FARM CREDIT SYSTEM REQUESTS U.S. CREDIT LINE
The financially-troubled Farm Credit
System today formally asked that the Treasury Department
provide a line of credit to the system and that Congress take
steps to guarantee stock held by borrowers.
    In testimony prepared for delivery to a Senate agriculture
subcommittee hearing, Brent Beesley, president of the Farm
Credit Corp, said "In order to avoid the need for continued
appropriations, the Farm Credit System Capital Corp should have
a line of credit from the Treasury."
    Beesley said in April the system would recommend a dollar
amount of aid needed.
    In addition, Beesley urged Congress to immediately take
steps to reassure borrowers from the system that their stock is
secure.
    We urged the Congress to go on record through a resolution
stating its commitment to protect the stock," Beesley said.
    Borrowers from the system own some four billion dlrs in
stock that could be jeopardized by the mounting losses of the
Farm Credit System.
    Beesley also said that if Congress takes action to reduce
interest rates offered to farmers to below-market levels, "The
government should provide this interest rate relief.
 Reuter
