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SECTION IV
RURAL DEVELOPMENT AND THE FAMILY FARM
The key to successful rural development is to stabilize, strengthen and build upon the agricultural base and the family farm structure of rural America. Economic diversification must be a supplement to, not a substitute for, a healthy agricultural economy and a strong family farm system. The creation of agricultural opportunities for a new generation of beginning farmers must be a central component of rural development. The organization of cooperative enterprises which retain equity, control, benefits and ownership for agricultural producers within rural communities is a proven self-help, home-grown rural development mechanism which builds needed economic infrastructures for rural people. We recommend a loan program for farmers to invest and build producer-owned, value-added co-ops to gain economic independence and spur rural economic development. Access to credit, technical expertise and markets are essential ingredients in securing opportunities for rural and agricultural enterprises. We call for a new partnership in which our federal and state governments and rural people can develop together the full potential of rural America’s human and natural resources. 1. FARM SERVICE AGENCY (FSA) A. The Farm Service Agency (FSA) should: (1) Provide ag credit only to family farm operators who cannot obtain financing elsewhere. (2) Provide supervised loan programs to beginning and other family farm operators. (3) Provide long-term real estate loans to be graduated to commercial credit at the end of ten years. The interest rate and repayment schedule would be adjusted to build an adequate equity base during the initial ten-year period and be based on the producer’s annual net farm income and production. The graduation could be postponed in case of economic hardship. (4) Provide production (operating) loans with adjusted interest rates and repayment schedules in accordance with the producer’s production and income. (5) Be authorized to develop innovative programs of finance and assistance for land transfer be- tween generations and for establishment of new farm units, such as Land Link. (6) Work closely with state programs designed for beginning farmers and be able to supplement and guarantee such state programs. (7) Make land and improvements within FSA inventory available to eligible farm families.
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