United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Resources, Community, and Economic Development Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1994-11-16 monographic deposited born digital 83 p. GA 1.13:RCED-95-9 https://www.govinfo.gov/app/details/GAOREPORTS-RCED-95-9 P0b002ee18039a636 f:rc95009 DGPO 2010-08-12 2011-03-24 GAOREPORTS-RCED-95-9 machine generated eng fdlp REPORT GAOREPORTS-RCED-95-9 RCED-95-9 Farm credit Direct loans Government guaranteed loans Loan defaults Eligibility determinations Lending institutions Risk management Farm income stabilization programs Farm subsidies Losses FmHA Guaranteed Farm Loan Program FmHA Direct Farm Loan Program Chapter Report RCED Because it assists farmers who present less financial risk than direct loan borrowers, the Farmers Home Administration's (FmHA) guaranteed farm loan program has substantially lower rates of delinquency and loan losses than its direct loan program. Nonetheless, FmHA has hundreds of millions of dollars in guaranteed loans that are at risk, in part, because FmHA's lending policies allow borrowers who defaulted on past loans to obtain new guaranteed loans. Also, FmHA's field office officials have not always followed the agency's standards for servicing guaranteed loans, which are meant to protect the government's financial interest. The guaranteed loan program has not been effectively used as a tool to graduate direct loan borrowers to commercial credit. As a result, some borrowers may have direct loans longer than justified, taking advantage of the more favorable terms. Commercial lenders told GAO that changes are needed to FmHA's farm loan programs in order for lenders to consider taking on more direct loan borrowers as clients. They suggest changing the direct loan program to provide incentives for borrowers to seek commercial credit and changing the guaranteed loan program to make it more attractive to lenders. https://www.govinfo.gov/content/pkg/GAOREPORTS-RCED-95-9/html/GAOREPORTS-RCED-95-9.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-RCED-95-9/pdf/GAOREPORTS-RCED-95-9.pdf GAO/RCED-95-9 https://www.govinfo.gov/app/details/GAOREPORTS-RCED-95-9 Chapter Report GAO/RCED-95-9; Farmers Home Administration: The Guaranteed Farm Loan Program Could Be Managed More Effectively; Farm credit Direct loans Government guaranteed loans Loan defaults Eligibility determinations Lending institutions Risk management Farm income stabilization programs Farm subsidies Losses FmHA Guaranteed Farm Loan Program FmHA Direct Farm Loan Program Public Law 87-128 Public Law 92-419 Public Law 97-255 Public Law 99-198 Public Law 101-508 Public Law 102-554