Farm Credit

The Agricultural Resource Conservation Program is a new effort to preserve farmland for future generations through federal loan payment guarantees and interest assistance. The Farmers Home Administration (FmHA), the agency to which the U.S. Department of Agriculture has delegated responsibility for administering the program, published on September 24, 1991, in the Federal Register proposed regulations to implement the program. Before FmHA published the final regulations, the 1991 amendments to the Farms for the Future Act changed the program and FmHA had to modify its proposed regulations. On February 4, 1992, FmHA published interim regulations in the Federal Register, making the program operational on that date. As of February 10, 1992, FmHA had not guaranteed any loans under the program.

GAO found that: (1) the Farms for the Future Act authorized the establishment of the Agricultural Resource Conservation Demonstration Program to promote farmland preservation through federal loan payment guarantees and interest assistance; (2) USDA delegated responsibility for administering the demonstration programs to the Farmers Home Administration (FmHA); (3) FmHA would not violate the Antideficiency Act if it implemented the act in Vermont, since the act established a source of funds to set up a pilot project there; (4) in September 1991, FmHA published in the Federal Register proposed regulations to implement the program; (5) 1991 amendments to the act made changes to the program that required FmHA to modify its proposed regulations; (6) in February 1992, FmHA published interim regulations and made the program operational; and (7) as of February 1991, FmHA had not guaranteed any loans under the program.