United States Department of Agriculture Farm Service Agency Economic Policy Analysis Staff August 2006 Report to Congress Evaluating the Relative Cost Effectiveness of the Farm Service Agency’s Farm Loan Programs Charles Dodson Steven Koenig* *Agricultural Economists, Economic Policy Analysis Staff, Farm Service Agency, 3741 SB, 202-720-3451,
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[email protected] ACKNOWLEDGEMENTS Valuable comments and suggestions were provided by the Farm Service Agency’s Office of the Deputy Administrator for Farm Loan Programs during the course of drafting the report. Chris Beyerhelm, Assistant Deputy Administrator, and Jim Radintz, Director, Loan Making Division, had primary responsibility for these comments and suggestions. Sheila Oellrich, Loan Servicing and Property Management Division, provided valuable assistance in developing data necessary to complete the report. Technical guidance and suggestions were provided by Joy Harwood, Director, and Terry Hickenbotham, of the Farm Service Agency’s Economic and Policy Analysis Staff. Members of a USDA Advisory Working Group for the report provided helpful comments and suggestions, including Joe Glauber (Office of the Chief Economist), David Grahn (Office of the General Counsel), Jim Staiert (Office of Budget and Program Analysis), Pat Sullivan, (Economic Research Service), and Dennis Taitano (Farm Service Agency, Budget Division). Jerome Stam, retired Senior Economist at USDA's Economic Research Service, provided historical documentation used in preparing the background discussions. Technical editing and report preparation were provided by April MacDonald and Mitch Yoshida. TABLE OF CONTENTS Executive Summary .…..…………………………………………….……………1 I. Introduction……………………………………………………………………8 II. Justification for Federal Farm Credit Programs..……..…………...……...….11 III. Overview of Farm Loan Programs………...……………………..…….…….13 a.