ST.-\TE OF ~1L'i'~ESOT~-\ DEP.\RT~E''''''TOF CO~~ERCE ST. P,-\.L'L FAMILY FARM ASSISTANCB ACT. INTBREST BOYDOn PROGRAM REPORT

Transcription

1 This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. OFFICE OF THE COMMISSIONER ST.-\TE OF ~1L'i'~ESOT~-\ DEP.\RT~E''''''TOF CO~~ERCE ST. P,-\.L'L 101 O 6'"\" u~ ~~ \tetra SQLJ."\RE BL'ILDI'OG. ST. P."\L'l;; MN FAMILY FARM ASSISTANCB ACT 'ARM LOAN INTBREST BOYDOn PROGRAM REPORT OCTOBER 1, 1986 MICHAEL A. HATCH Commissioner of Commerce./ AN EaUAL OPPORTUNITY EMPLOYER ~@

2 e- TABLE OF CONTENTS I. -Executive Summary... 1 I I. Program Overview... 2 ;rii. Prog;:am Statistics October 1, Application by Crop Reporting District... 6 Applications by County IV. Conclusion... 9

3 interest Durin~ the 1986 Legislativ"e Session an extension of th.e' bu.ydown was passed. On March 21, 1986 Governor Rudy Perpich' signed into" law" the Minnesota -Family Farm Assistance Act. There were several significant changes to the interest buydown program~ These changes made the program more attractive to farmers and lenders by allowing a broader range of debt to qualify for the subsidy. ~, During the first seven days of program operation, the.- '$,000,000 appropriation was exhausted. This appropriation funded about 1,400 subsidy applications and hundreds of applications were returned. On April 26, 1986 Governor Perpich announced that the program was being reopened. As of October 1, 1986, a total of nearly 6,400 applications have been accepted and processed for a total approved interest subsidy of $18,699,488. A deficiency appropriation of about $1~,000,000 will be needed when the legislature convenes in January. The large increase in participation would indicate that the continued decline in the agricultural economy,has allowed :more far1'!1 operators to qualify for' the_ program, and that lenders and borrowers have found the State farm loan interest buydown to be of value in dealing with the ongoing farm credit crisis. 1

4 I!. Prog~~~ Ove~vie~ Participation in the 198 Erne r g e n c y - FarrnOpera_t ing Loan.- Act did not; meet original projections -even after severalamendments. The 1986 Family Farm Assistance Act. b~oaaened the program to encourage greater' participation by lenders. Program 2 participation was significantly increased. As of October 1, 1986, applications for assistance had been received on 6,400 loans.,program 1 which provides payments of interest on existing farm operating and farm ownership loans was continued" in the same form as the 198 program. There were, however, several important changes to Program The definition of operating loans" was changed to include "original, extended, renegotiated loans or lines of credit." This change means that loan balances from prior years and chattel line of credit loans may be refinanced to qualify. 2. Loans may be written or rewritten between January 1, 1986 and December 1, 1986 and may have a maturity date up to July 1, 1987~. The maximum loan amount which qualifies was raised to $100, State participation in the buydown was changed to 7. percent of the 'contract rate 'up to the Commissioner's index 'rate. This maximum is set at the monthly FICE rate plus percent. The farm 2

5 bo~ro~er pays 0 percent of the contract rate and _ th-e lender -- absorbs 12. percen t-. To - be eligible_, farmers must- have a deb-t to asset ratio greater than- 0 percent. These changes made the program more attractive to both farmers and lenders by allowing a wider range of debt to qualify for the subsidy. This, along with the continued downward trend in the agricultural economy, reduced federal assistance, and greater familiarity with the program, substantially increased participation. The number of participating financial institutions more than doubled to over 400. More than 6,400 applications have been approved. The original appropriation of $,000,000 was used in the first seven days of program operation, and at October 1, 1986 a -deficiency appropriation of nearly $14,000,000 is needed. -...:..

