[Federal Register Volume 64, Number 16 (Tuesday, January 26, 1999)]
[Notices]
[Page 3926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1505]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Suspension of Direct and Guaranteed Loans for Hog Production

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The swine industry is currently in crisis due to over supply 
and low prices. The Secretary is concerned that, during this period of 
low prices, the availability of certain RBS credit programs may 
facilitate additional production capacity that will prolong the current 
hog price depression. Additional capacity is also likely to damage the 
prospects for long-term financial recovery in the industry. Continued 
financial stress on hog farmers may force and accelerate concentration 
of the production, processing, and marketing of hogs into fewer hands. 
This notice temporarily suspends direct Rural Economic Development Loan 
and Business and Industry Guaranteed Loan financing for the 
construction of specialized facilities used for the production of hogs.

FOR FURTHER INFORMATION CONTACT: William F. Hagy III, Deputy 
Administrator, Business Programs, Rural Business-Cooperative Service, 
1400 Independence Avenue, SW., Washington, D.C. 20250-3220, telephone 
(202) 720-7287.

DATES: January 26, 1999. This notice will be in effect until rescinded 
by the National Office.

SUPPLEMENTARY INFORMATION: State Offices shall direct all questions 
regarding this notice to the Deputy Administrator, Business Programs. 
Any application for a direct or guaranteed loan for the construction or 
expansion of a specialized hog production facility will be accepted but 
held in abeyance until the suspension is lifted. A specialized hog 
production facility is defined as any building or enclosure and related 
equipment specifically to house, raise, or feed hogs of any size, age, 
or market class.
    The loan processing time frames will not apply to these 
applications while the suspension is in effect. The State Office will 
notify both the applicant and the lender that the application is being 
held. All guaranteed lenders should be notified of the suspension.
    Direct and guaranteed loan applications for purchase, refinancing, 
maintenance, or repair of facilities currently in production will 
continue to be processed. Direct and guaranteed loan applications that 
were received by Rural Development State Offices on or before the date 
of this notice will be processed through to completion and will not be 
affected by this temporary suspension. In all other cases, applications 
will only be processed when the Government's interest will be imperiled 
if the application is not processed.

    Dated: January 14, 1999.
William F. Hagy III,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 99-1505 Filed 1-25-99; 8:45 am]
BILLING CODE 3410-XY-P