155 1962 actual 1963 1964 estimate estimate 12,214 6,974 6,974 276,753 203,864 139,790 774,791 868,688 951,793 1,063,758 1,079,526 1,098,557 1 The changes in this item are reflected on the program and financing schedule. Object Classification (in thousands of dollars) 1962 actual 325,375 353,159 363,258 9,000 11,000 12,500 Expense. 21,612 26,883 28,253 Nonoperating income or loss (−): Cash... Proceeds from sale of acquired property: RURAL HOUSING FOR THE ELDERLY REVOLVING FUND For loans pursuant to section 515(a) of the Housing Act of 1949 as amended (42 U.S.C. 1484; 76 Stat. 671), including advances pursuant to section 335(a) of the Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1985) in connection with security for such loans, $5,000,000. Program and Financing (in thousands of dollars) Net nonoperating income. 16,230 15,768 19,031 1962 actual 1963 1964 estimate estimate Retained earnings, start of period.... Deficit (-) assumed at inception of revolv Retained earnings, end of period.. 9,720 25,488 44,519 Financing: The Consolidated Farmers Home Administration Act of 1961 (title III of Public Law 87-128) changed the name of the Disaster loan revolving fund to the Emergency credit revolving fund and repealed the previous legislation. The legislation continued the same principles of extending emergency credit to farmers and ranchers in the event of natural disasters in areas where agricultural credit is not readily available. Authority for economic emergency loans and for emergency assistance in furnishing feed and seed have been discontinued. Loans may be made. to previously indebted borrowers to permit orderly repayment of such indebtedness. Budget program--(a) Emergency loans.-Loans are made at 3% interest to farmers and ranchers and to domestic Program by activities: Operating costs, funded: Administrative expenses. 2.438 Interest and other expenses. 532 3,651 620 46 corporations or partnerships engaged primarily in farming in any designated emergency area or to persons or corporations outside such areas who have suffered severe production losses not general to the area. (b) Other loans. Where necessary to protect Government's investment, obligations are incurred in the connection with outstanding loans to provide for payment of such costs as taxes and insurance. Such advances are charged to the borrowers' accounts. Administrative expenses.-The principal administrative expenses are related to the loan programs of the Farmers Home Administration. These expenses are estimated at $3.6 million in 1963 and $3.5 million in 1964. Administrative expenses for the Office of the General Counsel are estimated at $29 thousand in each of the years 1963 and 1964. Total Government equity... Liabilities: Government equity: Non-interest-bearing capital. Analysis of Government Equity (in thousands of dollars) Financing the budget program.-No new budgetary authorization is required for 1964. A net loss of $2.2 million is estimated on an accrual basis. Net expenditures of $3.0 million are anticipated on a cash basis due primarily to excess loans made over loan repayments during the year. During 1964, the program will be wholly Unobligated balance. financed by receipts from operations. Operating results and financial condition.-Revenue for 1964, consisting principally of interest on loans, is estimated at $3.4 million, compared to expenses of $5.5 million, resulting in an estimated loss of $2.1 million. A net loss of $3.3 million is estimated for 1963, and a net loss of $2.9 million resulted in 1962. Loans receivable, after allowance for losses, are expected to amount to $81.4 million on June 30, 1964, as compared to $80.9 million at June 30, 1963, and $72 million on June 30, 1962. The Government investment at June 30, 1964, is expected to be $114.6 million consisting of $205.8 million appropriated and donated, less a deficit of $91.2 million. Revenue, Expense, and Retained Earnings (in thousands of dollars) Undisbursed loan obligations 1. Total Government equity... 1 The changes in this item are reflected on the program and financing schedule. Object Classification (in thousands of dollars) FARMERS HOME ADMINISTRATION 11 Personnel compensation: Permanent positions... Total personnel compensation. 12 Personnel benefits... 148 243 234 21 Travel and transportation of persons. 24 Printing and reproduction.... 194 8 25 Other services.. 2 33 Investments and loans.. 63,289 61,010 46,525 42 Insurance claims and indemnities. 551 Expense.. Total obligations............ 5,574 Net operating loss (−)--- Nonoperating loss (-): Cash.... Proceeds from sale of collateral: Loans receivable. 43 ALLOTMENT ACCOUNTS 11 Personnel compensation: Permanent posi- 12 Personnel benefits.. 21 Travel and transportation of persons. 220 49 Total allotment accounts.. -61 Net nonoperating loss (—)---. Net loss (-) for the year.. Analysis of deficit (-): Total obligations.... 26 2 226 2 -12 -2,963 -3,347 -2,161 -82,712 -85,676 -89,023 Agricultural Stabilization and Conservation 9 -85,676 -89,023 -91,184 Office of the General Counsel.. Total number of permanent positions. Average number of all employees. 