RAFI-USA

Contact Your Senators NOW to Prevent Hmong Farmers from Going Bankrupt!!

There is a crisis for the Hmong contract poultry growers in the Ozarks. Many are facing bankruptcy. Most are without adequate money to feed and clothe their families. All are working very hard but are up against structures and policies that don't allow them to get out of debt.

We need YOUR help to ensure that policies are put in place that allow the Hmong contract poultry farmers to restructure their loans to avoid bankruptcy.

We are asking Congress to allow farmers to restructure their debt, limit the excessive amount of collateral some banks are controlling, and fund programs that would reduce the interest rate they have to pay. Please fill in your contact information to send in the letter below to your senators to ask them to make these changes.

November 22, 2009

Subject:

Dear Senator

I am writing to urge you to support fair credit provisions to help contract poultry farmers that were misled by doctored loan documents and are currently facing bankruptcy as well as farmers throughout the country that could be in a potentially disastrous situation in the near future unless changes are made. Specifically, the following pieces should be included in the farm bill: - "Interest assistance for guaranteed farm ownership loans." The Farm Service Agency (FSA) has unduly restricted the availability of the statutorily authorized Interest Assistance Program for guaranteed loans. FSA's policy has denied the opportunity to participate in this statutorily authorized program to many family farmers who need a lower interest rate in order to obtain necessary financing to purchase a farm or make real estate improvements or to restructure an existing guaranteed loan in order to maintain viable operations. - "Refinancing of guaranteed loan(s) as an eligible loan purpose for direct loans." Natural disasters, dramatic downturns in agricultural markets, and other factors outside an individual farmer's control may have a devastating impact on a borrower's ability to keep up with payments under commercial financing arrangements. The family farmers with commercial loans who are most at risk of falling behind due to such circumstances are those with FSA guaranteed loans?in order to have obtained an FSA guaranteed loan family farmers must have demonstrated that they were unable to obtain sufficient credit without the guarantee. When FSA guaranteed loan borrowers experience such natural or economic disasters they often will be threatened with liquidation and foreclosure of their operations, unless the borrower can find adequate refinancing for the guaranteed loan. In many such cases, FSA will be faced with payment of a loss claim on the guarantee. Some of these borrowers would be able to demonstrate eligibility for FSA direct loans and could save their farming operations and avoid a loss to FSAon the loan guarantee through FSA direct loan refinancing of the guaranteed loan. - "Strengthen guaranteed lenders' responsibilities regarding loan restructuring and release of farm income to pay essential family living and farm operating." Many FSA guaranteed loan borrowers have found it very difficult, if not impossible, to negotiate releases of their the lenders' security interests in income from the sale of crops, livestock, and livestock products or assignments of agricultural production contract income to allow borrowers to pay essential family living and farm operating expenses necessary to maintaining viable farming operations. FSA guaranteed loan borrowers have also often found it difficult to convince lenders to seriously consider debt restructuring when borrowers experience financial distress due to natural disasters, dramatic downturns in commodities markets, or other circumstances beyond their control. I hope that you will be able to support these pieces and express your support by contacting Senator Harkin and Senator Chambliss and encourage them to include these provisions in the chairman's mark. Thank you,
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