Word: loaned
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Dates: during 1980-1989
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...markets at home and abroad. Because of health concerns, a doubling of the excise tax on cigarettes from 8 cents to 16 cents, and cheaper foreign-grown tobacco, about a quarter of the tobacco grown in the U.S. last year went unsold at auction. The farmers' assessment under the loan program was increased from 3 cents to 7 cents for flue-cured, 1 cents to 9 cents for burley, but that covered only $175 million of the $1.6 billion they borrowed between 1982 and 1984 and are legally obliged to pay back to the Government. The farmers are trying...
...Administration failed to quell the uproar by announcing, the day after Stockman's testimony, a change in the rules under which it is offering $650 million in loan guarantees to banks that renew credit to debt-burdened farmers (the previous rules were so unattractive to rural bankers that they have accepted only $25 million in guarantees since the program began last September). Bipartisan groups of legislators, claiming that tens of thousands of farmers face bankruptcy before they can get their crops planted this spring, readied bills to force a vastly greater expansion of loan guarantees. One measure being drafted...
Farmers borrowed heavily to bring more land into cultivation and buy machinery. Their debts zoomed from less than $50 billion at the start of the '70s to around $200 billion now. To hear some of their elected representatives tell it, the bankers practically begged farmers to take loan money. Says Senator Harkin: "We had bankers going up and down the road like Fuller Brush salesmen during the '70s. They couldn't get farmers to borrow enough." Interest rates skyrocketed, but so did the value of farmland, which was regarded as a scarce resource in a hungry world. The loans secured...
What to do? Congress almost certainly will force the Administration to make more loan guarantees than it wants to do. That sort of bailout would keep some farmers in business a while longer. But farmers would still face a decline in land values that Administration experts think has some way to go. Says one Agriculture Department economist: "If you go out to Iowa and have to pay $3,500 an acre for land, there is no way you can raise enough corn or beans on that land to make it pay for itself, assuming 12% interest. You just cannot...
...Crop Loans. These are the basic price-support mechanism. After harvest, the Government lends a farmer money on his unsold crop at a rate set by the Agriculture Department under guidelines established by Congress. If the farmer can sell the crop for more money, he does, repays the loan and pockets the difference. But if market prices are low, the farmer keeps the loan money and the Government takes over the crop. The produce must be stored until it can be sold for more than the loan rate--which could be never...