6 II:. PRCG~AM :~~:S~ICS - OC~0S~ 1926 Proeram #1 Applications Total Dollar Amount Enciumbered for tnterest Program #2 Applications Total Dolla~ Amount Encumbered for Interes~ Total Applications Total Interest Encumbered Total Principal Borrowed: Actual Subsidized 22 6,76 $~1 8, 699, 79 6,400 $1 8, 71 1, 48 1 $40,7,996 $91, 11 1, 260 Average Subsidized Loan Amount Average Interest Encumbered Breakdown of Principal Amount Subsidized Number of applications with principal from $20,000 $20,001 - $40,000 $40,001 - $60,000 $60,001 - $80,000 $80,001 -$100,000 *This figure includes 77 applications which the actual principal borrowed exceeded $100, , 199 1,18 7 2,4* LISTING OF FINANCIAL INSTITUTIONS PARTICIPATING IN THE PROGRAM $61, 8 $2,946 14% 19% 18% 12% 7% Name and Address Number of Applications AGRICULTURAL CREDIT COMPANIES Mid Minnesota Credit Corp. Albany, MN 607 Northern Credit Company Bertha, MN Bonanza Valley Credit Corporation Box 400, Brooten, MN 616 NUMBER OF AGRICULTURAL CREDIT COMPANIES = APPLICATIONS FROM CREDIT COMPANIES 4 24

7 Name and Address CREDIT UNIONS ~awson Co~op Credit Union 687 6th Stree~, Box 109M, Dawson, MN 622 irur:b e r of.e- Renville Farmers Co-op Credit Union. 218 North Main, Renville, MN 6284 NUMBER OF CREDIT UNIONS = 2 APPLICATIONS FROM CREDIT UNIONS NATIONAL BAlfKS Stearns County National Bank of Albany P.O. Box S, Albany, MN 607 Norwest Bank Albert Lea, N.A. 122 East Main Street, Albert Lea, MN First National Bank in Alexandria 701 Broadway, Alexandria, MN 608 Security National Bank P.O. Box 116, Amboy, MN 6010 The First National Bank of Barnesville P.O. Box 19, Barnesville, MN 614 First Bank Benson, NA Benson, MN 621 First National Bank of Bertha-Verndale P.O. Box 188, Bertha, MN '. First National Bank P.O. Box 7, Blooming Prairie, MN First National Bank of ~lue Earth 06 South Main, Blue Earth, MN 601.:... First American Bank of Brandon P.O. Box 68, Brandon, MN 61 Minnesota Bank Caledonia, MN 921 2

8 ~ame ~~d Address _ Sprague Nationa-l Bank. ~Caledonia, MN 921 First National Bank of Cannon Falls Cannon Falls, MN First National Bank 16 Broadway Avenue, Cokato, MN 21 First National Bank of Detroit Lakes Detroit Lakes, MN 601 First National Bank of Elbow Lake Elbow Lake, MN -The First National Bank of Elmore Elmore, MN 6027 Martin County National Bank Fairmont, MN The Fairmont National Bank Fairmont, MN 601 Norwest Bank Faribault, N.A. Faribault, MN First National Bank of Fergus Falls 120 North Mill, Fergus Falls, MN 67 Norwest Bank Fergus Falls, N.A. 220 West Washington, Fergus Falls, MN First National Bank of Henning Henning, MN 12 'e First National Bank of Herman P.O. Box 189, Herman, MN First National Bank in Jackson 09 rd Street, Jackson, MN

