Farm Service Agency: Update on the Farm Loan Portfolio (Letter Report,
01/03/97, GAO/RCED-97-35).

Pursuant to a congressional request, GAO provided selected information
on the direct and guaranteed farm loan programs administered by the
Department of Agriculture's Farm Service Agency (FSA), focusing on the:
(1) levels of outstanding principal on active loans and amounts owed by
delinquent borrowers as of September 30, 1996, compared with similar
data as of September 30, 1995; and (2) losses on farm loans during
fiscal year (FY) 1996.

GAO found that: (1) as of September 30, 1996, the outstanding principal
for FSA's active direct and guaranteed farm loans totalled $16.9
billion, $10.5 billion in the direct loan program and $6.4 billion in
the guaranteed loan program; (2) of the $10.5 billion in outstanding
principal in the direct loan program, $3.6 billion, about 34 percent,
was held by delinquent borrowers; (3) this compares with 40 percent of
the $11.4 billion in outstanding principal for FY 1995; (4) for
borrowers who owed more than $1 million in outstanding principal, the
delinquency rate was considerably higher than for those who owed less
than $1 million; (5) in FY 1996, large borrowers held $357 million in
outstanding principal, of which $314 million, about 88 percent, was held
by delinquent borrowers; (6) by comparison, borrowers who owed less than
$1 million held $10.1 billion in outstanding principal, of which 33
percent was held by delinquent borrowers; (7) of the $6.4 billion in
outstanding principal in the guaranteed loan program, $280 million, or
about 4 percent, was held by delinquent borrowers; (8) by comparison,
$218 million, or about 4 percent of the $5.9 billion in outstanding
principal, was held by delinquent borrowers in FY 1995; (9) during FY
1996, $1.1 billion in principal and interest was lost by reducing or
forgiving the debt of delinquent direct loan borrowers, and about $42
million in losses was incurred on guaranteed loans.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-97-35
     TITLE:  Farm Service Agency: Update on the Farm Loan Portfolio
      DATE:  01/03/97
   SUBJECT:  Government guaranteed loans
             Direct loans
             Farm credit
             Delinquent loans
             Losses
             Loan defaults
             Loan repayments
             Agricultural programs
             Debt
IDENTIFIER:  FmHA Direct Farm Loan Program
             FmHA Guaranteed Farm Loan Program
             
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Cover
================================================================ COVER


Report to the Committee on Agriculture, Nutrition, and Forestry, U.S. 
Senate

January 1997

FARM SERVICE AGENCY - UPDATE ON
THE FARM LOAN PORTFOLIO

GAO/RCED-97-35

Farm Loan Portfolio

(150337)


Abbreviations
=============================================================== ABBREV

  FSA - Farm Service Agency
  GAO - General Accounting Office
  USDA - U.S.  Department of Agriculture

Letter
=============================================================== LETTER


B-275588

January 3, 1997

The Honorable Richard G.  Lugar
Chairman, Committee on Agriculture,
 Nutrition, and Forestry
United States Senate

Dear Mr.  Chairman: 

This report responds to your October 22, 1996, request for selected
information on the direct and guaranteed farm loan programs
administered by the U.S.  Department of Agriculture's (USDA) Farm
Service Agency (FSA).\1 In particular, we are providing information
on the (1) levels of outstanding principal on active loans and
amounts owed by delinquent borrowers as of September 30, 1996,
compared with similar data as of September 30, 1995, and (2) losses
on farm loans during fiscal year 1996.  The information contained in
this report updates information that we have reported previously.\2

In summary, we found the following: 

  -- As of September 30, 1996, the outstanding principal for FSA's
     active direct and guaranteed farm loans totaled $16.9
     billion--$10.5 billion in the direct loan program and $6.4
     billion in the guaranteed loan program. 

  -- Of the $10.5 billion in outstanding principal in the direct loan
     program, $3.6 billion, about 34 percent,\3 was held by
     delinquent borrowers, that is, borrowers who were past due on
     their loan payments.\4 (See app.  I.) This compares with 40
     percent of the $11.4 billion in outstanding principal for fiscal
     year 1995. 

  -- For borrowers who owed more than $1 million in outstanding
     principal, the delinquency rate was considerably higher than for
     those who owed less than $1 million.  In fiscal year 1996, large
     borrowers held $357 million in outstanding principal, of which
     $314 million, about 88 percent, was held by delinquent
     borrowers.  By comparison, borrowers who owed less than $1
     million held $10.1 billion in outstanding principal, of which 33
     percent was held by delinquent borrowers. 

  -- Of the $6.4 billion in outstanding principal in the guaranteed
     loan program, $280 million, or about 4 percent, was held by
     delinquent borrowers.  (See app.  II.) By comparison, $218
     million, or about 4 percent of the $5.9 billion in outstanding
     principal, was held by delinquent borrowers in fiscal year 1995. 

  -- During fiscal year 1996, $1.1 billion in principal and interest
     was lost by reducing or forgiving the debt of delinquent direct
     loan borrowers, and about $42 million in losses was incurred on
     guaranteed loans.  (See app.  III.)


--------------------
\1 Historically, farm loans were administered within USDA by the
Farmers Home Administration.  In October 1994, this responsibility
was transferred to the newly created FSA. 

\2 Consolidated Farm Service Agency:  Update on the Farm Loan
Portfolio (GAO/RCED-95-223FS, July 14, 1995). 

\3 Because of the timing of payments, the percentage owed by
delinquent borrowers fluctuates significantly during the year.  Most
loans have payments due on January 1.  Loans are not considered
delinquent until payments are 30 days late--for example, January 31. 
The percentage of delinquency is lowest on December 31 and highest on
January 31. 

