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FARMERS HOME ADMINISTRATION
and grants, insured loans are made to provide housing for
domestic farm labor, and to provide rental housing for General and special funds:
elderly persons in rural areas. RURAL HOUSING GRANTS AND LOANS
1. Rural housing loans and grants. ---Direct farm en
largement and development loans, along with building Program and Financing (in thousands of dollars)
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 Program by activities:
leaseholders in rural areas for such minor items as re1. Rural housing loans and grants:
pairing, roofs, providing sanitary facilities, providing a (a) Enlargement and development loans.
1,600 3,050 convenient and sanitary water supply, and supplying (b) Repair and improvement grants... 63 1,600 2,957
screens. 2. Loans to the elderly.
In some cases, combination building loans and
9,750 3. Building loans...
106, 149 184,150 50,361
grants are made, but the loan, grant or combination may
not exceed $1 thousand. Total program costs, funded.
106,214 192,100 66,118 Change in selected resources !
2. Loans to the elderly.-Direct housing loans are made -9,769 -1,100 -218
to elderly persons who own land or can buy a small tract Total obligations...
96,445 191,000 65,900
in a rural area with loan funds. Financing:
3. Building loans.--Direct building loans are made to Unobligated balance brought forward (au
farmowners and to owners of other real estate to construct, thorization to expend from public debt re
improve, alter, repair, or replace dwellings and essential ceipts) (-)-
-427,612 -342,541 -201,541 farm-service buildings. Recovery of prior year obligations (-)... -1,374
Insured housing loans.-Insured loans are made through Unobligated balance carried forward (authorization to expend from public debt receipts). 342,541 201,541 135,641
the Agricultural Credit Insurance Fund to farmowners or
to organizations to provide modest living quarters and New obligational authority:
related facilities for domestic farm labor. These loans, , Appropriation.
made with funds advanced by private lenders, are reAuthorization to expend from public debt receipts.
payable in not more than 33 years and bear interest not in excess of 5%. Annual payments of principal and
interest to lenders are fully guaranteed. Insured loans 1 Selected resources as of June 30, are as follows: Unpaid undelivered orders, 1961, $14,061 thousand (1962 adjust ments, - $1,374 thousand); 1962, $2,918 thousand; are also made to individuals, corporations, associations, 1963, $1,818 thousand; 1964. $1,600 thousand.
trusts, or partnerships to provide moderate cost-rental Rural housing direct loans are authorized by title V of housing and related facilities for elderly persons in rural the Housing Act of 1949, as amended, to be made to
These loans, made with funds advanced by private farm- and non-farm-owners of real estate in rural areas, to
lenders and insured through the Agricultural Credit Inlong-term farm leaseholders, and to elderly persons who
surance Fund, are repayable in the number of years best are or will be owners of land in rural areas. Loans are
suited to the individual case and bear interest at 574%. made only to persons unable to obtain housing credit from
No loan may exceed $100 thousand, Annual payments other sources upon reasonable terms and conditions.
of principal and interest to lenders are fully guaranteed.
The Government retains at least one-half of 1% of the Direct loans to individuals are repayable in not more than interest on insured loans as an insurance premium. 33 years and bear interest at 4%. Grants are made for The Administration services these insured loans, makes minor building repair. In addition to the direct loans collections, and pays the lender.
11 Personnel compensation:
Total personnel compensation. 12 Personnel benefits... 21 Travel and transportation of persons. 22 Transportation of things.... 23 Rent, communications, and utilities 24 Printing and reproduction... 25 Other services.. 26 Supplies and materials. 31 Equipment.--
SALARIES AND EXPENSES 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 ľ(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)
Proposed for separate transmittal:
SALARIES AND EXPENSES
New obligational authority:
Appropriation Transferred to (-): "Operating expenses, Public Buildings
Service," General Services Administra
tion (75 Stat. 353 and 76 Stat. 728)..--"Salaries and expenses, general administration" (76 Stat. 1212)
ments to Commodity Credit Corpo-
Under existing legislation, 1963.-A supplemental appropriation is anticipated to employ additional personnel and meet other costs in making loans for rural housing for the elderly authorized by the Senior Citizens Housing Act of 1962, Public Law 87-723; and for additional activity related to expansion of insured loan authority for real estate loans from $150 million to $200 million authorized by Public Law 87-798.
Under proposed legislation, 1964.-Supplemental funds will be needed to make and service loans under proposed legislation which would authorize the Secretary to insure rural housing loans made by private lenders. At present such rural housing loans are made from Federal funds. An additional $5,350 thousand would be rquired to administer a total rural housing loan program of $400 million (both direct and insured loans) in 1964.
Selected resources as of June 30 are as follows: Unpaid undelivered orders. Public enterprise funds: 1963. $0; 1964, $500 thousand.