9 . Naxe ar.d Address Ftrst National-Bank of-kiestdf P.O. Box 68i Kiester~ M&-~ The Lake Crystal Nati-onal Bank 202 North Main, Lake Crystal, MN 60 9 First National Bank of Le Center 0 West Minnesota, Le Center, MN Valley National Bank 112 South Main Street, Le Sueur, MN First National of LeRoy Le Roy, MN 91 First Bank Central, N.A. P.O. Box 882, Litchfield, MN 22 Norwest Bank Litchfield, N.A. P.O. Box 761, Litchfield, MN First National Bank of Long Prairie Long Prairie, MN '. First National Bank of Mabel P.O. Box 67, Mabel, MN :..... Klein National Bank Madison, MN 26 First National Bank of Mankato 204 South 2nd, Mankato, MN 6001 Norwest Bank Mankato, N.A. P.O. Box 168, Mankato, MN Norwest BaniMa~shall, N.A. 400 West Main, Marshall, MN The First National Bank of McIntosh McIntosh, MN 6

10 The First National Bank cf ~ilaca Milaca,, MN First Bank South~est~ Minneota, MN N.A. The Farmers National Bank of.minnesota Lake Minnesota Lake, MN 6068 First National Bank in Montevideo P.O. Box 68, MonteVideo, MN 626 Norwest Bank Montevideo P.O. Box 698, Montevideo, MN First 'National Bank 401-1st Street South, Montgomery, MN Peoples National Bank - Mora M0 r a, 'MN 0 1 Norwest Bank Northfield P.O. Box 19, Northfield, MN First National Bank of Osakis Osakis, MN Norwest Bank Owatonna, N.A. 101 North Cedar Street, Owatonna, MN 060,17 Citizens National Bank Park Rapids, MN Northwoods Bank of Park Rapids Park Rapids, MN 6470 First National Bank P.O. Box 428, Plainview, MN Norwest Bank - Red Wing Red Wing, MN 066 8

11 Na!!!e' ar.d Ad.d.ress The Goodhue County Natio~al Red Wing, MN 066 Bank Norwest Bank Redwood Falls, N.A. P.O. Box 49, Redwood Falls, MN First Bank Rochester Rochester, MN Norwest Bank Rochester, N.A. 21 1st Street West, Rochester, MN National Bank of Rushd Rushd, MN 971 First National Bank 2 Main Street, Sauk Centre, MN Norwest Bank Sauk Rapids, N.A. 11 South 1st Street, Sauk Rapids, MN 679 The First National Bank of Shakopee. Shakopee, MN '. Norwest Bank South St. Paul South St. Paul, MN 07 The First National Bank of St. Charles, St. Charles, MN ~..~ First American National Bank of St. Cloud St. Cloud; MN First National Bank at St. James St. James, MN 19 St. Martin National Bank St. Martin, MN 676 First National Bank St. Peter, MN 20 9

12 e- First National Ba~k P-.o.- Box 68, Starbuck J- MN 681- First National Bank of Stewartville Stewartville, MN 976 Norwest Bank Stillwater Stillwater, MN 082 Norwest Bank - Thief River Falls Thief River Falls, MN 6701 Norwest Bank Tracy Trac.y, MN First National Bank of Waconia Waconia, MN 87 2 First National Bank in Wadena P.O. Box 111, Wadsna, MN 6482 First National Bank 101 North State Street, Waseca, MN First National Bank of West Concord West Concord, MN 98 9 First Bank Wheaton, NA Wheaton, MN 6296 First National Bank of Wilmont Wilmont, MN 41 First Natl'onal Bank of Windom 20 Tenth Street, Windom, MN First National Bank of Winnebago Winnebago, MN 6098 First National Bank of Worthington Worthington, MN

13 'Na~e a~d Add~es ~ ' i"1 \... e r ') ~_ '..,...,.." Li '...:."'\;:,,",~:C8.~:':~. NorT,ole-st Bank - Worthington Worthington~ MN NUMBER OF NATIONAL BANKS APPLICATIONS FROM NATIONAL BANKS OUT OF STATE BAN~S Citizens State Bank p.b. Box '1, Arlington, SD 7212 First National State Bank P.O. Box G, Garretson, SD - 1, 17 2 Exchange State Bank Lime Springs, IA 21 Bank of Osceola P.O. Box 188, Osceola, WI 4020 St. Ansgar State Bank P.O. Box 219, St. Ansgar, IA 0472 St. Ansgar State Bank P.O. Box 18, Stacyville, IA ,'. Bank of Toronto P.O. Box 48, Toronto SD 7268 NUMBER OF OUT OF STATE BANKS = 7 APPLICATIONS FROM OUT OF STATE BANKS' pea"'s PCA of Moorhead (Ada) P.O. Box 88, Ada, MN PCA of St. Cloud (Aitkin) P.O. Box 08, Aitkin, MN 641,.,.', PCA of Blooming 'Prairie Highway 1 North, Albert Lea, MN 6007 PCA of Alexandria MN Alexa~dria,

