testimony, the Subconunittee asked the staff to review 

 the Department's proposed plans for administration of 

 the Agricultural Assistance and Counseling Program. 



Eighth Meeting 



The Subcommittee held its eighth meeting in 

 Billings on September 19, 1986. 



At this meeting, the Subcommittee gave further 

 consideration to LC 11, the grain marketing bill. In 

 addition, the Subcommittee discussed a committee working 

 paper that outlined various options for new policies and 

 programs to address the state's agricultural problems. 

 These options included the following: 



(1) 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 (requested by Senator 

 Neuman) . 



(2) Permit banks to hold, for a longer period of 

 time, real estate assets acquired through 

 foreclosure, in order to preserve real estate 

 values and to allow banks to stabilize their 

 capital (requested by Senator Neuman). 



(3) Revamp the Montana Beginning Farm Loan Program 

 to make it a viable program to assist 

 beginning farmers and ranchers in obtaining 



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