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Farmers Home Administration: Implementation Issues Concerning Four Sections of the Food Security Act

RCED-89-71 Published: Jun 19, 1989. Publicly Released: Jun 19, 1989.
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Highlights

Pursuant to a congressional request, GAO reviewed the Farmers Home Administration's (FmHA) lack of progress in applying the homestead protection, lease/buy-back, conservation easement, and softwood timber provisions of the Food Security Act of 1985.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
The law is silent on whether Congress intended to provide benefits for the same land under the: (1) softwood timber provision and the conservation reserve program; and (2) conservation easement provision and the conservation reserve program. Congress may wish to consider whether both benefits for the same land should be allowed under these programs.
Closed – Not Implemented
Although Congress had the opportunity to implement this recommendation when developing the 1990 Farm Bill, it did not. Given this lack of action and the fact that the recommendation is 2 years old, GAO is closing this recommendation out.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should require the Administrator, FmHA, to: (1) approve future softwood timber loans at an interest rate that equals the average yield on marketable U.S. obligations with periods to maturity comparable to the average maturities of the softwood timber loans; and (2) modify previous FmHA instructions governing the softwood timber program to require that interest on future softwood timber loans be computed on a compound, rather than simple, interest basis.
Closed – Not Implemented
Given the age of this recommendation and the fact that FmHA does not intend to act on it, GAO is closing it out.

Full Report

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Topics

Agricultural programsFarm income stabilization programsFederal aid for housingForest conservationLoan interest ratesMathematical analysisReal estate leasesResidencesConservation easementsFarm credit