14 \ PCA of SE Minnesota Box 102, - Austin,- MN 91 2 PCA of Madison P.O. Box 7, Benson, MN PCA of Blooming Prairie North Center Street, Blooming Prairie, MN 917 PCA of Mankato 82 East 2nd Street; Blue Earth, MN PCA of West Central Minnesota Box 178, Breckenridge, MN 620 PCA of Buffalo P.O. Box 49, Buffalo, MN 1 PCA of St. C'loud P.O. Box 49, Buffalo, MN 1 PCA of St. Charles 10 West Main, Caledonia, MN pea of River Falls-Cambridge 12 2nd Avenue NW, Cambridge, MN 008 PCA of Madison P.O. Box 12, Canby, MN PCA of Grand Forks P.O. Box 78, Crookston, MN PCA of Moorhead -p o. Box 29,,D et r 0 i t Lakes, MN 6 01 PCA of Faribault-Dundas Route 1, Box 6, Dundas, MN 019 PCA of Fairmont P.O. Box 828, Fairmont, MN

15 ~;a~e. a~d Addr~ss pea of "Faribault 2209 ~ard Avenue, Faribault, MN 021 PCA of' Riv~~ Falls Farmington, MN PCA of Fergus Falls P.O. Box 768, Fergus Falls, MN 67 8 PCA of Forest Lake P.O. Box 40, Forest Lake, MN 02 2 PCA of Fosston Box 66, Fosston, MN 642 PCA of Mankato 414 West Main, Gaylord, MN PCA of Redwood Falls Glencoe, MN PCA of Blooming Prairie P.O. Box 102, Grand Meadow, MN 96 PCA of Grand Forks-Hallock Hallock, MN PCA of Marshall Ivanhoe, MN PCA of Windom P.O. Box 8, Jackson, MN 614 PCA of Faribault-Jordan Box 16, Jordan, MN 2 PCA of Blooming Prairie P.O. Box 68, Kasson, MN ~ 19 PCA of Faribault Le Center, MN 1 29

16 ar:d e- -PGA of SE Minnesota 60 Deb r a - Dr i v e, P.O. Bb x 84 1,- - L ew-i s ton-, MN PCA of Red_wood Falls Litchfield, MN 12 PCA of St. Cloud P.O. Box 284, Little Falls, MN 64 4 PCA of Wo P.O. Box ngton, Luverne, MN PCA of Madison P.O. Box 148, Madison, MN 626 PCA of Moorhead P.O. Box 60, Mahnomen, MN 67 PCA of Mankato P.O. Box 1268, Mankato, MN 6001 PCA of Marshall Marshall, MN PCA of Madison P.O. Box 71, Montevideo, MN PCA of Moorhead P.O. Box 78, Moorhead, MN 660 PCA of St. Cloud 600 South Clark Street, Mora, MN PCA of Alexandria 621 Pacific Avenue, Morris, MN 6267 PCA of Mankato 114 West Ridge Road, New Ulm, MN 607 PCA of Redwood Falls P.O. Box 126, Olivia, MN

