oversight

Farmers Home Administration: Farm Program Debt, Delinquencies, and Loan Losses as of June 30, 1989

Published by the Government Accountability Office on 1990-06-26.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                                                                                  b
                                 B&f’ing( I&>& to the Chairman,
                                 Sulx~~mmittec on Agricultural Crctlit,
                                 Committee on Agriculture, Nutritiq     and
                                 Forestry, U.S. Senate

    ,I II tltb 1!)!fO
                                 FARMERS HOME
                                 ADMINISTRATION
                                  Farm Program Debt,
                                  Delinquencies, and
                                  Loan Losses as of
                                  June 30,1989
                                                                                                  E
                                                                                    lllllIllIll
                                                                                     141882




                                 RESTRICTED--      Not to be released outside the
                                 General Accounting OfPice unless specifically
                                 approved by tbe Offke of Congressional
                                 Relations.

,
     (;Ao/‘lC(:II:l)-!to-l!mit
Resources, Community,   and
Economic Development    Division

B-239388


June26,1990

The Honorable   Kent Conrad
Chairman,  Subcommittee   on Agricultural             Credit
Committee on Agriculture,    Nutrition,
  and Forestry
United States Senate
Dear Mr. Chairman:
In May 1988, we issued a report           that provided      an overview   of
the Farmers Home Administration's             (FmHA) farm loan program
debt, delinquencies,       and loan losses.1         As you requested     on
September 28, 1989, this briefing            report    updates our earlier
report    and provides   financial     information      about FmHA's
portfolio     as of June 30, 1989, for five major farm loan
programs:      farm ownership,     farm operating,       emergency
disaster,    economic emergency,       and soil and water.         We
briefed    your staff   on information       presented     in this report
in April    1990.
FmHA is a credit         agency of the U.S. Department              of
Agriculture       (USDA).       In addition       to making direct      loans
 (government-funded)          to family       farmers who are unable to
obtain     credit    from other lenders           at reasonable     rates and
terms, FmHA guarantees             some farm loans made by private
lenders.       FmHA serves        as a "lender        of last resort"     to
farmers and is the federal              government's        primary   source of
farm credit.         Statutory      authority       for FmHA's lending
programs is provided           by the Consolidated           Farm and Rural
Development       Act (P.L. 87-128, Aug. 8, 1961, as amended).
In summary,       our analysis     showed that:
-- As of June 30, 1989, FmHA's major farm program direct
   loan portfolio      was over $28 billion      (in outstanding
   principal     and unpaid interest)      and consisted     of
   624,173 loans held by 350,867 borrowers,            when
   borrowers     having more than one type of loan were
   counted in each loan category         for which they had a
   loan.     When this double counting       was eliminated,     there
   were only 216,935 individual       borrowers.       The three
 y largest    loan programs are emergency disaster

lFarmers    Home Administration:  Farm Program Debt,
Delinquencies,    and Loan Losses as of June 30, 1987
 (GAO/RCED-88-134BR, May 20, 1988).
B-239388

      ($10.5 billion;     224,045 loans;         and 90,280 borrowers),
     farm ownership      ($7.7 billion;         142,682 loans;  and 109,412
     borrowers),      and farm operating         ($5.8 billion:  182,694
     loans:   and 100,022 borrowers).
--   Past due payments on FmHA major farm program direct
     loans rose from $164 million     in 1976 to $8.7 billion                      in
     1989.   Almost $5 billion   of the 1989 delinquencies                    is     in
     one loan program-- emergency disaster.
--   The $8.7 billion     direct     loan past due amount represents
     nonpayments due from about 78,000 borrowers.               These
     delinquent   borrowers      held $12 billion     in outstanding
     principal  and almost $5 billion          in unpaid interest.
--   About $7.8 billion,   or almost 90 percent,   of the
     $8.7 billion   direct loan past due amount is owed by more
     than 44,000 borrowers    who had not made a loan payment in
     3 years or longer.
--   Over the past 12 fiscal         years (1978 through        1989),
     annual loan losses in the major farm programs                 (net of
     proceeds    from sales of loan collateral)            have grown from
     about $41 million        in 1978 to over $3.3 billion          in 1989
     for direct     loans and from $277,000 to more than
     $64 million      for guaranteed     loans.      Total major farm
     program annual loan losses for both direct                and guaranteed
     loans increased       over 4,000 percent        between 1982 and 1989.
     Loan losses were 139 times greater              in fiscal   year 1989
     compared with 1976, increasing            from over $24 million        to
     almost $3.4 billion.         Cumulative      loan losses for the
     past 12 years have been greatest             in the emergency
     disaster    (almost $3.7 billion)        and farm operating       loan
     (almost    $1,8 billion)     programs.
The Agricultural         Credit Act of 1987 (P.L. 100-233,                  Jan. 6,
1988) was enacted to provide              FmHA with a mechanism for
handling     the billions       of dollars       of delinquent        farm loans in
its portfolio.         FmHA estimated         it will     forgive     about
$9.4 billion        of outstanding       principal      and unpaid interest         in
servicing      delinquent      borrowers      under the provisions           of the
act.      In November 1988, FmHA began implementing                     the act by
notifying      more than 66,000 delinquent              borrowers       of the act's
debt servicing        options.      During 1989, FmHA completed
servicing      many of the delinquent            borrowers      who applied      in
response to the November 1988 notices.                      However, according
to the FmHA Deputy Assistant              Administrator         for Farmer
Programs,      FmHAls financial        records were not updated until
December 1989 to include            completed       servicing      actions.
2
B-239388

Therefore,   the condition   of FmHAls portfolio,    as of June 30,
1989, described    above does not reflect    the servicing  of
delinquent   borrowers t debt as of that date.
To provide     a fuller      picture     of FmHA's loan portfolio,           we
have included       information       in section       3 of the report      which
reflects    the results       of debt servicing          through    February    28,
1990.     According      to the USDA Under Secretary             for Small
Community and Rural Development,                 as of that date, FmHA debt
forgiveness     under the act-- restructuring               with debt write-
downs and allowing         borrowers       to buy out their       debt at an
adjusted    value of their         collateral--      reduced the outstanding
principal     and unpaid interest            of 10,035 delinquent        borrowers
by almost $2 billion.             Further,      another    17,090 delinquent
borrowers,     whose outstanding           principal     and unpaid interest
totaled    $2.4 billion,        had their       debt restructured      without
debt write-down        or write-off.


This briefing         report    is divided      into five sections          and
several      appendixes.        Section     1 provides     a summary of total
farm debt and the FmHA portion                of that total.          Section      2
provides      more detailed       information       on FmHA debt,
specifically        for the five major FmHA farm loan programs.
Section      3 discusses      the growing delinquencies             which occurred
prior    to the implementation            of the Agricultural          Credit      Act
and provides        updated information           on servicing      actions     under
the act as of February            28, 1990.        Section     4 discusses       the
mounting      loan losses in the five major FmHA farm loan
programs.        Section     5 describes      our objectives,         scope, and
methodology       in conducting        this review and preparing             this
briefing      report.      Appendixes      I through V provide           additional
details      about the FmHA debt information               highlighted       in the
report     sections.        Our work was conducted           from October 1989
through      February     1990.
We obtained        overall      farm debt information       from various
reports       issued by USDA's Economic Research Service.                We
developed        FmHA farm debt information,          including
delinquencies,           from FmHA's Master Borrower File and loan
status      reports.        Loan loss data came from USDA budget
records.         Details     on our scope, methodology,         and data
limitations        are discussed      in section    5.
USDA officials      reviewed a draft of this briefing                  report     for
technical     accuracy and changes were made where                   appropriate.


3
B-239388

As arranged       with your office,        unless you publicly          release
its contents        earlier,     we plan no further        distribution       of
this briefing         report    until   30 days from the date of this
letter.       At that time we will         send copies to the Chairmen,
Senate and House Agriculture              Committees;      the Secretary       of
Agriculture;        the Administrator,        Farmers    Home Administration:
the Director,         Office    of Management and Budget; and other
interested       parties.       Copies will    be available        to others upon
request.       If we can be of further           assistance,       please contact
me on (202) 275-5138.             Major contributors         to this briefing
report     are listed        in appendix VI.
Sincerely    yours,




Director,      Food and
   Agriculture     Issues




*

4
                               CONTENTS
                                                              Pase
LETTER                                                          1
SECTION
        1   FmHA AND TOTAL FARM DEBT HAVE CONTINUED
              TO DECLINE                                       11
        2   FmHA MAJOR FARM PROGRAMDEBT HAS CONTINUED
              THE DECREASE THAT BEGAN IN 1986                  21
        3   FmHA MAJOR FARM PROGRAMDELINQUENCIES HAVE
              CONTINUED TO INCREASE, BUT ARE SHOWING
              IMPROVEMENT WITH SERVICING UNDER THE
              AGRICULTURAL CREDIT ACT                          51
        4   FmHA MAJOR FARM PROGRAMLOAN LOSSES ARE
              CONTINUING TO MOUNT                              83
        5   OBJECTIVES,   SCOPE, AND METHODOLOGY               97
APPENDIX
        I   FARM DEBT, STATE INFORMATION,
              DECEMBER 31, 1988                               102
   II       TOTAL FmHA DIRECT LOAN ACTIVITY   BY MAJOR
              FARM PROGRAM, JUNE 30, 1989                     104
 III        DELINQUENT FmHA DIRECT LOAN ACTIVITY   BY
              MAJOR FARM PROGRAM, JUNE 30, 1989               116
   IV       FmHA 3-YEAR-OR-OLDER DELINQUENCIES OF MAJOR
              FARM PROGRAMDIRECT LOANS, JUNE 30, 1989         128
       V    FmHA RESTRUCTURING ACTIONS, BY STATE, AS
              OF FEBRUARY 28, 1990                            130
  VI        MAJOR CONTRIBUTORS TO THIS BRIEFING REPORT        136
TABLE
   1.1      FmHA and All Other Farm Debt, December 31,
              1975-88                                          13
   1.2      Source of Total Farm Debt, December 31, 1988       15
   1.3      Ten States With Highest Total Farm Debt,
              December 31, 1988                                17
   1.4      Ten States With Highest Percentage of FmHA Farm
              Debt to Total Farm Debt, December 31, 1988       19

                                 5
                                                                     Pase
TABLE
  2.1   Total FmHA Major Farm Program Outstanding
           Principal,      Direct   Loans, June 30, 1976-89            23
  2.2   Lending Levels for FmHA Major Farm Program Direct
           and Guaranteed        Loans, Fiscal      Years 1976-89      25
  2.3   Borrowers,      Loans, and Debt Amounts for the FmHA
           Direct     Major Farm Programs, June 30, 1989               27
  2.4   Ten States With Highest          FmHA Farm Debt, Direct
           Loans, June 30, 1989                                        29
 2.5    Outstanding       Principal    on FmHA Farm Ownership
           Direct     Loans, June 30, 1976-89                          31
 2.6    Ten States With Highest Outstanding              Principal
           and Unpaid Interest         on FmHA Farm Ownership
           Direct     Loans, June 30, 1989                             33
 2.7    Outstanding       Principal    on FmHA Farm Operating
           Direct     Loans, June 30, 1976-89                          35
 2.8    Ten States With Highest Outstanding              Principal
           and Unpaid Interest         on FmHA Farm Operating
           Direct     Loans, June 30, 1989                             37
 2.9    Outstanding       Principal    on FmHA Emergency Disaster
           Direct     Loans, June 30, 1976-89                          39
 2.10   Ten States With Highest Outstanding              Principal
           and Unpaid Interest         on FmHA Emergency Disaster
           Direct     Loans, June 30, 1989                             41
 2.11   Outstanding       Principal    on FmHA Economic Emergency
           Direct     Loans, September 30, 1978-79,          and
           June 30, 1980-89                                            43
 2.12   Ten States With Highest Outstanding              Principal
           and Unpaid Interest         on FmHA Economic Emergency
           Direct     Loans, June 30, 1989                             45
 2.13   Outstanding       Principal    on FmHA Soil and Water
           Direct     Loans, June 30, 1976-89                          47
 2.14   Ten States With Highest Outstanding              Principal
           and Unpaid Interest         on FmHA Soil and Water
           Direct     Loans, June 30, 1989                             49
 3.1    Comparison of Major Farm Program Past Due
           Amount to Outstanding         Principal,
           June 30, 1976-89                                            53
 3.2    Comparison of Major Farm Program Past Due
           Amount to Outstanding         Principal     Owed by
           Delinquent      Borrowers,    June 30, 1976-89              55
 3.3    Comparison of Major Farm Program Past Due
           Amount to 3-Year-or-More          Past Due
           Amount, June 30, 1976-1989                                  57
 3.4    Index of Major Farm Program Total Past Due
           Amount and 3-Year-or-More           Past Due
           Amount, June 30, 1976-89                                    59


                                  6
TABLE
  3.5    Total Past Due Amount and 3-Year-or-More
            Past Due Amount by Major Farm Program,
            June 30, 1989                                                    61
  3.6    Ten States With Highest Major Farm Program
            Past Due Amount, June 30, 1989                                   63
  3.7    Ten States With Highest         Farm Ownership Loan
            Past Due Amount, June 30, 1989                                   65
  3.8     Ten States With Highest          Farm Operating     Loan
            Past Due Amount, June 30, 1989                                   67
  3.9    Ten States With Highest Emergency Disaster                Loan
            Past Due Amount, June 30, 1989                                   69
  3.10   Ten States With Highest         Economic Emergency Loan
            Past Due Amount, June 30, 1989                                   71
  3.11   Ten States With Highest         Soil and Water Loan
            Past Due Amount, June 30, 1989                                   73
  3.12   Ten States With Highest         3-Year-or-More
            Past Due Amount, June 30, 1989                                   75
  3.13   Age of Major Farm Program Past Due Amount,
            June 30, 1989                                                    77
  3.14   Major Farm Program Loans and Delinquency              Status,
            June 30, 1989                                                    78
  3.15   Ten States With Highest         Total FmHA Farm Program
            Debt and Net Recovery Value Buy-Out Amounts,
            February  28, 1990                                               81
  3.16   Ten States With Highest Total FmHA Farm Program
            Debt and Write-Down       Amounts, February       28, 1990       81
  3.17   Ten States With Highest Total FmHA Farm Program
            Debt Restructured       Without Write-Down,
            February  28, 1990                                               82
  4.1    FmHA Major Farm Program Loan Losses, Fiscal                Years
            1976-89                                                          85
 4.2     Farm Ownership Loan Losses, Fiscal             Years 1976-89        87
 4.3     Farm Operating     Loan Losses, Fiscal         Years 1976-89        89
 4.4     Emergency Disaster       Loan Losses, Fiscal        Years
            1976-89                                                          91
 4.5     Economic Emergency Loan Losses, Fiscal              Years
            1978-89                                                          93
 4.6     Soil and Water Loan Losses, Fiscal             Years 1976-89        95
 5.1     FmHA Delinquent      Dollar    Amounts by Borrower
            and by Loan Type, June 30, 1989                                  99
II.1     Total FmHA Major Farm Program Direct             Loan
           Activity,    June 30, 1989                                       104
II.2     Total Farm Ownership Program Direct             Loan Activity,
           June 30, 1989                                                    106
II.3     Total Farm Operating        Loan Program Direct       Loan
           Activity,    June 30, 1989                                       108
II.4     Total Emergency Disaster         Program Direct      Loan
           Activity,    June 30, 1989                                       110

                                      7
                                                                                Page
TABLE
  II.5     Total Economic Emergency Program Direct         Loan
             Activity,     June 30, 1989                                       112
  II.6     Total Soil and Water Program Direct         Loan Activity,
             June 30, 1989                                                     114
III.1      Delinquent     FmHA Major Farm Program Direct       Loan
             Activity,     June 30, 1989                                       116
III.2      Delinquent     Farm Ownership Program Direct      Loan
             Activity,     June 30, 1989                                       118
III.3      Delinquent     Farm Operating   Program Direct
              Loan Activity,     June 30, 1989                                 120
III.4      Delinquent     Emergency Disaster    Program Direct
              Loan Activity,     June 30, 1989                                 122
III.5      Delinquent     Economic Emergency Program Direct        Loan
             Activity,     June 30, 1989                                       124
III.6      Delinquent     Soil and Water Program Direct      Loan
             Activity,     June 30, 1989                                       126
   V.1     FmHA Farm Program Debt for Borrowers         Receiving     Net
             Recovery Value Buy-Out,       February   28, 1990                 130
   v.2     FmHA Farm Program Debt for Borrowers         Receiving
             Restructuring     With Write-Down,
             February     28, 1990                                             132
   v.3     FmHA Farm Program Debt for Borrowers         Receiving
             Restructuring     Without Write-Down,
             February     28, 1990                                             134
FIGURE
   1.1     Index of Farm Debt, December 31, 1975-88                             12
   1.2     Percentage       of Farm Debt by Source,
              December 31, 1988                                                 14
   1.3     Total Farm Debt:           All Sources --Nationwide
              Distribution,        December 31, 1988                            16
   1.4     FmHA Farm Debt as a Percentage                of Total Farm
              Debt--Nationwide          Distribution,      December 31, 1988    18
   2.1     Outstanding       Principal       on FmHA Major Farm Program
              Direct     Loans, June 30, 1976-89                               22
   2.2     FmHA Major Farm Program Direct                Loan Lending
              Levels,     Fiscal     Years 1976-89                             24
   2.3     FmHA Major Farm Program Guaranteed                 Loan Lending
              Levels,     Fiscal     Years 1976-89                             24
   2.4     FmHA Major Direct          Loan Activity,       by Loan Program,
              June 30, 1989                                                    26
   2.5     FmHA Total Outstanding             Principal    and Unpaid
              Interest      on Direct      Loans, by Loan Program,
              June 30, 1989                                                    26
   2.6     Total Outstanding          Principal       and Unpaid Interest
              on FmHA Major Farm Program Direct                Loans--
         *    Nationwide      Distribution,         June  30,  1989            28

                                       8
                                                                                       Paae
FIGURE
  2.7         Outstanding      Principal      on FmHA Farm Ownership
                 Direct    Loans, June 30, 1976-89                                       30
 2.8         Outstanding       Principal      and Unpaid Interest          on
                FmHA Farm Ownership Direct              Loans--Nationwide
                Distribution,        June 30, 1989                                       32
 2.9         Outstanding       Principal      on FmHA Farm Operating
                Direct     Loans, June 30, 1976-89                                       34
 2.10        Outstanding       Principal      and Unpaid Interest          on
                FmHA Farm Operating           Direct    Loans--Nationwide
                Distribution,        June 30, 1989                                       36
 2.11        Outstanding       Principal      on FmHA Emergency Disaster
                Direct     Loans, June 30, 1976-89                                       38
 2.12        Outstanding       Principal      and Unpaid Interest          on
                FmHA Emergency Disaster             Direct   Loans--Nationwide
                Distribution,        June 30, 1989                                       40
 2.13        Outstanding       Principal      on FmHA Economic Emergency
                Direct     Loans, September 30, 1978-79,             and
                June 30, 1980-89                                                         42
 2.14        Outstanding       Principal      and Unpaid Interest          on
                FmHA Economic Emergency Direct               Loans--Nationwide
                Distribution,        June 30, 1989                                       44
 2.15        Outstanding       Principal      on FmHA Soil and Water
                Direct     Loans, June 30, 1976-89                                       46
 2.16        Outstanding       Principal      and Unpaid Interest          on
                FmHA Soil and Water Direct              Loans--Nationwide
                Distribution,        June 30, 1989                                       48
 3.1         FmHA Major Farm Program Past Due Principal                     and
                Interest      as a Percentage        of Outstanding
                Principal,      June 30, 1976-89                                         52
 3.2         FmHA Major Farm Program Past Due Amount,
                June 30, 1976-89                                                         54
 3.3         FmHA Major Farm Program Outstanding                 Principal      Owed
                by Delinquent        Borrowers,      June 30, 1976-89                    54
 3.4           Percentage      of FmHA Major Farm Program
                3-Year-or-More         Past Due Amount to Total Past
                Due Amount, June 30, 1976-89                                            56
 3.5         Index of FmHA Major Farm Program Past Due
                Amount, June 30, 1976-89                                                58
 3.6         Past Due Amount by FmHA Major Farm Program,
                June 30, 1989                                                            60
 3.7         FmHA Major Farm Program Past Due Amount--
                Nationwide      Distribution,        June 30, 1989                      62
 3.8         FmHA Farm Ownership Loan Past Due Amount--
                Nationwide      Distribution,        June 30, 1989                      64
 3.9         FmHA Farm Operating           Loan Past Due Amount--
                Nationwide      Distribution,        June 30, 1989                      66
 3.10    Y   FmHA Emergency Disaster            Loan Past Due Amount--
                Nationwide      Distribution,        June 30, 1989                      68
                                            9
                                                                          Page
FIGURE
  3.11   FmHA Economic Emergency Loan Past Due Amount--
           Nationwide    Distribution,     June 30, 1989                    70
  3.12    FmHA Soil and Water Loan Past Due Amount--
           Nationwide    Distribution,     June 30, 1989                    72
  3.13   FmHA Major Farm Program 3-Year-or-More
           Past Due Amount--Nationwide         Distribution,
           June 30, 1989                                                    74
  3.14   Age of Major Farm Program Past due Amount,
           June 30, 1989                                                    76
  4.1    FmHA Major Farm Program Direct         Loan Losses,
           Fiscal   Years 1976-89                                           84
  4.2    FmHA Major Farm Program Guaranteed            Loan Losses,
           Fiscal   Years 1976-89                                           84
  4.3    FmHA Farm Ownership Loan Losses, Fiscal             Years
           1976-89                                                          86
  4.4    FmHA Farm Operating        Loan Losses, Fiscal      Years
           1976-89                                                          88
  4.5    FmHA Emergency Disaster        Loan Losses, Fiscal       Years
           1976-89                                                          90
  4.6    FmHA Economic Emergency Loan Losses, Fiscal              Years
           1978-89                                                          92
 4.7     FmHA Soil and Water Loan Losses, Fiscal             Years
           1976-89                                                          94

                              ABBREVIATIONS
ACIF     Agricultural     Credit    Insurance   Fund
EE       economic emergency loan program
EM       emergency disaster       loan program
FmHA     Farmers Home Administration
FO       farm ownership     loan program
GAO      General Accounting      Office
OL       operating    loan program
RCED     Resources,     Community,     and Economic Development
            Division
SW       soil and water loan program
USDA     U.S. Department      of Agriculture




                                    10
        SECTION 1

FmHA AND TOTAL FARM DEBT
HAVE CONTINUED TO DECLINE




          11
                                           Fiaure     1.1:  Index of Farm Debt,
                                                    December 31, 1975-88a


6.6     bnlo#




 1676           1676         16n    1676     1676    1666   1661        1666   1666     1664    1666    lW6        1667   1666
 YOU

        -        hHAD.bt
        1.1.     olhDrmbl




Note:              The index               is based on a 1975 value                   that     equals         1.

aUnless otherwise    noted, yearly    information   in                                         this report   is
presented    as of June 30 of the year shown, and                                              all values are in
current   dollars.   Also, the sources listed     for                                          the figures   in this
section   and in sections    2, 3, and 4 also apply                                            to the tables    on
the pages opposite     those figures.
Source:                     USDA.




                                                                   12
      Total farm debt increased     from $91.6 billion  in 1975 to a
record high of $220.5 billion     in 1982, or by 141 percent.       On the
other hand, total   farm debt has decreased every year since 1982.
As of December 31, 1988, total      farm debt was $161.6 billion.      FmHA
farm debt increased    from $5.1 billion   in 1975 to $23.3 billion      in
1982, and to $26.6 billion     in 1985.   FmHA's farm debt has decreased
each year since the 1985 peak level,      and as of December 31, 1988,
was $23.7 billion.

