Keith Kelly, Director, Montana Department of 

 Agriculture, offered the comment that, in the executive 

 budget, the Governor has proposed establishment of a 

 marketing office in the Pacific Rim so that Montana can 

 build a stronger identity for its products. 



Amortization of Bank Loan Losses (LC AG3) 



Senator Neuman presented LC AG3, which he explained 

 would allow banks to write off agricultural loan losses 

 over a period of 15 years rather than immediately upon 

 recognition of such losses. Senator Neuman said the 

 purpose of the bill was to stabilize bank capital. 



John Cadby, Montana Bankers Association, testified 

 that South Dakota recently enacted a similar bill; 

 however, the law has had no practical effect in South 

 Dakota because federal banking regulators refuse to 

 recognize the newly enacted law. Nonetheless, Mr. Cadby 

 said, there is a need for greater flexibility in banking 

 regulations to prevent bank capital from being eroded by 

 requirements that banks offset problem farm loan assets. 

 He suggested that states pressure federal regulators to 

 modify current banking restrictions. 



Wheat Research (LC AG6) 



Dr. James Welsh, Director, Montana Agricultural 

 Experiment Station, Montana State University, testified 

 that there will be seed available in 2-3 years which 

 will produce a sawfly resistant wheat and that Montana 

 wheat researchers will place increased emphasis on 

 research to control sawfly damage. 



105 