17 PCA of Blooming Prairie P.O. Box 766, -Owatonna, 'MN '060- PCA of West Central MN - Perham Box 267, Perham, MN 67 PCA of Worthington P.O. Box 774, Pipestone, MN PCA of SE MN - Plainview 27 1st Street SW, Plainview, MN PCA of St. Charles P.9. Box 12A, Prestpn, MN 96 PCA of Redwood.Falls P.O. Box 160, Redwood Falls, MN PCA of St. Charles 102-1th Avenue SE, Rochester, MN 904 PCA of Grand Forks Roseau, MN PCA of St. Cloud-Sauk Centre So. Hwy. 71, Box 269, Sauk Centre, MN 678 PCA of Worthington P.O. Box 146, Slayton, MN PCA of St. Cloud P.O. Box 6219, St. Cloud, MN 602 PCA of Fairmont St. James, MN PCA-of Mankato P.O. Box 267, St. Peter, MN 6082 PCA of Thief River Falls P.O. Box 67, Thief River Falls, MN h ~:.

18 ~Tl.l mb ~ r C... \.,...i - - rl P'C :. c a ": :..: ;. s pea of Buffalo-Waconia 212 W. Main Street, 'Waconia', MN 87' PCA of St. Cloud-Waconia 212 W. Main Street, Waconia,,MN PCA of St. Cloud-Warren 406 No. McKinley, Warren, MN 6762 PCA of Mankato-Waseca P.O. Box 220, Waseca, MN PCA of Redwood Falls P.O. Box 0, Willmar, MN ~201 PCA of Windom P.O. Box 99, Windom, MN 6101 PCA of Worthington P.O. Box 79, Worthington, MN 6187 PCA of St. Charles 1406 North Star Drive, Zumbrota, MN 992 NUMBER OF PCA~S = 68 APPLICATIONS FROM PCA~S SAVINGS AND LOAN ASSOCIATIONS Faribault Savings and Loan Faribault, MN 021 NUMlER OF SelL"'S = 1 APPLICATIOBS lrox S&L"'S STATE BABKS Farmers State Bank of Adams Adams, MN ,21 Security State Bank of Aitkin 402 Minnesota Avenue NW Aitkin, MN 641 Security State Bank of Albert Lea 47 Bridge Avenue, Albert Lea, MN

19 Ame~i~an~ State Bank Alde~ - 19 N. Broadway, ~.O. Box 1, Alden, MN :4 Community State Bank of Arexandria 618 rd Avenue East, Alexandria, MN 608 'First American Bank & Trust Company Broadway, P.O. Box 09, Ale~andria, MN 608 Annandale State Bank Chestnut Street West, Annandale, MN 02 4 Farmers & Merchants State Bank of Appleton 29 North Mills Street, Appleton, MN Northwestern State Bank of Appleton 20 North Miles Street, Appleton, MN Argyle State Bank Third and Pacific Avenue, Argyle, MN 671 Arlington State Bank 20 West Main Street, Arlington, MN '. First State Bank of Ashby Ashby, MN Atwater State Bank P.O. Box, Atwater, MN Norwest Bank Austin 01 North Main Street, Austin, MN Sterling State Bank st Avenue SW, Austin, MN 912. Avon State Bank Avon, MN 610 Backus State Bank Highway 87 East, Backus, MN 64 17

20 Xar:e ar.d ;"d.d~ess. -...""'\ ~ ~ - :. c a -: :..: ~.- Badger Stat~ Bank Main Street, Badger, MN Citizens State Bank 'of Barrett Barrett, MN 611 North American State Bank P.O. Box 189, Belgrade, MN 612 State Bank of Belle Plaine 201 Wes t MainSt r eet,. Belle PI a ine,.mn State Bank of Bellingham Fourth A~e. & 2nd St~, P.O. Box 67, Bellingham, MN Belview State Bank P.O. Box 98, Belview, MN 6214 First Security State Bank of Sleepy Eye (Benson Branch) Benson, MN State Bank of Bird Island 20 South Main Street, Bird Island, MN State Bank of Blomkest 2 P.O. Box 88, Blomkest, MN 6216 Farmers and Merchants State Bank East Main Street, Blooming Prairie, MN 917 Blue Earth State Bank 20 East 7th Street, Blue Earth, MN 601 2, The First State Bank of Braham 121 South Main, Braham, MN 00~ 20 State Bank of Bricelyn P.O. Box )67, Bricelyn, MN

