[Congressional Record Volume 140, Number 137 (Tuesday, September 27, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
    AUTHORITY OF THE SECRETARY OF AGRICULTURE TO SHIFT UNUSED FUNDS

  Mr. METZENBAUM. Mr. President, I ask unanimous consent that the 
Senate proceed to the immediate consideration of S. 2468, a bill to 
permit the Secretary of Agriculture to make available certain amounts 
for FmHA farm ownership, operating or emergency loans, introduced 
earlier today by Senators Conrad, Leahy, and others, that the bill be 
deemed read three times, passed and the motion to reconsider be laid 
upon the table, and that any statements relating to this legislation be 
placed in the Record at the appropriate place as if read.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the bill (S. 2468) was deemed read three times and passed, as 
follows:

                                S. 2468

Be it enacted by the Senate and House of Representatives of the United 
                States of America in Congress assembled,

     SECTION 1. AVAILABILITY OF AMOUNTS FOR FMHA FARM OWNERSHIP, 
                   OPERATING, OR EMERGENCY LOANS.

       Notwithstanding any other provision of law, the Secretary 
     of Agriculture--
       (1) from the date of enactment of this Act until September 
     30, 1994, may transfer funds so as to make available--
       (A) the amounts that would otherwise be available for gross 
     obligations for the principal amount of direct farm ownership 
     or emergency loans as authorized by sections 308 and 309 of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1928 and 1929); and
       (B) the amounts that would otherwise be available for the 
     costs of such direct farm ownership or emergency loans 
     (including the cost of modifying loans, as defined in section 
     502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a));

     for any gross obligations or costs of farm ownership, 
     operating, or emergency loans or credit sales, except that 
     the amounts that would otherwise be available for such costs 
     of such emergency loans may be expended only for such costs 
     of guaranteed subsidized operating loans or credit sales; and
       (2) after September 30, 1994, may not expend funds, or 
     disburse any new loans, made available by a transfer 
     described in paragraph (1) for fiscal year 1994.
  Mr. CONRAD. Mr. President, I am introducing today, on behalf of 
myself and Senators Leahy and Dorgan, a bill to allow the Secretary of 
Agriculture to shift unused funds from various Farmers Home 
Administration [FmHA] farmer programs to its direct and guaranteed 
operating loan programs and its credit sale programs. It is identical 
to an amendment offered by myself and Senators Leahy and Dorgan that 
was passed by the Senate as part of the H.R. 4554, the Agriculture, 
Rural Development, Food and Drug Administration, and related agencies 
appropriation bill for fiscal year 1995.
  FmHA is out of money for direct operating loans for fiscal year 1994. 
This shortfall is due to very high demand for the program, FmHA's 
renewed commitment to assisting borrowers, and interest rate changes 
that have reduced the amount FmHA can lend with the credit subsidy 
appropriated. This program has been severely cut since 1985, when 
actual obligations were $3.6 billion--six times this year's levels.
  There remains a very high, unmet demand for these loans. FmHA has no 
funds available to make approximately 3,000 direct operating loans for 
which it has already approved applications. In addition, more funding 
is needed for guaranteed operating loans because of a recent mandatory 
funding shift to the beginning farmer downpayment loan program, which 
cannot make use of all of these funds. This bill will allow FmHA to 
meet some of this demand.
  While FmHA has some excess funds available in other programs, such as 
emergency loans and beginning farmer downpayment loans, it does not 
have the authority to shift significant amounts between accounts. This 
bill will give the Secretary the authority to shift these funds as 
needed to fund direct and guaranteed operating loans and farm ownership 
loans.
  I urge my colleagues to support this bill.

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