Statement of Administration Policy: S. 1884 - Farm Credit Act Amendments

(Senate)
(Senator Helms (R) North Carolina and two others)

The Administration supports prompt resolution of the financial difficulties currently facing the Farm Credit System, and applauds the Senate for considering S. 1884 in an expedited fashion.

The Administration strongly opposes, however, the authorization for financial assistance to the Farm Credit System and urges the Senate to delete this provision from the bill. Such authority is premature, pending an evaluation of the effectiveness of the bill's two other major reform features.

These reforms — reorganization of the Farm Credit Administration into an independent supervisor and creation of the Farm Credit System Capital Corporation to pool the System's own considerable resources — are self-help measures which should prove sufficient to allow the Farm Credit System to resolve its current financial difficulties without the need for Federal financial assistance.