                Table    1.1:    FmHA and All Other Farm Debt,
                                December 31, 1975-88
Dollars   in Billions
                  FmHA                                 All      other                    Total
                  farm            Index of                   farm            Index of     farm
Year              debt              chanaea                  debt              chanaea    debt
1975            $ 5.1               1.00                $ 86.5                 1.00      $ 91.6
1976              5.5               1.08                  98.5                 1.14       104.0
1977              7.1               1.39                 115.9                 1.34       123.0
1978              9.9               1.94                 131.2                 1.52       141.1
1979             16.1               3.16                 150.0                 1.73       166.1
1980             19.5               3.82                 162.9                 1.88       182.4
1981             23.2               4.55                 178.9                 2.07       202.1
1982             23.3               4.67                 197.2                 2.28       220.5
1983             24.1               4.73                 192.1                 2.22       216.2
1984             25.7               5.04                 186.9                 2.16       212.5
1985             26.6               5.22                 183.8                 2.12       210.4
1986             26.2               5.14                 163.4                 1.89       189.6
1987             25.6               5.02                 145.9                 1.69       171.5
1988             23.7               4.65                 137.9                 1.59       161.6
aThe index    is based on a 1975 value          that         equals     1.




                                           13
           Fiaure     1.2:          Percentase of Farm Debt by Source,
                                      December 31, 1988
                                                     Farmers HomeAdministration
                                                     6.6%
                                                     CommodityCredit Corporation


                                    18.7%            Individuals and Others



          a22 14.7%

                          -_

                                    28% =       -
                                                     5.6%
                                                     Lie Insurance Companies


                                                     CommercialBanks


                                       ,. "
                               -'           ,
                    \I\             ,,-.'
                                                     Farm Credit System


Source:   USDA.




                                                14
SOURCES OF FARM DEBT
        Farmers receive      financing   from three primary  sources:
(1) banks (commercial          and those of the Farm Credit    System),
(2) the government        (FmHA and the Commodity Credit     Corporation),     and
(3) other lenders       (individuals     and others and life   insurance
companies).      Total outstanding       farm debt declined  to about $162
billion    at the end of 1988, or by more than $58 billion            since the
1982 peak of $220.5 billion.

                           Table   1.2:     Source of Total Farm Debt.
                                          December 31. 1988
Dollars       in Billions
Source                                                 Totala            Percent
Commercial           banks                            $ 45.2               28.0
Farm Credit           System                            42.3               26.2
FmHA                                                    23.7               14.7
Commodity         Credit      Corporation               11.0                 6.8
Life      insurance        companies                     9.1                5.6
          Subtotal                                     131.3               81.3
Individuals           and others                        30.3               18.7
          Total                                       S1s1.6              100.0
aAmount shown for FmHA only includes   direct loans,                 not    loans   made
by commercial banks and guaranteed   by FmHA.




                                                 15
            Fiaure 1.3:    Total Farm Debt:  All Sources--
             Nationwide   Distribution, December 31. 1988




                          Less Than $390 Million (IO States)
                          $390 Million-263 Billion (15 States)
Source:   USDA.           $2.64-4.9 Billion (15 States)
                          $514Billion (lOStates)




                                             16
JJOCATION OF FARM DEBT
         As of December 31, 1988, the total   farm debt was $161.6
billion.      This debt was the highest   in California,     Texas, Iowa, and
several     midwestern  states,  On a combined basis,    the top 10 states
accounted      for 50.4 percent of the total  farm debt.      The New England
states     and Alaska have the lowest levels    of total   farm debt.
     Appendix        I provides     the   individual   state      statistics   on total
farm debt.
             Table   1.3:   Ten States With Hiahest            Total   Farm Debt,
                                  December 31, 1988
Dollars      in Billions
State                        Farm debt                   Percent
California                        $13.3                        8.2
Texas                              11.4                        7.1
Iowa                               11.1                        6.9
Illinois                            8.3                        5.1
Minnesota                           8.1                        5.0
Nebraska                            7.6                        4.7
Kansas                              5.8                        3.6
Wisconsin                           5.6                        3.5
Indiana                             5.2                        3.2
Missouri                            5.0                        3.1




                                             17
  J?iaure       1.4:     FmHA Farm Debt as a Percentage  of Total Farm Debt--
                       Nationwide Distribution,  December 31, 1988




                                   Less Than 10.29/o(10 States)


Source:         USDA.               1M-22.6%   (15 States)
                                   22.63-47.7% (10 States)




            Y




                                                 18
          Seven of the 10 states with F'mHA farm debt as the largest
percentage       of their   total     farm debt are located in the southern
part of the country.            The amount.of       FmHA farm debt in each state
varies      and represents      only a portion       of the total     farm debt
utilized      by the state's       borrowers--    ranging     from about 3 percent in
Alaska and over 6 percent             in California       to over 47 percent in
Maine.       However, while California's            FmHA farm debt is about $908
million,       or 6.8 percent      of the state's       total    farm debt ($13.3
billion),       Maine's   FmHA farm debt stands at $176 million,             or 47.6
percent      of its total     farm debt ($370 million).
     Appendix I provides           the   individual   state   statistics        on FmHA
farm debt compared with          total     farm debt.

          Table 1.4:    Ten States       With Hiahest  Percentaae           of ,lQ#j,&
               Farm Debt to Total        Farm Debt. December 31.           19m
Dollars    in Millions
                                                 Total
                                                 %arm
State                     FmHA debt              debt          Percent
Maine                      $      176       $      370            47.6
Louisiana                         962           2,505             38.4
Mississippi                    1,275            3,377             37.8
South Carolina                    345           1,128             30.6
Georgia                        1,020            3,400             30.0
South Dakota                   1,042            3,641             28.6
Tennessee                         646           2,309             28.0
North Dakota                   1,002            4,084             24.5
Arkansas                          839           3,474             24.2
Oklahoma                          977           4,315             22.6




                                           19
20
          SECTION 2

   FmHA MAJOR FARM PROGRAM
DEBT HAS CONTINUED THE DECREASE
      THAT BEGAN IN 1986




             21
       Fiaure    2.1:     Outstandina   Principal on FmHA Major                       Farm Prosram
                              Direct  Loans, June 30, 1976-89




1#78      1077    1Cin   1079   1980     1901   lM2        1963   1984   1986   lW6    1987   1980   1989
Fbd Y-r




Source:          GAO analysis          of FmHA report,            code 616.




                                                      22
        After     several      years of consecutive        increases,       FmHA total
 outstanding       principal       has decreased each year for the past
 3 years.       As of June 30, 1989, the total               outstanding       principal    of
 FmHA's major farm program loan portfolio                    was about $23.4 billion,
more than a 350 percent                increase   over the 1976 level          of almost
 $5.1 billion.           Factors     contributing     to this overall        expansion
 include     the growth in emergency disaster                loans in response to
natural      disasters        occurring      in 1978 and 1980 and the availability
of economic emergency loans authorized                    between August 1978 and
September 1984.             Also,    in February     1982, FmHA revised          its loan-
servicing       policy      to allow borrowers        to obtain     additional       new
financing       without       showing the ability       to repay prior         loans.     Under
this "continuation"             policy,      FmHA would continue       to work with
present      borrowers        who, among other things,          seemed capable of
repaying       any new loan (plus interest)             for production         purposes.
Borrowers       were not required           to show repayment ability            for
principal       and interest         on other existing       loans.      Because of the
deterioration          of its farm loan portfolio,             FmHA rescinded        this
policy     in November 1985.              However, in making supplemental
appropriations           for fiscal       year 1987 (P.L. 100-71, July 11, 1987),
the Congress included              a provision     that reinstituted         the
continuation         policy.

  Table    2.1:    Total    FmHA Major Farm Prosram Outstandins                 Principal,
                           Direct Loans, June 30, 1976-89
Dollars    in Billions
                                 Year                     Total
                                 1976                   $ 5.1
                                 1977                     5.9
                                 1978                     9.2
                                 1979                    16.9
                                 1980                    18.1
                                 1981                    22.8
                                 1982                    24.1
                                 1983                    24.3
                                 1984                    25.3
                                 1985                    27.7
                                 1986                    27.8
                                 1987                    26.2
                                 1988                    25.3
                                 1989                    23.4a
aWe were able to obtain       data on unpaid interest  for 1989 only.
Where applicable,     we will    show these amounts to present a more
complete+picture     of total    FmHA debt.  As of June 30, 1989, unpaid
interest    on major farm program debt was almost $5.1 billion.
                                             23
        Fiaure            2.2:          FmHA Major         Farm Prosram Direct                             Loan Lendins                  Levels,
                                                        Fiscal  Years 1976-89




                                                                                                                         ‘-..
1

0                                                       . ..-     -            ,, _--           ,, ._,
                                                                                                                                .--.
19711            1nr-I         1979     1979    1999    1981     1992         1992      1994       1966       1996    1967             1069   1099




Source:                   USDA.

                         Fisure         2.3:   FmHA Major                Farm Prouram                    Guaranteed             Loan
                                         Lendinq Levels,                 Fiscal Years                    1976-89


2.0         Ddlanln BIllIon*



1.1




1.0




0.6




    0


    1Vlll         lB7l           1979    1070    1000     1961    1992         1999      1994       1995      1986    lSil7            1999   1999




Source:                   USDA.


                                                                         24
FmHA DIRECT AND GUARANTEED LOANS
       FmHA direct  farm program loans are made from the Agricultural
Credit   Insurance  Fund (ACIF), a revolving     fund established      in the
1940s.     The ACIF is funded by the incoming      flow of loan repayments,
by appropriations     to cover fund losses,  and by borrowing       from the
U.S. Treasury.     The ACIF financed   about $1 billion     in direct    major
farm program loans during      fiscal year 1989.
        Guaranteed     loan funds are supplied       directly   to borrowers     by
commercial      lenders,    and FmHA guarantees      the lender that a
stipulated     portion     (up to 90 percent)    of the borrower's      loan will
be repaid by FmHA if the borrower          defaults       on the loan.    During
fiscal     year 1989, FmHA guaranteed       about $1.2 billion       in major farm
program loans financed         by private   lenders.

    Table    2.2:      Lendins Levels for FmHA Maior Farm Prosram        Direct
                    and Guaranteed   Loans, Fiscal Years 1976-89
Dollars     in Millions
Fiscal                                     Guaranteed
 year               Direct    loans           loans           Totala
1976                      $1,702           $       48        $1,751
1977                       2,218                   17         2,235
1978                       4,901                     4        4,905
1979                       7,507                  163         7,671
1980                       6,174                  162         6,336
1981                       7,940                  129         8,068
1982                       4,060                   51         4,111
1983                       2,993                   71         3,063
1984                       3,993                  443         4,436
1985                       4,753               1,175          5,927
1986                       2,799               1,560          4,358
1987                       1,491               1,565          3,057
1988                       1,049               1,259          2,308
1989                       1,030               1,179          2,209
aTotals     may not     add because   of rounding.




                                          25
             Fisure                  2.4:  FmHA Maior                    Direct Loan Activity,
                                     )w Loan Proaram.                    June 30, 1989




                          Bonoml-#4lldLOWlSbyFMllRa(llMl


                                       Number     of Bcmwu-8
                          I
                                       Number     of Loams




Source:    GAO analysis                           of FmHA reports,           codes   540 and 616.

 Fisure   2.5:   FmHA Total Outstandinq  Principal and UnDaid Interest
             on Direct Loans, by Loan Prosram, June 30, 1989

                Dollan         In Blllion9
                ll

                10

                     9

                     6
                         I-
                     I

                     6

                     5

                     4




                                                               I,
                     9

                     2

                     1

                     0

                              m              cn      EM        EE   9w
                              Fmn   Pmgnm




Source:   GAO analysis                            of FmHA reports,           codes   540 and 616.



                                                                    26
,



FmHA MAJOR FARM PROGRAMACTI'VITY
        FmHA had $23.4 billion        in outstanding     principal      and
$5.1 billion       in unpaid interest       as of June 30, 1989.         This debt
consisted      of 624,173 loans held by 350,867 borrowers,               when
borrowers      having more than one type of loan were counted in each
loan category        for which they had a loan.         However, when this double
counting      of borrowers     was eliminated,     there were only 216,935
individual      borrowers     who held the 624,173 loans.            The largest
direct     loan programs are the emergency disaster,               farm ownership,
and farm operating         loan programs.

               Table 2.3: Borrowers, Loans, and Debt &nounts for the FM-IA
                         Direct Major Farm prosrams, June 30, 1989
Dollars    in Millions
                     Number of     Number of        outstanding    Unpaid       Total
                     borrowers       loans           princinal    interesta      debta
Farm
ownership (FO)           109,412    142,682          $ 7,025.g    $ 698.9     $ 7,724.8
FarXll
spemtins     (W          100,022    182,694            5,211.5       635.1      5,846.6

-rgency
disaster    (EN)          90,280    224,045            7,808.5    2,696.7      10,505.2
Economic
-rqency      (W           38,180     60,002             3,123.0    1,018.8      4,141.8
Soil and
water (SW)                12,973     14,750               249.9       50.1        300.0
Total                    350,867                     %!ii&U       %!idZU      %fiGUU

%Mals      may not add because of rounding.




                                               27
  Fisure 2.6:  Total Outstandina   PrinciDal    and Unpaid Interest                      on
  FmHA Major Farm Prosram Direct   Loans--Nationwide     Distribution,
                             June 30. 1989




                         I      Less Than $66 Million (10 States)
                                $66635 Million (15 States)
                                $536 Million-l .09 Billion (15 States)
                                $1.1-2 Billion (10 States)

Source:   GAO analysis       of FmHA reports,                     codes   540 and 616.




                                               28
.



                                 ON OF Fr@JiA
    OR-         PROGRAM
         The 10 states with the most FmHA major farm program debt are
generally      concentrated     throughout    the central      and southern     parts
of the nation.         On a combined basis,       the top 10 states       accounted
for about 46 percent         of the total     FmHA farm debt.       Generally,      the
New England states,         Alaska,    and Hawaii have the lowest levels            of
FmHA major farm program debt.              Appendix II provides      statistics       for
total      FmHA major   farm program direct        loan activity    by state and
territory.

                le     2.4. .   Tea State s With Hiahest      FmHA Farm Debt.
                                  rect Loans, June 30,       1989
Dollars    in Millions
                                   Outstanding            Unpaid         Total
State                               princinal           interest          debta
Texas                               $1,517                $409          $1,926
Mississippi                          1,134                 375           1,508
Georgia                                 964                427           1,391
Louisiana                               958                301           1,260
California                              861                343           1,204
Iowa                                 1,054                 120           1,174
Minnesota                               972                190           1,162
Oklahoma                                954                205           1,159
North Dakota                            984                160           1,144
South Dakota                            964                155           1,119
aTotals   may    not      add because    of rounding.




                                                 29
                                                      .     I I
                           ure    2.7. .   Outstandina   Pr&nc&aal on FmHA Farm Ownershix,
                                              rect Loans. June 30. 1976-89




8


1


0                                                                                                 -   ..._
          - _   - _.   -    _
lW8             18W         18n      10     l(o     1Wl   lea        1966   1666       loB(I   1966   1697   1966   1999
9ladv9u




Source:                    GAO analysis           of FmHA report,           code 616.




                                                                30




                                                                                   ,
FARM OWNERSHIP LOANS
        The direct     farm ownership       loan portfolio       increased     each year
from 1976 through         1986, but has decreased each year for the past 3
years.       Farm ownership      loans enable operators          of family-size      farms
that lack other sources of credit                to buy, improve,       or refinance
farm real estate.          Family-size      farms can be operated          by
individuals,       partnerships,       cooperatives,       or corporations.        Loan
limits     are $200,000 for direct          loans,    and loans may be repaid
within     40 years.      The interest      rate for direct        loans is set
periodically       by the Secretary        of Agriculture      on the basis of the
government's       cost of borrowing.          As of February        I, 1990, the direct
loan interest       rate for farm ownership           loans was 8.75 percent.
Loans are normally         secured by either         a first   or second mortgage on
the farm real estate.

                 Table 2.5:   Outstandins     Principal on FmHA,
               Farm Ownershin Direct     Loans, June 30. 197'6-;89             t:.
Dollars    in Billions
                                                      Outstanding
                          Year                         principal
                          1976                            $2.9
                          1977                             3.1
                          1978                             3.5
                          1979                             3.9
                          1980                             4.5
                          1981                             5.1
                          1982                             5.6
                          1983                             6.1
                          1984                             6.7
                          1985                             7.4
                          1986                             7.6
                          1987                             7.5
                          1988                             7.3
                          1989                             7.0

        In addition  to the $7 billion     in principal    owed for           farm
ownership    loans,  as of June 30, 1989, about $699 million                  in unpaid
interest    was also outstanding,      for a total    farm ownership            debt of
about $7.7 billion.




                                           31
   Fiqure 2.8:   Outstandinq     PrinciDal   and Unpaid Interest     on FmHA
Farm Ownership   Direct   Loans-- Nationwide    Distribution,    June 30, 1989




                          w                                                     .,..:.:::.
                                                                                   ..:;::.
                                                                                    ..
                                                                                    ...
                   Qr
                    s                .“““““““~                                       .:-:.
                                                                                      :::
                                                                                      ..:.
                                                                                       :.
                      a                                                         P
                          n       LCXSThan 844 Million (10 States)
                                            .‘.          .
                                  $44-144 Mllllon (15 States)      .
                              1$145285 Million (15 States)
                                  $286-393 Million (10 States)
                              I

Source:   GAO analysis    of FmHA reports,                       codes   540 and 616.




                                             32
NATIONWIDE DISTRIBUTION OF
FARM OWNERSHIP DIRECT LOANS
       The 10 states with the largest          amounts in direct     farm
ownership    program debt are located        in the central    part of the
country.     On a combined basis,       the top 10 states    accounted        for
42 percent     of the total     FmHA farm ownership    debt.     Generally,       the
northeastern     states,    along with Alaska and Hawaii,        had the lowest
levels    of farm ownership      debt.    Appendix II provides     statistics        for
the farm ownership       program in each state and territory.

   Table 2.6:       Ten States With Hiqhest           Outstanding     Principal and
Unpaid Interest       on FmHA Farm Ownershin          Direct    Loans, June 30, 1989
Dollars   in Millions
                         Outstanding                     Unpaid           Total
State                     principal                    interest            debta
Iowa                        $368.2                       $24.6            $392.8
Missouri                     341.3                        31.4             372.8
Texas                        317.4                        33.6             351.0
North Dakota                 300.5                        30.3             330.7
Minnesota                    282.6                        35.6             318.2
Oklahoma                     280.5                        29.8             310.3
South Dakota                 285.8                        21.7             307.6
Illinois                     284.4                        19.1             303.5
Nebraska                     276.8                        23.3             300.1
Wisconsin                    262.9                        23.8             286.7
aTotals   may not    add because       of rounding.




                                           33
              Fiaure          2.9:      Outstandina    Principal on FmHA Farm Operatinq
                                        Direct    Loans, June 30, 1976-89




0

19nl          1On      1979      1979    1966     1961   lSB2        1022   1966   1985   1986   1967   1988   1oBD
Fluul   vur




Source:             GAO analysis                of FmHA report,             code 616.




                                                                34
FARM QPEBATING LOANS
       The direct      farm operating       loan portfolio        increased     each year
from 1976 through         1986, except in 1980, but has decreased                  each year
for the past 3 years.           Farm operating       loans are generally           made to
operators      of family-size      farms for essential          operating      purposes,
such as (1) machinery,          equipment,      or livestock        purchases:     (2)
payment of annual operating             and/or family      living      expenses;     (3)
refinancing       debts incurred      for any authorized          operating     loan
purpose other than FmHA debts:              and (4) payments to a creditor.
These loans are usually          secured by chattel          mortgages      on feed,
crops,    livestock,      machinery,     or other elements          of production.
      The farm operating      loan limit     is $200,000 for direct     loans.
The interest    rate for direct     loans is set periodically       on the basis
of the federal     governmentVs    cost of borrowing.       As of February     1,
1990, the direct     loan interest      rate for farm operating     loans was
8.50 percent.      Farm operating     loan terms usually      range from 1 to
7 years,   according    to loan purpose,       with a maximum repayment period
of 15 years for consolidated        or rescheduled     loans.

          Table   2.7:     Outstandins     Princinal on FmHA Farm Operatinq
                            Direct    Loans, June 30, 1976-89
Dollars      in Billions
                                                 Outstanding
                             Year                  principal
                             1976                      $1.2
                             1977                       1.3
                             1978                       1.4
                             1979                       3.6
                             1980                       1.9
                             1981                       2.1
                             1982                       2.7
                             1983                       3.5
                             1984                       4.1
                             1985                       6.0
                             1986                       6.4
                             1987                       6.0
                             1988                       5.7
                             1989                       5.2

      In addition   to the $5 billion           in outstanding     principal       shown
above, as of June 30, 1989, unpaid              interest   amounting     to
$635 million    was also outstanding.



                                           35
     Fisure 2.10:   Outstandina     PrinciDal    and UnDaid Interest                      on
     FmHA Farm Operatinq    Direct   Loans --Nationwide    Distribution,
                                June 30, 1989




                         I-J   Less Than $20 Million (10 States)
                               $20-97 Million (15 States)
                               $96-171 Million (15 States)
                               $172337 Million (10 States)

Source:   GAO analysis     of FmHA reports,                        codes   540 and 616.




                                               36
DIRECT FARM OPE~XNG           LOANS
         The 10 states with the largest          amounts in direct      farm
operating      program debt are concentrated         in the central       part of the
country.       On a combined basis,      these states      accounted    for
54 percent      of FmHAls total      farm operating     loan debt.      Generally,
the states      with the lowest amount of farm operating             program debt
are located        in the northeastern     part of the country,       but also
include     Alaska,     Hawaii,  and Nevada.      Appendix II provides
statistics       for the farm operating       loan program in each state and
territory.

   Table 2.8:       Ten States With Hishest             Outstandina     Principal and
Unpaid Interest       on FmHA Farm Operatina            Direct    Loans. June 30. 1989
Dollars   in Millions
                           Outstanding                      Unpaid        Total
State                       principal                     interest         debta
Texas                        $461.3                        $75.3          $536.6
Wisconsin                     383.3                         20.4           403.7
Louisiana                     317.5                         57.5           375.0
Iowa                          336.4                         20.3           356.6
Minnesota                     318.6                         29.0           347.5
North Dakota                  279.1                         22.0           301.1
Oklahoma                      234.3                         26.5           260.9
Mississippi                   199.1                         37.3           236.4
Missouri                      159.0                         18.9           177.9
South Dakota                  155.9                         17.0           172.8
aTotals   may not       add because      of rounding.




                                             37
                                                        8
      Fisure                2.11+ .          Outstandxw
                                                  .        Principal on FmHA Emeraencv                      Disaster
                                                  erect Loans, June 30. 1976-89


11    Ddhm   In Elllkm
                                                                          -.._
10

 2                                                                                             -\,
 5

 1

 0

 5

 4

2

2

 1

0
                   . .-.-   .-..
lW@          1wI             1070     197s      lom     losl   lW2        1202   1984   1eeS         1987




Source:                     GAO analysis              of FmHA report,            code 616.




