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Show FmHA Loans available to Farmers FmHA will be at an interest rate equivalent to the cost of money secured by the government through sale of its securities to the public, plus an administrative addon add-on of up to one percent. The rate initially will be xk percent. Guaranteed loans will be made at rates negotiated between borrower and lender, with FmHA providing the lender up to a 90 percent guarantee against loss. Loans for operating purposes will be made for terms of up to 7 years, with loan consoldations and rescheduling for another 7 years permitted, and 20-year payment authorized under special conditions. Keal estate loans may be made for up to 40 years. Loans for annually-recurring expenses will be repayable annually. Elmer Cox said initial "economic conditions, as well as weather, are often beyond farmers' control." FmHA emergency credit has previously been confined to loans for recovery from natural disaster, or the guarantee of private lenders' len-ders' loans to livestock producers affected by economic conditions. Under the new Economic Emergency program, any established farm operator -individual, partnership, corporation or cooperative -experiencing scarce credit or an overload of debt coming due, may apply for up to $400,000 of credit through FmHA in order to survive in farming and continue their normal level of operation. Economic Emergency loans will not be made to expand a farm operation. Loans made directly by inquiries about Economic Emergency loans can be made either through a commercial agricultural lender or the county FmHA office serving the county where the farm is located. The Act calls for decision by FmHA on individual applications ap-plications within 30 days. While introducing the new Economic Emergency farm loan, FmHA will continue all pre-existing services. They include various programs of non-emergency real 'estate and production loans to family-size farms, terms of which will soon be broadened under the recent Credit Act; emergency loans to farms damaged by natural disaster, and loans or grants for housing, community facilities and business and industry in rural areas. r A new Economic Emergency loan service for farmers and ranchers who have financial problems caused by credit shortage or cost price squeeze is now in effect through the U. S. Farmers Home Administration Ad-ministration (FmHA). Elmer Cox, the agency's supervisor for Iron County, reports that FmHA is prepared to take applications ap-plications at the FmHA Iron County Office in Cedar City. Economic Emergency loans are authorized under the Agricultural Credit Act of 1978 signed by President Carter August 4. They offer special help to farmers who are hard-pressed by recent shortage of credit from their regular lenders, or by debts accumulated during the recent period of low farm prices. Elmer Cox said the Economic Emergency loan program was enacted by Congress, with Administration Ad-ministration support, in recognition of the fact that |
