DB-Lancastar Farming Saturday, August 10,1985 Farm Credit can solve its problems according to top federal regulator MANHATTAN, KN - The Farm “To help correct that situation,” Credit System has the financial he said, “capital should be con and human resources to handle its solidated in those districts where own problems without Federal Production Credit Associations are assistance if it makes proper use of having severe financial troubles those resources, according to and must be consolidated in those Donald E. Wilkinson, governor of districts that face the prospect of the Farm Credit Administration, requiring financial assistance Of allegations that the system is on from other parts of the system, the verge of collapse and needs an Merging into a single PCA will immediate infusion of Government permit individual districts to capital, Wilkinson said “it isn’t and maximize earnings and capital it doesn’t.” management.” Speaking at the National In- Commenting on the importance stitute of Cooperative Education of approving national financial here, Wilkinson freely admitted assistance programs, Wilkinson the system has credit problems expressed concern about the risk resulting from low farm income, of an adverse decision by a but said they are manageable if the minority of the district boards of agricultural economy does not directors, deteriorate beyond present ex- If these assistance plans aren’t pectations. Even though there is approved or the conditions of plans stress in the credit area, he said, that are approved aren’t accepted the system’s capital and reserve by the district involved, the options position remains strong. are liquidation of troubled To back up his claim, Wilkinson associations or even the liquidation cited year-end figures showing the of financially stressed banks, he system’s 37 banks and $5.1 billion said. in capital stock and its Production Liquidations of associations Credit Associations had $1.9 could cause problems for billion. Earned net worth totaled borrowers, Wilkinson said, and the $4.1 billion for the banks and $2.5 liquidation of a Farm Credit Bank billion for Federal Land Bank would have serious repercussions Associations and PCAs. Overall in the bond markets, reserves for possible loan losses And in the event that Federal totaled $1.3 billion. financial assistance became Wilkinson said the difficulty was that capital and capital management are disbursed among the system’s 37 regional banks and nearly 800 local associations. CALL US FOR FREE ESTIMATES on TOP QUALITY BARN SPRAY ( BRUSH PAINITING Try Our New Concept In Penetration And Adhesion. To earn a dollar - give a dollars worth of service and work Pay only $750 for the best kind of barn painting on an average barn ■ if you pay more you paid too much Being self-employed, enables me to take the time to properly apply my barn paint A sealer at prices below suggested retail cost Proper application requires adjusting the viscosity of the paint to attain the best penetration and adhesion thereby assuring you an excellent paint job I will share helpful guidelines on roof maintenance of steel roofs by brushing on at primetime The farmers in Lancaster Co. are lucky because of the amount of competition in barn painting. - ■ - . Check with us for the best deal! PHARES S. HURST Years of experience plus self RD 1, Box 503, Narvon, PA 17555 employment gives you quality 215-445-6186 work for less expense. necessary, it would be inap propriate to ask for it unless and until the system had done everything in its power to solve its own problems, he Said. Turning to credit conditions in In 1985 BRUNING 4k The Farm Credit System the system, Wilkinson stated that on Mar. 31, the 37 banks reported $8.3 billion in nonperforming loans and the PCAs $2.7 billion. Of these The New Action Look • High Flotation Tires of Equal Size • Low Center of Gravity for High Stability • Center Pivot Frame with Power Steering • Front Mounted Accessories for Greater Control & Visibility • 48” & 60” Mower Deck • 48” Snowblower • 48” Tiller • 3-Pomt Lift £9 z or p mJBW 12657 Church Rd. Orrville, Ohio 44667 KNOCK'S SALES & SERVICE, INC. 4375 Newburg Rd. Nazareth, PA 18064 215-759-5112 R.B. MILLER, INC. North Seneca Street Shippensburg, PA 17257 7175324178 Farm Credit News totals, $1.5 billion of the bank loans and $663 million of the PCA loans were in nonaccrual status. During the first quarter of 1985, 4-Wheel Drive - 20 H.P. Light Utility Tractor (216) 683-0055 AUTHORIZED DEALERS WES STAUFFER P & S EQUIPMENT RD *3 Pleasant Valley Street. MD21154 Road 301-452-8521 Ephrata, PA T 7522 JUIW4 OWI 717-738-4215 MORE MOBILITY, INC. 333 West Blaine Street McAdoO, PA 18237 * 717-929-1456 SANDBLASTING AND SPRAY PAINTING Aerial Ladder Equipment Farm Buildings Feed Mills Commercial- Industrial Repointing Interior/Exterior HENRY K. FISHER INC. 667 Hartman Station Rd. Lancaster, PA 393-6530 by ATTACHMENTS • 48” & 60” Dozer Blade • Lawn Vaccum • Rotary Broom • Utility Trailer DISTRICT MANAGER George Heath 717-737-0002 TOLL FREE; 1-800-437-5200 Ask For Operator 104 INMD: 1-800-8890 Ask For Operator 104 JIM BRANDT'S ROHRERSTOWN LAWN SERVICE 2208 Wood St. Rohrerstown, PA 17571 717-394-7617 system institutions charged off $61.1 million in loans, he said. “Despite these problems, the 37 Farm Credit Banks reported net earnings of $90.5 million for the quarter. Earnings are essential to maintain investor confidence and toavf " ie! a ‘risk penalty’ on vw would un- doubtedly cost boi i ower, over the long run. He suggested that differential interest rate programs would help alleviate the flight of good borrowers. \jM| f/yVCir HENRY H. HARTMAN Black Rock Rd RD 2, Box 5918 Hanover, PA 17331 717-637-3741 TRI STATE FARM AUTOMATION RD #9 Whitehall Road Hagerstown, MD 21740 301-790-3698
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