                                                                     38
EMERGENCY DISASTER LOANS
       The direct         emergency disaster        loan portfolio      increased each
year from 1976          through   1982, but has decreased           each year for the
past 7 years.           Emergency disaster        loans help farmers recover       from
actual     production       and physical      losses inflicted        by natural
disasters,      such      as drought,    floods,      and hailstorms.
       Loans to cover actual       losses are made at subsidized      interest
rates.    For loans made through November 181 1986, the interest               rate
was 5 percent       for loan amounts of up to $100,000 and 8 percent           for
loan amounts exceeding        $100,000 up to $500,000.       Loans made after
November 18, 1986, are at a single         interest    rate of 4.5 percent.
Repayment terms for emergency loans vary according             to the type of
loss, use of loan funds, available         collateral,     and the borrower's
repayment   ability,      but they cannot exceed 40 years.

                   Table    2.9:     Outstandins   Principal on FmHA
               Emersencv    Disaster     Direct  Loans, June 30, 1976-89
Dollars    in Billions
                                                   Outstanding
                              Year                  principal
                              1976                   $ 0.9
                              1977                      1.4
                              1978                      4.1
                              1979                      6.1
                              1980                      7.3
                              1981                     10.4
                              1982                     10.8
                              1983                     10.0
                              1984a                     9.9
                              1985a                     9.9
                              1986                      9.5
                              1987                      8.8
                              1988                      8.6
                              1989                      7.8
aThe 1984 and 1985 amounts            were $9.94     billion     and $9.92   billion,
respectively.

        In addition  to the nearly $8 billion              of outstanding    principal
shown above, as of June 30, 1989, almost                  $2.7 billion    of unpaid
interest    was also due.


           Y




                                            39
          Fisure   2.12:    Outstandins      Principal     and UnDaid Interest
                   on FmHA Emersencv Disaster           Direct  Loans--
                     Nationwide    Distribution,       June 30. 1989




                            L-l
                            ~~
                                       Less Than $10 Million (10 States)
                                       $10-156 Million (15 States)
                                       $157-323 Million (15 States)
                                   I
                                   I $324490 Million (10 States)

Source:      GAO analysis        of FmHA reports,                      codes   540 and 616.




                                                      40
        The 10 states with the largest           amounts in emergency disaster
program debt are generally        located      in the southern      and central
parts of the country.       On a combined basis,           these 10 states      compose
59 percent     of the total  FmHA emergency disaster            debt.   The 10
states    with the lowest amounts of such debt are in the north-
eastern    part of the country,      but also include         Nevada, Alaska,     and
Hawaii.      Appendix II provides     statistics       for the emergency disaster
program in each state and territory.

        Table   2.10:  Ten States With Hiahest     Outstandins   Principal
                and Unpaid Interest     on FmHA Emeraencv Disaster
                          Direct    Loans, June 30. 1989
Dollars     in Millions
                          Outstanding                    Unpaid          Total
State                      principal                   interest           debta
Mississippi                 $700.3                      $289.6           $989.9
Georgia                      621.7                       331.3            953.0
Texas                        617.8                       251.8            869.6
California                   507.4                       250.4            757.9
Louisiana                    445.5                       192.1            637.6
South Dakota                 385.8                        78.8            464.6
Arkansas                     319.5                       112.6            432.1
North Dakota                 321.8                        82.0            403.8
Oklahoma                     284.7                       100.6            385.3
Missouri                     263.2                        61.2            324.4
aTotals     may not   add because       of rounding.




                                            41
   Fiqur?    2.13:   Outstandinq                    Principal   on FmHA Economic              Emeraenw
      Direct    Loans, September                     30, 1978-79.   and June 30,              1980-82
              5   Ddlan In Bllllonm



              4




              1978      1979   1980   1981   1963    1033   1084   lw5   1986   1937   1933   1333
              Fb0dY.U


Outstanding          principal         for   1978 and 1979 is as of September                        30.

Source:       GAO analysis             of FmHA report,             code 616.




                                                       42
FCONOMICEMERGENCYIJXiEii
        FmBA economic     emergency loans were authorized          from August 4,
1978, to September 30, 1984.             Outstanding  principal      on economic
emergency loans increased          each year from 1978 through          1981, but has
decreased    each year for the past 8 'years.           These loans were made to
allow farmers to continue          their   operations  when a serious         lack of
agricultural     credit    existed    because of national       or areawide
economic stress,        as determined     by the Secretary      of Agriculture.
        Under the program,          an economic emergency resulted          from a
general      tightening      of agricultural     credit    or an unfavorable
relationship         between production      costs and prices      received     for
agricultural         commodities,     causing widespread       need among farmers      for
temporary       credit.      The loans were limited        to $400,000 per borrower
and were repayable           as determined    by the Secretary       of Agriculture,
taking     into account the purpose and need for the loan.                    Before the
program's       expiration,      the loan interest      rate was 10.25 percent       for
farm operating          purposes and 10.75 percent         for real estate.

    Table..    2.11:   Outstandins Principal on FmHA Economic Emeraencv
                t Loans. September 30, 1978-79,  and June 30. 1980-89
Dollars       in Billions
                                                     Outstanding
                            Year                      principal
                            1978                         $0.1
                            1979                          3.0
                            1980                          4.1
                            1981                          4.9
                            1982                          4.7
                            1983                          4.4
                            1984                          4.3
                            1985                          4.2
                            1986                          4.0
                            1987                          3.6
                            1988                          3.5
                            1989                          3.1

       In addition to the $3 billion   in outstanding                principal     shown
above, as of June 30, 1989, $1 billion     in unpaid               interest      was also
outstanding.




                                          43
          Fiuure   2.14:    Outstandins       Principal    and Unpaid Interest
                   on FmHA Economic Emeraencv Direct            Loans--
                     Nationwide    Distribution,        June 30, 1989




                                  Less Than $11 Million (10 States)


                                  $82-149 Million (15 States)
                                  $150229 Million (10 States)

Source:      GAO analysis     of FmHA reports,                   codes   540 and 616.




                                                 44
NATIONWIDE DISTRIBUTION OF
ECONOMICEMERGENCYDIRECT TIOANS
       The 10 states  with the largest      amounts in economic emergency
program debt are generally      concentrated    in the central       part of the
country.    On a combined basis,      these 10 states     represent
45 percent   of FmHA's total    economic emergency debt.           The states
having the lowest amount of economic emergency debt are generally
located   in the northeastern     part of the country,        with the exception
of Alaska and Hawaii.       Appendix II provides     statistics      for the
economic emergency program in each state and territory.

      Table 2.12. . Te n States With Hiahest  Outstandina  Princinal
     and Unnaid Interest    on FmHA Economic Emeraencv Direct    Loansc
                               June 30, 1989
Dollars   in Millions
                        Outstanding                    Unpaid       Total
State                    princinal                   interest        debta

Nebraska                  $175.8                       $52.2        $228.0
Indiana                    155.9                        65.1         220.9
Iowa                       165.6                        43.7         209.3
Oklahoma                   146.4                        46.6         192.9
Minnesota                  137.8                        48.7         186.5
Wisconsin                  142.1                        36.4         178.4
California                 121.9                        53.6         175.5
South Dakota               129.0                        36.6         165.6
Tennessee                  118.7                        35.1         153.9
Texas                      105.7                        44.8         150.6

aTotals   may not   add because       of rounding.




                                          45
        Fiaure       2.15:      Outstandina    PrinciDal on FmHA Soil                     and Water
                                Direct   Loans, June 30. 1976-89




0


lfB70     lB77    1978   1979    lW0      1981   1982        1983   1964   1WO   1086   1907   1988   1989




Source:          GAO analysis          of FmHA report,              code 616.




                                                        46
        The direct      soil and water program,           which is the smallest         of
FmHA's major farm programs,             increased      each year from 1976 through
1981, had fluctuating           decreases     and increases       during the early to
mid-1980s,     and has decreased each year for the past 4 years.                        The
soil and water loan program encourages                  and facilitates        the
improvement,       protection,      and proper use of farmland             by providing
financing    for soil conservation,            water development,          and other
related    measures consistent         with environmental          quality     standards.
Loans may be made to pay costs for construction,                      materials,
supplies,    equipment,        and services.        Direct    loans cannot exceed
$200,000 per borrower.            The repayment term cannot exceed 40 years.
As of February        1, 1990, the direct         loan interest       rate was 8.75
percent.

                 Table 2.13:  Outstandina     Principal on FmHA
               Soil and Water Direct    Loans, June 30, 1976-89
Dollars    in Millions
                                                   Outstanding
                            Year                    princinal
                            1976                        $   48
                            1977                            111
                            1978                         159
                            1979                         204
                            1980                         247
                            1981                         288
                            1982                         286
                            1983                         300
                            1984                         297
                            1985                         299
                            1986                         294
                            1987                         279
                            1988                         265
                            1989                         250

       In addition to the $250 million  of outstanding                   principal     shown
above, as of June 30, 1989, $50 million    of unpaid                  interest     was
outstanding.




                                            47
          Ficrure   2.16:    Outstandina      PrinciBal    and UnDaid Interest
                       3
                      Nationwide    Distribution,       June 30. 1989




                                  LessThanfOOThousand
                                  $700 Thousand-4.2 Million (15 States)
                                  $4.39.6 Million (15 States)
                                  $9.7-27 Million (10 States)

Source:      GAO analysis      of FmHA reports,                   codes   540 and 616.




                                                  48
NATIQNWIDE DISTRIBUTION OF
SOIL AND WATER DIRECT LOANS
        The 10 states with the largest         amounts in soil and water
program debt are scattered         from the southeastern      to the
northwestern      parts of the nation,      with most located      in the central
part of the country.         These 10 states had combined soil and water
debt representing       57 percent    of FmHA's total    soil and water debt.
The states with the least amount of soil and water program debt are
generally     located   in the northeastern      part of the country,     but also
include    Alaska and Hawaii.        Appendix II provides     statistics   for the
soil and water program in each state and territory.

        Table   2.14:   Ten States With Hishest   Outstandina  Princinal
                   and Unpaid Interest   on FmHA Soil and Water
                           Direct  Loans, June 30, 1989
Dollars      in Millions

                       8      Outstanding                    Unpaid   Total
State                          principal                   interest    debta
Nebraska                          $23.2                      $3.3     $26.5
Idaho                              17.6                       3.5      21.0
California                         14.6                       4.8      19.4
Missouri                           15.9                       2.2      18.2
Texas                              14.7                       3.4      18.2
Georgia                            12.1                       4.7      16.7
Oregon                             12.5                       3.0      15.5
Michigan                           11.2                       1.8      12.9
Arkansas                           11.0                       1.8      12.8
Minnesota                           8.5                       1.3       9.8
aTotals      may not       add because      of rounding.




                                                49
50
                SECTION 3

         FmHA MAJOR FARM PROGRAM
PELINOUENCIES HAVE CONTINUED TO INCREASE,
BUT ARE SHOWING IMPROVEMENT WITH SERVICING
    UNDER THE AGRICULTURAL CREDIT ACT




                   51
      Fiaure   3.1:   FmHA Major Farm Pr warn Past Due PrinciPal and
Interest     as a Percentacre of Outstanhxf  Principal, June 30. 1976-89




0                                                                                                    I.II

                     1078   1979   lW0     1BSl   l%Z        1003   lW4   1986   1WO   1007   1088          1989
1070         lo?7

FIwd   Yur




Source:             GAO analysis         of FmHA report,            code 616.




                                                        52
FmHA MAJOR FARM PROGRAMP&ST DUE DEBT CONTINUED TO
INCREASE AS A P@K!ENTAGE OF OUTSTANDING PRINCIPAL
        FmHA's major farm program direct          loan outstanding      principal
increased     every year from 1976 through          1986, but declined       the past
3 years to $23.4 billion         as of June 30, 1989.         Past due principal
and interest,      however,   increased    every year from 1976 to 1988, but
decreased     somewhat in 1989 to about $8.7 billion.              The $8.7 billion
direct    loan past due principal        and interest     amount represents
nonpayment of principal         and interest     by about 78,000 borrowers.
Past due principal       and interest     continues     to represent    a larger
portion     of the total    debt each subsequent        year.    In this section,
we use the term tlpast due amount 11 to represent             past due principal
and interest      amounts owed by delinquent         borrowers.
         Current    law authorizes        FmHA to assist         borrowers     who cannot
meet loan repayments            for reasons beyond their             control,     such as
disasters       or a poor farming         economy.       FmHA helps these borrowers
through various         servicing      alternatives,        including      those provided
under the Agricultural             Credit    Act of 1987 (P.L. 100-233,             Jan. 6,
1988), such as payment deferral,                  consolidation,        rescheduling,     and
reamortization         of loans;     and debt write-down.              While FmHA actions
taken under the act have improved the condition                         of its loan
portfolio,       they are generally          not reflected        because they were not
entered      into FmHA's financial           records until        after    June 30, 1989--
the cut-off        date we used to report            the condition        of FmHA's loan
portfolio.         We are, however, presenting              information       on the results
of these servicing          actions     at the end of this section.

       Table       3.1:      Comnarison    of Major Farm Program Past Due Amount
                          to Outstandina    Principal, June 30, 1976-89
Dollars        in Millions
                                               Total             Past due
                           Past due        outstanding       amount as percent
Year                        amount          principal          of principal
1976                       $      164.1     $ 5,077.o                3.2
1977                              213.3       5,931.4                3.6
1978                              288.2       9,236.0                3.1
1979                              417.3      16,921.B                2.5
1980                              823.2      18,111.3                4.5
1981                           1,587.g       22,820.5                7.0
1982                           2,927.B       24,053-O               12.2
1983                           4,124.B       24,329.B               17.0
1984                           5,389.5       25,292.4               21.3
1985                           6,385.2       27,718.3               23.0
1986                           6,832.7       27,768.7               24.6
1987                           6,999.7       26,191.4               26.7
1988           "               8,740.g       25,336.6               34.5
1989                           8,690.5       23,418.B               37.1
                                                 53




                                                                                                ”   ,..
                             Fi
                             c            e3.:
                                                                      June 30.              1976-89


      s      OdlrninBHlkM


      0




  0


     1970             lsn           ism      1979    lW0       lSS1       rss2        log)      19s4    1086    198(1    1987    1w        1303
  Fleaal      Ywr




Source:                            GAO analysis            of FmHA report,                     code 616.

  Fisure                    3.3:           FmHA Major         Farm Prosram Outstandins  Principal                                      Owed bv
                                            Delinquent         Borrowers, June 30. 1976-89

 14         Dollrn    In BIUl0ne
 1s
12
11
10
  9
  s
 7
 6
 a
 4
 3
 2

 l-
 0


 1411)               lS77          lP7S     lsm     1980      lS61       1fMZ        1963      1964    1966    1BBB     1987    1988     19119
FWml         Var




Source:                        GAO analysis                of FmHA report,                    code 616.



                                                                                54
MAJOR
OWED BY DELINOUENT BORROWERS
        As major farm program delinquencies               have increased,       so have
the principal        amounts owed by delinquent           borrowers.      Outstanding
principal     owed by delinquent       borrowers      increased      each year from
1976 through       1985, and remained at approximately               the same level       in
1986.     It then decreased in 1987, increased                 in 1988, and finally
decreased     again in 1989.       This principal,         less proceeds from the
sale of loan collateral,         is a potential         loss for the government           if
the borrower       is unable to catch up on delinquent               payments.
Outstanding      principal    owed by borrowers        with delinquent        loans
decreased     in 1989, and total       delinquencies         also decreased      slightly
during    the period.       However, the $12.6 billion             of outstanding
principal     owed by delinquent       borrowers     represents        more than
50 percent      of the $23.4 billion        of principal         owed by all FmHA
borrowers     in 1989.

               Table 3.2:     Comparison of Major Farm Procram
             Past Due Amount to Outstandins     Principal Owed bv
                   Delinquent   Borrowers, June 30, 1976-89
Dollars    in Millions
                                                              Outstanding
                                                             principal    owed
                                    Total past               by delinquent
            Year                    due amount                  borrowers
            1976                      $      164                $       723
            1977                             213                        859
            1978                             288                     1,323
            1979                             417                     1,958
            1980                             823                     4,047
            1981                          1,588                      6,722
            1982                          2,928                     10,245
            1983                          4,125                     12,010
            1984                          5,390                     12,878
            1985                          6,385                     13,448
            1986                          6,833                     13,448
            1987                          7,000                     12,820
            1988                          8,741                     13,334
            1989                       8,691                        12,637




                                                  55
                       Fiuure     3.4:    Percentage   of FmHA Major Farm Prowam
                                3-Year-or-More     Past Due Amount to Total
                                    Past Due Amount. June 30, 1976-89

so      pwwnl

so

70

00

so

40

30

20

10

 0


 lsn            19??
                1On     1979    1979   1990     1991   1982        IS93   1994   1996   IS96   1997   1999   1999

 Fhad    Yar




Source:                GAO analysis           of FmHA report,             code 616.




                                                              56
   OR FARM PROGRAMLOAN PAYMENTS PAST
DUE FOR 3 YEARS OR MORE ARE RISING
       As the amount of major     farm program past due payments has
generally    increased,   so has the length   of time payments have been
delinquent.      Although  the percentage   of past due amounts 3 years or
older was relatively      stable between 1976 and 1981, it began to rise
in 1982 and jumped from 35 percent        in 1983 to 89 percent in 1989.
        In the past, borrowers        who were past due on payments for 3
years or more would have had little             chance of becoming current          on
their     payments and would have failed.            However, the reinstitution
of the continuation       policy     allowed  delinquent      borrowers   to obtain
additional      operating  loans if they could show the ability             to repay
the new loan only.        Also, the Agricultural         Credit    Act of 1987
requires     FmHA to write     off delinquent      borrower    debt if it is less
costly     to the government      than restructuring       the borrower's     loans.

         Table 3.3:   Comnarison        of Major Farm Prosram Past Due
       Amount to 3-Year-or-More         Past Due Amount, June 30, 1976-89
Dollars    in Millions
                                                                         Percent of
                                                   Total              3-year-or-more
                              Total           3-year-or-more              to total
                             past due             past due                past due
Year                          amount               amount                   amount
1976                     $      164.1            $       41.1                 25
1977                            213.3                    46.2                 22
1978                            288.2                    70.0                 24
1979                            417.3                   101.3                 24
1980                            823.2                   164.1                 20
1981                         1,587.g                    333.2                 21
1982                         2,927.a                    898.8                 31
1983                         4,124.a                 1,444.a                  35
1984                         5,389.5                 2,868.6                  53
1985                         6,385.2                 4‘799.9                  75
1986                         6,832.7                 5,084.g                  74
1987                         6,999.7                 5,464.4                  78
1988                         8,740.g                 7,415.g                  85
1989                         8,690.5                 7,713.a                  89




                                         57
                                          Fisure 3.5: Index of FmHA Maior Farm
                                       Prosram Past Due Amount, June 30. 1976-89


195      Indar
                                                                                                                                                                             •mL4*-~
190                                                                                                                                                                      l

105                                                                                                                                                            /‘
150                                                                                                                                                       r'        '
                                                                                                                                                     .
126                                                                                                                                            /
                                                                                                                                      #I-
                                                                                                                  a...IL-*-*
120
                                                                                                             4'
1011                                                                                                        l*
 9s                                                                                                       4’
                                                                                                      /
 7s
                                                                                               .@'
 50                                                                                           le                                                   ,_A’

                                                                                   l4
 30                                                                        **sy 4* --~~
 15                                                                 ..--
                                                            .,--                          f                                                                                              I
 450
                                                                           ___
                                                                                               1994          1956              1955         1997                        1995           1999
                                                   1990      1951      1992        1052
  1975           ion            1978     1979

         -        Total
         I---     3YeemorMore




Note:              The index                    is based on a 1976 value                                  that             equals             1.

Source:                 GAO analysis                      of FmHA report,                     code 616.




                                                                              58
  .



INDEX OF INCREASING MAJOR
FARM PROGRAMPAST DUE AMOUNT
       The rapid increase      in FmHA major farm program past due
payments can be shown using an index.             Although   slightly    less than
the 1988 level,     the total     1989 major farm program past due payments
of about $8.7 billion       are almost 53 times greater          than their   1976
level    of $164 million.      The 3-year-or-more       past due payments are
about 188 times greater        than the 1976 total       of $41 million,
reaching    about $7.7 billion      in 1989.

      T abl e 3.4:   In d ex of Maior Farm Proaram Total Past Due Am0 unt
             and 3-Year-or-More    Past Due Amount, June 30. 1976-89
Dollars    in Millions
                                  Index                 3-year-                Index of
                    Total        of total               or-more            3-year-or-more
                   past due      past due              past due                  past due
                    amount        amounta               amount                   amount
1976           $      164.1         1.00               $       41.1             1.00
1977                  213.3        1.30                        46.2             1.12
1978                  288.2        1.76                        70.0             1.70
1979                  417.3        2.54                       101.3             2.46
1980                  823.2        5.02                       164.1             3.99
1981               1,587.g         9.68                       333.2             8.10
1982               2,927.8        17.84                       898.8            21.87
1983               4,124.8        25.13                    1,444.8             35.15
1984               5,389.5        32.84                    2,868.6             69.80
1985               6,385.2        38.91                    4,799.g            116.79
1986               6‘832.7        41.64                    5,084.g            123.72
1987               6,999.7        42.66                    5,464.4            132.95
1988               8,740.g        53.27                    7,415.g            180.44
1989               8,690.5        52.96                    7,713.8            187.68
aThe index     is based on a 1976 value         that   equals         1.




                                           59
                          Ficfure 3.6:  Past Due Amount bv FmHA
                            Major Farm Procrram. June 30. 1989
          5.0   Dollen In Billions

          4.5

          4.0

          3.5

          3.0

          2.5

          2.0

          1.5

          1.0




                FO                   OL          EM         EE       SW
                Farm Program

                         3 Years or More
                         Total




Source:    GAO analysis                of FmHA report,   code 616.




                                                  60
FmHA MAJOR FARM PROGRAMPAST DUE AMOUNT
       As of June 30, 1989, the five major farm programs                had direct
loan payments past due of about $8.7 billion,          of which         $7.7 billion
is 3-years-or-more     delinquent.    These delinquencies     are        largest     in
the emergency disaster       program, where almost 94 percent            of the
delinquencies     are 3-years-or-more   old.

            Table    3.5:  Total Past Due Amount and 3-Year-or-More
            Past    Due Amount bv Maior Farm Program. June 30, 1989
Dollars      in Millions
                                                         3-year-       Percent of
                                 Total                  or-more    3-year-or-more
                                past due                past due       to total
Prosram                         amounta                  amounta   past due amount
Farm
ownership                   $     699.4             $     546.1        78.1
Farm
operating                       1,518.3                 1,129.0        74.4
Emergency
disaster                        4,948.a                 4,644.5        93.9
Economic
emergency                       1,465.6                 1,345.0        91.8
Soil and
water                              58.4                    49.1        84.1
         Total              $8.690.5

aTotal past due amount and 3-year-or-more          past due amount are
slightly   lower in this table than in table        3.13 because of
programming    variances  for presenting    data by individual    borrower
and by loan program.      These differences     are discussed   in more
detail   in section    5.
bTotal      does not   add because        of rounding.




                                              61
          pisure   3.7:     FmHA Maior Farm Proaram Past Due Amount-
                    fJationwide   Distribution.  June 30, 1989




                                               ----- ...-..-      ..- .......__
                                                                              _r   -



                                                                                       \\
                                                                                            i\




                            I         Less Than $12 Million (10 States)
                                      $12-132Million (15States)

                                  I   $133270 Million (15 States)

                                  I $271443 Million (10 States)

Source:      GAO analysis       of FmHA report,                       code 616.




                                                     62
    IONWIDE WUTION                  OF FmHA MAJOH

      The 10 states   having the largest         total FmHA farm program past
due debt are generally     located     in the southern    and central   parts of
the country.    On a combined basis,        these states   accounted   for
58 percent   of the total    principal    and interest    owed by delinquent
borrowers.    Appendix III provides       statistics    on major farm program
past due amounts in each state and territory.

