FmHA Loan
(Continued from Page B 14)
In 1980, by signing a 25 year
note, the Wolfe’s two
adjoining farms with a combined
acreage of 195 acres for $550,000.
The Wolfes had been renting the
farms for a period of time, and
according to Rick Crouse, the
farms had “good soil, were level,
and possessed some of the better
soil in the county.”
It was in May 1986, that they
received the aforementioned com
munication in the mail requesting
full payment on the balance due of
$320,000. According to Ernie, he
knew there was a balloon payment
in the note he’d signed, but he
didn’t expect to pay it all at once.
Darlene explains that a note
signed with a balloon payment
means at the end of a specified
time the noteholder has the option
of demanding payment in full or
rewriting the note. In most case,
she says, the parties involved
negotiate and the note is rewritten.
Ernie had heard a rumor in
March that he might be expected to
pay the remaining balance in May
and had started his search for
financing at that time. By June,
two and a half months later, Ernie
had gone to six banks in his neigh-
1987 Schedule of Events
-ROUTE
DIRECTIONS
How to get to the West End Fair.
Off Penna. Turnpike (Exit 34) take Route 209
North for 14 miles.
From Rt. 33 - to Rt. 209 South - 7 miles
From Rt. 80 to Rt. 115 - South on Rt. 209 S.
From Rt. 80 to Rt. 715 - South to Rt. 209 S.
FREE PARKING
ADMISSION: $3.00 over 12 years of age
Includes all Stage and Arena Shows.
AGRICULTURE BUILDINGS
Open Daily 12:00 Noon to 10 P.M,
Except Wednesday and Saturday
10:00 A.M. to 10:00 P.M
MEMBER
borhood, filling out one financial
statement after another and what
' seemed like mountains of paper
work, to no avail. He found the
banks were not interested in ag
loans.
“Every time I met with the
bankers, it always seemed like
they needed another paper filled
out,” Ernie recalls with frustra
tion. “Farm credit wanted nothing
to do with it.”
As a last resort, in early June,
Ernie contacted Rick and Darlene
at FmHA where Rick immediately
advised him he would be eligible
for a guaranteed loan, but it was
still Ernie’s responsibility to find a
bank. Even with the knowledge
that he was eligible for a guaran
teed loan, which meant that the
government backs the commercial
bank’s loan to the farmer to the
extent of 90 percent, Ernie still had
trouble getting the banks to listen.
“Some banks are not big
enough to handle that size of a
loan,” Rick, notes, adding further
that, “A lot of banks don’t under
stand what a guaranteed loan is.”
Two banks later, on June 26,
Ernie and Jennie, Darlene and
Rick, and officals of the Northern.
Central Bank, Lewisburg, met at
The John Bressler Show
The Porter Wagoner
Show
7:30 P.M. P.T.P.A. Class A
Tractor Pull
8:00 P.M. The Leisure Squares
SATURDAY. AUG. 29 -
1,3,6 PM
4,7,9 PM
11:00 A.M. The John Hamby Band
4,7,9 PM The Johnny Russell
Show
6:00 P.M. 4 Wheel Drive Pull &
2 Wheel Drive Pull
Ernie’s farm where Darlene and
Rick explained the guaranteed
loan in detail while they looked
over the Wolfes’ farm and exa
mined financial records.
‘‘Still reluctant,” was Rick’s
impression of the bank officials as
they left that day and Darlene con
curs with, “I thought they would
turn Ernie down.”
But on July 29, a little more than
a month later, Rick and Darlene
accompanied Ernie and Jennie to
the Northern Central Bank in Lew
isburg where “Operation Assisi”
was performed. Rick and Darlene
actually sat down with bank offi
cials and helped them fill out
paperwork for the loan which with
their help look a couple hours to
complete.
According to Rick, many banks
don’t like the extra paperwork
involved in a guaranteed loan, but
if FmHA officials help out, it
speeds the process and the banks
are more willing to process future
guaranteed loans.
“Once a bank does one, they
will do a few more,” Rick
observes, although Ernie referred
to it as “getting our foot in the
door.”
