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Farmers Home Administration: Federally Acquired Farm Property Presents a Management Challenge

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Report Type Reports and Testimonies
Report Date June 13, 1986
Report No. RCED-86-88
Subject
Summary:

In response to a congressional request, GAO examined the increase in the number of farms that the Farmers Home Administration (FmHA) acquired as a result of loan foreclosures and other actions, specifically: (1) why the increase occurred; (2) the financial impact on the government; and (3) how well FmHA is managing the properties.

GAO found that: (1) the increase in the number of farms that failed is due to poor farming and financial practices or personal problems, but future failures may be related to economic factors; (2) FmHA lost revenues from acquiring the inventory properties due to undersecured loans and bad loan-servicing policies; and (3) FmHA allotted only a minimal amount of funds to manage the inventory properties in 1985, but will increase its management expenditures to maintain property values and result in higher sales income in the future.

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