Missouri Farm Bureau
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Kevin Craig - "Liberty Under God"
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Agricultural credit is a band-aid used
to stop economic bleeding. The first question to ask is What
caused the injury? What impeded the accumulation of capital?
One of the most important aspects of credit in our day is the debasement
of the currency that occurs through the government banking
system. Kevin Craig does not disagree with tinkering with the Farm
Credit System, but the larger monetary issues of government
manipulation of currency and credit cannot be long
ignored.
The tax burden on rural families
can never be overcome (and indeed is caused by) government
bailouts of credit organizations. |
| Agricultural
Liens |
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| We favor
the current Missouri law which gives lending institutions the
option of releasing a portion of their security interest and
giving priority to credit issued by farm suppliers. |
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| Farm
Credit System |
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| Preservation
of the Farm Credit System is in the long-term best interest of
U.S. agriculture. We favor decentralization
to the maximum extent feasible. We support promotion of
"Farmer Mac." |
The recent
problems with Fannie Mae and Freddie Mac suggest questioning
support of Farmer Mac.
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| The Farm
Credit System has an important and constructive role to play in
making financing available for rural housing, agri-businesses and
rural infrastructure development. |
next: Agricultural
Extension |
| We oppose
any restructuring of the Farm Credit System which replaces
farmer-elected members of System boards with commercial bankers or
expands commercial bank access to FCS funding. |
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| We believe
it is in the best interest of Missouri agricultural producers for
the Farm Credit System to remain intact. We support legislation to
remove the statutory exit provision from the Farm Credit Act. |
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| Farm
Foreclosures |
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| Efforts to
protect all farmers with moratorium legislation would make it more
difficult and more costly for farmers to receive credit in the
future. We believe farm loan decisions must be made on a
case-by-case basis. |
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| Lenders
should be encouraged to sell a homestead separate from other farm
properties when doing so is consistent with sound business
principles. |
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| Farm
Service Agency (FSA) |
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| We favor
allowing the Farm Service Agency (FSA) to dispose of property at
fair market value acquired through foreclosures to recover costs
on borrowers who have not and cannot pay the interest and
principal on their loans. |
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| We favor
moving FSA loans away from direct government loans to guaranteed
loans (where private lenders make the loans backed by a government
guarantee). We encourage commercial bankers and FSA to work
together to ensure paperwork and reporting requirements for FSA
guaranteed loans do not impede participation. |
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| We favor
subsidizing FSA interest rates by the federal government for
disaster loans. |
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| We support
repeal of the program which allows certain inventoried FSA land to
be sold subject to conservation easements. If these easements are
allowed, we favor government agencies (e.g. U.S. Fish and Wildlife
Service) be required to make payments in lieu of taxes on easement
acreages. |
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| We oppose
the transfer of inventoried property to federal or state natural
resource agencies without it first being offered for sale to the
public. |
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| We believe
the FSA beginning farmer program should give priority to younger
farmers and should use a debt to equity factor for determining
eligibility rather than the current requirement that applicants
can own no more than 25% of the average size farm in their county. |
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| We favor
FSA disaster or guaranteed loans being made available to
incorporated levee districts. |
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| We believe
that eligibility for FSA loan guarantee, interest assistance and
direct loan programs should not be limited to an arbitrary number
of years. |
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| We support
amending Section 310B(a) of the Consolidated Farm and Rural
Development Act to allow for business and industry guaranteed
loans to be made for farmer-owned projects that add value to or
process agricultural products regardless of the physical location
of the plant. |
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| We feel
that farmers and landowners should be able to continue receiving
their farm payments by check and should not be forced to take
payments as a credit to their checking accounts electronically. |
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| FSA must
constantly review the formula used to set Posted County Prices
(PCPs) to ensure that it accurately reflects market conditions at
the county level and that the differential between the cash price
and PCP does not unfairly penalize producers or county elevators. |
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| "Land
Link" |
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| We support
the concept of establishing a service to help match beginning
farmers with retiring farmers who do not have heirs to continue
the family farm business. |
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| Loan
Guarantee Program |
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| We support
a program to provide loan guarantees for loans to value-added
processing facilities through the sale of taxable bonds. The main
source of revenues to repay or guarantee these bonds should come
from general revenue appropriations. |
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| State-Sponsored
Loans |
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| We favor
the continuation of the Missouri Linked Deposit Program, which
reduces interest rates to farmers and small businesses through
local banks and Farm Credit System banks. We support the State
Treasurer’s program to set aside a portion of the state’s
investment portfolio to be used to create capital for value-added
and other agricultural enterprises through the Missouri Linked
Deposit Program. |
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In addition, we believe eligibility for the Missouri Linked
Deposit Program should be maintained for 2-3 years even though a
borrower's debt to asset ratio may improve after they initially
qualify for the program.
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| We favor
requiring the same criteria for small business as currently exist
for the agricultural loan program. |
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We support Missouri Linked Deposit Program funds being made
available for on-farm grain storage, drying, handling systems and
structures.
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We oppose the state going beyond the Missouri Linked Deposit
Program to create a state agricultural bank and to issue
voter-approved bonds to provide additional low interest loan money
for farmers.
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| We support
the State Treasurer's efforts to invest more state funds with
Missouri financial institutions rather than out-of-state. |
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| Young
Farmer Funding |
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| We favor
legislation which would better assist lending institutions in
making loans to young farmers through improved flexibility of
loans, such as longer terms, lower down payments, lower interest
rates and redefining the definition of a young farmer. |
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