\4 If a borrower was delinquent on any farm loan, the principal on
all farm loans held by that delinquent borrower was totaled to
calculate the amount owed. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :1

To prepare this report, we analyzed information from the computerized
databases in FSA's St.  Louis Finance Office.  We did not verify the
accuracy of the information contained in these databases.  Our work
was performed from October through December 1996 in accordance with
generally accepted government auditing standards. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :2

We provided a copy of a draft of this report to USDA for its review
and comment.  In a meeting to obtain USDA's comments, the Acting
Assistant Deputy Administrator for Farm Credit Programs and other FSA
staff generally agreed with the information presented in this report. 
To add perspective to some of the data presented in the report, USDA
officials noted that the percent of outstanding principal held by
delinquent borrowers declined between fiscal years 1995 and 1996. 
They also noted that the percent of outstanding interest held by
delinquent borrowers declined during that time.  The officials added
that the percent of loan losses has declined from fiscal year 1995 to
fiscal year 1996. 

In addition, at the suggestion of USDA, we compared the delinquency
rates for borrowers who owed more than $1 million and those who owed
less than $1 million. 


---------------------------------------------------------- Letter :2.1

As arranged with your office, we are sending copies of this report to
the appropriate Senate and House Committees; interested Members of
Congress; the Secretary of Agriculture; the Administrator of the Farm
Service Agency; the Director, Office of Management and Budget; and
other interested parties.  We will also make copies available to
others upon request. 

Please contact me at (202) 512-5138 if you or your staff have any
questions.  Major contributors to this report are listed in appendix
IV. 

Sincerely yours,

Robert A.  Robinson
Director, Food and
 Agriculture Issues


OUTSTANDING DIRECT LOANS OWED BY
DELINQUENT BORROWERS
=========================================================== Appendix I

This appendix presents information on outstanding direct loans owed
by delinquent borrowers, including the amount and percent, by state,
for fiscal years 1996 and 1995. 



                                        Table I.1
                         
                         Amount and Percent of Outstanding Direct
                          Loans Owed by Delinquent Borrowers, by
                             State, as of September 30, 1996

                                  (Dollars in millions)

                                               Amount owed by         Percent owed by
                   Outstanding principal    delinquent borrowers    delinquent borrowers
                   ----------------------  ----------------------  ----------------------
                                                                      Percent
                                Number of               Number of          of  Percent of
State                  Amount   borrowers      Amount   borrowers        debt   borrowers
-----------------  ----------  ----------  ----------  ----------  ----------  ----------
Alabama                 $95.9       2,142       $16.0         210        16.6         9.8
Alaska                    1.2          14          \a           1         0.4         7.1
Arizona                  98.0         518        73.9         283        75.4        54.6
Arkansas                290.7       4,252        79.1         609        27.2        14.3
California              412.5       1,823       222.7         567        54.0        31.1
Colorado                122.9       1,081        41.3         233        33.6        21.6
Connecticut              12.4         130         4.2          29        34.1        22.3
Delaware                  8.2         103         0.9          10        11.4         9.7
Florida                 122.1       1,149        61.2         321        50.1        27.9
Georgia                 215.8       2,057        75.7         427        35.1        20.8
Hawaii                   41.2         320        13.2          79        31.9        24.7
Idaho                   192.4       2,012        55.7         371        28.9        18.4
Illinois                313.4       4,103        39.7         317        12.7         7.7
Indiana                 221.7       2,142        50.5         343        22.8        16.0
Iowa                    510.4       6,290        76.3         643        14.9        10.2
Kansas                  299.4       4,205        62.3         634        20.8        15.1
Kentucky                264.7       4,267        51.3         449        19.4        10.5
Louisiana               243.3       2,764       145.4       1,103        59.8        39.9
Maine                    96.8         816        34.6         221        35.7        27.1
Maryland                 35.7         345         9.8          76        27.3        22.0
Massachusetts            39.5         355        14.3          87        36.1        24.5
Michigan                244.2       2,196        69.4         394        28.4        17.9
Minnesota               435.1       4,599       120.6         926        27.7        20.1
Mississippi             425.0       4,983       254.8       1,527        59.9        30.6
MissourI                337.8       4,444        68.8         612        20.4        13.8
Montana                 261.7       1,907        98.4         429        37.6        22.5
Nebraska                368.4       4,208        85.9         624        23.3        14.8
Nevada                   16.6         164         5.3          40        32.1        24.4
New Hamphshire           11.1         112         1.0           7         9.1         6.3
New Jersey               56.7         398        29.4         165        51.9        41.5
New Mexico               70.8         794        22.6         175        32.0        22.0
New York                322.8       2,881       146.7         917        45.4        31.8
North Carolina          174.9       2,573        59.6         497        34.1        19.3
North Dakota            485.3       4,483       147.7       1,012        30.4        22.6
Ohio                    166.1       1,538        57.7         374        34.7        24.3
Oklahoma                439.0       5,675       193.0       1,596        44.0        28.1
Oregon                  125.4       1,007        37.3         215        29.8        21.4
Pennsylvania            213.6       1,881        43.4         289        20.3        15.4
Puerto Rico             148.5       2,849        56.2         721        37.8        25.3
Rhode Island              5.3          46         2.2          10        41.3        21.7
South Carolina          139.1       1,505        65.2         336        46.9        22.3
South Dakota            461.4       5,819       119.6         874        25.9        15.0
Tennessee               219.8       3,387        63.8         527        29.0        15.6
Texas                   856.5       8,132       483.1       3,456        56.4        42.5
Utah                     82.3       1,280        17.9         152        21.8        11.9
Vermont                  43.1         418         8.2          63        19.1        15.1
Virgin Islands            2.2          23         0.3           2        12.2         8.7
Virginia                117.8       1,394        48.2         333        41.0        23.9
Washington              132.4       1,009        40.4         185        30.5        18.3
West Virginia            61.1       1,083        15.9         162        26.0        15.0
Western Pacific           1.8          21         0.3           1        15.3         4.8
Wisconsin               345.0       3,582        75.4         618        21.9        17.3
Wyoming                  49.0         464        11.9          74        24.2        15.9
=========================================================================================
Totals              $10,457.8     115,743    $3,578.1      24,326       34.2%        21.0
-----------------------------------------------------------------------------------------
Note:  Totals may not add due to rounding. 

