Statement of Administration Policy: H.R. 1035 - Farm Emergency Credit Act of 1985
(Rep. Daschle (D) South Dakota and 19 others)
The Administration strongly opposes enactment of H.R. 1035 because it is unnecessary in the short-run and detrimental to long-run economic solutions for the American farmer.
The Administration has in place both a current Federal lending program for spring planting for eligible farmers and a program of debt adjustment assistance for those in debt to private lenders, which appropriately share the credit burden among farmers, lending institutions, States, and the Federal Government. Secretary Block announced the provisions of the Administration's Emergency Credit Program for American farmers on Friday, February 22. Further actions proposed in this bill are unwarranted.
This bill includes measures which would cause excessive increases in Federal spending:
— It requires the Government to assume an unwarranted 90% of the risk on all new loans made by private lenders through its $3 billion debt adjustment program.
— It provides unprecedented and unjustified advance Commodity Credit Corporation loans on unplanted crops at time of program signup. This has the potential for putting the farmer at greater risk of cash short- falls during the time when he is marketing the crop.
— It substantially and unnecessarily increases the level of loan guarantees for debt adjustment of borrowers served by private lenders above the Administration's $650 million program.
The total spending impact of these measures could be as much as $1.9 billion, over, fiscal years 1985-1986 above the Administration's proposal.
APP Note: Original document provided by Samuel Kernell, UC San Diego.
Ronald Reagan, Statement of Administration Policy: H.R. 1035 - Farm Emergency Credit Act of 1985 Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/326891