DIRECT LOAN ACCOUNT This program was authorized by section 102 of the Food and Agriculture Act of 1962. Loans will be made to local Direct loans and advances under subtitles A and B, and advances public agencies or groups for rural renewal development
under section 335(a) for which funds are not otherwise available, of projects which are specifically related to conservation and
the Consolidated Farmers Home Administration Act of 1961 [(75 land utilization. Each project will be an important com
Stat. 307)] ( U.S.C. 1921) as amended, may be made from funds
available in the Farmers Home Administration direct loan account ponent of the overall rural renewal plan previously de as follows: real estate loans, [$50,000,000] $60,000,000; and operveloped to rebuild the economy of the designated area.
ating loans, [$290,000,000, of which $50,000,000 shall be placed in To be eligible for designation as a rural renewal area, the
reserve to be used only to the extent required during the fiscal year
1963 under the then existing conditions for the expeditious and locality must be one of chronic underemployment on orderly conduct of the loan program] $300,000,000. (76 Stat. 631farms and unemployment in the surrounding communi-652; Department of Agriculture and Related Agencies Appropriation ties. The area must also be one in which agriculture or
Act, 1963.) forestry contribute substantially to the economy.
Program and Financing (in thousands of dollars) Program operations include selection and designation of rural renewal areas, technical assistance to local public
actual estimate estimate bodies, or officials, or organizations in the preparation of an economic development plan, and counsel to local
Program by activities: agencies and groups for meeting legal requirements neces Operating costs, funded: sary for borrowing funds. The borrowing agency will be 1. Interest on borrowings.
9,000 11,000 12,500 designated by the State legislature or Governor to receive
2. Costs incident to security for loans..
30 rural renewal loan funds and will be vested with authority
3. Provision for losses, current receivables. 1,387 3,042 3,157 4. Other expense.--
3 under State and local laws to borrow funds, buy and sell property, raise revenue, meet financial obligations and Total operating costs, funded..
10,412 14,067 15,687 transact other necessary business functions.
Capital outlay: Rural renewal loans are repayable in not more than 30 1. Real estate loans; years, with repayment of principal and interest deferred
(a) Farm ownership loans...
34,207 43,600 45,000 up to 5 years, if necessary. Loans bear interest at the
(b) Soil and water conservation loans. 4,057 11,600 15.000 average rate paid by the U.S. Treasury on obligations of
Total, real estate loans..
38,264 55,200 60,000 similar maturity. The rate for fiscal year 1963 is 2.936%.
2. Operating loans...
274,969 300,060 300,000 Loans in excess of $250 thousand will require approval of Judgments and collateral acquired.
71 the Agriculture and Forestry Committees of the Congress.
Total capital outlay.-.-.
355 355,332 360,071 Object Classification (in thousands of dollars)
Total program costs, funded.
323,767 369,399 375,758 1963 1964 Change in selected resources 1
Adjustment in selected resources (undis-
334,375 364,159 Other personnel compensation
Financing: Total personnel compensation..
265 12 Personnel benefits...
New obligational authority (authorization to 20
expend from public debt receipts). 326,000 21 Travel and transportation of persons.
52 23 Rent, communications, and utilities
Revenues and other receipts: 24 Printing and reproduction..
Repayments on loans..
218,359 248,180 264,200 33 Investments and loans...
2,000 Proceeds from sale of acquired property.
70 200 100 Payments on judgments.
300 300 Total obligations...
42,535 47,024 Other revenue.
FARMERS HOME ADMINISTRATION-Continued 1. Real estate loans-a. Farm ownership loans.-Direct
and insured loans are made to farmers and ranchers for Public enterprise funds-Continued
acquiring, enlarging, or improving farms, including farm DIRECT LOAN ACCOUNT Continued
buildings, land and water development, use and conserva
tion, forestry development, recreational uses and facilities, Program and Financing (in thousands of dollars) --Continued
refinancing existing indebtedness, and for loan closing
costs. Loans are confined to farms which are not larger 1963 1964 than family farms. A loan cannot exceed $60 thousand estimate estimate
in any case. In addition, the indebtedness against a farm Financing—Continued
or other security, including the amount of the loan, cannot Revenues and other receipts-Continued
exceed $60 thousand or the normal value of the farm and Adjustment of prior year revenue.
any additional security. Total revenues and other receipts. 256,466 291,270 311,684
FARM OWNERSHIP LOANS Unobligated balance brought forward..
(Dollars in thousands) Unobligated balance assumed at inception of
1962 actual 1963 estimate 1964 estimate fund...
28,661 Unobligated balance carried forward (-). -276,753 -203,864 -139,790
Number Amount Number Amount Number Amount Number of applications.. 41,532
50,000 Financing applied to program.. 334,375 364,159 375,758 Direct loans
2,758 $40,000 2,575 $40,000 2,812 $45,000 Insured loans.