                 Table      3.6:   Ten States With Highest Major Farm
                         groaram   Past Due Amount. June 30. 1989
Dollars       in Millions
                                      Outstanding             Unpaid
                                     principal    owed   interest     owed
                      Past due       by delinquent       by delinquent        Total
State                  amount           borrowers           borrowers          debta
Georgia                  $842.3         $754.9                $417.4         $1,172.3
Texas                     801.9          938.0                 388.5          1,326.5
Mississippi               758.1          839.5                 363.2          1,202.6
Louisiana                 610.9          737.4                 294.2          1,031.6
California                600.3          641.2                 334.0             975.2
Arkansas                  314.6          442.0                 168.8             610.9
Oklahoma                  302.9          557.5                 186.3             743.8
Minnesota                 291.8          524.4                 176.4             700.8
Florida                   280.4          262.2                 134.9             397.1
Indiana                   271.7          416.0                 162.1             578.1
aTotals       may not     add because   of rounding.




                                            63
          *
                e 3.8, . FmHA Farm Ownershilj                            Loan Past Due Amount--
                    patj.onwide Distribution.                            June 30, 2989




                             El
                             ~
                                    Less Than $2.4 Million (IO States)
                                    $2.4-13.4 Million (15 States)
                                    513.526 Million (15 States)
                                    $26.1-38 Million (IO States)

Source:       GAO analysis        of FmHA report,                   code 616.




                                                      64
NATIONWIDE DISTRIBUTION OF
FARM OWNERSHIP PAST DUE DEBT
       The 10 states       having the largest     farm ownership      past due debt
are generally      located     in the southern    and central     parts of the
country.     Past due farm ownership          payments total     $699 million.
Delinquent    borrowers      had $2.4 billion     in outstanding      principal and
owed $550 million        in unpaid interest.        On a combines basis,-these
10 states    accounted      for 44 percent     of FmHA's total     past due farm
ownership    debt.     Appendix III provides        statistics    for farm
ownership    delinquencies       in each state and territory.

          Table   3.7:      Ten States With Hiahest Farm Ownership             Loan
                            Past Due Amount, June 30. 1989
Dollars     in Millions
                                        Outstanding              Unpaid
                                       principal    owed   interest     owed
                         Past due      by delinquent       by delinquent               Total
State                     amount          borrowers           borrowers                 debta
Indiana                   $37.1          $111.7                $28.3                  $140.1
Minnesota                  36.4           132.5                 30.8                   163.4
Texas                      35.3           115.8                 27.5                   143.3
Missouri                   32.7           114.3                 23.4                   137.7
North Dakota               30.5           116.3                 23.4                   139.7
Mississippi                29.6            81.8                 22.8                   104.6
Idaho                      27.7            84.2                 22.4                   106.7
Wisconsin                  27.0           113.1                 20.4                   133.5
Oklahoma                   26.7           112.8                 23.7                   136.5
Iowa                       26.5            97.3                 16.7                   114.0
aTotals     may not      add because     of rounding.




                                             65
           Fisure   3.9:    FmHA Farm Operatins                     Loan Past Due
           Amount--Nationwide     Distribution,                     June 30. 1989




                         III   Less Than $4.4 Million (IO States)
                               $4.4-18.8 Million (15 States)
                               $18.448 Million (15 States)
                               $47-181 Million (10 States)

Source:   GAO analysis     of FmHA report,                     code 616.




                                               66
NATIONWIDE DISTRIBUTION OF FARl(
OPERATING LOAN PAST DUE AMOUNT
       The 10 states     having the largest          farm operating      loan past due
amounts are located       primarily     in the southern        and central     parts of
the country.      These past due amounts total             $1.5 billion,      associated
with $2.3 billion      in outstanding        principal     and $559 million       in
unpaid interest.       On a combined basis,            the top 10 states      accounted
for 55 percent      of F'mHA~s total      farm operating       loan past due debt.
Appendix III provides        statistics      on farm operating        loan
delinquencies     in each state and territory.

          Table   3.& .    Ten States With Hiahest Farm Operatina           Loan
                            past Due Amount, June 30. 1989

Dollars      in Millions
                                         Outstanding              Unpaid
                                        principal    owed   interest     owed
                       Past due         by delinquent       by delinquent           Total
State                   amount             borrowers           borrowers             debta
Texas                  $181.0             $238.6                $68.3              $307.0
Louisiana               147.9              203.8                 54.4               258.2
Mississippi             109.1              125.5                 35.2               160.7
Minnesota                70.0              123.8                 24.9               148.7
Georgia                  66.3               60.9                 25.0                85.9
Oklahoma                 58.1              116.0                 22.4               138.4
Indiana                  57.5               72.5                 21.1                93.5
Arkansas                 52.8               74.9                 18.2                93.1
North Dakota             48.1              106.6                 17.0               123.6
Tennessee                47.9               67.5                 17.9                85.4

aTotals      may not      add because     of rounding.




                                              67
          Fisure  3.10:    FmHA Emercrencv Disaster    Loan Past Due
             Amount-- Nationwide  Distribution,     June 30, 1989




                         L-J         Less Than $3 Million (10 States)
                         I:::i:i:ii::ii’:‘il$3-54 Million (15 States)
                         m/ . ,Q $54.1-121 Million (15 States)

                                     $122-674 Million (10 States)

Source:   GAO analysis          of FmHA report,                         code 616.




                                                             68
NATIONWIDE DISTRIBUTION OF
EMERGENCYDISASTER PAST DUE DEBT
        The 10 states   having the largest          amounts in emergency disaster
delinquencies      are generally    located     in the southern         parts of the
country.      Emergency disaster      past due debt is the largest             of the
major farm program delinquencies,           totaling     over $4.9 billion,
associated     with $5.7 billion      in outstanding       principal       and $2.6
billion    in unpaid interest.        On a combined basis,           the top 10 states
accounted     for 68 percent     of FmHA's total       emergency disaster        past
due debt.      Appendix III provides       statistics      on emergency disaster
delinquencies      in each state and territory.

                                          *     .
        Table     3.9, .     Ten States With Hlah est Emeraencv      Disaster   Taoan
                                Past Due Amount. June 30. 1989
Dollars         in Millions
                                        Outstanding             Unpaid
                                       principal    owed   interest     owed
                           Past due    by delinquent       by delinquent          Total
State                       mount         borrowers           borrowers            debta
Georgia                     $673.4         $562.8               $327.7            $890.6
Mississippi                  583.3          594.6                284.8             879.4
Texas                        503.4          492.5                245.9             738.4
California                   456.6          441.1                248.3             689.3
Louisiana                    387.2          399.7                190.2             589.9
Arkansas                     209.0          241.4                109.8             351.2
Florida                      173.4          151.0                 77.5             228.5
Oklahoma                     154.6          219.6                 94.8             314.4
Minnesota                    123.5          167.5                 72.8             240.3
Arizona                      122.1          111.6                 68.7             180.4
aTotals       may not        add because   of rounding.




                                               69
                                                                                        Y
                                                                                            I




                  Ficrure 3.11:     FmHA Economic Emersency Loan
          Past   Due Amount--Nationwide     Distribution,  June 30,              1989




                            I
                            ~
                                  Less Than $3 Million (10 States)
                                 $3-26 Million (15 States)
                                 $27-51 Million (15 States)
                                  $52-94 Million (10 States)

Source:      GAO analysis       of FmHA report,                      code 616.




                                                    70
NATIONWIDE DISTRIBUTION OF ECONOMIC
EMERGENCYPAST DUE AMOUNT
         The states     having the 10 largest     amounts of economic emergency
payments past due are scattered            across the country.     These payments
total      almost $1.5 billion,     associated    with $2 billion    in
outstanding       principal    and $965 million    in unpaid interest.      On a
combined basis,         these 10 states    account for 47 percent      of FmHA's
total      economic emergency past due amount.         Appendix III provides
statistics       on economic emergency past due amounts in each state and
territory.

     Table     3 . 1 0:    Ten States With Hishest Economic Emeroencv           Loan
                             Past Due Amount, June 30. 1989
Dollars      in Millions
                                         Outstanding              Unpaid
                                        principal    owed   interest     owed
                          Past due      by delinquent       by delinquent         Total
State                      amount          borrowers           borrowers           debta
Indiana                    $93.7           $125.1                $63.7            $188.8
California                  83.1             94.0                 52.1             146.1
Texas                       76.4             82.9                 43.6             126.5
Georgia                     69.6             63.1                 42.3             105.4
Idaho                       65.2             76.6                 41.4             118.0
Nebraska                    62.2            102.0                 48.8             150.8
Oklahoma                    61.8            105.6                 44.1             149.7
Minnesota                   60.6             97.1                 46.8             143.9
Iowa                        57.8             98.6                 40.7             139.3
Florida                     52.1             45.9                 29.4              75.3
aTotals      may not      add because    of rounding.




                                             71
           Fiqure 3.12:     FmHA Soil and Water Loan Past Due
           Amount--Nationwide    Distribution,  June 30. 1989




                            Less Than $70 Thousand (10 States)
                            $70-549 Thousand (15 States)
                            $550 Thousand-l .8 Million (15 States)
                            $1X3-8Million (10 States)

Source:   GAO analysis   of FmHA report,                  code 616.




                                           72
  SOIL AND WATER PAST DUE AMOUNT
         The 10 states     having the largest     amounts of soil and water
  payments past due are located        generally     in the southern,     central,
  and western parts of the nation.          This past due amount totals
  $58 million,      on a total   of $112 million     in outstanding    principal
  and $44 million      in unpaid interest.       On a combined basis,       the top
  10 states     account for 64 percent     of FmHA's total      soil and water
  past due debt.       Appendix III provides      statistics    for soil and water
  delinquencies      in each state and territory.

                               Past   Due Amount,       June 30,   1989
Dollars   in Millions
                                  outstanding                Unpaid
                                principal owed          interest owed
                  Pastdue       by delinquent           by delinquent     Total
State              amount          borrowers               borrowers       debta
Georgia                 $7.1          $8.6                 $4.4           $13.0
                         5.7           8.2                  3.1            11.3
California               5.0           9.6                  4.5            14.1
Idaho                    4.0           9.2                  3.2            12.4
Nebraska                 4.0           7.4                  2.8            10.2
Oregon                   2.8           6.0                  2.7             8.8
Mississippi              2.5           3.8                  2.0             5.9
Missouri                 2.3           5.2                  1.8             7.0
Iouisiana                2.1           2.9                  1.3             4.2
Arkansas                 1.9           4.3                  1.5             5.8
aTotalsmaynotaddbecauseof              rounding.




                                                   73
                 Fiqure 3.13:         FmHA Ma-ior Farm Prosram
                     3-Year-or-More        Past Due Amount--
                 Nationwide     Distribution,     June 30, 1989




                                 Less Than $9.2 Million (10 States)
                         ‘~     $9.2-j08 Million (15 Sates)

                                $107-237 Million (15 States)
                                $2338817 Million (10 States)

Source:   GAO analysis        of FmHA report,                   code 616.




                                                 74
   NATIONWIDE DISTRIBUTION OF
   3-YEAR-OR-MORE PAST DUE AMOUNT
           The 10 states    with the largest      amounts of 3-year-or-more
   payments past due are generally          located    in the southern         and
   central     parts of the country.      Nationwide,       this category       totals
   about $7.7 billion,       associated   with $7.8 billion           in outstanding
   principal      and about $4.1 billion      in unpaid interest.           On a combined
   basis,    these 10 states     account for 60 percent           of FmHAls total      3-
   year-or-older      debt.    Appendix IV provides        statistics     on
   delinquencies      in the 3-year-or-more       category      in each individual
   state and territory.

               Table     3.12:      Ten States With Hishest     3-Year-or-More
                                 Past Due Amount, June 30,     1989
Dollars    in Millions
                   3-y--        outstanding                    Unpaid               Total
                   or-more  principalowedby              interest owed by        3-year-or-
                  past due  3-year-or-more                 3-year-or-more           older
State              amount delinouentborrowers          delincuentborrowers          debt
Georgia            $816.5             $644.9                  $399.8             $1,044.7
TexaS               716.4              566.5                   334.7                901.2
Mississippi         698.8              609.9                   330.5                940.3
California          577.7              539.4                   317.5                856.9
Louisiana           533.0              464.3                   256.0                720.3
ArkansaS            277.0              278.5                   145.7                424.3
Florida             269.0              213.3                   126.2                338.5
Oklahcrma           253.5              309.9                   151.1                461.0
Minnesota           252.3              308.5                   148.8                457.3
Indiana             238.4              256.3                   139.3                395.6
aTotalsmaynotaddbecauseof             rounding.




                                                  75
                                  e 3.14. .   A4e of Major  Farm Prosram
                                  past    Due Amount. June 30, 1989
          0   Dolm   In Billlow

          7

          5

          5

          4

          3

          2

          1




Source:   GAO analysis                   of FmHA report,   code 616.




                                                    76
.


    AGE
    c         DELIN     N                                OAN         OUNTS
           FmHA categorizes      borrowers     by their    oldest   delinquent    farm
    program loan even though a borrower             may have loans in different
    delinquent   age categories.         For example, FmHA shows that the
    44,106 borrowers      delinquent     for 3 years or more have a total            of
    $7.8 billion    in delinquent      payments.       About $7.5 billion       of this
    amount has been delinquent         for 3 years or more.           The remaining
    delinquent   $327 million       is less than 3 years delinquent            but is
    shown in the 3-year-or-more          delinquency     total    because of FmHA's
    method of aging delinquencies.

                        Table     3.13:  Ace of Major Farm Procram
                                Past Due Amount, June 30, 1989
    Dollars    in Millions
                              1 year           l-2          2-3         3 years
                             or less          years        years        or more        Totala
    Number of
    delinquent
    borrowers                17,042         7,958        9,057         44,106         78,163
    Delinquent
    dollars
       3 years   or more                                               $7,499.1       $7,499.1
       2-3 years                                           $401.1          139.9          541.0
       l-2 years                              $207.2          43.3            35.0        285.5
       1 year or
          less                   $188.1          24.6         11.5           152.2        376.4

    Total                        $llJSLl      $231.8       $455.9
    Outstanding
    principal    owed
    by delinquent
    borrowers                $2,083.4      $1,223.4     $1,470.1       $8,242.2      $13,019.1
    Unpaid interest
    owed by
    delinquent
    borrowers                    $146.9       $154.7       $282.0      $4,162.6       $4,746.2

    aTotal delinquent     dollars    and outstanding     principal    and unpaid
    interest   owed by delinquent       borrowers   are higher     in this table
    than in other tables       in this section     of the report     because of
    programming   variances      for presenting    data by individual      borrower
    and by loan program.


                                                 77
                            Table 3.14: Major Farm EVoaram Loans and
                                pelinauenc~ Status, June 30, 1989
Dollars   in Millions
                                   FXXI            Rnergm      Economic      Soil and
                                                   disaster    ememenc~        5Yia2x         TOtEi
Total
borrowersa        109,412        100,022           90,280      38,180        12,973       350,867

Delinquent
borrowersa         28,848         41,890           41,020      19,851         4,053       135,662

Delinquent
borrowers
asapercent
of total                  26.4         41.9             45.4        52.0          31.2          38.7

Total
outstanding
principal
and interest       $7,724.8       $5,846.6     $10,505.2       $4,141.8        $300.0     $28,518.3

outstanding
principal
and interest
wdby
delinquent
borrwers           $2,976.1       $2,875.9         $8,346.6    $3,008.7        $155.5     $17,362.8

outstanding
principal
and interest
owed by
delinquent
bmrowers
asapfxcent
of total                  38.5        49.2              79.5        72.6          51.8          60.9
Delinquent
dollars                 $699.4   $1,518.3          $4,948.8    $1,465.6         $58.4      $8,690.5
Delinquent dollars
as a percent of
principal
and interest
on delinquent
1oa.I-E                   23.5        52.8              59.3        48.7          37.6          50.1

?Phis tabl$presents     data byloantype     rather than individual         borrower,     resulting
inthebo~~'beingcountedin~~loancategoryin~ichtheyhavealoan.



                                              78
c                                                         LOANS
         Individual       borrowers    often have more than one type of farm
program loan.            Table 3.14 presents         data by loan type (rather             than
by individual           borrower),    which results        in the borrowers'        being
counted in each loan category                in which they have a loan.               It 'is
based on our analysis              of FmHA automated reports            data (FmHA report
codes 540 and 616).               This tabulation       method also provides          slightly
different        totals     for delinquent      dollars       and outstanding      principal
amounts owed by delinquent               borrowers      that,    according    to FmHA
officials,         are not significant         when the data are viewed in the
aggregate.          Details     on why these differences           occurred     are contained
in section         5.




                                              79
         In November 1988, FmHA began implementing                    the Agricultural
Credit      Act by notifying        over 66,000 delinquent           borrowers     of the
act's      debt servicing      options.        However, according        to the FmHA
Deputy Assistant          Administrator        for Farmer Programs,         while a
substantial       number of delinquent            borrowers     were serviced      during the
first      half of 1989, FmHA's financial              records were not updated until
December 1989.          Therefore,       the condition       of FmHA's portfolio,        as of
June 30, 1989, which was the time frame used for this report,                            does
not reflect       the servicing        of delinquent        borrowers'     debt as of that
date.       To provide     a fuller      picture    of FmHAls loan portfolio,           we
have included        information       in this segment of the report             which
reflects       the results     of debt servicing          through    February     28, 1990.
        Under the Agricultural             Credit    Act, FmHA can take a number of
servicing       actions      to restructure       a delinquent       borrower's     debt, such
as rescheduling,           reamortization,        consolidation        of loans,    interest
rate reduction,           and debt write-down.           Additionally,        it can allow
the borrower         to pay FmHA an amount equal to the net recovery                      value
of collateral          securing     the loan and end the borrower's              debt
obligation       to FmHA. FmHA takes into account the estimated                        costs of
foreclosing,         holding,      and disposing      of security       property    in
determining        net recovery        value.     The payment in many cases is
substantially          less than (1) the market value of the property
securing      the FmHA debt and (2) the amount of the total                      outstanding
debt a borrower           owes FmHA. The term "net recovery                 value buy-out"
is used to describe            this payment.         FmHA writes       off the difference
between a borrower's             total    outstanding     debt and the buy-out           amount
when a borrower           makes this payment.
        The following    three tables,    which are based on information
provided     by the USDA Under Secretary         for Small Community and Rural
Development,      show the results     of FmHA servicing       as of February    28,
1990.     At that time,     FmHA had completed       net recovery    value buy-out
actions    for 5,156 borrowers       and written     off almost $1.1 billion      in
debt.     These borrowers     owed FmHA $935 million        in outstanding
principal     and $349 million     in unpaid interest       for a total    debt of
almost $1.3 billion.         The top 10 states      accounted     for 60 percent    of
the total     debt and almost 61 percent         of the debt written      off.




                                            80
    Table 3 15:  Ten States With Highest Total FmHA Farm PrOoram
   Debt and'Net Recovery Value Buy-Out Amounts, Februarv 28, 1990
Dollars     in Millions
                             outswing                Unpaid
                  Past      principal owed       interest owed               Amount
                                                 by delinguent   Total      written
state            z!iii?&    wzt                     borrowers     debta       Qu
Louisiana        $79.4            $100.9            $38.9        $139.7     $129.3
Minnesota         42.4              78.9             27.2         106.1       89.5
Mississippi       60.5              74.9             29.6         104.4       90.1
Georgia           52.4              55.7             29.5          85.3       72.7
Arkansas          42.0              50.0             21.9          71.9       64.3
North Dakota      23.6              52.2             16.8          69.0       59.3
Missouri          17.0              41.6             12.3          54.0       44.0
TexaS             26.6              37.1             14.5          51.6       46.0
Oklahcana         19.7              35.7             12.9          48.6       42.1
Michigan          16.5              31.9             11.3          43.3       37.7




        Through restructuring,      FmHA also wrote down $777.5 million         of
debt for 4,879 borrowers.          These borrowers    owed FmHA $1.2 billion
in outstanding     principal     and $321.4 million    in unpaid interest     for
a total     debt of $1.5 billion.       The top 10 states   accounted    for 55
percent     of the total     debt and 56 percent    of the debt written     down.
           Table 3.16:  Ten States With Hiahest  Total FmHA Farm
          Proqram Debt and Write-Down  Amounts, February 28. 1990
Dollars   in Millions
                              outstanding            Unpaid
                   Past     principal owed       interest owed              Amount
                    due     by delinquent        by delinquent   Total     written
State             amount       borrowers            kaxowers      debta      down
Minnesota          $30.5          $97.6              $22.8        $120.3     $63.2
OklElhOK!El         36.6           91.0               28.1         119.0      60.9
south Dakota        26.6           81.1               20.7         101.7      47.0
North Dakota        23.0           77.6               18.9          96.5      48.1
Mississippi          31.9          54.8               17.9          72.7      44.4
Michigan             17.5          56.5               13.1          69.7      38.7
Indiana              20.8          51.6               16.9          68.5      35.7
Louisiana            29.5          48.6               15.6          64.1      44.9
Missouri             14.0          51.0               10.1          61.1      28.6
Wisconsin             7.1          44.3                8.6          52.9      24.6

aTotals may not add because of rounding.



                                            81
       Further,   17,090 borrowers   had their    debt restructured   without
debt reduction.       This occurred  through    such actions    as
rescheduling,     reamortization,   or interest     rate reduction.   These
borrowers     owed FmHA almost $2.4 billion.        The top 10 states  had
outstanding     debt representing   almost 44 percent      of the FmHA debt in
this category.
         Table 3.17;  Ten States With Hishest     Total FmHA Farm
  Program Debt Restructured    Without Write-Down,     February 28,      1990
Dollars   in Millions
                                          Past
                                           due               Total
                 State                   amount               debt
                North Dakota             $23.3               $162.9
                Texas                     25.5                139.6
                Iowa                      16.3                115.7
                Oklahoma                  20.3                110.1
                Tennessee                 16.8                 93.2
                South Dakota              15.2                 91.0
                Mississippi               24.0                 90.9
                Wisconsin                  5.8                 87.0
                Montana                   13.0                 77.4
                Illinois                  12.3                 76.0
Note:     FmHA did not have data       on the amount of outstanding
principal    and unpaid interest       composing the total  debt.

       Appendix V provides      data   on net recovery value buy-outs,   debt
write-downs,     and restructured      debt for the 50 states as of
February     28, 1990.




                                        82
            SECTION 4

     FmHA MAJOR FARM PROGRAM
LOAN LOSSES ARE CONTINUING TO MOUNT




               83
                                          piaure   4.1:   FmHA Major                    Farm Proaram
                                       Direct    Loan Losses, Fiscal                     Years 1976-89


3.6       DolhN   In wIllon*


3.2

2.8

2.4

2.0

1.6

7.2


0.8

0.4

  0


  lD7(1           wn            1076    1OTs   1sM   1981   llJ@        1983       1084     wall




Source:                        USDA.

                                        j?'
                                         _34 ure 4.2:
                                   Guaranteed    Loan Losses,                  Fiscal      Years   1976-89




                                        lS79         we1    1982        19S3




Source:                        USDA.