Ernie was the first guaranteed
real estate loan to go through their
office, Rick said. They arc third in
SUNDAY. AUG. 23 -
10:00 A.M.-West End Fair Open
Horse Show
6:30 P.M, Vesper Service
MONDAY. AUG. 24 -
7:00 P.M.-Pleasant Valley
H.S. Band
8:00 P.M.-Demolition Derby
TUESDAY. AUG. 25 -
6-30 PM-6th Annual Fiddling
Contest
8:00 P.M.-RoyaF Lipizzan Stallions
WEDNESDAY. AUG. 26 -
Sr. Citizens Day
12:00 Noon Big Band Ambassadors
4,7,9 PM The Blazer Brothers
8:00 PM- American Rodeo
8:00 P.M.- The Leisure Squares
THURSDAY. AUG. 27 -
Children’s Day
1;00 PM-Children's Contest's
4,7,9 PM Joie Dee & The x
Starlighters
1,3,6 PM The John Bressler Show
6:00 PM Children's
Presentations
8:00 P.M. Demolition Derby
FRIDAY. AUG. 28 -
DAILY APPEARANCES BY
Smilie The Clown &
Circus Galaxy
The Antique Engine,
Tractor & Toy Club
NICHOLAS AMUSEMENTS ON
THE MIDAY - NOON TO 11 P.M
the state for making guaranteed
loans and second for making regu
lar FAA loans.
In addition to keeping their
farms, one advantage for the Wol
fes, according to Darlene, was that
the refinancing improved the Wol
fes’ cash flow due to better rates
and because FmHA also refi
nanced a small operating loan for
them.
Guaranteed loans are advanta
geous to banks, Gary Klinger, PFA
Farm Management Service,
pointed out, because, “that is one
way for commercial banks to
expand business with much less
risk than might normally lake
place.”
One drawback of the guaranteed
loan for the Wolfes, Darlene noted,
was the need to change their
recordkeeping system. “The
banks are requiring more extensive
recordkeeping,” she explained.
The Wolfes conformed to
PFA’s recordkeeping system
Low-Calorie Dairy Recipe Contest
Win $l,OOO as the Grand Prize
in the first ever Pennsylvania low
calorie “Make It With Milk and
Other Dairy Products” recipe
contest.
Penn State’s Home Economics
and Family Living Extension joins
the Pennsylvania Dairy Promotion
Program and Pennsylvania
Department of Agriculture this
year as a co-sponsor.
Ony recipes for main dishes will
be accepted. All must feature at
least one low-fat dairy product as a
HIGH PROTEIN SILAGE
IF We Could Lower
Your Cost To Produce...
100
LBS.
OF
BEEF
COULD You Use The Extra Profit?
The primary benefit for treating corn silage
with ammonia is reducing feed costs.
But, you also know that reducing feed costs
do not always increase profits.
With a little understanding of ammonia
treated silage some university studies have
shown not only lower feed costs but also
higher production at the same time by using
ammoniated silage in the feeding program.
See Martin’s Ag. Service for Martin’s Hi-
Protein liquid ammonia silage additive as well
as computer balanced feeding programs and
sound feeding advice.
which Gary is currently teaching to
Jennie. Rick speaks highly of
PFA’s system. “We have an
extremely good working relation
ship with the PFA account supervi
sors in our area and they do more
than expected to help their
clients,” he observes.
A fulher loan requirement is that
FmHA and bank officials will
annually visit the Wolfe farm to
review records and analyze
progress.
And on September 2, 1986
when the final papers were signed
for the guaranteed loan after
five and a half months of nervous
waiting how did the Wolfes
celebrate their victory?
“I went back to work,”
responds Ernie who also sells farm
machinery.
Jennie’s response, however,
was akin to the ending of a night
mare, “I "had a good night’s
sleep,” she said; “without sleep
ing pills.”
main ingredient.
All entries must be received by
October 31, 1987 and become the
property of the sponsors. Each
contestant may submit up to five
recipes. Winning entries, however,
will be limited to one per
household.
To obtain an official entry form
and complete contest details,
please send request to Berk County
Extension Service; P.O. Box 520,
Leesport, Pa. 19533-0520.
ADDITIVE
MILK
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