will be made to attract industry to rural areas, including manufacturing and marketing facilities for agricultural and forestry products, to develop more adequate community facilities and improved rural housing (including group housing for senior citizens in rural areas), and to develop recreational opportunities. These goals will be achieved through technical assistance and loans to eligible State and local public agencies. Rural renewal demonstration projects will unify efforts to concentrate all available technical and financial assistance from private and local, State and Federal Government sources for renewing, restoring, and developing local natural and human resources. Areas designated for rural renewal projects will be those in which needed adjustments, developments, and improvements are interdependent and interrelated to the extent that the combined, coordinated, and concentrated use of several types of assistance affords the most feasible approach to renewal. Rural renewal projects will demonstrate that such areas can be revitalized to provide needed economic and social opportunities for people in these areas. They will make a significant contribution to the accomplishment of needed long-range economic adjustments based on sound land-use practices-a basic consideration in achieving a more realistic balance between the supply and demand for farm products. Loans will be made to local public agencies or groups for rural renewal development projects specifically related to conservation and land utilization. Each project financed with loan funds would be an important component of an overall rural renewal plan to rebuild the economy of the designated area. To be eligible for designation as a rural renewal area, the locality must be one of chronic underemployment on farms and unemployment in the surrounding communities. The area must also be one in which agriculture or forestry contribute substantially to the economy. EXPLANATORY STATEMENT Section 102 of the Food and Agriculture Act of 1962 (Public Law 87-703) amended section 32(e) of title III of the Bankhead-Jones Farm Tenant Act to authorize a program of technical assistance and loans to stimulate long-range economic development in rural communities where family incomes are abnormally low. Program administration.-The Farmers Home Administration has been assigned primary responsibility for coordinating the program for rural renewal. Planning assistance will be provided to the local public body in developing the detailed master development plan. Such special assistance will vary with the complexities and character of the problems in the particular area. The assistance will be given by such specialists as engineers, economists, conservationists, foresters, farm and home management specialists, and other technicians. Such assistance will be made available to the local public body, upon approval of the application, for a period of 3 to 6 months in developing detailed project plans. It will include secretarial assistance. As required, the Economic Research Service will (1) develop criteria for the selection of rural renewal areas, (2) develop basic data and analyses needed for planning, implementing, and evaluating rural renewal projects, and (3) develop methods for determining the impact on employment and income from different levels of program acceleration. The Forest Service will provide technical forestry assistance for rural renewal plans and projects. The Soil Conservation Service will furnish technical assistance and design services needed in rural renewal, projects, and will provide engineering and consulting services relating to needed feasibility, and benefits of conservation practices when long-term loans are involved. Application for designation of rural renewal area. Local leaders may make application to have their area designated as eligible for rural renewal assistance by submitting three basic items of information to the Farmers Home Administration: (1) Preliminary overall economic development plan, indicating known resources of the area, position of the major industries, present economic situation, conditions affecting employment, farm and nonfarm income, problems and needs, economic potentialities and goals, and a recommended program. (2) Map showing the boundaries of the proposed rural renewal area. (3) Designation and description of the agency or organization that will represent the area in planning a rural renewal program. Application for rural renewal assistance will be made through the county supervisor of the Farmers Home Administration, who will provide necessary assistance in preparing the required information. If an application is approved, the area will be designated officially as a "rural renewal area" and a project leader will be assigned to assist in preparing a rural renewal development plan. Borrowing agency.-Any local public agency or group may apply for rural renewal assistance from the Farmers Home Administration as described previously. However rural agencies groups or authorities obtaining loan funds under the program for specific development projects must meet certain legal requirements. These include (1) designation by the State legislature or Governor to receive rural renewal loan funds and (2) authority under State and local laws to borrow funds buy and sell property improve develop and maintain property and secure revenues to repay loans and meet other obligations. The borrowing agency will of course vary among rural renewal areas. In some cases an existing county government agency or other public agency may serve as the borrower under the rural renewal program. In other cases it will be necessary to establish entirely a new agency if State enabling laws will permit. The latter would be roughly similar to local authorities established specifically to carry out urban renewal programs at the local level. Before a rural renewal loan application is made to the Farmers Home Administration by the borrowing agency, it must first be submitted to a State agency designated by the Governor or legislature for review. Terms of loans.