive ever heard of. The literature sent to you was propaganda for the bill, wasnt it? Mr. Jarman, Well, you know and I know that you can word questions and get the answers you want, and this was the - what we felt about it. Mr. Poage. Why, certainly. And Mr. Chairman, just to comment it was sent to you for the purpose of off the cuff, yesterday a comment in favor of the sentiment creating was made here with respect to the bill. Now, youre being dticized Berkeley District not sending out because you didnt say something the questionaires to the members. in favor of it, and youre told that May I say these questionaires were thats all wrong. Well, now, how received by our board at a time Hearing on Farm Credit Editors Note: LeGrand Jarman, in addition to being Legislative Director & Field Services Director for Utah Farm Bureau, is a member of the Federal Land Bank Association National Advisory committee representing the 11th Farm Credit District which includes Utah, Nevada, California, Oregon and Hawaii. I am in complete harmony with the premise that the Farm Credit Act needs a major overhaul and I agree with most of the provisions contained in the new proposed act. However, there are at least 2 new concepts that need to be reviewed very carefully, and, in numerous instances, the language of the bill does not carry out one of the basic arguments for the new act, namely, to decentralize the activity and give responsibility to the districts and associations In the first place, the discussion with respect to the need for die new act purports to drop from the old act many hard and fast statutory requirements which restrict the freedom of activity at all levels in meeting the needs in the area of Farm Credit and in giving more responsibility and authority to districts and local associations. This we agree with, but I submit to you that the language in the new act does not accomplish this objective. I refer you to Section 5.9 and 5.18 . . . Now in addition to these sections covering the whole water front of power, there are more than .... 100 additional references throughout the bill that make reference to authority by saying when approved by the Farm Credit Administration, or under, regulation of the Farm Credit or some other Administration, like meaning phrase. . . . I found 26 separate places where the act referred to the Farm . Credit Administration having power to regulate or control the of of Bank the actions I know that the Cooperatives. gentlemen who are the personnel of the Farm Credit Administration are most capable and most sincere. I have met some of them of recent date. I like them. They want to give certain responsibility and authority out to the districts and associations, but I submit to you that this is not the way to decentralize. In principle this is wrong. When you take powers out of the law and give it to a bureau domiciled at the headquarters of government, all you do is change from government by law to government by men and that could well be the wrong direction to go. The second subject I should like to comment on is that of Farm Credit making loans for rural housing. I do not question the need for homes in areas away from big cities. The rural development committee chaired by my good Smith of friend, Virginia Nebraska, has clearly presented a case for greater total development of rural America. I support this premise, but I dont believe it is proper function of FLB and PCA to get into the home financing business where it is not related to agricultural production. We in Farm Credit have learned our business and have done an outstanding job. We understand agricultural capital and production loans but we do not know the home financing business. -- It is different. It is much more hazardous. It will likely require huge amounts of money. We should stay in the business we know with the people we have a responsibilty to serve and let some other agency take care of rural housing. There are some questions I am sure will be discussed with you by many witnesses that I will but mention: What do we mean by rural Page 5 FARM BUREAU almost exactly when home? Is it a home out in open or farming country, or is it a tame in a small organized rural community? When Farm Credit funds are in short supply, who gets the priority for the supply available? Can you morally, and legally, grant a permanent privilege to one borrower to vote and deny another that privilege? If at some time it is decided that rural home borrowers may vote, then how soon does Farm Credit cease to be a producers service. There is another aspect of rural home financing that I should like to comment on. This has to do with where the homes will be built. I have understood that some of those on the side of support of this issue feel that the homes should be outside communities, or built in the agricultural areas. I am aware that farmers are going to sell lots for development, that people will build on these lots, that some thats wrong the stockholders committee was in session in Berkeley and they discussed it and decided very soon that they would have the directors of all the associations in, and because of some ambiguity that they considered in the questions, hard to understand, it was decided they would discuss it with the LeGrande Jarman if its perfectly to propagandize people in alright of favor something? I cant see why its any worse to simply do nothing than it is to propagandize people either for or agianst. Mr. Jarman. Well, we didnt think it was the right way to get to our people. Mr. Poage. Of course not and youre being dticized now because you didnt do just what the Washington authorities wanted you to do, arent you? Mr. Jarman. Thats right. Mr. Poage. Thank you. come Tale of a Coat CHMUTY members of our stockholders committee and the members of our board of directors throughout the district at that time, rather than to send the questionaires out. Well, Mr. Chairman, I express my appreciation fra1 your listening, and if its agreeable to you, I have a plane coming soon and Id like to leave very soon, if I can. Mr. Jones. Thank you Mr. Jarman. You have permission to leave. Mr. Teague. I know we are not permitted to ask questions, but I cant resist complementing this gentleman on what I think is one of the best statements weve had. Mr. Poage. May I violate the rules and suggest, Mr. Jarman, that I think it was a good statement, and I think that this criticism of the Berkeley Bank for not sending out literature seems to agency will finance the construction, and also that it is a local responsibility of county or community to properly direct this activity by good planning and zoning, but dont think that we in agricultural leadership should be promoting this type of activity. When a home or other construction appears in an agricultural area, the tax valuation 'inflates im- mensely and as development continues, the tax responsibility to becomes prohibitive agriculture. The second result of this type of rural building is the necessity for sewage collection, garbage collection, culinary water, and school bussing. The costs of these services are added to taxes and surrounding land has to pick up some of the tab. Another aspect of development in rural areas is that of home construction near feed lots, dairy units, or some other animal project. Some families tend to become intolerant of odors, or sounds, and sooner or later something has to give so out goes the livestock unit. My contention is that Farm Credit, farm organizations, and even Congress, should not promote development in rural areas. Some agency should be available to rural homes, sewer water systems, and other systems, finance elements of rural development but it should largely be geared toward community life where proper home service can be offered with the least economic burden to anyone. My final contention on this issue is that if we are going to encourage rural home development in well-plann- and ed serviced rural Controls Infection Promotes Growth Improves Feed Efficiency FA MYCIN is mixed and bagged by I FA and is available in 50 pound bags, I Detailed feeding directions are on the back of each bag. FA MYCIN I communities, it is outside the proper responsibility of Farm Credit to get into financing of development of these munities. Some other agency should be assigned, or one established, to do the whole job of rural community financing. Gentlemen, I have some concern about the issue of going into the bond market with a single security. The nature of the security offered by the different banks is greatly varied. I wonder if the ramifications of single security have been given sufficient at- - promotes growth and improves feeding efficiency and controls infections in swine, sheep, horses and cattle. See your nearest FA store for more details about this and their complete line of animal health products. I INTERMOUNTAIN UTAH Logan Lund Pehrson Tremonton Homer Marble Ogden L. John Lewis Salt Lake City Tyrone E. Lewis Draper Robert Turley Riverton Delmar Duncan American Fork Lloyd Tregaskis FARMERS STORES Salina Harold Petersen Provo John Anderson Blaine Loveless Fork Manti Girven Stott Spanish Bud Harmer Price Ellsworth Jewkes Payson Delta Rex Wood Roosevelt Albert Nielson Richfield Ardell Thompson Cedar City E. Rulon Brough IDAHO St. George Loraine F. Avery Preston-Wes- ley Hyde Loa Roe Burgess Soda Springs Darrell Passey |