                                                                   84
          AND GUARANTEED TQAN 10SSES
        FmHA incurs a loss on a direct            and/or guaranteed      farm program
 loan when a borrower          defaults    and the proceeds from the sale of
acquired     loan collateral         are less than the outstanding         loan amount
plus the costs of acquiring              and disposing    of the collateral.            Loan
losses are exclusive           of interest    rate subsidies    provided       for in
FmHA's major farm programs.               FmHA loan losses on its direct            and
guaranteed      loans have increased         each year from 1976 through            1989,
with the exceptions          of 1982 (direct      losses)   and 1989 (guaranteed
losses).       Direct    farm program loan losses increased           from about $24
million    in fiscal       year 1976 to over $3.3 billion        in fiscal         year
1989.     FmHA guaranteed         farm program loan losses increased             from less
than $1 million        in fiscal      year 1976 to over $64 million          in fiscal
year 1989.        Total major farm program annual loan losses were 139
times greater        in fiscal     year 1989 than they were in fiscal              year
1976, increasing         from $24.4 million       to almost $3.4 billion.

             Table   4.1:         FmHA Major Farm Proqram      Loan Losses,
                                    Fiscal  Years 1976-89
Dollars    in Millions
                                                                     Annual
Fiscal                   Direct              Guaranteed                total
 year                    losses                lossesa               losses
1976                 $       23.6             $    0.8              $       24.4
1977                         25.4                  0.2                      25.6
1978                         40.8                  0.3                      41.1
1979                         42.7                  0.2                      42.8
1980                         63.4                  0.4                      63.8
1981                         76.8                  2.0                      78.9
1982                         72.6                  5.1                      77.6
1983                        113.2                  8.7                     121.9
1984                        168.2                  9.6                     177.8
1985                        315.5                 19.8                     335.3
1986                        438.3                 51.7                     490.0
1987                     1,161.7                  78.1                  1,239.7
1988                     2,083.7                  86.8                  2,170.5
1989                     3,330.8                  64.9                  3.395.7
Total

aTotal    does not       add because    of rounding.




                                            a5
                                    Fiaure              4.3:   FmHA Farm Ownership Loan Losses,
                                                               Fiscal Years 1976-89


a00          Dohm   In Yllllam

loo

9w

m

110

240

210

110

100

120

 00

 00

 30

    0-


     1070           lo?7           1070          1070           lW1   1002        1963
     Dlrwl    and Quclnnl4        Loan    Loan




Source:                          USDA.




                                                                             86
          Farm ownership     loan losses for fiscal     years 1976 through     1989
total      about  $1.1 billion,     representing   about 13 percent   of the
total    major    farm program loan losses for this period.          After
several     years of decline,       farm ownership   loan losses began
increasing      in fiscal      year 1981 and have risen dramatically       over the
past 3 fiscal        years.

                      Table    4.2:       Farm Ownership Loan Losses,
                                      Fiscal   Years 1976-89
Dollars      in Thousands
Fiscal                        Direct         Guaranteed            Total
 Year                         Josses           losses            losses
1976                  $     4,236            $          0    $     4,236
1977                           931                      0             931
1978                           833                      0             833
1979                           472                      0             472
1980                           465                      0             465
1981                           839                      0             839
1982                           775                    93              868
1983                        6,689                     85           6,774
1984                       33,274                    440          33,714
1985                       68,132                 3,281           71,413
1986                       52,805                 8,250           61,055
1987                      166,848                12,538          179,386
1988                      302,825                15,012          317,837
1989                      371.241                11,995          383,236
Totala
aTotal      may not    add because       of rounding.




                                                 87
                                  Fisure             4.4:      FmHA Farm Ox>eratincr Loan Losses,
                                                              Fiscal  Years 1976-89



000         Volkr8InYlIllotu
040
rm
no
ooo
bQI
040
400
420
a00
wo
240
l@O
110
 00
     0-


     lrn               1wI       inro          lvm      lW0    1001   1082        wm   1004   ISSS   lsm   1987   lam   loal
     Dlml     and Otunnlud      Lou,    Laaw




Source:                        USDA.




                                                                             88
FARM OPERATING LOAN LOSSES
        Farm operating       loan losses for fiscal        years 1976 through    1989
total    about $1.8 billion        representing      about 21 percent   of total
major farm program loan losses for the 14-year period.                   These
losses decreased       fairly    steadily      between fiscal   years 1976 and
1981, but have increased           substantially      in the past 8 fiscal    years.
                                     .
      Tab1 e 4.3:    Fm'Deratuw           Loan Losses, Fiscal      Years 1976-89
Dollars   in Thousands
Fiscal                Direct         Guaranteed               Total
 Year                 Josses           losses                 losses
1976              $     14,749       $       179          $    14,928
1977                    10,693               152               10,845
1978                     8,601               242                8,843
1979                     9,975                92               10,067
1980                     8,728                56                8,784
1981                     4,665               492                5,157
1982                    13,910            1,068                14,978
1983                    19,732            2,573                22,305
1984                    24,173            2,980                27,153
1985                    38,928            4,444                43,372
1986                    74,909           18,592                93,501
1987                   217,950           40,942               258,892
1988                   363,348           50,515               413,863
1989                   808,258           39,576               847.834
Total             $1.618.619                              $1.780.522




                                         89
 1640
1540
1190
1220
1210
1100
 wo
 em
no
060
660
440
330
220
110
  0     --

  1070            W7?        1078        1179   1960
  Mm*        and Ouannmd    Lan   Lnrr                 1221   1902   1982   1084   1Wll   1080   19117   1088   1089




Source :                   USDA.




                                                              90
EMERGENCYDISASTER LOAN TOSSES
        Emergency disaster     loan losses for fiscal            years 1976 through
1989 total     about $3.7 billion      and account for the largest              portion,
45 percent,     of  total  major   farm  program     loan     losses   for   this
period.     These loan losses increased        fairly       steadily     from fiscal
years 1976 to 1984, but have risen sharply                in the past 5 fiscal
years.

                Table     4.4:      Emersencv Disaster   Loan Losses,
                                    Fiscal Years 1976-89
Dollars    in Thousands
Fiscal                  Direct             Guaranteed               Total
 Year                   losses               losses                 losses
1976               $        4,189           $    670          $        4,859
1977                       13,807                 45                  13,852
1978                       30,939                 35                  30,974
1979                       24,935                 61                  24,996
1980                       33,449                 32                  33,481
1981                       49,713                  0                  49,713
1982                       45,173                  0                  45,173
1983                       61,643                 36                  61,679
1984                       75,585                 62                  75,647
1985                      150,778                121                 150,899
1986                      204,476                 56                 204,532
1987                      484,874                  0                 484,874
1988                      946,518                 91                 946,609
1989                   1.561.089                   0              1.561.089
Total




                                            91
          Ficrure              4.6:        FmHA Economic Emeraencv                           Loan Losses,
                                            Fiscal  Years 1978-89

          600      Dollar0 In Millioa
                                                                                                                      /I’
          660                                                                                                     /
                                                                                                            /I’
          660                                                                                          /’
          430

          400

          350

          300

          230

          200

          150

          100

           60
                                                   __i,
            0

            1873        1879      1@80      1981          1082   1983   ls54   1985   1986    1057   1988         1989
            Dlroct and Guamntrd          Loan Lonos




Source:   USDA.




                                                                 92
      Economic emergency loan         losses for fiscal   years 1978 through
1989 total   about $1.7 billion,         or 20 percent  of total   major farm
program loan losses for this          period.   Loan losses in this program
have increased    substantially       over the past 7 fiscal     years.

              Table    4.5. .   EConomic Emersencv Loan Losses,
                                Fiscal Years 1978-89
Dollars   in Thousands
Fiscal                Direct          Guaranteed                    Total
 Year                 losses            losses                    losses
1978            $          377        $          0          $           377
1979                    7,264                    0                  7,264
1980                   20,746                 290                  21.,036
1981                   21,621              1,551                   23,172
1982                   12,673              3,889                   16,562
1983                   24,648              6,012                   30,660
1984                   34,917              6,114                   41,031
1985                   56,233             11,943                   68,176
1986                  102,593             24,769                  127,362
1987                  283,679             24,570                  308,249
1988                  454,577             21,183                  475,760
1989                  559.343             13,364                  572,707
Total           Qk6ZUZ2               $113.685             Qd%%&iZ
Note:  Economic emergency         loans    were not   available       until   the   latter
part of fiscal  year 1978.




                                          93
                              Fisure          4.7:       FmHA Soil and Water Loan LOSSeS,
                                                        Fiscal  Years 1976-89



32309         Ddlmm In Thouundm
3omo
279W

2eooo

22500
2oooO

17200

16000

1m

1OWO

 7609

 mm

2300

      0
               _.   -         -.
       1979         lO??      1078     1079      1990    1981   1982    1983   1884   1995   1996   1997   1998   1999
       Direct LOWI Loama




Source:                    USDA.




                                                                   94
SOIL AND WATER LOAN LOSSES
        Soil and water direct        loan losses for fiscal         years 1976
through     1989 total     almost $62 million        but represent     less than
1 percent     of the total      major farm program loan losses for the
period.      No guaranteed      loan losses for the soil and water program
occurred     during    this period.      After    a period   of relatively      minor
amounts of loan losses during            fiscal    years 1976 through       1984, soil
and water loan losses increased              substantially     in fiscal    years 1985
through     1989.

    Table    4.6:   Soil     and Water   Loan Losses,    Fiscal       Years   1976-89
Dollars     in Thousands
                                                        Soil
                           Fiscal                   and water
                            year                 direct      losses
                            1976                    $   389
                            1977                           3
                            1978                         57
                            1979                         10
                            1980                           2
                            1981                           2
                            1982                         32
                            1983                        471
                            1984                        206
                            1985                     1,395
                            1986                     3,558
                            1987                     8,334
                            1988                    16,435
                            1989                    30,863
                           Total                   $61.757




                                          95
         SECTION 5

    OBJECTIVES.   SCOPE,
     AND METHODOLOGY




Y




           97
OBJECTIVES,       SCOPE, AND METHODOLOGY
        In September 1989, the Chairman,                 Subcommittee        on Agricultural
Credit,     Senate Committee on Agriculture,                Nutrition,         and Forestry,
requested      that we update information              we previously         reported      on the
financial      condition       of FmHA's farm loan portfolio               in Farmers Home
Administration:            Farm Procrram Debt. Delinquencies.                and Loan Losses
as of June 30. 1987 (GAO/RCED-88-134BR, May 20, 1988).                               In
discussions       with the Subcommittee           staff,    we agreed to provide
updated national           and state information,          as of June 30, 1989, on the
 (1) total     farm debt and FmHA's portion               of that total,          (2) total
number of loans and borrowers                and loan amounts for each of FmHAls
major farm programs,             and (3) delinquencies          (including        unpaid
interest)      and loan losses occurring             in these programs.              We
subsequently        agreed to provide         updated information,            as of
February     28, 1990, for selected             FmHA restructuring           actions      under
the Agricultural           Credit   Act.     This briefing       report      provides
additional       detail     on information       provided     in a briefing          to the
Chairman's       staff.      This information        covers,      for the most part,            the
14-year period          from fiscal      years 1976 and 1989 and supplements
information       provided       in another of our recent reports                 entitled      Farm
Finance:       Financial       Condition     of American Agriculture              as of
December 31, 1988 (GAO/RCED-90-49BR, Nov. 15, 1989).
        We obtained     data on total   farm debt as well as FmHA's portion
of that total       from the USDA Economic Research Service     report
entitled    Economic Indicators       of the Farm Sector, State Financial
Summary, 1988.
         We obtained       detailed        FmHA major farm program information                 from
four sources.           First,      we conducted      our own computer analysis              of
FmHA's Master Borrower File,                  a computerized       data base updated
quarterly       that contains          information      on current     outstanding        loan
principal,        total    borrowers        and loans,    delinquent     borrowers        and
loans,     and delinquent           dollar    amounts.      The latest     information
available      was as of June 30, 1989, and we used this date for our
analysis      of both current            and 14-year trend information.              Second, we
obtained      14-year trend data from FmHA's report                    codes 540 and 616 on
delinquent        borrowers,        prepared     from the Master Borrower           File.
Third,     we obtained         direct      and guaranteed      major farm program loan
activity      for fiscal        years 1976 through          1985 from FmHAls 205 loan
status     reports      and for 1986 through            1989 from FmHA's Budget Staff.
Fourth,     we obtained          information       on losses in both direct          and
guaranteed        loan activity          for fiscal     years 1976 through        1989 from
USDA budget records.
Data Limitations
      The information contained in this report   comes from FmHA
automated data bases.   We did not test the validity      or reliability
of this  information.  However, we provided   the results    of our work

                                               98
to FmHA officials,            who agreed       that the information    used in this
briefing report            was consistent        with the data contained   in FrnHA
records.
        We conducted      a more extensive          analysis        of FmHA's Master
Borrower File than FmHA does in producing                       its reports.          We
calculated     delinquent       dollar     amounts in two ways:               by individual
borrower     and by individual          borrower's        loan type.         These
calculations       produced slightly         different        results       because of
differences      in the methodologies            used to determine            delinquent
borrowers     and delinquent         loans.      In determining           whether a borrower
was delinquent,         we took all loans owed (OL, FO, EM, etc.)                       by a
borrower     and offset      delinquent      payments against             payments made ahead
of schedule.        We considered        the borrower         delinquent        if he/she had
an unpaid scheduled          payment after         offsetting        all loans owed by that
borrower.      In determining          whether an individual              borrower's     loan
tYPeI    such  as   OL,   was   delinquent,        we   took    all    loans    of  the  same
type owed by a borrower            and offset       delinquent        payments against
payments made ahead of schedule.                   We considered          the individual
borrower's     loan type delinquent            if a scheduled            payment was unpaid
after    the offset.       Table 5.1 illustrates              how these variances           in
methodology      result    in different       calculations           of delinquent       dollar
amounts.
                   Table 5.1:         FmHA Delinquent Dollar Amounts
                  bv Borrower        and bv Loan Tvne, June 30, 1989
Dollars      in Millions
                                                          Bv borrower           BY loan    tvne
Delinquent       dollars                                    $8,702.0               $8,690.5
Outstanding       principal   owed
by borrowers       with delinquent            loans         13,019.l               12,636.8
Unpaid interest            owed by borrowers
with delinquent            loans                             4,746.2                4,726.0
Dollars      delinquent       for   3 years     or more      7,826.2                7,713.8
Outstanding        principal owed by borrowers
delinquent       for 3 years or more                         8,242.2                7,813.7
Unpaid interest            owed by 3-year-or-
more delinquent            borrowers                         4,162.6                4,090.7

      Minor differences   also occurred     between the results   of our loan
type analysis    and FmHA's report   information,   which is also compiled
by loan type, primarily    because of variances     in GAO and FmHA
programming   and format methodology.       For example,  our analysis  of
                                                 99
delinquent      dollars    by major farm program as of June 30, 1989,
resulted     in total     delinquencies          of $8,690.5       million,      whereas FmHA's
total     is $8,689 million--        a difference         of about 0.01 percent.             In
addition,      our computation        of outstanding          principal       on loans owed by
delinquent      borrowers      resulted       in a total      of $12,636.7         million
compared with FmHA's 616 report                  total    of $12,635.6        millionr-a
difference      of about 0.01 percent.                 We discussed       these differences
with FmHA Finance Office             officials.          They were unable to provide
specific     reasons for the variance               in GAO and FmHA programming              but
believed     that the resulting           differences        are not significant           when the
data are viewed in the aggregate.                     We used the results            of our
analysis     in this briefing         report.




                                             100
101
APPENDIX I                                                        APPENDIX I
                       FARM DEBT, STATE INFORMATIOEE
                            DECEMBER
                       Total               FmHA          FmHA debt to
State             farm debta            farm debtb       total   debt=
                  (millions)             (millions)        (percent)
Alabama          $ 1,681    (33)    $     317    (29)     18.9    (17)
Alaska                 33   (49)            1    (50)      3.0    (50)
Arizona            1,703    (32)          236    (34)     13.9    (28)
Arkansas           3,474    (16)          839    (13)
California        13,318      (1)         908    (11)     246';
                                                             .    (d;;
Colorado           3,330    (19)           259   (33)      7.8    (48)
Connecticut           231   (46)            26   (46)     11.3    (38)
Delaware              283   (45)            24   (47)      8.5    (46)
Florida            3,690    (13)           377   (26)     10.2    (40)
Georgia            3,400    (17)        1,020      (5)    30.0      (5)
Hawaii                340 (42)              43   (43)     12.6    (32)
Idaho              2,627 (26)              507   (23)     19.3    (15)
Illinois           8,308    (4)            657   (15)      7.9    (47)
Indiana                                    639   (17)     12.3    (35)
Iowa                                    1,062      (3)     9.5    (43)
Kansas             5,826      (7)         518 (22)         8.9    (45)
Kentucky           2,888    (23)          613 (18)        21.2    (12)
Louisiana          2,505    (27)                          38.4      (2)
Maine                 370   (41)          '1;: (E{
Maryland              906   (36)            84 (39)       "Z .    (141;
Massachusetts         231 (47)              40 (44)       17.3    (21)
Michigan           3,216 (20)              583 (20)       18.1    (18)
Minnesota          8,102    (5)            990 (7)        12.2    (36)
Mississippi        3,377 (18)           1,275    (2)      37.8      (3)
Missouri           5,049 (10)              905 (12)       17.9    (20)
Montana            2,891 (22)             549    (21)     19.0    (16)
Nebraska           7,606    (6)           751    (14)      9.9    (42)
Nevada                298 (44)             36    (45)     12.1    (37)
New Hampshire          71 (48)             12    (48)     16.9    (23)
New Jersey            391 (40)             62    (42)     15.9    (25)
New Mexico         1,128    (34)           140   (36)     12.4    (34)
New York           2,271                   472   (25)     20.8    (14)
North Carolina     2,865    ;z:;           606   (19)     21.2    (13)
North Dakota       4,084    (12)        1,002      (6)
Ohio               3,619    (15)           489   (24)

                                    102
APPENDIX I                                                              APPENDIX I
                        Total                 FmHA              FmHA debt to
State               f nn debta             farm debtb           total   debtC
                    (Zillions)              (millions)            (percent)
Oklahoma           $ 4,315       (11)     $     977    (8)      22.6   (10)
Oregon               2,699       (25)           272   (32)      10.1   (41)
Pennsylvania         2,422       (28)           301   (31)      12.4   (33)
Rhode Island             29      (50)             5   (49)      17.2   (22)
South Carolina       1,128       (35)           345   (27)      30.6     (4)
South Dakota         3,641       (14)         1,042    (4)      28.6    (6)
Tennessee            2,309       (29)            646 (16)
Texas               11,447        (2)                           "1:=7" ,i;;
Utah                    805      (37)         1%      (4:;      13:5 (30)
Vermont                 337      (43)              76 (41)      22.6 (11)
Virginia             1,981       (31)           302   (30)      15.2   (27)
Washington           3,095       (21)           323   (28)      10.4   (39)
West Virginia           454      (39)            82   (40)      18.1   (19)
Wisconsin            5,559         (8)          917   (10)      16.5   (24)
Wyoming                 795      (38)           122   (37)      15.3   (26)
Note : Debt figures   shown in this appendix do not precisely        agree
with those shown in parts of section    1 of this report.     Figures      in
section  1 were taken from aggregated  totals   we obtained   directly
from major lenders,   whereas the above figures    for the individual
states  were taken from USDA's Economic Indicators     of the Farm
Sector publication,   as shown below.
aThe number in parentheses   indicates     where each state ranks
according  to the amount of total     farm debt held by the state's
borrowers.   For example,  California     ranks first, with the largest
amount of total   farm debt ($13.3 billion).
bThe number      in parentheses  indicates     where each state ranks
according  to      the amount of FmHA farm debt held by the state's
borrowers.       For example, Texas ranks first,      with the largest         amount
of FmHA farm       debt (almost $1.6 billion).
CThe number in parentheses            indicates    where each state ranks
according     to the percentage         of FmHA farm debt as compared with
total     farm debt.     For example, Maine ranks first,         with the highest
percentage      of FmHA farm debt to total          farm debt (47.6 percent).     In
addition,     percentage    calculations        may not compute because of
rounding.
Source:   Department   of Agriculture,   Economic Research Service,
Economic Indicators    of the Farm Sector,    State Financial   Summary,
1988, Oct. 1989.     The Summary did not report     farm debt for Guam,
Puerto Riao, or the Virgin      Islands.
                                         103
          APPENDIX II                                                                                                        APPENDIX II
                                             TOTAL FmHA DIRECT LOAN ACTIVITY
                                          MAJ
                                          BY    OR F                       1989



                                       Table   X1.1:   Total      PmHA Major Farm Program    Direct       Loan   Activity,
                                                                        June 30, 1989

Dollars       in   HiLlLone

State/                  Number of                      Nmber   of              Outstanding                  Unpaid                 Total
territory               borrowQt8                        loans                  prlwipal                  interest                  debta

Alabama                    5,956                        10,595             $       298.2              $      46.5            $      344.7
Alaska                          12                            18                     0.7                      0.1                      0.8
Arizona                    1,316                         2,666                     228.2                     92.4                   320.6
Arkansas                  14,308                        24,600                     792.0                    180.4                   972.5
California                 4,726                         8,236                     861.4                    342.6                1,204-o

Colorado                      3,093                      4,944                     248.8                     57.9                   306.7
Connecticut                      354                        537                     25.2                       2.2                   21.4
Delavare                         367                        546                     23.7                       2.4                   26.1
Florida                       4,001                      8,792                     338.')                   137.9                   475.9
Georgia                       9.581                     26,599                     964.0                    427.0                1,391.0

CUtilll                        29                            33                       1.3                     0.1                     1.3
Havaii                        477                           621                     41.3                      6.0                   41.3
Idaho                      6,189                        10,392                     479.8                    119.7                  599.5
Illinois                  12,489                        18,351                     661.2                     77.4                  738.6
Indiana                    8,177                        13.402                     633.9                    169.6                  803.4

Iova                      18,804                        28,187                  1,053.6                     120.0                1,173.6
Kane as                    9,671                        13,826                     501.7                     69.1                   576.8
Kentucky                  13,589                        20,119                     584.3                     67.1                   651.4
Louisiana                 11,903                        31,223                     958.1                    301.4                1,259,s
Maine                      2,558                         4,974                     153.8                     24.5                   178.3

Maryland                   1,343                         1,967                      15.9                     10.3                    86.2
Maaeachueette                 581                           936                     39.0                       3.5                   42.5
Michigan                   7,742                        13,327                     566.0                     95.8                   661.8
Minnesota                 14,777                        25,116                     972.4                    189.8                1,162.2
Hisaieslppi               14,794                        34,226                  1,133.5                     314.5                1,508.O

Hiaeouri                  17,867                        29,026                     877.6                    140.8                1.018.4
Montana                    5,655                        10,594                     523.4                     92.5                   616.0
Nebraska                  11,688                        17,826                     739.4                    126.2                   865.6
Nevada                        428                           713                     35.1                       7.6                   42.7
New Hampshire                 185                           371                     12.0                      0.4                    12.3




                                                                         104
     APPENDIX II                                                                                                                        APPENDIX II

State/                  Number of                       Number       of             Outstanding                     Unpaid                       Total
territory               borrowere                         loam                       principal                    interest                        debta

New Jersey                   936                             1,543                  $      55.8               $         9.8               $        65.7
New Mexico                1,793                              2,746                        132.6                       25.4                        158.0
New York                  8,266                             14,188                        459.6                       76.7                        536.2
North  Carolina          10,125                             18,451                        531.9                      112.4                        644.2
North  Dakota            14,380                             27,014                        984.2                      159.8                     1,144.0

Ohio                      6,153                             10,160                        484.6                       94.9                        579.5
Oklahoma                 13,372                             23,120                        953.5                      205.1                     1,158.5
Oregon                    3,096                              4,921                        262 .O                      50.0                        312.0
Pennsylvania              4,703                              7,757                        297.4                       25.5                        322.9
Puerto    Rico            3,598                              4,607                        131.6                       25.1                        156.8

Rhode Ieland                  77                                108                           5.3                                                    5.8
South Carolina           4,813                               9,534                         330.6                                                  409.0
South Dakota            17,002                              31,466                         964.4                     154.9                     1,119.4
Tennessee               10,849                              17,258                         629.7                     129.6                        759.3
Texas                   20,400                              41,271                      1,516.g                      409.0                     1,925.g

Utah                      1,816                              2,573                        104.6                       10.3                       114.8
Vermont                   1,193                              2,288                         68.0                        3.0                        71.0
Virgin   Islands              38                                 48                          1.6                       0.2                          1.9
Virginia                  5,287                              9,635                        288.5                       58.2                       346.7
Washington                3,377                              5,824                        306.7                       56.4                       363.1

West Virginia             2,055                              2,952                         78.9                         7.8                       86.7
Wisconsin                13,590                             21,960                        890.1                      101 .o                      991.1
Wyoming                   1,288                              1,986                        110.8                       19.7                       130.6

Totale                350.867                            624.173                    $23.418.8                 $5.099.5                   $28.518.3


Note:      Thle table       presents   data by loan            type       rather      than individual   borrowers,           which   results       in     the
borrowers’      being     counted    in each category             in      which     they have a loan.

aTotals     may not     add because        of   rounding.

