From: Hays, John [mailto:Hays@fccouncil.com]
Sent: Wednesday, December 04, 2002 8:28 AM
To: Hadjy, Pandor
Subject: Comments for Sec. 9006 hearings

December 3, 2002

Pandor Hadjy,Asst. Deputy Administrator
Business Programs, RBS
United States Department of Agriculture
Room 5050 South Agriculture Building
Stop 3220
1400 Independence Avenue, SW
Washington, DC 20250-3220

RE:  Comments Relative to Public Hearing on Sec. 9006 of the Farm Bill

The letter addresses the single issue of permissible loan guarantees that the Secretary may issue under sec. 9006
of the Farm Security and rural Investment Act of 2002.  Under this authority, farmers and ranchers plus small rural
businesses may receive grants, direct loans or loan guarantees to acquire renewable energy systems and make energy
efficiency improvements.  For the guarantee loan program authorized by this section, Farm Credit System (FCS)
institutions need to be included in any regulation that addresses the types of lenders that farmers and ranchers use
as their credit source.

The FCS currently provides nearly $90 billion in financing to agriculture, rural utility systems and rural
telecommunications activities.  FCS institutions currently participate in USDA loan guarantee programs for operating
and land ownership loans and also programs offered by the Small Business Administration.  FCS experience making and
servicing guaranteed loans to farmers and ranchers is a benefit that the Rural Business Cooperative Service (RBCS)
can use to assist it in meeting its mission in this area.  The Farm Credit Council, the FCS institutions' trade
association, is available to assist the RBCS as the guaranteed loan program is developed.

Please do not hesitate to contact me if you have any questions at (202) 879-0853.

Sincerely,



John J. Hays
Vice President - Policy Analysis & Development

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