Al6—Lancaster Fannins, Saturday, March 15,1980
Grange supports Farm Credit
WASHINGTON, D.C. -
Proposed amendments to
the Farm Credit Act of 1971
were diseased here last
Thursday by farm
organization leaders
testifying before the Con
servation and Credit Sub
committee of the House
Agriculture Committee.
Edward Andersen, Master
of the National Grange, said
several amendments con
tained m HR4782 are not
acceptable to the Grange. He
said the Grange is strongly
opposed to any extension of
economic power by lending
institutions.
One amendment before
the Committee would
broaden the authority of the
Farm Credit Administration
banks to organize one or
more corporations to per
form functions and services
for the bank, other than the
extension of credit The
Grange feels this will be
interpreted as giving the
FCA authority to form in
surance companies.
The Grange does not ob
ject to the FCA writing
“credit life” insurance to
cover a loan but opposes
writing other life, property
or casualty insurance.
Andersen said he seriously
questions the extension of
the FCA into the insurance
business. He feels this type
of activity should be avoided
as it is unfair competition
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and there is no evidence that
it is needed.
Another concern relates to
an amendment which would
broaden the authority of the
Production Credit
Associations and Federal
Land Bank Associations to
permit the financing of
processing and marketing
enterprises which are part of
farming, ranching or
aquatic operatons of eligible
applicants and borrowers.
The Grange questioas the
need for such increased
lending authority as these
operations are at the present
time financed through Banks
for Cooperatives in each
FCA district. The Grange
feels the proposed changes
would permit the financing
of farm-related businesses
providing off-farm services
and would waive the present
concurrence of the Banks for
Cooperatives.
The Grange fears that
such new loan authority
could be used to provide
credit to businesses that
would be in direct com
petition with family larms or
used to finance an
establishment in direct
competition with a Bank for
Cooperatives.
A final concern is that
HR4782 would lower the
percentage of farmer
members of coopeatives
borrowing from Banks of
Cooperatives from 80 per
cent to 60 percent. The
Grange believes it is in the
long-range, best interest of
farmer cooperatives to
maintain the 80 percent
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National Master Andersen
said the Grange is in general
support of HR4782 with these
few exceptions. He said the
most important new lending
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Grange fully supports.
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