\a Less than $50,000. 



                                        Table I.2
                         
                         Amount and Percent of Outstanding Direct
                          Loans Owed by Delinquent Borrowers, by
                              State, as of September 30,1995

                                  (Dollars in millions)

                                               Amount owed by         Percent owed by
                   Outstanding principal    delinquent borrowers    delinquent borrowers
                   ----------------------  ----------------------  ----------------------
                                                                      Percent
                                Number of               Number of          of  Percent of
State                  Amount   borrowers      Amount   borrowers        debt   borrowers
-----------------  ----------  ----------  ----------  ----------  ----------  ----------
Alabama                $106.6       2,310       $22.6         240        21.2        10.4
Alaska                    0.5           9          \a           1         1.0        11.1
Arizona                 123.8         536        98.2         277        79.3        51.7
Arkansas                326.7       4,523       114.3         792        35.0        17.5
California              488.6       1,923       311.8         634        63.8        33.0
Colorado                127.3       1,148        45.2         252        35.5        22.0
Connecticut              14.7         140         6.3          41        43.2        29.3
Delaware                  8.8         108         1.1          14        12.2        13.0
Florida                 162.6       1,273        98.1         420        60.4        33.0
Georgia                 252.1       2,295       112.5         587        44.6        25.6
Hawaii                   39.6         297        18.7          95        47.1        32.0
Idaho                   219.1       2,125        82.2         476        37.5        22.4
Illinois                341.3       4,397        59.9         493        17.6        11.2
Indiana                 244.5       2,320        62.5         432        25.6        18.6
Iowa                    556.3       6,739       160.8       1,364        28.9        20.2
Kansas                  309.1       4,288        76.0         729        24.6        17.0
Kentucky                284.8       4,377        58.0         467        20.4        10.7
Louisiana               302.8       3,241       202.4       1,541        66.9        47.5
Maine                    96.5         829        40.6         233        42.1        28.1
Maryland                 39.6         362        12.2          91        30.9        25.1
Massachusetts            38.7         345        16.5          92        42.6        26.7
Michigan                264.2       2,328        88.5         493        33.5        21.2
Minnesota               450.9       4,727       184.3       1,425        40.9        30.1
Mississippi             482.7       5,304       325.2       1,702        67.4        32.1
Missouri                368.9       4,746       110.2       1,007        29.9        21.2
Montana                 284.8       2,017       109.7         466        38.5        23.1
Nebraska                393.1       4,382       127.3         891        32.4        20.3
Nevada                   18.7         174         6.2          45        33.0        25.9
New Hampshire            11.2         110         1.2          11        11.2        10.0
New Jersey               56.9         410        28.8         163        50.6        39.8
New Mexico               75.6         840        27.9         186        36.9        22.1
New York                325.8       2,966       156.8         949        48.1        32.0
North Carolina          191.9       2,778        67.3         513        35.1        18.5
North Dakota            496.7       4,577       177.5       1,196        35.7        26.1
Ohio                    189.2       1,679        72.6         454        38.4        27.0
Oklahoma                466.8       5,755       225.8       1,606        48.4        27.9
Oregon                  134.7       1,073        45.2         231        33.6        21.5
Pennsylvania            218.2       1,947        49.7         326        22.8        16.7
Puerto Rico             148.0       2,853        53.9         702        36.4        24.6
Rhode Island              4.9          35         1.9           9        38.4        25.7
South Carolina          162.1       1,668        89.9         484        55.4        29.0
South Dakota            507.0       6,032       206.6       1,586        40.7        26.3
Tennessee               247.4       3,618        87.1         636        35.2        17.6
Texas                   890.5       8,376       505.3       3,304        56.8        39.4
Utah                     83.8       1,234        17.3         133        20.7        10.8
Vermont                  46.0         443         9.6          68        20.8        15.3
Virgin Islands            2.3          22         0.8           4        35.5        18.2
Virginia                135.6       1,553        68.6         460        50.6        29.6
Washington              147.8       1,124        44.5         200        30.1        17.8
West Virginia            60.1       1,005        18.6         186        30.9        18.5
Western Pacific           1.8          22         0.8          11        43.7        50.0
Wisconsin               376.3       3,873       107.7         894        28.6        23.1
Wyoming                  51.9         476        10.9          64        20.9        13.4
=========================================================================================
Totals              $11,379.7     121,732    $4,627.5      29,676        40.7        24.4
-----------------------------------------------------------------------------------------
Note:  Totals may not add due to rounding. 

\a Less than $50,000. 



                                        Table I.3
                         
                             Change in Amount and Percent of
                             Outstanding Direct Loans Owed by
                             Delinquent Borrowers, by State,
                           September 30, 1995, to September 30,
                                          1996.

