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Witnesses:

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The following represented the United States Department of Agriculture and responded to Member's questions:

1. Hon. Alex P. Mercure, Assistant Secretary for Rural Development, USDA, Washington, D.C.

Statements Filed:

None

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Tuesday, May 8, 1979

Full Committee

Business Meeting

FmHA Authorization; Rural Development Policy Act

H.R. 3683; H.R. 2332; H.R. 3580

Action Taken:

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Without objection Coelho amendment on aliens to H.R. 3683
approved.

By unanimous voice vote in the presence of a quorum H.R.
3683, as amended, ordered favorably reported to the House.
By voice vote Bedell amendment to Sebelius amendment to
H.R. 3580 agreed to.

By show of hands vote of 11 yeas-4 nays Baldus amendment
to Foley substitute amendment to Sebelius amendment to
H.R. 3580 agreed to.

By voice vote Foley substitute amendment, as amended, not
approved.

By voice vote Sebelius amendment, as amended, adopted.

Chairman Foley called the meeting to order and directed the Clerk to call the roll. The following Members responded when their names were called:

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Twenty-two Members having responded, a quorum was established.

Chairman Jones (Tenn.) of the Conservation and Credit Subcommittee was recognized to explain the provisions of H.R. 3683, a bill to amend the Consolidated Farm and Rural Development Act to provide funding authorization for the loan programs of the Farmers Home Administration (Subcommittee Print attached).

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Tuesday, May 8, 1979

Full Committee

Business Meeting

FmHA Authorization; Rural Development Policy Act

H.R. 3683; H.R. 2332; H.R. 3580

Discussion occurred on the legislation. Chairman Foley read into the record the attached letter from the USDA concerning amendments to the bill. He asked if there were amendments to the funding levels, and no amendments were offered. The Chairman asked if there were amendments to the provision specifying that 25 percent of the funds be set aside for limited resource borrowers, and no amendments were offered. He asked if there were amendments to the population limits, and no amendments were offered.

The Chairman called for other amendments to the bill and Mr. Coelho offered the following amendment (similar to H.R. 2332) to permit disaster loans to aliens legally admitted for permanent residence:

Insert a new paragraph (4) at the end of
H.R. 3683, as amended, as follows:

(4) In section 321, inserting immediately
after the term "United States" the first
two times it appears, the phrase "or aliens
legally admitted for permanent residence".

Discussion occurred on the amendment and without objection the Coelho amendment was approved.

Mr. Bedell asked that the Department look into the 20 percent loss requirement on FmHA disaster loans and see if legislation is needed to have a loan program which provides that the loan could cover up to 80 percent of the value of the crop and give the farmer adequate loan protection to cover the cost of planting and harvesting his crop.

Mr. Jones (Tenn.) moved that H.R. 3683, as amended, be ordered reported to the House with the recommendation that it do pass. By a unanimous voice vote the motion was agreed to in the presence of a quorum (22 Members present at the time the vote was taken).

Staff was given permission to make necessary technical and clerical corrections and Members were given three days in which to submit any views for inclusion in the report.

Discussion occurred on the administration by FmHA of its loan programs and the slow servicing of loan applications.

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Tuesday, May 8, 1979
Full Committee

Business Meeting

FmHA Authorization; Rural Development Policy Act

H.R. 3683; H.R. 2332; H.R. 3580

Mr. Nolan, Chairman of the Subcommittee on Family Farms, Rural Development, and Special Studies was recognized to explain the provisions of H.R. 3580, the Rural Development Policy Act. Discussion occurred on the legislation (Subcommittee Print attached).

Mr. Sebelius offered the attached amendment to authorize additional pilot projects and discussion occurred on the amendment. Mr. Bedell moved to amend the Sebelius amendment by striking in paragraph (2) the words "industrial hydrocarbons and alcohols" and inserting in lieu thereof the words "alcohol fuels". Discussion occurred and by a unanimous voice vote the Bedell amendment was agreed to.

Acting Chairman de la Garza offered on behalf of Mr. Foley the attached substitute amendment to the Sebelius amendment. Discussion occurred on the amendment and Mr. Baldus moved to amend the Foley amendment by striking item (1) and renumbering the remaining items. Discussion occurred and by a show of hands vote of 11 yeas-4 nays the Baldus amendment was agreed to. Bedell moved the previous question on the Foley amendment and by a voice vote the amendment was not approved.

Mr.

By a voice vote the Sebelius amendment, as amended by the Bedell amendment, was adopted.

Mr. Marlenee offered an amendment to strike the authorization for appropriations for the Working Group for Rural Development established by section 607, as follows:

On page 11, strike lines 21 through 23.

At 12:15 p.m. the meeting was adjourned to enable Members to respond to a recorded vote on the House Floor. The pending business at the next meeting will be continued consideration of the Marlenee amendment.

Glenda Temple

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-APRÍL 24, 19799 € Mr. JONES of Tennessee (by request) introduced the following bill; which was referred to the Committee on Agriculture

A BILL

To amend the Consolidated Farm and Rural Development Act.

1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That section 346 of the Consolidated Farm and Rural Devel
4 opment Act is amended by inserting "(a)" after "SEO. 846."
5 and by adding a new subsection (b) to read as follows:

6

--

"(b)(1) Loans for each of the fiscal years 1980, 1981,

7 and 1982 are authorized to be insured, or made to be sold
8 and insured, or guaranteed, under the Agricultural Credit In-
9 euranee Fund as follows: (A) real estate loans,

10 $307,700,000, including $800,000,000 for farm ownership

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