Menu Search Account

LegiStorm

Get LegiStorm App Visit Product Demo Website
» Get LegiStorm App
» Get LegiStorm Pro Free Demo

Agriculture and Food: The Farm Credit System Analysis of Financial Condition

  Premium   Download PDF Now (12 pages)
Report Type Reports and Testimonies
Report Date Sept. 18, 1986
Report No. 131019
Subject
Summary:

GAO reported on the current and future financial condition of the farm credit system. GAO found that: (1) the system began to experience significant loan difficulties in mid-1983; (2) during 1985, the deterioration in the system's financial condition accelerated, resulting in an operating loss of $2.8 billion; (3) the loss reduced the system's combined surplus from $6.2 billion to $3.2 billion by the end of 1985; (4) if the loan problems continue, the system could lose $2.9 billion in 1986, which would eliminate the system's remaining surplus, thereby making it necessary to seek federal financial assistance; and (5) continued losses are to be expected unless the condition of the agricultural sector improves or the system can borrow and lend money at more competitive rates.

« Return to search Government Accountability Office reports