                                  (Dollars in millions)

                                                             Change in amount owed by
                       Change in outstanding principal         delinquent borrowers
                       --------------------------------  --------------------------------
                                         Number                            Number
                               Percen        of  Percen          Percen        of  Percen
                                    t  borrower       t               t  borrower       t
State                  Amount  change         s  change  Amount  change         s  change
---------------------  ------  ------  --------  ------  ------  ------  --------  ------
Alabama                ($10.7  (10.1)     (168)   (7.3)  ($6.6)  (29.4)      (30)  (12.5)
                            )       %
Alaska                    0.7   147.2         5    55.6       0       0         0       0
Arizona                (25.8)  (20.9)      (18)   (3.4)  (24.3)  (24.7)         6     2.2
Arkansas               (36.0)  (11.0)     (271)   (6.0)  (35.2)  (30.8)     (183)  (23.1)
California             (76.1)  (15.6)     (100)   (5.2)  (89.1)  (28.6)      (67)  (10.6)
Colorado                (4.4)   (3.5)      (67)   (5.8)   (3.9)   (8.6)      (19)   (7.5)
Connecticut             (2.3)  (15.7)      (10)   (7.1)   (2.1)  (33.4)      (12)  (29.3)
Delaware                (0.6)   (7.1)       (5)   (4.6)   (0.1)  (13.0)       (4)  (28.6)
Florida                (40.4)  (24.9)     (124)   (9.7)  (37.0)  (37.7)      (99)  (23.6)
Georgia                (36.3)  (14.4)     (238)  (10.4)  (36.9)  (32.8)     (160)  (27.3)
Hawaii                    1.6     4.0        23     7.7   (5.5)  (29.5)      (16)  (16.8)
Idaho                  (26.7)  (12.2)     (113)   (5.3)  (26.5)  (32.2)     (105)  (22.1)
Illinois               (27.8)   (8.2)     (294)   (6.7)  (20.2)  (33.7)     (176)  (35.7)
Indiana                (22.9)   (9.4)     (178)   (7.7)  (12.0)  (19.2)      (89)  (20.6)
Iowa                   (45.9)   (8.2)     (449)   (6.7)  (84.5)  (52.5)     (721)  (52.9)
Kansas                  (9.7)   (3.1)      (83)   (1.9)  (13.7)  (18.0)      (95)  (13.0)
Kentucky               (20.1)   (7.1)     (110)   (2.5)   (6.8)  (11.7)      (18)   (3.9)
Louisiana              (59.5)  (19.6)     (477)  (14.7)  (57.0)  (28.2)     (438)  (28.4)
Maine                     0.2     0.2      (13)   (1.6)   (6.0)  (14.9)      (12)   (5.2)
Maryland                (3.9)   (9.8)      (17)   (4.7)   (2.5)  (20.3)      (15)  (16.5)
Massachusetts             0.8     2.1        10     2.9   (2.2)  (13.6)       (5)   (5.4)
Michigan               (20.0)   (7.6)     (132)   (5.7)  (19.1)  (21.6)      (99)  (20.1)
Minnesota              (15.8)   (3.5)     (128)   (2.7)  (63.6)  (34.5)     (499)  (35.0)
Mississippi            (57.7)  (11.9)     (321)   (6.1)  (70.4)  (21.7)     (175)  (10.3)
Missouri               (31.1)   (8.4)     (302)   (6.4)  (41.5)  (37.6)     (395)  (39.2)
Montana                (23.1)   (8.1)     (110)   (5.5)  (11.3)  (10.3)      (37)   (7.9)
Nebraska               (24.7)   (6.3)     (174)   (4.0)  (41.4)  (32.5)     (267)  (30.0)
Nevada                  (2.1)  (11.2)      (10)   (5.7)   (0.8)  (13.4)       (5)  (11.1)
New Hampshire           (0.1)   (0.7)         2     1.8   (0.2)  (19.3)       (4)  (36.4)
New Jersey              (0.3)   (0.4)      (12)   (2.9)     0.6     2.1         2     1.2
New Mexico              (4.7)   (6.3)      (46)   (5.5)   (5.2)  (18.8)      (11)   (5.9)
New York                (3.0)   (0.9)      (85)   (2.9)  (10.1)   (6.4)      (32)   (3.4)
North Carolina         (17.0)   (8.9)     (205)   (7.4)   (7.7)  (11.4)      (16)   (3.1)
North Dakota           (11.5)   (2.3)      (94)   (2.1)  (29.8)  (16.8)     (184)  (15.4)
Ohio                   (23.2)  (12.2)     (141)   (8.4)  (14.9)  (20.6)      (80)  (17.6)
Oklahoma               (27.8)   (5.9)      (80)   (1.4)  (32.8)  (14.5)      (10)   (0.6)
Oregon                  (9.4)   (6.9)      (66)   (6.2)   (7.9)  (17.5)      (16)   (6.9)
Pennsylvania            (4.6)   (2.1)      (66)   (3.4)   (6.3)  (12.6)      (37)  (11.3)
Puerto Rico               0.5     0.4       (4)   (0.1)     2.3     4.3        19     2.7
Rhode Island              0.4     8.9        11    31.4     0.3    17.2         1    11.1
South Carolina         (23.0)  (14.2)     (163)   (9.8)  (24.7)  (27.4)     (148)  (30.6)
South Dakota           (45.7)   (9.0)     (213)   (3.5)  (87.0)  (42.1)     (712)  (44.9)
Tennessee              (27.6)  (11.2)     (231)   (6.4)  (23.3)  (26.7)     (109)  (17.1)
Texas                  (34.0)   (3.8)     (244)   (2.9)  (22.2)   (4.4)       152     4.6
Utah                    (1.5)   (1.7)        46     3.7     0.6     3.7        19    14.3
Vermont                 (3.0)   (6.4)      (25)   (5.6)   (1.4)  (14.3)       (5)   (7.4)
Virgin Islands             \a   (1.3)         1     4.5   (0.5)  (66.1)       (2)  (50.0)
Virginia               (17.8)  (13.1)     (159)  (10.2)  (20.4)  (29.7)     (127)  (27.6)
Washington             (15.4)  (10.4)     (115)  (10.2)   (4.0)   (9.1)      (15)   (7.5)
West Virginia             1.1     1.8        78     7.8   (2.7)  (14.3)      (24)  (12.9)
Western Pacific            \a   (1.0)       (1)   (4.5)   (0.5)  (65.4)      (10)  (90.9)
Wisconsin              (31.3)   (8.3)     (291)   (7.5)  (32.3)  (30.0)     (276)  (30.9)
Wyoming                 (2.9)   (5.6)      (12)   (2.5)     1.0     9.3        10    15.6
=========================================================================================
Totals                 ($921.   (8.1)   (5,989)   (4.9)  ($1,04  (22.7)   (5,350)  (18.0)
                           9)                              9.4)
-----------------------------------------------------------------------------------------
Note:  Totals may not add due to rounding. 

