For administrative expenses, including not to exceed $500 for financial and credit reports, and not to exceed $150,000 for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (5 U.S.C. 574), as amended by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), [$10,024,000] $11,344,000. (5 U.S.C. 511–512; 7 U.S.C. 901–924; Department of Agriculture and Related Agencies Appropriation Act, 1963.)

Program and Financing (in thousands of dollars)

Total obligations..

9,985

10,462

Personnel Summary

ADVANCES AND REIMBURSEMENTS

2. Administration of rural telephone program.

4,658

1 Includes capital outlay as follows: June 30, 1962, $37 thousand; 1963, $45 thousand; 1964, $60 thousand.

2 Selected resources as of June 30 are as follows: Unpaid undelivered orders. 1961, $14 thousand (1961 adjustments -$7 thousand): 1962, $34 thousand; 1963, $34 thousand; 1964, $34 thousand.

The Administration makes repayable loans for the extension and improvement of electric and telephone services in rural areas. Business management and technical help is furnished borrowers where needed to protect the Government's loan security and to assure that construction and operation of their systems conform to approved standards and are adequate to provide continuous and reliable service.

Object Classification (in thousands of dollars)

Personnel Summary

39

40

43

8

Number of employees at end of year..

0

8

76

Average GS grade.

Average GS salary.

9.065

1954

estate

FARMERS HOME ADMINISTRATION

General and special funds:

Total obligations..

96,445

Financing:

Total program costs, funded.

Unobligated balance brought forward (authorization to expend from public debt receipts) (-).

Recovery of prior year obligations (—).. Unobligated balance carried forward (authorization to expend from public debt receipts).

New obligational authority:

Appropriation.....

Authorization to expend from public debt receipts..

-1,374

342,541 201,541

10,000

50,000

1 Selected resources as of June 30, are as follows: Unpaid undelivered orders, 1961, $14,061 thousand (1962 adjustments. -$1,374 thousand); 1962, $2,918 thousand; 1963, $1,818 thousand; 1964, $1,600 thousand.

Rural housing direct loans are authorized by title V of the Housing Act of 1949, as amended, to be made to farm- and non-farm-owners of real estate in rural areas, to long-term farm leaseholders, and to elderly persons who are or will be owners of land in rural areas. made only to persons unable to obtain housing credit from Loans are other sources upon reasonable terms and conditions. Direct loans to individuals are repayable in not more than 33 years and bear interest at 4%. Grants are made for minor building repair. In addition to the direct loans

151

and grants, insured loans are made to provide housing for domestic farm labor, and to provide rental housing for elderly persons in rural areas.

1. Rural housing loans and grants.-Direct farm enlargement and development loans, along with building loans, are made to farmowners on potentially adequate farms who need to develop their farms so as to increase their income sufficiently to repay the loans. Grants are made to farmowners, to owners of other real estate, and leaseholders in rural areas for such minor items as repairing roofs, providing sanitary facilities, providing a convenient and sanitary water supply, and supplying In some cases, combination building loans and grants are made, but the loan, grant or combination may not exceed $1 thousand.

screens.

2. Loans to the elderly.-Direct housing loans are made to elderly persons who own land or can buy a small tract in a rural area with loan funds.

3. Building loans.-Direct building loans are made to farmowners and to owners of other real estate to construct, improve, alter, repair, or replace dwellings and essential farm-service buildings.

Insured housing loans.-Insured loans are made through the Agricultural Credit Insurance Fund to farmowners or to organizations to provide modest living quarters and related facilities for domestic farm labor. These loans, made with funds advanced by private lenders, are repayable in not more than 33 years and bear interest not in excess of 5%. interest to lenders are fully guaranteed. Insured loans Annual payments of principal and are also made to individuals, corporations, associations, housing and related facilities for elderly persons in rural trusts, or partnerships to provide moderate cost-rental These loans, made with funds advanced by private lenders and insured through the Agricultural Credit Insurance Fund, are repayable in the number of years best suited to the individual case and bear interest at 5%. No loan may exceed $100 thousand, Annual payments of principal and interest to lenders are fully guaranteed. The Government retains at least one-half of 1% of the collections, and pays the lender. interest on insured loans as The Administration services these insured loans, makes an insurance premium.