-Rural renewal loans may be made for periods up to 30 years with repayment of principal and interest deferred up to 5 years, if necessary. The interest rate will be the average rate paid by the U.S. Treasury on obligations of similar maturity (2.936 percent for fiscal year 1963). Size of loans.-The amount which a local agency may borrow will be based on its ability to repay the loan. All sources of income available to the agency will be considered, such as fees, leases, rentals, and the sale of securities and property. Loans in excess of $250,000 will require approval of the Agriculture and Forestry Committees of the Congress. Security-Loans will be secured in the manner that will adequately protect the U.S. Government's interest. Scope of program. It is expected that in the initial stage the rural renewal program of technical assistance and loans will be activated only in certain areas. In this way the limited resources presently available for the program can be most effectively used to gain experience for a full-scale effort when additional funds are made available. RURAL HOUSING FOR THE ELDERLY REVOLVING FUND Appropriation act, 1963, and base for 1964. $5, 000, 000 Increase (for loans to provide rental housing and related fa- +5, 000, 000 1 The 1964 budget indicates that a supplemental estimate of $5,000,000 has been requested in 1963 to initiate program. Appropriation Act, 1963... Personnel summary 1962 actual 1963 estimate 1964 estimate 4, 678 4,813 10, 199 4,526 446 4,816 10, 050 4,749 504 5, 116 10, 736 6.7 $6,070 6.8 $6,419 Transferred from Agricultural Credit Insurance Fund.. Base for 1964. Budget estimate, 1964: Direct appropriation... Transferred from Agricultural Credit Insurance Fund. 6.8 $6,438 Total.... Net increase....... Summary of increases and decreases, 1964 Increase to provide for servicing additional loans outstanding- -- -- +$2, 286, 000 Increase to provide for mandatory reimbursement to the employees compensation fund......... Reduction to reflect estimated savings due to the installation of a centralized data processing operation (MODE) for personnel and payroll data... For pay act costs pursuant to Public Law 87-793 Net increase___ +24, 000 -97,000 1, 416, 000 +3, 629, 000 1 Represents obligations. Applied costs for 1962 are $35,390,343. The difference of $25,178 primarily represents obligations for inventory purchases in 1962 over amounts used during year. Includes $19,600 estimated to be transferred to "Salaries and expenses, General Administration," during fiscal year 1963 for the Office of the Inspector General. STATEMENT OF OBLIGATIONS UNDER ALLOTMENTS AND OTHER FUNDS (Includes only those amounts which, by November 30, 1962, were actually received or programed for 1963 or 1964. Since work for other agencies is performed on a service basis at the request of those agencies and for their benefit, it is not practicable to estimate in advance the amounts to be received in some cases.) Item Agricultural credit insurance fund, Department of Agriculture: Revolving fund for payments with respect to insured mortgages as authorized by subtitle A of the Consolidated Farmers Home Administration Act of 1961 and section 514 of title V of the Housing Act of 1949, as amended.. Emergency credit revolving fund, Department of Agriculture: For making emergency loans to farmers and stockmen and for other purposes in accordance with provisions of the Consolidated Farmers Home Administration Act of 1961... Allotments from Watershed protection, Soil Conservation Service: For loans to local organizations to finance improvements in small watersheds, and related expenses pursuant to Public Law 566, as amended.. Flood prevention, Soil Conservation Service: For loans to local organizations to finance local share of costs of improvements in the eleven authorized flood prevention projects, and for related expenses. Resource and conservation development projects, Soil Conservation Service: For loans for resource and conservation development projects as authorized by section 102, title I of the Food and Agriculture Act of 1962... 4, 421, 265 Total, State Rural Rehabilitation Corporation funds. Obligations under reimbursements from governmental and other sources: Salaries and expenses... 5,052, 020 Total, obligations under allotments and other funds..... 189,083, 593 239, 797, 735 246, 823, 900 Mr. WHITTEN. Mr. Bertsch, we are glad to have you and your associates with us. We have their names listed here. I note too, you have a new Budget Director. We would be glad to have a brief biography of his background and experience. (The biographical sketch follows:) BIOGRAPHY OF JAMES T. HOLLIDAY James T. Holliday, Director of the Budget Division, Farmers Home Administration, has been in fiscal and budget work in the Federal Government since 1933; approximately 20 years in the Department of Agriculture, 2 years with Internal Revenue, and 6 years with the Post Office Department. The 20 years with the Department of Agriculture was spent as Administrative Officer for the Finance Division of the Farmers Home Administration and as finance manager in one of the larger area offices. |