\a Less than $50,000. 


OUTSTANDING GUARANTEED LOANS OWED
BY DELINQUENT BORROWERS
========================================================== Appendix II

This appendix provides information on the outstanding guaranteed
loans owed by delinquent borrowers, including the amount and percent,
by state, for fiscal years 1996 and 1995. 



                                        Table II.1
                         
                            Amount and Percent of Outstanding
                           Guaranteed Loans Owed by Delinquent
                         Borrowers, by State, as of September 30,
                                           1996

                                  (Dollars in millions)

                                               Amount owed by         Percent owed by
                   Outstanding principal    delinquent borrowers    delinquent borrowers
                   ----------------------  ----------------------  ----------------------
                                                                      Percent
                                Number of               Number of          of  Percent of
State                  Amount   borrowers      Amount   borrowers        debt   borrowers
-----------------  ----------  ----------  ----------  ----------  ----------  ----------
Alabama                 $46.4         286        $0.9          10         1.9         3.5
Alaska                      0           0           0           0           0           0
Arizona                   9.4          34         0.6           2         6.6         5.9
Arkansas                164.3         970         1.8          11         1.1         1.1
California               75.8         458         2.7          21         3.6         4.6
Colorado                130.5         614         4.8          22         3.7         3.6
Connecticut              12.9          65         0.1           2         1.0         3.1
Delaware                 13.5          75         0.6           3         4.2         4.0
Florida                  55.0         301         1.4          12         2.6         4.0
Georgia                 172.5         866         2.7          19         1.5         2.2
Hawaii                    0.1           3           0           0           0           0
Idaho                    65.9         404         2.8          11         4.3         2.7
Illinois                288.5       1,885         5.4          41         1.9         2.2
Indiana                 127.9         770         4.2          23         3.3         3.0
Iowa                    524.5       4,159        11.5         105         2.2         2.5
Kansas                  258.7       1,775        12.5         109         4.8         6.1
Kentucky                127.2         966         1.8          16         1.4         1.7
Louisiana               235.4       1,762        15.8         171         6.7         9.7
Maine                    12.2          72         0.4           4         3.6         5.6
Maryland                 25.9         177         1.1           7         4.3         4.0
Massachusetts            25.3         100         2.6           8        10.4         8.0
Michigan                216.8       1,061         4.4          32         2.0         3.0
Minnesota               373.9       2,391        15.2         122         4.1         5.1
Mississippi             154.8         875         2.8          21         1.8         2.4
Missouri                221.8       1,352         3.4          30         1.5         2.2
Montana                 106.6         634         4.3          25         4.0         3.9
Nebraska                366.7       2,290        18.4         106         5.0         4.6
Nevada                    4.8          32         0.1           1         1.8         3.1
New Hampshire             4.7          29         0.8           5        17.6        17.2
New Jersey               10.0          52         1.0           5        10.3         9.6
New Mexico               56.8         250         3.8          16         6.6         6.4
New York                131.6         694         8.0          50         6.1         7.2
North Carolina          150.1         879         0.9           6         0.6         0.7
North Dakota            207.4       1,239         9.6          87         4.6         7.0
Ohio                     69.8         457         1.5          13         2.2         2.8
Oklahoma                267.1       1,381        42.5         203        15.9        14.7
Oregon                   24.1         156         0.7           5         2.8         3.2
Pennsylvania             93.8         538         5.5          27         5.9         5.0
Puerto Rico              11.0          73         0.3           2         2.4         2.7
Rhode Island              1.9           6           0           0           0           0
South Carolina           41.6         263         1.4           8         3.3         3.0
South Dakota            233.3       1,874        11.9          89         5.1         4.7
Tennessee                66.6         549         2.3          20         3.5         3.6
Texas                   471.6       2,775        37.5         274         8.0         9.9
Utah                     28.5         175         1.5          11         5.3         6.3
Vermont                  67.2         464         7.5          54        11.2        11.6
Virgin Islands              0           0           0           0           0           0
Virginia                 31.8         183         1.4           7         4.5         3.8
Washington               60.0         381         0.9           9         1.5         2.4
West Virginia            44.7         272         1.3           8         3.0         2.9
Western Pacific             0           0           0           0           0           0
Wisconsin               418.9       2,265        14.2          97         3.4         4.3
Wyoming                  50.4         321         2.9          27         5.7         8.4
=========================================================================================
Totals               $6,360.3      39,653      $279.9       1,957         4.4         4.9
-----------------------------------------------------------------------------------------
Note:  Totals may not add due to rounding. 