Source:      GAO analysis          of   FmHA reports,         codes       540 and 616.




                                                                                   105
     APPENDIX II                                                                                                             APPENDIX II

                                        Table   11.2:    Total      Farm Ownership   Program   Direct   Loan     Activity,
                                                                          June 30,   1989

Dollars       in   Millions

State/                   Number of                      Number      of       Outstanding                   Unpaid                 Total
territory                borrowers                        loam                principal                  interest                  debta

Alabma                        2,482                       3,077              $   104.9                   $      6.6           $   111.5
Al aeka                             7                                              0.5                          0.1                 0.6
Ari zone                         429                         56;                  45.0                          7.8                52.8
Arkansas                      4,344                       5,518                  219.8                         20.5               240.2
California                    1,236                       1,442                  130.4                         17.7               148.2

Colorado                      1,205                       1,560                   93.4                         10.5               104.0
Connecticut                      142                         197                  12.0                          0.7                12.7
Delaware                         186                         253                  13.4                          0.8                14.2
Florida                       1,043                       1,343                   63.0                         11.6                74.6
Georgla                       2,263                       2,807                  151.9                         21.5               173.3

Guam                                3                           3                  0.3                        0.0                    0.3
Hawaii                           226                         275                  26.8                         4.7                 31.5
Idaho                         2,343                       3,506                  180.9                       25.6                 206.5
Illinois                      3,904                       4,792                  284.4                       19.1                 303.5
Indiana                       2,861                       3,338                  237 .O                      32.4                 269.3

Iowa                          4,808                       5,907                  368.2                       24.6                 392.8
Kaneas                        4,322                       5,363                  238.2                       19.9                 258.1
Kentucky                      4,316                       5,253                  246.9                       14.8                 261.7
Louisiana                     1,672                       2,248                  124.4                       20.8                 145.3
Maine                         1,018                       1.796                   53.6                        3.5                  57.1

Maryland                         488                         673                  36.7                        2.4                  39.1
Maeeachueette                    235                         334                  21.1                        1.2                  22.3
Michigan                      2,051                       2,826                  149.8                       15.3                 165.1
Minnesota                     4,207                       5,465                  282.6                       35.6                 318.2
Mieeieeippi                   4,257                       5,402                  181.6                       26.4                 208 .O

Mieeouri                      5,728                       7,456                  341.3                       31.4                 372.8
Montana                       1,489                       1,972                  135 .o                      13.6                 148.7
Nebraska                      4,154                       5,102                  276.8                       23.3                 300.1
Nevada                           132                         180                  11.8                        1.5                  13.2
New Hampshire                     86                         170                    7.0                       0.2                    7.2

New Jersey                       315                         383                  22.7                        2.9                  25.6
New Mexico                       773                      1,058                   55.5                        4.7                  60.2
New York                      2,361                       3,303                  136.7                       11.6                 148.2
North  Carolina               3,701                       4,955                  182.9                       15.6                 198.5
North  Dakota                 4,519                       6,355                  300.5                       30.3                 330.7




                                                                          106
     APPENDIX II                                                                                             APPENDIX II


State/                    Number of                       Number        of          Outatanding     Unpaid        Total
territory                 borrower8                         loulr                    Principal    interest         debta

Ohio                         1,806                             2,175                 $   171.6    $ 18.4      $   190.0
Oklahoma                     4,952                             6,264                     280.5      29.8          310.3
Oregon                       1,101                             1,465                      95.3       9.7          105.0
Pennsylvania                 1,424                             1,892                     124.2       6.8          131 .o
Puerto    gico               1,804                             2,168                      80.8      11.9           92.7

Rhode Inland                    32                                 45                       3.1      0.2             3.3
South Carolina              1,648                              2,168                      85.9       9.9           95.8
South Dakota                5,007                              7,393                     285.8      21.7          307.6
Tenne88ee                   4,039                              4,892                     202.1      20.3          222.4
Texu                        5,075                              6,237                     317.4      33.6          351 .o

Utah                           773                             1,153                      52.7       3.6           56.2
Vermont                        553                             1,041                      42.7       1.9           44.6
Virgin   Islanda                16                                 24                       1.0      0.1             1.1
Virginia                    1,453                              1,794                      81.8       8.4           90.2
Waahfngton                  1,276                              1,907                     113.0      11.7          124.7

Weat Virginia                  980                             1,270                      45.6       3.1           48.7
Wiaconain                   3,671                              5,217                     262.9      23.8          286.7
Wyoming                        496                                a90                     42.4       4.8           47.1

Total’                    109.41q                         142.6Q                    $7.025.9                  $7.724.8


aTotala         may not    add became         of   rounding.

Source      :    GAO analyaia        of   FmHA reportr,         codes        540 and 616.




                                                                                  107
        APPENDIX II                                                                                                                     APPENDIX II

                                       Table   X1.3:   Total      Fatm Operating         Loan Program   Direct       Loan   Activity,
                                                                           June        30, 1989

Dollars       in   Milliona

State/                   Number of                       Number of             Outstanding                         Unpaid                    Total
territory                borrowers                         loans                principal                        interest                     debta

Alabama                       1,259                            2,323               $     48.7                    $    5.5                $    54.2
Alaska                              5                              10                     0.2                         0.0                      0.2
Arizona                          311                              482                    18.0                         4.5                     22.6
Arkansas                      3,471                            5,777                    145.2                        20.3                    165.5
California                    1,336                            2,378                     87.0                        16.1                    103.0

Color ado                        798                           1,366                     46.7                         6.4                     53.1
Connecticut                      120                              207                     6.0                         0.4                      6.4
Delaware                          70                              107                     2.8                         0.3                      3.1
Plorida                       1,199                            2,431                     47.9                        17.2                     65.1
Georgia                       2,411                            4,657                     97.4                        26.2                    123.6

GUtlm                             13                               14                     0.3                         0.0                      0.4
Hawaii                           165                              234                      5.9                        0.4                       6.3
Idaho                         1,467                            2,644                     88.6                        13.2                    101.8
Illinois                      2,913                            4,731                    119.0                         9.9                    128.8
Indiana                       2,118                            4,021                    107.3                        21.9                    129.2

Iowa                          6,300                        10,523                       336.4                        20.3                    356.6
Kansas                        2,382                         3,677                       109.9                         8.7                    118.6
Kentucky                      3,727                         6,310                       115.8                        10.5                    126.3
Louisiana                     5,360                        13,089                       317.5                        57.5                    375.0
Maine                         1,039                         2,070                        54.5                         5.7                     60.2

Maryland                         314                              478                    10.5                         1.7                     12.2
Massachusetts                    209                              371                      8.3                        0.7                       9.0
Michigan                      2,168                            3,938                    137.3                        15.7                    153.0
Minnesota                     4,906                            8,326                    318.6                        29.0                    347.5
Mississippi                   4,082                            7,767                    199.1                        37.3                    236.4

Missouri                      3,766                            6,654                    159.0                        18.9                    177.9
Montana                       1.198                            2,621                     89.3                         9.0                     98.3
Nebraska                      2,403                            4,288                    113.0                         8.2                    121.2
Nevada                           101                              190                      4.8                        0.8                       5.6
New Hampshire                     76                              177                      4.3                        0.1                      4.4

New Jersey                       303                              534                    12.1.                        2.5                      14.6
New Mexico                       529                              847                    25.7                         3.3                      28.9
New York                      2,189                            3,656                    102.4                        10.0                    112.4
North  Carolina               2,341                            4,547                     76.5                        14.1                     90.7
North  Dakota                 4,378                            8,168                    279.1                        22.0                    301 .l




                                                                            108
    APPENDIX II                                                                                           APPENDIX II



State/                    Number of                       Number of            Outstanding       Unpaid        Total
territory                 borrowers                         loans               principal      interest         debta

Ohio                        2,130                              3,859             $   127.4      $ 14.0     $   141.4
Oklahoma                    3,795                              7,394                 234.3        26.5         260.9
Oregon                         782                             1,359                  49.2         5.6          54.8
Pennsylvania                1,770                              3,455                  96.4         4.6         101.0
Puerto    Rico              1,182                              1,675                  25.2         4.2          29.5

Rhode Island                    29                                  43                  1.1         0.0
South Carolina              1,218                              2,210                  53.0          7.9         6::;
South Dakota                3,475                              6,201                 155.9         17.0        172.8
Tennessee                   2,876                              5,251                 125.8         19.6        145.4
Texas                       7,502                             14,967                 461.3         75.3        536.6

Utah                           542                                783                   27.3        1.9         29.2
Vermont                        405                                950                   19.5        0.6         20.1
Virgin    Islands               15                                 17                    0.5        0.1          0.6
Virginia                    1,415                              2,405                    50.5        8.4         58.9
Washington                     866                             1,804                    59.5        6.0         65.5

West Virginia                  867                             1,377                  19.1          2.1         21.2
Wisconsin                   5,347                              8,625                 383.3         20.4        403.7
Wyoming                        379                                626                 27.2          2.3         29.5

Total*                    100.022                         182.694               $5.211.5        $635.1     $5.846.6


aTotals         may not    add   because     of   rounding.

Source      :    GAO analysis        of   PmHA reports,         codes    540 and 016.




                                                                              109
                                                                                                                                                       ,


         APPENDIX II                                                                                                                     APPENDIX II

                                       Table   X1.4:   Total   Kmergeocy      Disaster     Program   Direct        Loan      Activity,
                                                                           June 30,      1989

DoLlare       in   Wlllona

State/                   Number of                      Number of             Outstanding                           Unpaid                   Total
cerritor~                borrover0                        loans                principal                          interest                    debta

Alabmsa                      1,767                         4,634               $    125.0                     $     29.6                 $   154.6
Alaska                             0                               0                  0                              0                         0
Arizona                         333                        1,252                    134.5                           70.0                     204.5
Arkansas                     3,948                         9,967                    319.5                          112.6                     432.1
California                   1,068                         2,699                    507.4                          250.4                     757.9

Colorado                        494                        1,078                     53.1                           17.8                      70.9
Connecticut                      42                            66                      1.8                           0.2                        2.0
Delaware                         55                           108                      4.0                           0.4                        4.4
Florida                      1,128                         3,847                    170.8                           78.2                     249.0
Georgia                      3,728                        17,006                    621.7                          331.3                     953 .o

CUtUll                           13                            16                     0.6                            0.0                       0.7
Hawaii                           66                            85                      5.9                           0.4                       6.3
Idaho                           739                        1,606                     91.7                           34.9                     126.5
Illinois                     4,183                         6,792                    150.8                           21.3                     172.1
Indiana                      1,695                         3,473                    131.1                           49.7                     180.8

Iowa                         5,171                         8,242                    179.3                           31.0                     210.3
Kansas                       1,907                         3,474                     89.1                           20.9                     110.0
Kentucky                     3,297                         5,870                    132.3                           25.0                     157.3
Louisiana                    3,786                        14,157                    445.5                          192.1                     637.6
Maine                           285                           829                    37.1                           13.3                      50.4

Maryland                        302                           474                    11.1                             1.7                     12.8
Massachusetts                    54                           123                      3.6                           0.4                        4.0
Michigan                     2,097                         4,346                    179.8                           37.8                     217.6
Minnesota                    3,201                         7,524                    224.9                           75.3                     300.2
Mississippi                  5,402                        19,673                    700.3                          289.6                     989.9

Missouri                     5,042                        10,639                    263.2                           61.2                     324.4
Montana                      2,188                         4,926                    230.3                           51.2                     281.5
Nebraska                     2,496                         4,811                    150.6                           39.2                     189.8
Nevada                           27                            40                      3.2                           0.6                        3.8
New Hampshire                      8                             a                     0.2                           0.0                        0.2

New Jersey                      253                           547                    18.6                            3.9                       22.6
New Mexico                      237                           513                    30.3                           11.2                      41.5
New York                     2,110                         4,650                    141.5                           32.1                     173.6
North  Carolina              2,505                         6,440                    164.0                           49.7                     213.7
North  Dakota                3,961                        10,389                    321.8                           82 .O                    403.8




                                                                           110
    APPENDIX II                                                                                               APPENDIX II


State/                    Number of                        Number of             Outstanding         Unpaid        Total
territory                 borrowers                          loans                principal        interest         daa

Ohio                        1,493                               3,029            $   121.4     $     41.8     $    163.3
Oklahoma                    2,608                               6,568                284.7          100.6          385.3
Oregon                         460                              1,003                 62.4           17.3           79.6
Pennsylvania                   625                                 996                27.5            4.8           32.3
Puerto    Rico                 355                                 426                  5.9            1.2            1.2

Rhode Island                        9                                13                   .6           0.0           0.6
South Carolina              1,632                               4,680                167.7           52.4          220.1
South Dakota                6,044                              14,357                385.8           78.8          464.6
Tennessee                   2,551                               5,073                182.4           54.4          236.9
Texas                       5,911                              17.507                617.8          251.8          869.6

Utah                           230                                 289                 8.6            2.0           10.6
Vermont                         48                                  56                 0.7            0.0            0.8
Virgin    Islands                 3                                   3                0.0            0.0            0.0
Virginia                    1,884                               4,575                118.8           30.5          149.3
Uaahlngton                     423                                 786                50.7           17.2           67.9

West Virginia                  66                                  108                 4.3            0.8             5.1
Wisconsin                  2,119                                3,845                 97.2           19.9          117.1
Wyoming                       232                                  427                27.4            8.0           35.4

Total8                    90.280                           224.045               $7.808.5      $2,696.7       $10.505.2


“Totals         may not   add because         of   rounding.

Source      :    GAO analysis         of   PmHA reports,         codes    540 and G16.




                                                                              111
                                                                                                                                                         I




    APPENDIX II                                                                                                                            APPENDIX II

                                         Table   X1.5:   Total   Economic    Emergency       Program   Direct        Loan      Activity,
                                                                            June 30,     1989
Dollars       in   Millions

State/                        Number of                     Number of          Outstanding                            Unpaid                    Total
territory                     borrowers                       loans             principal                           interest                     debta

Alabama                           259                           354            8    18.2                        $      4.6                  $    22.8
Alaska                               0                             0                 0                                 0                          0
Arizona                           172                           282                 26.7                               9.2                       35.9
Arkansas                       1,420                         2,063                  96.6                              25.2                      121.8
California                        790                        1,377                 121.9                              53.6                      175.5

Colorado                         501                            830                 52.2                              22.3                       74.4
Connecticut                       41                             56                  4.9                               0.9                        5.8
Delaware                          49                             70                  3.4                               0.9
Florida                          535                         1,069                  53.2                              29.8                       8;:;
Georgia                          881                         1,777                  80.9                              43.4                      124.3

Guam                                0                              0                 0                                   0                         0
Hawaii                            12                             17                   2.7                              0.4                         3.1
Idaho                         1,067                          1,942                 101 .o                             42.6                      143.6
Illinois                      1,279                          1,803                 104.9                              26.8                      131.7
Indiana                       1,352                          2,405                 155.9                              65.1                      220.9

Iowa                          2,158                          3,129                 165.6                              43.7                      209.3
Kane as                          828                         1,047                  65.3                              19.1                       84.4
Kentucky                      1,353                          1,703                  85.1                              16.3                      101.4
Louiaiana                        912                         1,539                  66.6                              29.7                       96.2
Maine                            178                            240                  8.3                               2.0                       10.2

Maryland                         219                            320                 17.0                               4.4                       21.4
Massachusetts                     59                             81                   5.2                              1.2                         6.4
Michigan                      1,025                          1,726                  88.0                              25.2                      113.2
Minnesota                     1,998                          3,282                 137.8                              48.7                      186.5
Hiaaiaaippi                      636                            938                 46.8                              19.1                       65.9

Miaaouri                      1,633                          2,274                  98.1                              27 .O                     125.1
Montana                          527                            778                 61.8                              17.6                       79.4
Nebraska                      1,895                          2,818                 175.8                              52.2                      228 .O
Nevada                            81                            183                   9.9                              3.6                       13.5
New Hampshire                       8                              9                 0.5                               0.0                        0.5

New Jersey                        37                             47                   1.9                              0.5                         2.4
New Mexico                       163                            223                 18.9                                                         24.5
New York                      1,268                          2,176                  71 .o                             2::;                       92.9
North  Carolina               1,297                          2,193                 104.9                              32.0                      136.9
North  Dakota                 1,387                          1,955                  19.5                              24.6                      104.1




                                                                            112
    APPENDIX II                                                                                             APPENDIX II


State/                Number of                             Number of         Outstanding          Unpaid        Total
territory             borrowers                               loans            principal         interest         debta

Ohio                       552                                  914            $    61.8     $     20.3      $    82.1
Oklahoma                1,496                                2,313                 146.4           46.6          192.9
Oregon                     437                                  704                 42.6           14.4           57.0
Pennsylvania               667                               1,160                  47.6            9.1           56.7
Puerto    Rico             181                                  259                 18.5            7.3           25.8

Rhode Island                  5                                    5                  0.5           0.3             0.8
South Carolina             285                                  444                 23.1            7.8           30.9
South Dakota            2,197                                3,188                 129.0           36.6          165.6
Tennesaee               1.285                                1,941                 118.7           35.1          153.9
Texas                   1,221                                1,804                 105.7           44.8          150.6

Utah                        179                                 237                   13.5          2.6           16.1
Vermont                     105                                 140                    4.1          0.5            4.6
Virgin    Ialands             0                                    0                   0            0              0
Virginia                    521                                 767                   37.1         10.9           48.0
Washington                  663                              1,160                    79.1         20.8           99.9

West Virginia             102                                   154                   9.8           1.8           11.6
Wieconsin              2,115                                 3,897                 142.1           36.4          178.4
Wyoming                   149                                   209                 13.0            4.4           17.4

Total                 38.180                                60.002            $3.123.0       $1.018.8        $4.141.8


aTotals     may not   add   because        of   rounding.

Source:      GAO analysis         of   FIaliA reports,        codes    540 and 616.




                                                                           113
    APPENDIX II                                                                                                                             APPENDIX II

                                      Table   X1.6:    Total      Soil   and Water          Program   Direct        Loan        Activity,
                                                                          June 30,          1989

Dollars       in   Thousands

State/                   Number of                    Number      of       Outstanding                               Unpaid                      Total
territoq                 borrowers                     loans                principal                              interest                       debta

Alabama                        189                         207             $    1,470                          $       127                  $    1,596
Alaska                                                        0                         0                                 0                              0
Ari zone                      7:                            83                  3,968                                  834                       4,801
Arkansas                  1,125                         1,275                  11,000                               1,811                       12,810
California                   296                           340                 14,578                               4,799                       19,377

Colorado                        95                         110                  3,329                                  875                       4,204
Connecticut                      9                          11                     444                                 118                          562
Delaware                          7                          8                     888                                  11                           99
Florida                         96                         102                  3,225                               1,084                        4,310
Georgia                        298                         352                 12,081                               4,660                       16,741

Guam                             0                           0                        0                                     0                          0
Hawai 1                           8                         10                       78                                     2                        80
Idaho                          573                         694                 17,567                               3,478                       21,045
Illln0.l.s                     210                         233                  2,170                                  302                       2,472
Indiana                        151                         165                  2,610                                  486                       3,096

Iowa                           367                         386                  4,047                                  470                       4,517
Kane as                        232                         265                  5,178                                  509                       5,687
Kentucky                       896                         983                  4,209                                  453                       4,662
Louisiana                      173                         190                  4,145                               1,336                        5,481
Maine                           38                          39                     337                                  39                          376

Maryland                        21                          22                     650                                  83                          733
Massachusetts                   24                          27                     731                                  48                          780
Michigan                       401                         491                 11,183                               1,766                       12,949
Minnesota                      465                         519                  8,514                               1,274                        9,788
Missiasippl                    417                         446                  5,570                               2,162                        7,732

Missouri                  1,698                         2,003                  15,943                               2,213                       18,156
Montana                      253                           297                  7,039                               1,163                        8,202
Nebraska                     740                           807                 23,165                               3,336                       26,501
Nevada                        87                           120                  5,475                               1,133                        6,607
New Hampshire                   7                             7                      71                                     3                         74

New Jersey                      28                          32                     424                                  98                          522
New Mexico                      91                         105                  2,366                                  539                       2,906
New York                       338                         403                  8,035                               1,085                        9,121
North  Carolina                281                         316                  3,581                                  890                       4,471
North  Dakota                  135                         147                  3,376                                  849                       4,225




                                                                          114
    APPENDIX II                                                                                                 APPENDIX II


State/                    Number of                         Number of             OutstandIn&          Unpaid        Total
terrltory                 borrower8                           loans                principal         interest         debta

Ohio                            172                                 183           $    2,346     $       363    $    2,710
Oklahoma                        521                                 581                7,630          1,514          9,143
Oregon                          316                                 390               12) 540         3,004         15,544
Penneylvenia                    217                                 254                1,699             155         1,854
Puerto    Rico                   76                                  79                1,175             454         1,630

Rhode Island                       2                                     2                   3              0              3
South Carolina                   30                                                       889            395         1,284
South Dakota                    279                                 332:               7,829             881         8,711
Tennessee                        98                                 101                   663            106            769
Texas                           691                                 756               14,734          3,430         18,164

Utah                             92                                 111                2,491             223         2,713
Vermont                          82                                 101                   857             50            907
Virgin    Islands                 4                                    4                   74             25             98
Virginia                         14                                  14                   270             39            309
Washington                      149                                 167                4,370             655         5,025

West Virginia                    40                                  43                   137             10            147
Wisconsin                       338                                 376                4.650             540         5,190
Wyoming                          32                                  34                  -888            225         1,113

Totala                    12.973                                14.750            $249.891       $50,109        $300,000


aTotals         may not   add because          of   rounding.

Source      :    GAO analysis          of   PmHA reporta,         codea      540 and 616.