For necessary expenses of the Farmers Home Administration, not otherwise provided for, in administering the programs authorized by the Consolidated Farmers Home Administration Act of 1961 (75 Stat. 307)] (7 U.S.C. 1921) as amended, title V of the Housing Act of 1949, as amended (42 U.S.C. 1471-1484), and the Rural Rehabilitation Corporation Trust Liquidation Act, approved May 3, 1950 (40 U.S.C. 440-444); [$34,582,000] $39,367,000, together with not more than $1,050,000 of the charges collected in connection with the insurance of loans as authorized by section 309(e) of the Consolidated Farmers Home Administration Act of 1961, as amended, and section 514(b) (3) of the Housing Act of 1949, as amended. (76 Stat. 631-632; Department of Agriculture and Related Agencies Appropriation Act, 1963.)

Program and Financing (in thousands of dollars)

21 Travel and transportation of persons. 22 Transportation of things..

3,217

3,380

23 Rent, communications, and utilities. 24 Printing and reproduction....

25

Other services...

31

Equipment....

Comparative transfers to other accounts.

Advanced from the Agricultural credit insur

ance fund (-).

Unobligated balance lapsing...

10

Administration of direct and insured loan

programs (costs-obligations).

270

Financing:

New obligational authority (proposed supplemental appropriation)..

270

39,367

Transferred to (−):

"Operating expenses, Public Buildings Service," General Services Administration (75 Stat. 353 and 76 Stat. 728). "Salaries and expenses, general administration" (76 Stat. 1212).

Under existing legislation, 1963.-A supplemer propriation is anticipated to employ additional p and meet other costs in making loans for rural hot the elderly authorized by the Senior Citizens Hous of 1962, Public Law 87-723; and for additional related to expansion of insured loan authority estate loans from $150 million to $200 million au by Public Law 87-798.

Under proposed legislation, 1964.-Supplementa will be needed to make and service loans under p legislation which would authorize the Secretary t rural housing loans made by private lenders. At such rural housing loans are made from Federa An additional $5,350 thousand would be r administer a total rural housing loan program million (both direct and insured loans) in 1964.

1

Total number of permanent positions.. Average number of all employees

1962 actual

1963 1964 estimate estimate

Number of employees at end of year.

Average GS grade..

Average GS salary.

1962 actual

1,500 350

1,850

500

2,350

ALLOTMENTS AND ALLOCATIONS RECEIVED FROM OTHER ACCOUNTS

Note. Obligations incurred under allotments from other accounts are included in the schedules of the parent appropriations as follows:

Funds Appropriated to the President. "Agency for International Development." Agriculture, Soil Conservation Service:

"Flood prevention."

"Resource conservation and development." "Watershed protection."

2,350

Financing:

New obligational authority (appropriation)....

1 Selected resources as of June 30 are as follows: Unpaid undelivered orders. 1963, $0: 1964, $500 thousand.

This program was authorized by section 102 of the Food and Agriculture Act of 1962. Loans will be made to local public agencies or groups for rural renewal development projects which are specifically related to conservation and land utilization. Each project will be an important component of the overall rural renewal plan previously developed 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.

Program operations include selection and designation of rural renewal areas, technical assistance to local public bodies, or officials, or organizations in the preparation of an economic development plan, and counsel to local agencies and groups for meeting legal requirements necessary for borrowing funds. The borrowing agency will be designated by the State legislature or Governor to receive rural renewal loan funds and will be vested with authority under State and local laws to borrow funds, buy and sell property, raise revenue, meet financial obligations and transact other necessary business functions.

