Montana Beginning Farm Loan Program 



(1) Paul Ringling, Chairman, Montana Agricultural 

 Loan Authority, presented a paper prepared by 

 E. F. Hutton describing two taxable 

 agricultural loan financing techniques that 

 could be explored as an alternative means of 

 funding the state Beginning Farm Loan Program. 

 The alternative financing involved the sale of 

 bonds backed by either FmHA loan guarantees 



or FSLIC/FDIC lender deposit insurance. 



Mr. Ringling explained the need for state 

 agricultural financing. He said with adequate 

 bonding authority, the Montana Agricultural 

 Loan Authority could administer a better 

 loan program for beginning farmers and also 

 provide an adequate loan guarantee program to 

 help existing agricultural producers. 



(2) Keith Kelly, Director, Montana Department of 

 Agriculture, testified that the Beginning 

 Farm Loan Program was not a functioning 

 program. He suggested that authorization for 

 the program be left in the statutes even 

 though no loans were being issued. 



Agricultural Marketing Program 



(1) Keith Kelly, Director, Montana Department of 



Agriculture, described a proposed agricultural 

 marketing program that would be administered 

 by the Montana Department of Agriculture. He 

 told the Subcommittee that government bodies, 

 such as the Governor's Council on Economic 



94 