                                        Table II.2
                         
                            Amount and Percent of Outstanding
                           Guaranteed Loans Owed by Delinquent
                           Borrowers, by State, as of September
                                         30,1995

                                  (Dollars in millions)

                                               Amount owed by         Percent owed by
                   Outstanding principal    delinquent borrowers    delinquent borrowers
                   ----------------------  ----------------------  ----------------------
                                                                      Percent     Percent
                                Number of               Number of          of          of
State                  Amount   borrowers      Amount   borrowers        debt   borrowers
-----------------  ----------  ----------  ----------  ----------  ----------  ----------
Alabama                 $42.4         283        $0.2           5         0.4         1.8
Alaska                      0           0           0           0           0           0
Arizona                   5.5          26         0.7           2        13.0         7.7
Arkansas                126.5         853         2.0          11         1.6         1.3
California               71.9         451         3.4          24         4.8         5.3
Colorado                118.1         580         3.4          21         2.8         3.6
Connecticut              10.7          57           0           0           0           0
Delaware                 12.6          73         0.1           1         0.5         1.4
Florida                  46.4         258         2.0          12         4.2         4.7
Georgia                 149.2         822         2.4          21         1.6         2.6
Hawaii                    0.3           3           0           0           0           0
Idaho                    75.4         429         3.3          12         4.3         2.8
Illinois                264.6       1,858         6.6          57         2.5         3.1
Indiana                 116.7         735         4.9          23         4.2         3.1
Iowa                    538.4       4,321        11.5         121         2.1         2.8
Kansas                  244.4       1,721        10.9          92         4.5         5.3
Kentucky                104.6         900         1.5          18         1.4         2.0
Louisiana               224.7       1,767         6.1          59         2.7         3.3
Maine                     8.2          61         0.7           7         8.2        11.5
Maryland                 23.9         170         0.2           2         0.9         1.2
Massachusetts            21.6          92         2.1           8         9.7         8.7
Michigan                199.7       1,047         5.1          39         2.6         3.7
Minnesota               358.7       2,412        13.9         130         3.9         5.4
Mississippi             163.6         877         3.3          22         2.0         2.5
Missouri                181.3       1,239         1.7          19         1.0         1.5
Montana                  96.8         583         3.9          23         4.0         3.9
Nebraska                337.2       2,223        14.0          86         4.1         3.9
Nevada                    5.3          33         0.8           6        15.5        18.2
New Hampshire             4.5          29         0.5           5        11.4        17.2
New Jersey                8.9          45         1.3           6        14.0        13.3
New Mexico               49.5         229         2.6          13         5.3         5.7
New York                116.4         636         5.2          33         4.5         5.2
North Carolina          131.1         840         0.7           6         0.5         0.7
North Dakota            177.9       1,167         9.5          77         5.4         6.6
Ohio                     68.0         473         2.2          15         3.2         3.2
Oklahoma                257.8       1,314        27.7         130        10.8         9.9
Oregon                   25.1         168         1.2          10         4.9         6.0
Pennsylvania             95.7         533         5.0          30         5.2         5.6
Puerto Rico              10.7          75           0           0           0           0
Rhode Island              1.1           5           0           0           0           0
South Carolina           41.1         265         0.7           6         1.8         2.3
South Dakota            222.8       1,843         8.0          71         3.6         3.9
Tennessee                65.9         553         2.1          18         3.2         3.3
Texas                   414.9       2,564        21.3         137         5.1         5.3
Utah                     31.1         183         0.7           6         2.4         3.3
Vermont                  67.8         456         6.9          50        10.1        11.0
Virgin Islands              0           0           0           0           0           0
Virginia                 32.0         190         0.5           5         1.5         2.6
Washington               68.0         406         2.1          15         3.1         3.7
West Virginia            40.3         237         0.9           7         2.3         3.0
Western Pacific             0           0           0           0           0           0
Wisconsin               404.6       2,270        11.7          89         2.9         3.9
Wyoming                  48.9         316         2.0          17         4.1         5.4
=========================================================================================
Totals               $5,932.6      38,671      $217.7       1,567         3.7         4.1
-----------------------------------------------------------------------------------------
Note:  Totals may not add due to rounding. 



                                        Table II.3
                         
                             Change in Amount and Percent of
                           Outstanding Guaranteed Loans Owed by
                             Delinquent Borrowers, by State,
                           September 30, 1995, to September 30,
                                           1996

                                  (Dollars in millions)

