Summary: As of September 1993, the Farmers Home Administration's (FmHA) outstanding direct and guaranteed loans to American farmers totaled nearly $19 billion; about 29 percent of this, or $5.4 billion, was held by delinquent borrowers who were behind on their loan payments. During fiscal years 1991-93, FmHA lost $5 billion by reducing the delinquent debt of direct loan borrowers and paid losses on guaranteed loans of about $160 million. During this same period, FmHA made about $55 million in new direct loans to 936 borrowers after it had reduced or forgiven about $133 on their previous loans. As of September 1993, about 21 percent of these borrowers were delinquent on their new loans. FmHA also made about $60 million in new guaranteed loans to 408 borrowers during fiscal years 1991-93 after it had lost $67 million on their previous guaranteed and direct loans. As of September 1993, about four percent of these borrowers were delinquent on their new guaranteed loans. FmHA loaned another $90 million during fiscal years 1991-93 under a policy that allows delinquent borrowers to obtain new direct loans for operating expenses.