Rural renewal loans are repayable in not more than 30 years, with repayment of principal and interest deferred up to 5 years, if necessary. Loans bear interest at the average rate paid by the U.S. Treasury on obligations of similar maturity. The rate for fiscal year 1963 is 2.936%. Loans in excess of $250 thousand will require approval of the Agriculture and Forestry Committees of the Congress. Object Classification (in thousands of dollars)

Public enterprise funds:

DIRECT LOAN ACCOUNT

Direct loans and advances under subtitles A and B, and advances under section 335(a) for which funds are not otherwise available, of the Consolidated Farmers Home Administration Act of 1961 [(75 Stat. 307) (7 U.S.C. 1921) as amended, may be made from funds available in the Farmers Home Administration direct loan account as follows: real estate loans, [$50,000,000] $60,000,000; and operating loans, [$290,000,000, of which $50,000,000 shall be placed in reserve to be used only to the extent required during the fiscal year 1963 under the then existing conditions for the expeditious and orderly conduct of the loan program] $300,000,000. (76 Stat. 631632; Department of Agriculture and Related Agencies Appropriation Act, 1963.)

Program and Financing (in thousands of dollars)

1. Real estate loans-a. Farm ownership loans.-Direct and insured loans are made to farmers and ranchers for acquiring, enlarging, or improving farms, including farm buildings, land and water development, use and conservation, forestry development, recreational uses and facilities, refinancing existing indebtedness, and for loan closing costs. Loans are confined to farms which are not larger than family farms. A loan cannot exceed $60 thousand in any case. In addition, the indebtedness against a farm or other security, including the amount of the loan, cannot exceed $60 thousand or the normal value of the farm and any additional security.

FARM OWNERSHIP LOANS

Financing-Continued

Revenues and other receipts-Continued Adjustment of prior year revenue.

Total revenues and other receipts.

Unobligated balance brought forward..

Unobligated balance assumed at inception of fund...

Unobligated balance carried forward (-)..

Financing applied to program.

28,661 -276,753 -203,864-139,790

334,375 364,159 375,758

Number of applications.. 41,532
Direct loans..
Insured loans.

Direct loan account. This account was established on October 16, 1961, pursuant to section 338 (c) of the Consolidated Farmers Home Administration Act of 1961. Loans are made under the authorities of subtitles A and B of the act to farmers unable to obtain credit from other sources at reasonable rates. Loans made under these and similar prior authorities are reported and accounted for in this account. In 1963, the total available for loans is $350 million including a $50 million reserve for operating loans to be used only to the extent required during the year under the then existing conditions for the expeditious and orderly conduct of the loan program, and also including $10 million for operating loans made available by the Second Supplemental Appropriation Act, 1962. In 1964, it is proposed to carry out the estimated loan program of $360 million through utilization of receipts to the Direct loan account representing collections on loans outstanding. No new borrowing authorization is estimated for 1964.

b. Soil and water conservation loans.-Direct and insured loans are made to farmers and ranchers and to associations for the effective development and utilization of water supplies and for the improvement of farmland by soil and water conserving facilities and practices. Loans to associations also are made for shifts in land use including the development of recreational facilities. Farms may be improved with loans to individual farmers. For loans to individuals, a loan cannot exceed $60 thousand in any case; in addition the indebtedness against a farm or other security, including the amount of the loan, cannot exceed $60 thousand or the normal value of the farm and any additional security. For loans to associations, the unpaid principal indebtedness is limited to $500 thousand in the case of a direct loan and $1 million in the case of an insured loan.

SOIL AND WATER CONSERVATION LOANS

[Dollars in thousands]

1962 actual Number Amount

Number of applications - 2,403

Direct loans:

To individuals. To associations. Insured loans:

To individuals.
To associations..

519 $2,204 69 6,753

680 $2,900 66 7,100

550 $2,500 125 12,500 434 2,610 2,975 15,000 2,975 15,000 31 4,311 135 25,000 135 25,000

Loans are repayable in not more than 40 years and bear interest not in excess of 5%. Insured loans are made with funds advanced by private lenders. Annual payments of principal and interest to lenders are fully guaranteed. Lenders can receive up to 4%% interest of the 5% paid by the borrower. The Government retains at least one-half of 1 percent of the interest as an insurance premium. The Administration services these insured loans, makes collections, and pays the lender.

2. Operating loans.-Direct loans are made to farmers and ranchers for paying costs incident to reorganizing a farming system for more profitable operations; for a variety of essential farm operating expenses such as the purchase of livestock, farm equipment, feed, seed, ferdevelopment, use and conservation including recreational uses and facilities; for refinancing indebtedness; for other farm and home needs; and for loans closing costs. Loans