agricultural lands; and (c) promoting 

 landowner satisfaction for contributing to 

 wildlife habitat (requested by Representative 

 Asay) . 



The following major testimony was heard: 



Amortization of Loan Losses 



(1) Senator Neuman testified that state banking 

 laws should be amended to permit a longer 

 period in which banks could hold foreclosed 

 farmland. He said, under current law, banks 

 must sell foreclosed property within five 

 years after acquiring it. He said greater 

 flexibility is needed to ease the transition 

 out of the current agricultural depression. 



(2) Tom Tully, Northern Plains Resource Council, 

 told the Subcommittee that his organization 

 could see no advantage for allowing banks to 

 hold foreclosed land for a longer period of 

 time. He said that Senator Neuman 's proposal 

 might increase the number of farm foreclosures 

 because of the increased latitude given to 

 banks in holding land for a longer period. 



(3) Kay Blehm, representing herself, expressed 

 concern that the proposed measure would make 

 it more difficult for a young farmer to enter 

 agriculture because farmland values would be 

 stabilized at current high levels. 



^ 