                                                                                 115
     APPENDIX III                                                                                                                          APPENDIX III

                                           BY MBtJORFARM PROGRAM.JUNE 30, 1989

                                           Table       111.1:     Delinquent             PmHA Major Farm Program         Direct     Loan
                                                                         Activity,          June 30, 1989

Dollars       in   Millions

                                                                      Total    loana                Outstanding                   Unpaid
                                 Total                Total              owed by                   principal      owed       interest      owed        Total
State/                        delinquent           part     due        delinquent                  by delinquent             by delinquent              debt
territory                     borrowers             amount             borrowers                        borrowera                borrowers              owed a

Alabama                        1,547         $       80.8                  4,161                   8    135.1                $4    41.7           $     176.8
Alaeka                               4                0.1                            9                    0.3                       0.1                   0.3
Arizona                           668               154.1                 1,767                         160.4                      89.0                 249.4
Arkaneaa                       5,071                314.6                11,684                         442.0                     168.8                 610.9
California                     2,403                600.3                 5,168                         641.2                     334.0                 975.2

Colorado                       1,418                101.1                 2,634                         136.0                      53.3                  189.3
Connecticut                        86                  3.9                   139                           7.9                       1.8                    9.7
Delaware                           64                  3.3                   116                          4.2                        1.8                    6.0
Florida                        2,494                280.4                 6,703                         262.2                     134.9                  397.1
Georgia                        5,922                842.3                20,963                         754.9                     417.4               1,172.3

Guam                                 9                0.1                                                 0.4                       0.1                   0.5
Hawai 1                           159                  3.7                    2:;                        16.3                        5.0                 21.3
Idaho                          2,997                187.8                  5,857                        286.5                     113 .o                399.5
Illinoia                       3,325                110.9                  6,088                        235.6                      63.0                 298.6
Indiana                        4,454                271.7                  8,772                        416.0                     162.1                 578.1

Iowa                           5,029                184 .O                9,418                         394.4                     100.3                  494.7
Karmas                         2,642                102.1                 4,475                         184.7                      57.9                  242.6
Kentucky                       3,346                 98.8                 6,251                         232.7                      56.8                  289.4
Louisiana                      7,892                610.9                24,545                         737.4                     294.2               1,031.6
Maine                             761                46.7                 1,825                          63.9                      22.1                   86.0

Maryland                          474                19.3                    770                         29.2                        9.0                  38.2
Maaeachueetta                     118                  5.3                   234                         10.8                        2.5                  13.3
Michigan                       3,317                143.9                 6,661                         301.3                      83.8                  385.1
Minnesota                      6,607                291.8                13,281                         524.4                     176.4                  700.8
Miaaieeippi                    7,415                758.1                22,643                         839.5                     363.2               1,202.6

Mieeouri                       6,236                223.8                12,216                         405.8                     122.9                 528.7
Montana                        2,082                134.1                 4,957                         269 .O                     83.5                 352.5
Nebraska                       3,272                160.8                 6,323                         291.2                     111.2                 402.4
Nevada                            189                10.6                    378                         18.8                       6.9                  25.7
New Hampshire                      14                 0.2                      21                          1.1                      0.1                    1.3




                                                                                     116
 APPENDIX III                                                                                        APPENDIX III


                                                         mtal loans           outstanding          unpaid
                        mtal              Total           oww’ by         principal  owed       interest owed      Total
state/                de1 inquent        past due        delinquent       by delinquent         by delinquent        debt
te?xitory             borrowers          -amount         borrowers
New Jersey                440        $     19.3               850         $     28.2        $      8.8     $       37.1
New MeJcico               568              38.0            1,035                61.3              22.5             83.9
New Yak                2,831              133.5            5,902               196.9              70.0            267.0
worth Carolina         3,739              192.8            8,953               273.0             102.2            375.2
Worth Dakota           5,583              233.0           12,170               480.4             140.3            620.7

ohi0                   2,712              142.4            5,373               255.1              86.3            341.4
oklahana               5,450              302.9           11,375               557.5             186.3            743.8
                       1,136               70.9            2,196               125.7              44.7            170.3
Feruwylvania              820              39.1            1,618                69.1              21.2             90.3
Puerto Rico            1,391               29.9            1,913                66.2              22.6             88.8

Rhode Island               16               0.8                26                1.2
south Carolina         1,919              139.0            5,135               197.0                               27:::
South Dakota           5,421              220.5           12,777               454.4             137.8             592.3
fJJ!?nnessee           4,361              200.3            8,439               343.3             116.4             459.7
WJms                   9,573              801.9           24,614               938.0             388.5          1,326.5

utsh                      397              12.3               619               33.6               7.9             41.5
\Rrmont                    92               2.4               180                6.4               1.5              7.9
viqin       Islands        20               0.4                28                                  0.2              1.1
Virginia               2,027               99.1            4,841               14::t              52.7            197.6
WsshingtOll            1,207               81.9            2,492               144.5              50.1            194.5

Wmt Virginia             479               10.4               805               27.9                               34.2
Wiacotudn              4,988              146.0            9,686               372.7              9:::            464.2
R-WI                      477              28.0               841               55.5              17.8             73.3

mtala                                                    31Q.142
Note: This table preeents data by loan type rather than individual   Lot-rowers, which rwults                   in the
borrower8’ being count8d in each category in which they have a loan.
%tals        may not add because      of rounding.
8ource:       GPOanalysis       of mW4 reports,      ca3es 540 and 616.




                                                              117
    APPENDIX III                                                                                                                APPkNDIX III


                                     Table   1X1.2:       Delinquent     Pam      Wnerrh1p Program      Direct    Loan   Act&v+ty
                                                                               June 30, 1989

Dollars       in   Millions

                                                                       Total    loans          Outstanding                  Unpaid
                                 Total            Total                 owed by             ptinclpal      owed      interest      owed       Total
    State/                    delinquent       past due                delinquent           by delinquent            by delinquent             debt
territory                     borrower8         mount                  borrowere               borroweqa               borrowers               oweda

Alabama                           314          $    4.9                    411              8    21.8                $    4.2             8    26.0
Alaska                               1              0.0                       1                   0.1                     0.0                   0.2
Arizona                           163               8.5                    240                   20.1                     6.8                  26.9
Arkansas                          989              18.5                 1,301                    69.2                    16.1                  85.3
California                        415              16.8                    494                   48.1                    14.1                  62.2

Colorado                          371              14.1                    498                   34.1                     8.6                  42.7
Connecticut                        25               0.7                     36                    2.6                     0.4                   3.0
Delaware                           19               0.5                     21                    1.6                     0.5                   2.0
Florida                           371              13.6                    485                   27.9                    10.3                  38.1
Georgia                           759              25.9                    971                   59.5                    17.9                  77.4

GUi3lll                              2              0.0                        2                  0.2                     0.0                   0.2
Hnwail                             71               2.1                      87                  11.6                     4.1                  15.7
Idaho                             861              27.7                 1,394                    84.2                    22.4                 106.7
Illinois                          754              14.4                 1,042                    68.6                    12.2                  80.8
Indiana                        1,068               37.1                 1 ,307                  111.7                    28.3                 140.1

Iowa                           1,006               26.5                 1,287                    97.3                    16.7                 114.0
Kane 813                          810              20.5                 1,081                    58.6                    14.0                  72.6
Kentucky                          703              12.3                    924                   60.8                     9.7                  70.5
Louisiana                         834              23.2                 1,193                    75.2                    19.3                  94.5
Maine                             220               3.9                    393                   14.1                     2.4                  16.4

Maryland                           99               2.3                    137                    8.3                     1.7                  10.0
Massachusetts                      38               0.8                     53                    4.1                     0.6                   4.7
Michigan                          732              14.2                 1,023                    63.8                    12.1                  76.0
Mlnneeota                      1,613               36.4                 2,225                   132.5                    30.8                 163.4
Mississippi                    1,265               29.6                 1,676                    81.8                    22.8                 104.6

Missouri                       1,506               32.7                 2,053                   114.3                    23.4                 137.7
Montana                           453              13.1                    636                   49.9                    10.6                  60.5
Nebraska                          796              20.8                 1,116                    66.2                    16.7                  82.9
Nevada                             48               1.7                     60                    4.8                     1.2                    6.0
New Hempehire                        4              0.0                       6                   0.4                     0.1                   0.5




                                                                               118
    APPENDIX III                                                                                                         APPENDIX III

                                                                      Total    loam     Outstanding              Unpaid
                         Total                    Total                   owed by      principal     owed   interest      owed       Total
State/                delinquent                 past due             delinquent       by delinquent        by delinquent             debt
territory             borrower6                   amount               borrowers          borrowers             borrowers             oweda

New Jersey                 98                $     2.8                     118          $     7.9            $    2.3            $    10.2
New Mexico                144                      3.9                     199               14.9                 3.2                 18.1
New York                  623                     13.8                     907               43.9                 9.3                 53.2
North  Cerollna           727                     14.4                  1,036                49.1                11.0                 60.1
North  Dakota          1,448                      30.5                  2,139               116.3                23.4                139.7

Ohio                      606                     18.4                     763               67.2                15.2                 82.4
Oklahoma               1,445                      26.7                  1,953               112.8                23.7                136.5
Oregon                    281                      8.7                     382               30.0                 7.3                 37.3
Pennsylvania              208                      6.0                     290               20.9                 4.9                 25.8
Puerto    Rico            605                      9.0                     767               37.5                10.1                 47.7

Rhode Island                 6                     0.2                        9               0.6                 0.1                  0.7
South Carolina            399                      9.9                     576               30.5                 8.1                 38.6
South Dakota           1,189                      20.6                  2,046                88.2                15.6                103.8
Tenneeeee                 955                     19.5                  1,198                71.4                15.5                 86.9
Texas                  1,300                      35.3                  1,677               115.8                27.5                143.3

Utah                        134                    2.7                     212               13.6                  2.3                15.9
Vermont                      44                    0.9                      88                4.3                  0.8                 5.1
Virgin   Ielands               8                   0.1                      15                0.5                  0.1                 0.6
Virginia                    333                    8.4                     430               24.6                  6.4                31.0
Washington                  341                   10.5                     519               39.5                  9.0                48.5

West Virginia             169                      2.4                     238               12.6                  2.1                14.7
Wisconsin              1,325                      27.0                  2,008               113.1                 20.4               133.5
Wyoming                   150                      4.6                     224               17.1                  4.1                21.2

Totala                28.848                 $699.4                    39,947           $2,425.9             $U                  $2,976.1


aTotale     may not   add because          of     rounding.

Source:      GAO analysie          of   FmHA reports,         codes     540 and 616.




                                                                                119
    APPENDIX III                                                                                                                  APPENDIX III


                                   Tabla   X11.3;       Delinquent         Pam Operating   Program       Direct   Loan    Activity,
                                                                              June 30, 1989

Dollare       in   Million8

                                                                     Total    loans         Outstanding                  Unpaid
                              Total             Total                 owed by            principal      owed      interest      owed       Total
State/                   delinquent            paet due              delinquent          by delinquent            by delinquent             debt
territory                borrowers              anount               borrowers              borrowers                 borrowers             oweda

Alabama                          485       $     14.6                    1,082             $     24.3                 $    4.9         $     29.1
Al a&a                              3             0.1                          8                  0.2                      0.0                0.2
Arizona                          186             10.8                       318                  11.1                      4.2               15.3
Arkansas                      1,476              52.8                    2,811                   74.9                     18.2               93.1
California                       727             38.9                    1,468                   48.5                     15.0               63.5

Colorado                         377             15.6                       701                  20.7                      5.7               26.4
Connecticut                       30              1.4                        52                   2.2                      0.3                2.5
Delaware                          16              0.7                        27                   0.6                      0.3                0.9
Florida                          836             39.8                    1,922                   35.1                     16.7               51.9
Georgia                       1,634              66.3                    3,365                   60.9                     25.0               85.9

GUWl                                5            0.1                           6                  0.2                      0.0                0.2
Hawaii                            64             0.9                         84                   2.1                      0.3                2.4
Idaho                            774            32.6                     1,547                   46.1                     11.9               57.9
Illinois                         863            21.8                     1,573                   38.5                      7.6               46.1
Indiana                       1,346             57.5                     2,860                   72.5                     21.1               93.5

Iowa                          1,677             45.9                     3,374                  105.5                     14.0              119.4
Kane as                          656            18.2                     1,116                   30.8                      6.3               37.1
Kentucky                      1,056             25.7                     1,986                   46.9                      9.0               55.9
Louisiana                     3,388            147.9                     9,413                  203.8                     54.4              258.2
Maine                            318            12.3                        748                  18.7                      4.9               23.6

Maryland                         146             4.7                        229                    5.5                     1.6                7.1
Maaaachueetts                     48              1.5                        a4                   2.2                      0.5                2.7
Michigan                      1,024             34.9                     1,996                   70.4                     13.8               84.1
Minneeota                     1,966             70.0                     3,614                  123.8                     24.9              148.7
Miseieeippi                   2,461            109.1                     5,150                  125.5                     35.2              160.7

Miaeouri                      1,503             44.9                     2,965                   70.1                     16.2               86.3
Montana                          481            20.6                     1,341                   39.4                      7.5               46.9
Nebraska                         547            16.2                     1,093                   25.5                      5.7               31.2
Nevada                            49             2.0                        110                   2.3                      0.7                3.0
New Hampshire                       7            0.1                         12                   0.4                      0.0                0.4




                                                                                 120
    APPENDIX III                                                                                                             APPENDIX III


                                                                      Total    loans         Outstanding             Unpaid
                               Total                    Total            owed by            principal     owed   interest    owed       Total
State/                      delinquent                 past due          delinquent         by delinquent        by delinquent           debt
territory                   borrowers                   mount            borrowers             borrowers           borrowers             oweda

New Jersey                      168              $        5.7                   321          $      6.5           $    2.4          $     8.8
New Mexico                      209                       8.0                   379               10.9                 2.8               13.7
New York                        765                      21.6                1,250                31.2                 8.7               39.9
North  Carolina              1,090                       34.0                2,342                40.6                12.9               53.5
North  Dakota                1,633                       48.1                3,271               106.6                17.0              123.6

Ohio                             949                     34.3                1,936                58.4                12.1               70.6
Oklahoma                      1,654                      58.1                3,599               116.0                22.4              138.4
Oregon                           318                     13.1                   650               22.3                 4.9               27.2
Pennsylvania                     301                      9.5                   570               16.6                 3.5               20.1
Puerto    Rico                   516                      9.8                   769               12.7                 3.9               16.6

Rhode Island                       6                     0.0                     12                0.2                 0.0                0.2
South Carolina                  549                     19.0                 1,132                25.2                 6.9               32.1
South Dakota                 1,156                      33.4                 2,280                60.4                14.0               74.4
Tennessee                    1,443                      47.9                 2,871                67.5                17.9               85.4
Texas                        3,698                     181 .O                8,360               238.6                68.3              307 .o

Utah                              130                    3.2                    199                8.4                 1.3                9.7
Vermont                            33                    0.8                     64                1.3                 0.3                1.6
Virgin   Ielanda                     7                   0.2                       8               0.3                 0.1                0.4
Virginia                          628                   18.1                 1,254                24.1                 7.6               31.7
Washington                        353                   16.9                    810               24.3                 5.2               29.5

West Virginia                   248                      4.5                    442                8.7                 1.8               10.5
Wisconein                    1,755                      38.7                 3,145               116.7                17.2              133.9
Wyoming                         132                      4.5                    235               10.6                 1.9               12.5

          Totala            41.890              $1.518.3                    86,954           $2,316.7                               $2.875.9


aTotals       may not       add    because        of    rounding.

Source:            GAO analysis          of   PmH.A reports,        codes    540 and 616.




                                                                                     121
    APPENDIX III                                                                                                                          APPENDIX III

                                 Table     X11.4:       Delinquent        Emergency       Disaster   Program   Direct       Loan     Activity,
                                                                                June      30, 1989

Dollars       in   Millions

                                                                     Total    loans             Outstanding                Unpaid
                              Total                Total                owed by                principal     owed       Interest    owed             Total
State/                   delinquent              past due             delinquent               by delinquent            by delinquent                 debt
territory                 borroware               mount                 borrowers                 borrowers               borrowers                   oweda

Alabena                          604         S       54.2                   2,446                $     78.3             $      28.2              $   106.5
Alaska                              0                 0.0                         0                     0.0                     0.0                    0.0
Arizona                          199                122.1                      987                    111.6                    68.7                  180.4
Arkansas                      1,736                 209.0                   6,202                     241.4                   109.8                  351.2
California                       570                456.6                   1,943                     441.1                   248.3                  689.3

Colorado                         264                 28.7                      708                     36.8                    16.7                   53.4
Connecticut                       13                  0.3                       23                      0.6                     0.1                    0.8
Delaware                          18                  0.7                       44                      0.9                     0.3                     1.2
Florida                          812                173.4                   3,300                     151 .o                   77.5                  228.5
Georgia                       2,717                 673.4                  14,943                     562.8                   327.7                  890.6

Guam                                   2              0.0                         2                     0.0                     0.0                    0.0
Hawaii                                                0.4                       24                      1.7                     0.2                    1.9
Idaho                            4::                 58.3                   1,112                      70.4                    34.1                  104.5
Illinoie                      1,122                  40.8                   2,459                      68.4                    18.7                   87.1
Indiana                       1,041                  82.9                   2,600                     105.6                    48.5                  154.2

Iowa                          1,389                  53.2                   3,027                      92.0                    28.6                  120.5
Kaneas                           720                 35.5                   1,636                      52.5                    19.4                   71.9
Kentucky                         977                 38.8                   2,488                      79.5                    23.1                  102.6
Louisiana                     2,867                 387.2                  12,541                     399.7                   190.2                  589.9
Maine                            144                 26.9                      563                     26.2                    12.9                   39.1

Maryland                         126                   5.0                     232                      6.7                      1.6                    8.2
Maesachusetts                     13                  0.8                       61                      2.3                      0.3                    2.6
Michigan                         895                 58.7                   2,392                     106.1                    33.1                  139.2
Minneeota                     1,703                 123.5                   5,033                     167.5                    72.8                  240.3
Nieeieeippi                   3,091                 583.3                  14,959                     594.6                   284.8                  879.4

Mieeouri                      1,981                 106.4                   5,362                     158.0                        56.7              214.7
Montana                          812                 77.6                   2,447                     138.2                        48.0              186.2
Nebraska                         874                 57.6                   2,237                      90.1                        37.2              127.2
Nevada                            13                   1.2                      23                       2.5                        0.6                 3.0
New Hampshire                       2                 0.0                         2                     0.1                         0.0                0.1




                                                                                    122
     .




    APPENDIX III                                                                                                         APPENDIX III

                                                                  Total    loans        Outstanding              Unpaid
                          Total                   Total              owed by           principal     owed   interest      owed       Total
State/                delinquent                past due           delinquent          by delinquent        by delinquent             debt
territory             borrowers                  mount             borrowers              borrowers             borrowers             oweda

New Jereey                143              $        9.9                    369          $    12.6           $     3.7            $    16.3
New Mexico                 99                     17.0                     281               21.8                10.8                 32.7
New Yor                   765                     60.4                  2,395                77.9                30.2                108.2
North  Carolina        1,204                      95.7                  4,131               115.6                47.6                163.2
North  Dakota          1.758                     120.8                  5,597               203.3                75.9                279.2

Ohio                      756                     60.4                  1,958                87.5                40.0                127.5
Oklahoma               1,300                     154.6                  4,044               219.6                94.8                314.4
Oregon                    199                     26.8                     572               39.6                16.2                 55.8
Pennsylvania              117                      8.4                     292               13.4                 4.4                 17.8
Puerto    Rico            124                      2.0                     164                3.0                 1.2                  4.2

Rhode Island                 3                    0.0                           4              0.1                0.0                  0.1
South Carolina            789                    98.2                   3,112               126.4                50.5                176.9
South Dakota           2,003                    117.3                   6,650               222.7                73.2                295.9
Tenneeaee              1,232                     84.6                   3,057               126.9                51 .o               178.0
Texas                  3,447                    503.4                  12,875               492.5               245.9                738.4

Utah                         49                    3.1                      76                4.2                 1.9                  6.1
Vermont                        4                   0.0                        4               0.1                 0.0                  0.1
Virgin   Ielande              3                    0.0                        3               0.0                 0.0                  0.0
Virginia                    798                   57.5                  2,698                74.1                28.5                102.6
Washington                  166                   27.9                     418               34.3                16.4                 50.7

Weet Virginia                22                    1.2                      49                2.0                 0.7                  2.7
Wieconsin                   815                   31.1                  2,074                56.1                18.9                 75.0
Wyoming                     101                   11.9                     236               18.6                 7.5                 26.1

Totala                41,020              $4.948.8                    140.855           $5.739.1            $2.607.5             $8.346.6


aTotale     may not   add because          of     rounding.

Source:      GAO analyeie          of   FmRA reports,         codes     540 and 616.




                                                                                123
    APPENDIX III                                                                                                              APPENDIX III

                                  Table    111.5:       Delinquent    Economic  Emergency   Program   Direct   Loan       Activity,
                                                                            June 30, 1989

Dollars       in   Millions

                                                                     Total    loans      Outs tanding               Unpaid
                                 Total               Total              owed by         principal     owed     interest    owed           Total
State/                        delinquent            past due          delinquent        by delinquent          by delinquent               debt
territory                     borrowers              amount           borrowers            borrowers             borrowers                 oweda

Alabama                           115         $        7.0                189           $     10.5              $    4.3              $    14.9
Alaska                              0                  0                     0                 0                     0                      0
At-1 zona                          92                 11.8                190                 16.1                   8.7                   24.8
Arkansae                          599                 32.4             1,062                  52.3                  23.3                   75.6
California                        542                 83.1             1,088                  94 .o                 52.1                  146.1

Colorado                          364                 41.5                677                 42.6                  21.7                   64.2
Connecticut                        17                  1.4                 27                  2.3                   0 ;8                    3.1
Delaware                             9                 1.4                 22                                        0.8                     1.8
Florida                           413                 52.1                929                 4:::                  29.4                   75.3
Georgia                           627                 69.6             1,459                  63.1                  42.3                  105.4

Guam                                0                  0                     0                 0                     0                      0
Hawaii                              4                  0.4                   8                 1.0                   0.3                     1.3
Idaho                             712                 65.2             1,496                  76.6                  41.4                  118.0
Illinois                          530                 33.6                947                 59.4                  24.3                   83.6
Indiana                           937                 93.7             1,935                 125.1                  63.7                  188.8

Iowa                              g93                 57.0             1,661                  98.6                  40.7                  139.3
Kansas                            418                 27.4                599                 41.7                  17.9                   59.6
Kentucky                          468                 21.6                696                 44.4                  14.6                   59.0
Louisiana                         699                 50.5             1,283                  55.7                  29.1                   84.8
Maine                              71                  3.7                112                  4.8                   1.9                    6.7

Maryland                           96                  7.2                164                  8.5                   4.1                   12.6
Massachusetts                      17                  2.3                 34                  2.1                   1.1                    3.1
Michigan                          523                 34.3             1,065                  56.0                  23.3                   79.3
Minnesota                      1,155                  60.6             2,212                  97.1                  46.8                  143.9
Miseieeippi                       415                 33.6                658                 33.7                  18.4                   52.1

Missouri                          784                 37.5             1,263                  58.1                  24.9                   82.9
Montana                           257                 21.7                 441                38.9                  16.5                   55.4
Nebraska                          866                 62.2             l,$                   102.0                  48.8
Nevada                             44                  4.6                                                                                “!z
New Hampshire                        1                 0.0                   1                 06:;                   2                         0:2




                                                                             124
   APPENDIX III                                                                                                                APPENDIX III

                                                                           Total  loan8      Outstanding              Unpaid
                             Total                  Total                     owad by       principal     owed   interest      owed       Total
State/                    delinquent               past due                 delinquent      by delinquent        by delinquent             debt
territory                 borrowers                 maount                  borrower6          borrowers             borrowers             oweda

New Jersey                                    $         0.8                      30          $     1.0              $    0.4          $      1.4
New Mexico                       ii                     8.5                     147               12.6                   5.3                17.8
New York                        583                    36.1                  1,238                41.5                  20.9                62.4
North  Carolina                 628                    47.7                  1‘340                66.2                  30.0                96.2
North  Dakota                   688                    32.8                  1,104                52.5                  23.2                75.7

Ohio                            340                    29.0                     651               41.1                  18.8                59.9
Oklahoma                        873                    61.8                  1,570               105.6                  44.1               149.7
Oregon                          239                    19.5                     464               27.7                  13.6                41.3
Pennsylvania                    170                    15.0                     437               18.0                   8.3                26.3
Puerto    Rico                   97                     8.8                     161               12.0                   7.0                19.0

Rhode Island                       1                    0.6                        1               0.3                   0.3                 0.6
South Carolina                  168                    11.5                     301               14.2                   7.1                21.3
South Dakota                    987                    48.2                  1,689                79.9                  34.3               114.2
Tennessee                       709                    48.2                  1,289                77.2                  31.9               109.1
Texas                           840                    76.4                  1,378                82.9                  43.6               126.5

Utah                             67                     3.1                     107                6.8                   2.2                 9.0
Vermont                          10                     0.6                      23                0.8                   0.4                 1.1
Virgin   Islands                  0                     0                         0                0                     0                     0
Virginia                        262                    15.0                     453               21.9                  10.1                32.0
Washington                      300                    25.9                     692               44.5                  19.0                63.5

West Virginia                    35                     2.2                      71                4.6                   1.7                 6.3
Wisconsin                       996                    48.6                  2,352                85.5                  34.7               120.1
Wyoming                          77                     6.7                     129                8.8                   4.1                12.9

       Totala             19.851              $1.465.6                      37,646           $2.043.5               $965.2            $3.008.7


aTotals         may not   add because             of   rounding.

