TABLE OF CONTENTS 



Page 



House Joint Resolution No. 57 i 



Summary of Recommendations iii 



Introduction 1 



I. The Economic Problems of Agriculture in 

 Montana 3 



II. Policy and Program Options: 



1. Provide financial counseling, debt 

 mediation, and other assistance to 



aid financially distressed farmers . . 13 



2. Create a state loan linked deposit 

 program to assist farmers in obtaining 

 short-term credit necessary to finance 

 current operations 21 



3. Amend state banking regulations to 

 allow prudently managed banks to 

 amortize loan losses on a multiple year 

 basis as a means of enabling banks to 

 preserve their capital and to maintain 

 their capacity to extend credit to 

 agricultural borrowers 27 



4. Permit banks to hold foreclosed 



^ farmland for a longer period of time 

 in order to preserve real estate 

 values and to allow banks to 

 stabilize their capital 30 



5. Revamp the Montana Beginning Farm Loan 

 Program to make it a viable program to 

 assist beginning farmers and ranchers 

 in obtaining loans for the purchase of 

 agricultural land and property .... 33 



tv 