9,030 143,000 11,110 160,000 11,110 160,000 1 Balances of selected resources are identified on the statement of financial condition.
b. Soil and water conservation loans.-Direct and inSummary of Sources and Application of Funds (in thousands of dollars)
sured loans are made to farmers and ranchers and to
associations for the effective development and utilization 1963
of water supplies and for the improvement of farmland by estimate estimate soil and water conserving facilities and practices. Loans
to associations also are made for shifts in land use includObligations (from program and financing). 334,375 364, 159 375,758
ing the development of recreational facilities. Farms Increase (-) or decrease in gross unpaid obligations.
may be improved with loans to individual farmers. For Unpaid obligations assumed at inception of
loans to individuals, a loan cannot exceed $60 thousand in fund..--
any case; in addition the indebtedness against a farm or Gross expenditures.
other security, including the amount of the loan, cannot 323,763
exceed $60 thousand or the normal value of the farm and Revenues and other receipts (from program and
any additional security. For loans to associations, the financing)-
256,466 291,270 311,684 unpaid principal indebtedness is limited to $500 thousand Increase (-) in accounts receivable, net. -32,987 -3,858
-5,372 in the case of a direct loan and $1 million in the case of Accounts receivable assumed at inception of Fund...
an insured loan. Applicable receipts ---252,141 287,412 306,312
SOIL AND WATER CONSERVATION LOANS
(Dollars in thousands)
Number Amount Number Amount Number Amount Direct loan account.--This account was established on Number of applications -- 2,403
6,000 October 16, 1961, pursuant to section 338(c) of the Con Direct loans: solidated Farmers Home Administration Act of 1961.
$2,500 To associations
69 6,753 66 7,100 125 Loans are made under the authorities of subtitles A and
434 2,610 2,975 15,000 2,975 15,000 sources at reasonable rates. Loans made under these and To associations
31 4,311 135 25,000
25,000 similar prior authorities are reported and accounted for in this account. In 1963, the total available for loans Loans are repayable in not more than 40 years and is $350 million including a $50 million reserve for operat bear interest not in excess of 5%. Insured loans are ing loans to be used only to the extent required during made with funds advanced by private lenders. Annual the year under the then existing conditions for the expe- payments of principal and interest to lenders are fully ditious and orderly conduct of the loan program, and guaranteed.
guaranteed. Lenders can receive up to 47% interest of also including $10 million for operating loans made avail the 5% paid by the borrower. The Government retains able by the Second Supplemental Appropriation Act,
at least one-half of 1 percent of the interest as an insurance 1962. In 1964, it is proposed to carry out the estimated premium. The Administration services these insured loan program of $360 million through utilization of receipts loans, makes collections, and pays the lender. to the Direct loan account representing collections on 2. Operating loans.-Direct loans are made to farmers loans outstanding. No new borrowing authorization is and ranchers for paying costs incident to reorganizing a estimated for 1964.
farming system for more profitable operations; for a In addition to the direct loans, farm ownership and variety of essential farm operating expenses such as the soil and water conservation loans advanced by private purchase of livestock, farm equipment, feed, seed, ferlenders will be insured within the annual statutory insur- tilizer, and farm supplies; for financing land and water ance authority of $200 million for these purposes. Con- development, use and conservation including recreational tingent liabilities for these insured loans are reflected in uses and facilities; for refinancing indebtedness; for other the Agricultural credit insurance fund schedules.
farm and home needs; and for loans closing costs. Loans
Net assets assumed at inception of revolv.
are confined to operators of not larger than family farms.
Analysis of Government Equity (in thousands of dollars) The outstanding principal loan balance for operating loans is limited to $35 thousand. Loans bear interest
estimate at 5% and may be made for periods up to 7 years, but may be renewed for not more than 5 additional years. Loans are secured by crop and chattel liens and, when Unobligated balance.
Undisbursed loan obligations
12,214 6,974 6.974
276,753 203,864 139,790 necessary, by real estate mortgages.
Invested capital and earnings
951,793 FARM OPERATING LOANS
Total Government equity...
1,063,758 1,079,526 1,098,557 1962 actual 1963 estimate 1964 estimate Number of applications 115,513 160,000 160,000
1 The changes in this item are reflected on the program and financing schedule. Number of loans...
73,800 Amount of loans (thousands of dollars) -- $275,000 $300,000 $300,000
Object Classification (in thousands of dollars)
Revenue, Expense, and Retained Earnings (in thousands of dollars)
Net operating income..
RURAL HOUSING FOR THE ELDERLY Revolving Fund
Program and Financing (in thousands of dollars)
Total proceeds from sale.
Net nonoperating income
Net income for the year.
ing fund (as adjusted on Oct. 20, 1961). Adjustment of prior year revenue.
Retained earnings, end of period.
Financial Condition (in thousands of dollars)
Total revenue and other receipts..
Summary of Sources and Application of Funds (in thousands of dollars)
1,063,778 1,079,546 1.098,577
Outstanding borrowings, net assumed at
inception of revolving fund... Borrowings from Treasury, net.
Obligations (from program and financing).
End of year.
Start of year.
ing fund (as adjusted on Oct. 20, 1961) - 456,079
End of year.
A supplemental appropriation for 1963 will be requested to initiate this program pursuant to the Senior Citizens Housing Act of 1962. Loans will be made under the authority of sec. 515(a) of title V of the Housing Act of 1949, as amended, to private nonprofit corporations and consumer cooperatives to provide modest cost rental housing and related facilities for elderly persons of low or moderate income in rural areas. These direct loans, made from the revolving fund, are repayable in not more than
Total Government equity.
1,063,758 1,079,526 1.098,557