Farmers Home Administration: Federally Acquired Farm Property Presents a Management Challenge
RCED-86-88
Published: Jun 13, 1986. Publicly Released: Jun 13, 1986.
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Highlights
In response to a congressional request, GAO examined the increase in the number of farms that the Farmers Home Administration (FmHA) acquired as a result of loan foreclosures and other actions, specifically: (1) why the increase occurred; (2) the financial impact on the government; and (3) how well FmHA is managing the properties.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FmHA, to intensify the selling efforts for inventory property through more extensive use of advertising. |
FmHA regulations were revised to require that maximum publicity be given to the sale of inventory property. Specific guidance on when, where, and how to advertise was also provided.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FmHA, to issue a policy directive to FmHA state personnel stating that, when suitable property is not sold within a specified time, perhaps 1 year, because of a lack of eligible buyers or economic conditions, it should be reclassified as surplus property. |
Due to concerns expressed by members of the Senate Agriculture Committee over the historic mission of FmHA to hold inventory property for potential family farm buyers for 3 years, FmHA withdrawed the proposed revision to its regulations.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FmHA, to issue a policy directive to FmHA state personnel stating that farm real estate in inventory should neither be leased nor operated for the production of surplus agricultural commodities. |
FmHA regulations were revised to provide the Administrator with authority to restrict leasing of property which could be used to produce agricultural products in surplus supply.
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Topics
Agricultural programsFederal procurementFederal propertyFederal property managementLoan defaultsReal propertyReal propertyMortgage marketFarm loan regulationsAdvertising