                                                     Change in amount owed by delinquent
                 Change in outstanding principal                  borrowers
               ------------------------------------  ------------------------------------
                     Percenta              Percenta        Percenta              Percenta
               Amou        ge   Number of        ge  Amou        ge   Number of        ge
State            nt    change   borrowers    change    nt    change   borrowers    change
-------------  ----  --------  ----------  --------  ----  --------  ----------  --------
Alabama        $4.0       9.4           3       1.1  $0.7     401.3           5     100.0
Alaska            0         0           0         0     0         0           0         0
Arizona         3.9      70.5           8      30.8  (0.1    (13.0)           0         0
                                                        )
Arkansas       37.8      29.9         117      13.7  (0.2     (9.4)           0         0
                                                        )
California      4.0       5.5           7       1.6  (0.7    (21.6)         (3)    (12.5)
                                                        )
Colorado       12.4      10.5          34       5.9   1.4      43.1           1       4.8
Connecticut     2.2      20.3           8      14.0   0.1        \a           2        \a
Delaware        0.8       6.6           2       2.7   0.5     719.4           2     200.0
Florida         8.6      18.6          43      16.7  (0.5    (27.4)           0         0
                                                        )
Georgia        23.4      15.7          44       5.4   0.3      12.0         (2)     (9.5)
Hawaii         (0.2    (56.6)           0         0     0         0           0         0
                  )
Idaho          (9.5    (12.6)        (25)     (5.8)  (0.5    (13.9)         (1)     (8.3)
                  )                                     )
Illinois       23.9       9.0          27       1.5  (1.2    (17.6)        (16)    (28.1)
                                                        )
Indiana        11.1       9.6          35       4.8  (0.8    (15.2)           0         0
                                                        )
Iowa           (14.     (2.6)       (162)     (3.7)    \b     (0.4)        (16)    (13.2)
                 0)
Kansas         14.2       5.8          54       3.1   1.6      14.5          17      18.5
Kentucky       22.6      21.6          66       7.3   0.3      18.6         (2)    (11.1)
Louisiana      10.7       4.8         (5)     (0.3)   9.6     156.7         112     189.8
Maine           3.9      47.9          11        18  (0.2    (35.8)         (3)    (42.9)
                                                        )
Maryland        2.0       8.5           7       4.1   0.9     446.7           5     250.0
Massachusetts   3.7      17.3           8       8.7   0.5      25.6           0         0
Michigan       17.1       8.6          14       1.3  (0.7    (13.7)         (7)    (17.9)
                                                        )
Minnesota      15.2       4.2        (21)     (0.9)   1.3       9.2         (8)     (6.2)
Mississippi    (8.8     (5.4)         (2)     (0.2)  (0.5    (15.5)         (1)     (4.5)
                  )                                     )
Missouri       40.5      22.4         113       9.1   1.7      96.3          11      57.9
Montana         9.8      10.1          51       8.7   0.5      11.8           2       8.7
Nebraska       29.5       8.8          67       3.0   4.5      32.0          20      23.3
Nevada         (0.5     (8.9)         (1)     (3.0)  (0.7    (89.1)         (5)    (83.3)
                  )                                     )
New Hampshire   0.2       5.2           0         0   0.3      62.6           0         0
New Jersey      1.1      12.1           7      15.6  (0.2    (18.0)         (1)    (16.7)
                                                        )
New Mexico      7.4      14.9          21       9.2   1.2      44.6           3      23.1
New York       15.2      13.1          58       9.1   2.8      54.8          17      51.5
North          19.0      14.5          39       4.6   0.2      29.8           0         0
 Carolina
North Dakota   29.5      16.6          72       6.2    \b       0.5          10      13.0
Ohio            1.8       2.6        (16)     (3.4)  (0.7    (30.4)         (2)    (13.3)
                                                        )
Oklahoma        9.4       3.6          67       5.1  14.8      53.3          73      56.2
Oregon         (1.0     (3.9)        (12)     (7.1)  (0.5    (44.8)         (5)    (50.0)
                  )                                     )
Pennsylvania   (1.9     (2.0)           5       0.9   0.5      10.2         (3)    (10.0)
                  )
Puerto Rico     0.3       2.5         (2)     (2.7)   0.3        \a           2        \a
Rhode Island    0.9      80.3           1      20.0     0         0           0         0
South           0.5       1.1         (2)     (0.8)   0.7      90.7           2      33.3
 Carolina
South Dakota   10.5       4.7          31       1.7   3.8      47.6          18      25.4
Tennessee       0.7       1.0         (4)     (0.7)   0.2       8.8           2      11.1
Texas          56.8      13.7         211       8.2  16.2      75.8         137     100.0
Utah           (2.6     (8.2)         (8)     (4.4)   0.8     106.2           5      83.3
                  )
Vermont        (0.6     (0.9)           8       1.8   0.7       9.5           4       8.0
                  )
Virgin            0         0           0         0     0         0           0         0
 Islands
Virginia       (0.2     (0.7)         (7)     (3.7)   0.9     186.7           2      40.0
                  )
Washington     (8.0    (11.7)        (25)     (6.2)  (1.2    (58.2)         (6)    (40.0)
                  )                                     )
West Virginia   4.4      11.0          35      14.8   0.4      43.6           1      14.3
Western           0         0           0         0     0         0           0         0
 Pacific
Wisconsin      14.3       3.5         (5)     (0.2)   2.5      21.5           8       9.0
Wyoming         1.5       3.1           5       1.6   0.9      44.4          10      58.8
=========================================================================================
Totals         $1,8      40.2         982       2.5  $62.      28.6         390      24.9
               23.9                                     2
-----------------------------------------------------------------------------------------
Note:  Totals may not add due to rounding. 

\a Less than $50,000. 

\b A percent change cannot be calculated because there were no
delinquencies in 1995. 


DIRECT LOAN LOSSES AND GUARANTEED
LOAN LOSS PAYMENTS
========================================================= Appendix III

This appendix provides information on direct loan losses and
guaranteed loan loss payments, by state, for fiscal year 1996. 



                                       Table III.1
                         
                         Direct Loan Losses, Guaranteed Loan Loss
                          Payments, and Total Losses, by State,
                                     Fiscal Year 1996

                                  (Dollars in millions)

