Farm Credit System: Analysis of Financial Condition
GGD-86-150BR
Published: Sep 18, 1986. Publicly Released: Sep 18, 1986.
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Highlights
In response to a congressional request, GAO provided an overview of the important issues facing the farm credit system, specifically: (1) an assessment of internal problems that may have contributed to the system's financial problems; (2) a periodic assessment of the financial condition of the system; and (3) a projection of its condition for the next 12 months.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Farm Credit Board | The Chairman of the Federal Farm Credit Board should require the banks in the system to develop and collectively implement a plan to reduce the interest rate exposure of the system. The plan should consider all assets and liabilities systemwide, not the financial position of the individual banks. |
The Farm Credit Administration differs with the GAO position on asset liability management and has taken the position that asset liability management should be managed on an institutional basis, rather than a systemwide basis.
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Topics
Agricultural industryBonds (securities)Farm creditFarm credit banksFarm income stabilization programsFinancial analysisInterest ratesLoan defaultsLossesProjections