‘Distressing’ Cutback in Rural Aid
I am deeply distressed by
the cutbacks that have taken
place recently in a number of
vital rural programs—includ
ing the Farmers Home Ad
ministration Disaster Loan
Program
These cutbacks come at the
worst possible time for rural
Pennsylvanians Hurricane
Agnes devastated much of
Pennsylvania Seventy per
cent of the damage caused by
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H. M. Stauffer & Sons, Inc.
Washington
Report
By U.S. Senator
Dick Schweiker
that storm occurred in Penn
sylvania Rural Pennsylvania
was extremely hard hit This
is the wrong time to cut out
federal assistance to these
courageous people who have
fought so hard to got back on
their loot again.
One of my recent columns
dealt with rural unemploy
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the Rural Development Act,
the Farm Credit Act and the
Disaster Relief Act, and the
positive effect they would
have on rural Pennsylvania
Now I am concerned about
the negative effect those re
cent cutbacks will have.
Along with the disaster loan
program, a rural electric and
telephone loan program, and
the rural environmental as
sistance program were termi
nated. In addition, significant
cutbacks were made in the
rural housing program
I strongly support the
President’s efforts to achieve
a $250 billion coiling on fed
eral spending during this fis
cal year. But I seriously ques
tion cutbacks in these rural
programs at this time.
I am particularly distressed
over elimination ot the FHA
Disaster Loan Program In
many cases, the Farmers
Home Administration encour
aged farmers to delay submis-
Steers
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sion of applications until
spring when they would be
better able to judge the ex
tent of their losses and their
needs for the up-coming
growing season. Many rural
residents did exactly what the
FHA suggested and only filed
applications for the minimum
amount of funds they needed
last fall. They intended to
wait several months to see
what their needs were, rather
than rushing in and taking
advantage of the progiam by
filing applications for more
than they might actually
need I have written Secre
tary of Agriculture Earl Butz
urging that the program be
extended I particularly asked
for sufficient funds to meet
the needs of all eligible appli
cants, so that those who have
followed the advice and sug
gestions of the Faimers Home
Administration would not be
penalized for their good laith
Manheim, Pa
New Holland, Pa
Lancaster Farming, Saturday, February 10,1973
In addition, the loan guar
antees and insurance provided
to rural electric and tele
phone cooperatives by the
Rural Electric Administration
loan piogram should be con
tinued. Unfortunately, the re
cently-enacted Rural Devel
opment Act, which I strongly
supported, has been used to
replace the existing REA loan
program That was never the
intent of Congress The rural
development bill is designed
to supplement the REA pro
gram by making insured loans
for commercial, industnal and
community development, not
to replace REA loans entuely
I testified recently on be
half of the disaster and REA
loan programs before the Sen
ate Committee on Agriculture
and Forestry
Meet Planned
For Vacation
Farm Owners
Operators of farms which offer
vacations to paying guests have
been invited to attend an
organizational meeting at 1 p m ,
February 28 in the State
Agriculture Building here, it was
announced by Agriculture
Secretary Jim McHale
Henry E Wilcox, director of
the Pennsylvania Department of
Agriculture’s Bureau of Markets,
said the meeting will determine if
farmers want to organize an
association which would promote
farm vacations, inspect facilities
and set standards
Approximately 100 Penn
sylvania farms, most of them in
northcentral and northeastern
counties, offer vacations which
feature actual on-the-farm ex
periences
“The State Agriculutre
Department can’t be responsible
for farm vacation ac
comodations,” Wilcox said “1
feel that an association which
would have the responsibility for
setting standards and making
inspections would be beneficial to
both farmers and vacationers.”
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