                                                                      Total direct and
                     Direct loan losses    Guaranteed loan losses  guaranteed loan losses
                   ----------------------  ----------------------  ----------------------
State                  Amount   Borrowers      Amount   Borrowers      Amount   Borrowers
-----------------  ----------  ----------  ----------  ----------  ----------  ----------
Alabama                  $1.2          18        $0.1           3        $1.3          21
Alaska                      0           0           0           0           0           0
Arizona                  54.4          33           0           0        54.4          33
Arkansas                 33.6         184         0.7          11        34.3         195
California              224.4         106         0.3           4       224.8         110
Colorado                  4.4          28         0.6           9         5.0          37
Connecticut               1.3           6           0           0         1.3           6
Florida                  58.9         100         0.5           3        59.3         103
Georgia                  51.4         142         1.7          19        53.0          61
Hawaii                     \a           1           0           0          \a           1
Idaho                    29.0          81         0.6           3        29.6          84
Illinois                  9.5          65         1.3          20        10.9          85
Indiana                  10.0          54         0.2           3        10.2          57
Iowa                     10.7         100         1.3          28        12.0         128
Kansas                    8.2          52         0.8          13         9.0          65
Kentucky                  7.9          69         0.4           8         8.3          77
Louisiana               100.5         468         6.8         100       107.2         568
Maine                     4.1          15           0           0         4.1          15
Maryland                  1.2           8         0.1           2         1.3          10
Massachusetts             0.7           2         1.1           4         1.8           6
Michigan                 11.7          71         0.4           8        12.1          79
Minnesota                16.1          69         2.3          33        18.4         102
Mississippi             134.9         276         2.4          29       137.3         305
Missouri                 15.2         106         0.7          12        15.9         118
Montana                  11.7          44          \a           1        11.7          45
Nebraska                  5.7          52         0.6          12         6.3          64
Nevada                    2.4           7           0           0         2.4           7
New Hampshire              \a           1         0.2           2         0.2           3
New Jersey                0.2           1         0.2           2         0.4           3
New Mexico                3.2          17         0.2           2         3.4          19
New York                 14.4          86         0.5           7        14.9          93
North Carolina            9.0          46         0.1           2         9.0          48
North Dakota             16.1          94         0.7          15        16.8         109
Ohio                     14.8          67         0.4           5        15.2          72
Oklahoma                 16.3         108         5.5          38        21.8         146
Oregon                    6.5          23         0.4           3         6.9          26
Pennsylvania              4.9          38         0.3           4         5.2          42
Puerto Rico               1.7          19         0.2           3         1.9          22
South Carolina           23.9          81         0.5           2        24.4          83
South Dakota             15.4          52         0.7          19        16.2          71
Tennessee                12.3          68         1.3          16        13.6          84
Texas                   103.0         258         2.7          36       105.7         294
Utah                      1.4          10         0.1           2         1.5          12
Vermont                   0.2           2         0.3           4         0.5           6
Virgin Islands              0           0           0           0           0           0
Virginia                 21.4          79         0.2           3        21.5          82
Washington                6.6          25         0.4           4         7.0          29
West Virginia             1.2          10         0.6           4         1.8          14
Western Pacific             0           0           0           0           0           0
Wisconsin                16.2         144         2.6          38        18.7         182
Wyoming                   1.1           8         0.8           9         1.9          17
=========================================================================================
Totals               $1,098.6       3,394       $41.9         545    $1,140.5       3,939
-----------------------------------------------------------------------------------------
Note:  Totals may not add due to rounding. 

\a Less than $50,000. 



                                       Table III.2
                         
                         Direct Loan Losses by Loss Category, by
                                 State, Fiscal Year 1996

                                  (Dollars in millions)

                    Debt settlement with   Recovery buy-out with     Restructured with
                         write-off               write-off               write-down
                   ----------------------  ----------------------  ----------------------
State                  Amount   Borrowers      Amount   Borrowers      Amount   Borrowers
-----------------  ----------  ----------  ----------  ----------  ----------  ----------
Alabama                  $0.8          13        $0.2           4        $0.1           1
Alaska                      0           0           0           0           0           0
Arizona                  54.3          32           0           0         0.1           1
Arkansas                 31.6         158         0.9          12         1.1          14
California              223.9         103         0.5           3           0           0
Colorado                  3.6          20         0.3           2         0.5           6
Connecticut               1.0           5           0           0         0.3           1
Florida                  58.7          98          \a           1         0.1           1
Georgia                  48.7         127         2.5          12         0.2           3
Hawaii                     \a           1           0           0           0           0
Idaho                    27.1          65         0.6           6         1.3          10
Illinois                  8.8          57         0.3           2         0.3           6
Indiana                   9.0          48         0.6           3         0.3           3
Iowa                      9.4          86         0.6           5         0.6           9
Kansas                    7.8          46          \a           1         0.4           5
Kentucky                  6.6          55         0.1           1         1.2          13
Louisiana                92.2         406         7.4          49         0.9          13
Maine                     3.6          12         0.2           1         0.2           2
Maryland                  1.1           7           0           0         0.1           1
Massachusetts             0.7           2           0           0           0           0
Michigan                  8.5          41         0.5           7         2.7          23
Minnesota                14.4          54         1.3           7         0.5           8
Mississippi             127.5         237         6.3          31         1.1           8
Missouri                 13.5          83         1.1          15         0.7           8
Montana                  11.1          37         0.4           5         0.3           2
Nebraska                  5.4          47         0.2           3         0.1           2
Nevada                    1.1           5         0.6           1         0.7           1
New Hampshire              \a           1           0           0           0           0
New Jersey                  0           0           0           0         0.2           1
New Mexico                2.3          11         0.6           3         0.2           3
New York                 12.8          76         0.9           4         0.7           6
North Carolina            7.5          38         1.1           5         0.4           3
North Dakota             10.8          67         3.5           9         1.8          18
Ohio                     14.3          62         0.4           3         0.1           2
Oklahoma                  8.7          69         4.1          15         3.5          24
Oregon                    5.8          19           0           0         0.7           4
Pennsylvania              4.4          32         0.1           2         0.4           4
Puerto Rico               1.7          19           0           0           0           0
South Carolina           23.0          73         0.7           6         0.2           2
South Dakota             14.9          44         0.1           2         0.5           6
Tennessee                10.9          59         1.2           6         0.2           3
Texas                    87.7         222        12.3          15         3.1          21
Utah                      1.1           8           0           0         0.2           2
Vermont                   0.1           1           0           0         0.1           1
Virgin Islands              0           0           0           0           0           0
Virginia                 21.2          75           0           0         0.2           4
Washington                6.6          24         0.1           1           0           0
West Virginia             1.2          10           0           0           0           0
Western Pacific             0           0           0           0           0           0
Wisconsin                14.7         126         1.0          10         0.5           8
Wyoming                   0.9           6          \a           1         0.1           1
Totals               $1,020.9       2,887       $50.9         253       $26.8         254
-----------------------------------------------------------------------------------------
Note:  Totals may not add due to rounding. 

\a Less than $50,000. 


MAJOR CONTRIBUTORS TO THIS REPORT
========================================================== Appendix IV

RESOURCES, COMMUNITY, AND ECONOMIC
DEVELOPMENT DIVISION, WASHINGTON,
D.C. 

Ronald E.  Maxon, Jr., Assistant Director
Mary L.  Dietrich, Senior Evaluator
Patrick J.  Sweeney, Senior Evaluator
Robert C.  Sommer, Computer Analyst


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