OPENING STATEMENT OF CHAIRMAN LARRY COMBEST
Good morning and welcome to everyone here. It is my pleasure to convene this first official hearing of the Subcommittee on Forestry, Resource Conservation, and Research. I would like to say that I appreciate my neighbors and congressional colleagues joining me in Lubbock today for this discussion, Congressman Charles Stenholm of the 17th congressional district and Congressman Mac Thornberry of the 13th congressional district. I also appreciate the USDA officials who traveled down from Washington, D.C. as well as other folks who may have come from other parts of Texas.
This hearing is to discuss the factors which affect the availability of credit to agricultural producers. I feel that ensuring a strong and viable farm credit infrastructure of USDA loan programs, commercial banks, and the Farm Credit System is critical to meet the future needs of agricultural producers. I hope to have a comprehensive discussion of the pertinent issues related to this subject.
Specifically, for the first panel, the Subcommittee would like for USDA officials to discuss the status of the direct and guaranteed loan program portfolios including figures regarding current outstanding principal and interest, delinquency rates, loan losses, etc. Also, the number of borrowers who will be affected by the graduation requirement included in the Agricultural Credit Improvement Act of 1992 should be discussed. We would expect USDA officials to provide an update on the implementation of the Certified and Preferred Lender Programs which were also authorized in 1992.
The Subcommittee would also like a detailed explanation and clarification of the credit reform provisions in the 1996 Farm Bill and the number and type of borrowers that will be affected. We would expect USDA officials to detail efforts they have made to improve delivery of direct and guaranteed loan services to borrowers and how they have addressed the delays in loan processing that have been experienced in some counties. As well, we would like a brief explanation of USDA's borrower training program and any views regarding the affordability and access to this program for farmer-borrowers.
As the second panel we will hear the views of several bankers and a representative of the Farm Credit System regarding their participation in USDA's guaranteed loan program and any specific ideas they have for improvement in this program. The general views of these bankers or any ideas regarding the future challenges and opportunities in agricultural credit could also be helpful.
Finally, the third panel will involve a discussion on the Small Business Administration's guaranteed loan program and recent changes that the SBA has made to improve its program.
Again, I appreciate the time that our witnesses have taken to prepare their testimony and appear before the Subcommittee. I look forward to the testimony and the discussion.