332 493 493 Revenues and other receipts (from program 116,361 171,320 193,837 Increase () in accounts receivable, net. -458 -24 -345 48 81 81 371 562 527 Applicable receipts... 115,903 03_171,296 193,492 This fund is used to insure farm ownership loans, soil and water conservation loans, farm labor housing loans and loans for rental housing for the elderly, as authorized by subtitle A of the Consolidated Farmers Home Administration Act of 1961, and sections 514 and 515(b) of title V of the Housing Act of 1949. The insurance endorsement on each insured loan includes an agreement by the Government to purchase the loan after a specified initial period of not less than 3 years, at the holder's option. The initial fund of $1 million is supplemented by loan insurance charges collected from insured loan borrowers and by borrowing from the Secretary of the Treasury. A portion of such loan insurance charges equal to at least one-half of 1 percent of the outstanding principal obligations must be deposited to the fund to cover losses. The remainder of such charges may be used for administrative expenses. Loans other than farm labor housing loans may be made directly from the fund from available receipts or borrowings from the Treasury for the purpose of acquiring blocks of loans if there is reasonable assurance that the loans can be sold to investors without undue delay. Not more than $25 million for farm ownership and soil and water conservation loans and not more than $10 million for loans for rental housing for the elderly may be held in the fund at any one time. Interest paid the Secretary of the Treasury on borrowings is based on the current average market yield of outstanding marketable obligations of the United States having maturities comparable to the notes issued for borrowings from the Treasury for operation of the fund. Budget program.-Loan disbursements and purchases are estimated at $181.4 million in 1964, an increase of $17.7 million over 1963 and an increase of $72.2 million over 1962. Included is $97 million in 1963 and $95 million in 1964 for making loans from the fund which will later be sold on an insured basis. The increase in 1963 and 1964 7.400 in sale of loans from the fund is expected to result from 134,200 the relatively more favorable market for insured loans. Insured loans outstanding which are contingent liabilities against the insurance fund are expected to increase from $315.8 million on June 30, 1962 to $507 million at June 30, 1963, and to $687 million by June 30, 1964. 47,515 171,320 193,837 535 -780 114,014 163,683 183,053 1 Balance of selected resources are identified on the statement of financial condition. Financing. Net repayments to the Treasury in 1964 are estimated at $10.5 million and in 1963 at $6.8 million. Operating results and retained earnings.-Total income, consisting principally of loan insurance charges is estimated at $4.6 million in 1964, an increase of about $712 thousand from 1963. Outstanding loans receivable of $20 million are estimated at June 30, 1964. Retained earnings, available to cover future losses, are estimated to be $15.6 million at 159 1962 1963 1964 actual estimate estimate Government equity: Interest-bearing capital: 1962 actual 1963 estimale 1964 estimate Borrowings from Treasury, net. Farm ownership and soil and water conservation loans: End of year.. Annual insurance authority.. Non-interest-bearing capital. Increase in authorization (76 Stat. 908).. Retained earnings. 50,000 Total Government equity.. Analysis of Government Equity and Undrawn Authorizations (in thousands of dollars) Commitments to insure pending ad vances by lenders.. Undisbursed loan obligations 1 Total charges against authority... Unobligated balance... Invested capital and earnings. Subtotal.... Annual insurance authority.... Less undrawn authorizations... Commitments to insure pending ad vances by lenders.. 50 Total Government equity.... 35,986 32,118 28,363 Note. This statement excludes contingent liabilities for insured loans in principal amounts at June 30, 1962, $315,835 thousand; at June 30, 1963, $507.265 thousand; and $687,095 thousand, at June 30, 1964. 1 The changes in these items are reflected on the program and financing schedule. Object Classification (in thousands of dollars) 20,558 Rental housing for the elderly: Unused insurance authority.. Loans insured.. Under proposed legislation, 1964.-Proposed legislation would amend title V of the Housing Act of 1949 to provide for a program of insured rural housing loans. Included in the legislation would be authority for the Federal National Mortgage Association to include these loans in its secondary market operations. A $350 million level of insured housing loan activity is anticipated if the insured loan program becomes operative early in 1964. 39,882 37,719 32,796 25,296 Families in the lower income levels would require an estimated $250 million, and an estimated $100 million would be needed for other applicants. In addition to the $200 million in loans made from the proposed new fund |