Source      :    GAO analysis          of   FmHA reports,          codes     540 and 616.




                                                                                      125
    APPENDIX III                                                                                                                     APPENDIX III


                                 Table   111.6:         Delinquent       Soil      and Water Progrem       Direct    Loan    Activity,
                                                                                June 30, 1989

Dollars       in   Thoueande

                                                                     Total    loans          Outstanding                 Unpaid
                            Total                 Total                 owed by           principal      owed       interest      owed       Total
State/                   delinquent             paet due             delinquent           by delinquent             by delinquent             debt
territory                 borrowers              amount               borrowers                borrower8                borrowers             oweda

Alabana                         29          9         79                   33              $      250                $       67          $       316
Alaska                           0                      0                   0                        0                         0                    0
Arizona                         28                   807                   32                  1,390                        623               2,013
Arkansas                       271                1,915                   308                  4,266                     1,526                5,792
California                     149                4,963                   175                  9,607                     4,512               14,119

Colorado                        42              1,267                      50                  1,862                        740               2,603
Connecticut                       1                100                       1                    175                       114                  289
Delaware                          2                 27                      2                      18                        10                    28
Florida                         62              1,491                      67                  2,313                     1,051                3,365
Georgia                        185              7,069                     225                  8,607                     4,437               13,044

Guam                             0                      0                   0                          0                      0                     0
Hawaii                           2                      1                    2                         9                      1                    10
Idaho                          250              4,012                     308                  9,188                     3,187               12,375
Illinois                        56                 296                     67                     762                       241               1,003
Indiana                         62                 517                     70                  1,101                        414               1,515

Iowa                            64                 559                     69                  1,028                        366               1,394
Kansas                          38                 470                     43                  1,082                        356               1,438
Kentucky                       142                 365                    157                  1,074                        340               1,414
Louieiana                      104              2,124                     115                  2,941                     1,268                4,209
Maine                            8                  35                      9                      70                        30                  100

Maryland                          7                 88                       8                    273                        70                  343
Massachusetts                    2                  10                       2                    129                        12                  141
Michigan                       143              1,758                     185                  4,975                     1,473                6,449
Minnesota                      170              1,337                     197                  3,431                     1,059                4,490
Miesissippi                    183              2,536                     200                  3,833                     2,026                5,858

Missouri                       462              2,271                     573                  5,228                     1,750                6,979
Montana                         79              1,204                      92                  2,451                        973               3,425
Nebr aeka                      189              3,974                     212                  7.420                     2,761               10,181
Nevada                          35              1,072                      49                  2,907                     1,032                3,940
New Hempshire                    0                      0                   0                          0                       0                      0




                                                                                126
    APPENDIX III                                                                                                                      APPENDIX III

                                                                               Total    loans      Outstanding              Unpaid
                                 Total                      Total                 owed by       principal      owed   interest       owed       Total
State/                        delinquent                   past due            delinquent       by delinquent         by delinquent              debt
territory                     borrowers                     amount              borrowers          borrowers            borrowers                oweda

New Jersey                           11                $       116                    12         $      201            $       88           $       289
New Mexico                           23                        612                    29             1,090                    465                1,555
New York                             95                     1,136                    112             2,392                    949                3,340
North  Carolina                      90                        950                   104             1,430                    756                2,185
North  Dakota                        56                        854                    59             1,837                    751                2,589

Ohio                                 61                        296                   65                 837                   254                1,092
Oklahoma                            178                     1,714                   209              3,488                 1,303                 4,791
Oregon                               99                     2,027                   128              6,036                 2,729                 8,765
Pennsylvania                         24                        108                   29                 207                    86                   293
Puerto    Rico                       49                        449                   52                 883                   436                1,318

Rhode Island                          0                           0                   0                    0                     0                     0
South Carolina                       14                        376                   14                 788                   391                1.179
South Dakota                         86                     1,003                   112              3,291                    721                4,011
Tennessee                            22                        102                   24                 218                    81                   299
Texas                               288                     5,704                   324              8,184                 3,146                11,330

Utah                                 17                       127                       25              583                   144                   727
Vermont                               1                          1                       1                 3                    1                      4
Virgin    Islands                     2                        46                        2               55                    24                    79
Virginia                              6                        57                        6              118                    35                   154
Washington                           47                       728                       53           1,813                    564                2,377

West Virginia                        5                           6                     5                 30                      6                   35
Wisconsin                           97                        543                   107              1,286                    403                1,689
Wyoming                             17                        267                    17                 353                   210                   564

            Totala             4.053                   $58,367                   4J&l            $111.515              $43,982              $155,497


aTotals         may not       add because         of       rounding.

Source:              GAO analysis         of   FmHA reports,           codes     540 and 616.




                                                                                        127
    APPENDIX IV                                                                                                   APPENDIX IV




Dollerr         in    Xillione

                                      3-year-     Outstanding        principal     Unpaid     interest         Total    owed
                                      or-older     owed by borrowers             0 #wed by borrowers        by borrowers
State/                               delinquent        delinquent        by        delinquent        by    delinquent       by
territory                             dollare        3 years      or more         3 yearn     or more     3 years     or more=

Alabama                          $       66.3           S     68.6                   $     32.8            $      101.4
Alarka                                     0.0                  0.0                          0.0                     0.0
Arizona                                 147.5                127.2                         03.4                   210.6
Arkaoaar                                277.0                270.5                        145.7                   424.3
California                              577.7                539.4                        317.5                   856.9

Colorado                                 92.3                 07.9                         46.3                   134.2
Connecticut                                2.1                  2.1                          1.1                     3.3
Delaware                                   3.0                  3.1                          1.7                     4.7
Florida                                 269 .O               212.3                        126.2                   338.5
Ccorglai                                816.5                644.9                        399.8                1,044.7

GUNE                                       0.1                  0.0                          0.0                    0.1
Hawaii                                     2.5                  7.1                          3.3                  10.4
Idaho                                   164.7                178.5                         98.5                  277.0
Illlnole                                 00.7                116.3                         49.0                  165.3
Indiana                                 238.4                256.3                        139.3                  395.6

Iowa                                   148.4                 198.7                         81.6                  280.3
KaoaAa                                  87.5                 106.0                         40.0                  154.0
Kentucky                                75.0                 112.1                         41.7                  153.8
Louiriana                              533.0                 464.3                        256.0                  720.3
Maine                                   41.6                  39.5                         19.2                   58.6

Heryland                                15.7                  15.3                           7.1                  22.3
Hareachurstts                             4.2                   3.6                          1.9                    5.5
l4ichigan                              114.1                 148.2                         65.6                  213.8
Minaerota                              252.3                 300.5                        148.8                  457.3
uioeierippi                            698.0                 609.9                        330.5                  940.3

Mlrmouri                               192.3                 219.0                        100.8                  319.8
Montana                                107.9                 130.9                         65.6                  196.5
Nebrarka                               142.5                 197.2                         90.5                  295.7
Nevada                                    9.1                 11.6                           517                  17.3
Nev       Haopehire                       0.0                   0.0                         0.0                     0.0




                                                                         128
   APPENDIX IV                                                                                                                                   APPENDIX IV

                                    3-yenr-              Outrtanding       principal              Unpaid    interest                     Total        owed
                                    or-older                owed by borrowers                    owed by borrowers                       by      borrovora
Stete/                             delinquent                 delinquent       by                  delinquent        by              delinquent               by
territory                           dollara                   3 yeara    or more                  3 yearn     or more                3 yeara             or   more*

New Jersey                     $       16.7                    0      15.6                            $           7.6                8            23.2
New Mexico                             32.6                           36.7                                      19.3                              56.0
New York                              121.6                          129.4                                      61.9                             191.3
North  Carolina                       174.3                          177.6                                      89.5                             267.1
North  Dakota                         192.0                          238.3                                     111.7                             350.0

Ohio                                  121.6                          144 .l                                     71.9                             216.0
Oklahoma                              253.5                          309.9                                     151.1                             461.0
Oregon                                 61.5                           68.1                                      37.1                             105.2
Pennsylvania                           34.0                           35.9                                      18.0                              53.8
Puerto     RICO                        22.8                           28.8                                      16.2                              45.0

Rhode Inland                             0.7                            0.5                                       0.4                            0.9
South   Carolina                      126.0                          125.6                                      64.6                          190.2
South   Dakota                        187.0                          274.0                                     113.4                          387.3
Tennessee                             167.2                          175.9                                      92.9                          268.7
Texae                                 716.4                          566.5                                     334.7                          901.2

Utah                                    9.3                            13.3                                      5.7                           19.0
Vermont                                 1.9                             2.4                                      1.1                             3.5
Virgin    Island8                       0.4                             0.6                                      0.2                             0.8
Virginia                               89.3                            88.7                                     45.9                          134.6
Washington                             66.0                            77.4                                     40.3                          117.6

West Virginia                            8.0                           11.2                                      4.6                              15.8
Wisconsin                             119.0                           176.8                                     72.5                             249.3
Wyoming                            -- 23.6                         -- 29.4                                --    14.5                     --       43.9

Totala                         $7.713.4                        $7.813.7                               $4.090.7                       $11.904.4


aTotal@     may not   add because                  of   rounding.      In addition,          3-year            or longer    delinquent            dollar
amounce     can exceed     outstanding                  principal     owed by the         borrowers              because   delinquent            dollar
amounte     include   both    principal                 and intereet.

Source:      GAO    enalyaia           of      PmHA reports,         codes    540   and   616.




                                                                                129
   APPENDIX V                                                                                       APPENDIX V
                                   FmljA RESTRUCTURING ACTIONS, BY STATE,
                                           AS OF FEBRUARY 28, 1990

                                   Table V.1: FnHA Farm Program Debt for Borrowers Receiving
                                         Net Rxovery Value Buy+ut, February 28, 1990
Dollars      in Millions

                                                                    Outstarding           Unpaid
                        Nunber             mount         Total     principal   owed   interest owed    Tbtal
State/                     of                 of       past due    by de1 inquent     by de1 inquent    debt
territory              txxrowers          write-off     amunt         borrowers          borrowers      oweda
Alabama                    124        $       21.6     $ 11.7         $ 20.3            $    6.2         26.5
Alaska                       0
Arizona                                        3.1        2.2             2.1                             3.3
Arkansas                   2269               64.3       42.0            50.0               21:;         71.9
California                  34                13.6       10.1            11.1                6.0         17.1

Colorado                    50                 9.4        3.9             8.5                2.8         11.3
Connecticut                  0
Delaware                     1                 0.5                        0.5                0.2
Florida                     39                19.7       1%              14.5                7.0         2:::
Georgia                    247                72.7       52.4            55.7               29.5         85.3

Guam                         0
Hawaii                       0
Idaho                      120                28.1       14.2            22.7                9.5         32.2
Illinois                   136                17.7        8.0            16.3                5.0         21.3
Indiana                    174                33.7       15.4            29.4               11.6         41.0

Iowa                       115               18.6         8.0            18.6                5.0         23.6
Kansas                      73                9.7         4.8             8.6                3.2         11.8
Kentucky                   126               22.1         9.9            22.2                6.7         28.9
ILouisiana                 558              129.3        79.4           100.9               3b.9        139.7
Maine                       47               13.3         9.6            10.3                4.8         15.1

Maryland                    16                 1.7        1.1             1.9                0.5          2.4
Massachusetts                0
Michigan                   164                37.7       16.5            31.9               11.3         43.3
Minnesota                  518                89.5       42.4            78.9               27.2        106.1
Mississippi                353                90.1       60.5            74.9               29.6        104.4

Missouri                   256                44.0       17.0            41.6               12.3         54.0
Montana                     66                18.2        6.8            16.6                4.6         21.1
Nebraska                   115                21.9       11.4            19.9                8.3         28.2
Nevada                       1                 0.2        0.1             0.3                o.ob         0.3
New H-shire                  0




                                                          130
.


       APPENDIX V                                                                                                            APPENDIX V

                                                                                      outstanding                 m=M
                            Nmber                  Anwlmt                mtal        principal    owed      interest owed        Total
    State/                    of                     of                 past due     by delinquent          by delinquent         debt
    territory             borrowers               mite-off               ankxnt         borrowers                borrowers        owed”
    New Jersey                  0             8        -            8      -             $     -             $      -        $           -
    New Mexica                15                      1.8                 1.0                  1.9                 0.6
    New York                  38                     6.0                  4.1                  5.3                 2.1               5::
    North Carolina           113                    24.1                 15.3                 20.9                 8.8             29.7
    North Dakota             297                    59.3                 23.6                '52.2                16.8             69.0
    Ohio                      66                    15.1                  8.1                13.2                                  18.4
    cy<lahcma                227                    42.1                 19.7                35.7                 15-3             48.6
    orgy                      44                    10.9                  5.6                 8.7                  3:6             12.3
    Pennsylvania              19                     3.6                  2.0                 3.1                  1.2              4.3
    Puerto Rico                1                     0.1                  0.1                 0.1                  0.1              0.2

Rhode Island                   0
South Carolina                49                    10.8                 6.8                  9.1                  3.2             12.3
South Dakota                 166                    28.2                13.6                 29.4                  8.9             38.3
Tennessee                     76                    12.2                 5.9                 12.4                  3.7             16.1
TeXtiS                       164                    46.0                26.6                 37.1                 14.5             51.6

Utah                           8                      1.7                0.6                  1.7                  0.4              2.1
wnnorlt                        0
Virgin Islands
Virginia                      4;                     7.5                                      6.6                  2.8              9.4
Washington                    19                     3.9                                      4.0                  1.0              5.0

West Virginia                                        0.1                 0.1                  0.1                  O.Ob             0.1
Wisconsin                    20:                    32.4                 9.0                 29.7                  8.2             38.1
Wyaniw                        32                     7.1                 3.8                  6.7                  1.8              8.5

mtala                      5.156          $


Wmls            mazy not add because     of rounding.
bActual         amounts   were less    than       $50,000.   Ebr exanple,       the unpaid interest      for Nevada and West Virginia
was $32,530 and $40,784, respectively.
Source:  GAO analysis              of USW information          prcwided by the Under Secretary            for Small Carmunity arrd
Rural Developnent .




                                                                         131
   APPENDIX V                                                                                          APPENDIX V


                                 Table V.2:    FnHA Farm Program Debt for Borrowers Receivinq
                                      Flestructurim   With Write-Dawn, February 28, 1990
Dollars      in Millions
                                                                     outstanding            unpaid
                         Number      Amount            Total      principal    owed   interest owed         Total
State/                     of           of            past due    by de1 inquent      by de1 inquent         debt
territory              bOlTOWC+tTS write-dawn          amxnt         borrmers           borrowers            OWE@

Alabama                    63          8    8.6       $ 4.9         $    13.3           $    2.4        $     15.6
Alaska
Arizona                     2:             10.9           9.8            11.2                5.8              16.9
Arkansas                   127             27.9          17.9            34.5               11.6              46.1
California                  31             11.6           6.9            13.1                6.3              19.4

Colorado                    36                            3.5            10.3                2.7              13.0
Connecticut                  1              05139                         0.5                0.1               0.5
Delaware                     1              0.2           X::             0.3                0.3               0.6
Florida                     48              6.7           5.1             8.5                3.2              11.7
Georgia                    110             26.6          22.7            31.2               14.2              45.4

Guam                         0
Hawaii                       0
Idaho                      161             25.0          13.5            37.2               10.5              47.7
Illinois                   170             22.6          10.8            35.7                8.7              44.4
Indiana                    238             35.7          20.8            51.6               16.9              68.5

Iowa                       145             15.8           7.7            29.8                6.2              36.0
Kansas                     100                            5.8            17.9                4.5              22.4
Kentucky                   196             199:;                         39.1                6.7              45.8
Louis iana                 198             44.9          2;:;            48.6               15.6              64.1
Maine                       14              2.3           1.8             3.2                0.9               4.2

Maryland                     6              0.2           0.3             0.9                0.2               1.1
Massachusetts                1              0.1           0.1             0.1                O.Ob
Mihigan                    202             38.7          17.5            56.5               13.1              6:.:
Minnesota                  491             63.2          30.5            97.6               22.8             120:3
Mississippi                196             44.4          31.9            54.8               17.9              72.7

Missouri                   242             28.6          14.0            51.0               10.1              61.1
Montana                     77             22.1          12.5            28.2               10.0              38.2
Nebraska                   150             19.8          12.5            34.3               10.4              44.7
Nevada                       3              0.8                                              0.4               1.5
New Ha&&ire                  1              o.ob          3               ~:~b               o.ob              O.Ob




                                                          132
   APPENDIX V                                                                                             APPENDIX V


                                                                           Outstanding           Unpaid
                     Number             AmOunt         mtal             principal   owsd     interest owed        Total
State/                  of               of           past due          by delinquent        by de1 inquent        debt
tX?tXitOry          borrowers       write-down         amunt               borrowers          borrowers            Oweda
New Jersey                          $     -          8       -           $      -             $     -         $      -
New Mexico                                                1.1                 2.8                  0.6              3.3
New York                                 2;               3.8                 7.7                  2.7             10.4
Worth Carolina                          13.0              7.7                20.5                  5.8             26.3
North Dakota                            48.1             23.0                77.6                 18.9             96.5

Ohio                                                                          7.1                  1.8              8.8
mlatmna               2fz”                               3z                  91.0                 28.1            119.0
o=wn                     45                               4.8                10.6                  3.3             14.0
Pennsylvania             24                               1.7                 6.7                  1.1              7.8
Pwrto Rico                1                               o.ob                o.ob                 o.ob             o.ob

Rhode Island            0
South Carolina         45                                 5.9                13.9                  3.7             17.6
South oakota          361               497::            26.6                81.1                 20.7            101.7
Tennessee              95               15.6              8.5                25.7                  6.7             32.4
Texas                 136               20.5             11.1                38.8                  7.1             45.9

Utah                                     0.6                0.2               1.4                  0.2              1.6
\krmont                   x
Virgin Islards            0
Virginia                 42              7.6                4.6              12.7                  3.2             15.9
Washington               46              6.9                4.7              12.7                  3.2             15.8

West Virginia          10                1.3                0.4               2.1                  0.4              2.6
Wisconsin             231               24.6                7.1              44.3                  8.6             52.9
-in9                   37                8.7                4.6              13.1                  4.1             17.2

mtala                                                                                          $321.4


htals      may not add because   of rounding.

biactualMlounts were less than $50,000. Fbr example, the unpaid               interest     for New Hampshire and
Fuerto Rico was $640 and $873, respectively.
Source:  GAO analysis     of USW information     provided        by the Under Secretary     for Small Crmnunity
and Rural tkvelopnent.




                                                            133
                                                                                       r:
                                                                                  ..

APPENDIX V                                                           APPENDIX V


             le V.3. . FmHA Farm Proaram Debt for Borrowers    Receivinq
              Restructu&jng Without Write-Down.  February   28, 1990
Dollars      in Millions
                            Number        Total             Total
State/                         of          past              debt
territorv                  borrowers     due amount          oweda
Alabama                      265         $    5.4       $    33.0
Alaska                         0
Arizona                       50              3.6            12.6
Arkansas                     573             12.9            72.3
California                   315             15.5            69.2
Colorado                     164              5.3            25.2
Connecticut                   23              0.9             4.3
Delaware                      11              0.2             1.5
Florida                      175              7.6            25.1
Georgia                      304             14.8            52.4
Guam                           0
Hawaii                        52              1.2            11.4
Idaho                        329              8.9            47.8
Illinois                     695             12.3            76.0
Indiana                      341              8.7            59.2
Iowa                         962             16.3           115.7
Kansas                       374              6.9            47.1
Kentucky                     584              7.7            64.2
Louisiana                    588             13.7            69.1
Maine                        134              3.1            23.3
Maryland                     104              2.4            12.5
Massachusetts                 39              0.7             6.6
Michigan                     478             12.3            67.1
Minnesota                    648             12.6            75.0
Mississippi                  635             24.0            90.9
Missouri                     555             11.3            71.4
Montana                      417             13.0            77.4
Nebraska                     488             12.0            64.1
Nevada                        14              0.7             2.5
New Hampshire                 10              0.1             1.3




                                       134
APPENDIX V                                                                         APPENDIX V


                         Number              Total                       Total
State/                     of                 past                        debt
territorv             borrowers             due amount                    oweda
New Jersey                 65               $      2.5             $      10.1
New Mexico               106                       4.0                    20.4
New York                 352                      10.2                    55.1
North Carolina           336                       7.3                    40.4
North Dakota            1107                      23.3                   162.9
Ohio                     346                       6.8                    56.2
Oklahoma                 711                      20.3                   110.1
Oregon                   124                       4.4                    22.5
Pennsylvania             311                       4.5                    42.5
Puerto Rico              134                       1.6                    11.9
Rhode Island                6                      O.ob                    0.5
South Carolina           232                       8.3                    39.4
South Dakota             800                      15.2                    91.0
Tennessee                705                      16.8                    93.2
Texas                    980                      25.5                   139.6
Utah                     134                       2.2                    20.0
Vermont                    39                      0.3                     5.2
Virgin   Islands            0
Virginia                 256                       5.2                    32.4
Washington               227                       6.9                    38.8

West Virginia            134                       1.9                    14.1
Wisconsin                562                       5.8                    90.0
Wyoming                    95                      1.4                    15.8

Totala               17,090                 $408.0                 $2.387.3

Note:     USDA did not have data on the             amount of outstanding
principal    and interest  composing the            total debt.
aTotals    may not add because of rounding.     In addition,  FmHA
reported    that there was one borrower   in the West Pacific   Trust
Territory.
bActual  amount was less        than   $50,000;          amount   past   due for   Rhode
Island  was $20,240.

Source:     GAO analysis of USDA information                 provided   by the     Under
Secretary    for Small Community and Rural                 Development.
                                          135
APPENDIX VI                                                  APPENDIX VI

                MAJOR CONTRIBUTORS TO THIS BRIEFING REPORT

RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION
WASHINGTON. D.C.
John P. Hunt, Jr.,   Assistant      Director
Patrick  J. Sweeney, Assignment        Manager
Clifford  J. Diehl,   Evaluator-in-Charge
Earl P. Williams,   Jr.,   Writer/Editor
XANSAS CITY REGIONAL OFFICE
Robert     C. Sommer, Computer   Analyst




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                                      136
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