21 Bc~a~:~ V~~:~y S~a~~ ~~~~ 18 - Central Av~. & First St~eet,- Brooten, MN 616 Lee State Barik U. S. Highway 71 &. th Street Browerville, MN 648,-. First American State-Bank of Brownsdale P.O. Box 17, Brownsdale, MN State Bank of Butterfield P.O. Box 249, Butterfield, MN State Bank of Byron 16 Byron Avenue South, Byron, MN Peoples' State Bank of Gambridge 24 1st Avenue East, Cambridge, MN Security State Bank of Cannon Falls t2 South Fourth Street, Cannon Falls, MN 009 White Rock State Bank Rural Route 2 Cannon Falls, MN '. Canton State Bank Canton, MN First State Bank of Carlos Carlos, MN 61g 4 First State Bank of Castle Rock, Castle Rock, MN 010 Inc. 8 Chisago County State Bank County Rd. & St. Hwy. 8, PO Box 247 Center City, MN 012 Stat e Bank of Chandler - 4th & Main Streets, Chandler, MN 6122 Root River State Bank 18 Southeast rd Street, Chatfield, MN

22 Chokio State B~ck Main Street, Chokio, 'MN 6221 Americana State Bank of Clara City 126 North Main Street, Clara City, MN 6222 Citizens State Bank of Clara City 17 Main Street, Clara City, MN Security State Bank of Claremont Front & Elm Street, Claremont, MN 924 Farmers State Bank of Clarissa Clarissa, MN 6440 Farmers and Merchants State Bank P.O. Box 248, Clarkfield, MN 622 Peoples State Bank of Cleveland P.O. box 44, Cleveland, MN 6017 Clinton State Bank P.O. Box 60,. Clinto~, MN 622 State Bank of Cokato 101 East T~ird StreBt, P.O. Box 220 Cokato, MN 21 State Bank of Cologne P.O. Box 147, Cologne, MN 22 Peoples State Bank of Comfrey Brown & Court Streets, Comfrey, MN 6019 Empire S~.~e Bank West'",'~ain, Cottonwood, MN 6229 Currie State Bank 141 Mill Street, Currie, MN

23 name and Address A~ericana S~~~e Ba~~ of Danube P.O." Box 8, Danub~, MN 620 State-Bank of Danve~s Danvers, MN 62~1' State Bank of Darfur North Adrian, Darfur, MN 6022 Number of App~:catic~ : Farmers State Bank of Darwin P.O. Box 87 Darwin, MN 24 Norwest Bank Dawson Sixth St., P.O. Box 12L, Dawson, MN 622 Farmers State Bank of-delavan P.O. Box 9, Delavan, MN Clay County State Bank 4 North Main Street, Dilworth, MN 629 Norwest Bank Dodge Center 18 2nd Street SW, Dodge Center, MN 927 Farmers & Merchants State Bank of Donnelly P.O. Box 6, Donnelly, MN '. Citizens State Bank of Eagle Bend P.O. Box N, Eagle Bend, MN Citizens State Bank of East Grand Forks Central Avenue, East Grand Forks, MN 6721 State Bank of Easton Easton, MN Citizens State Bank of Echo P. O. Box 276, Echo, -MN State Bank of Eden Valley P.O. Box 4, Eden Valley, MN e"

24 ?O. Bcx 68, ~1ir 9 1 Farmers State Bank of Elkton Main Street, P.O. Box 84, Elkton, MN 9 Ellsworth State Bank P.O. box 0, Ellsworth, MN 6129 Elrosa State Bank P.O. Box 94, Elrosa, MN Elysian State Bank 40 Main Street East, P.O. Box 179 Elysian, MN First State Bank of Emmons P.O. Box 28, Emmons, MN 6029 Farmers State Bank of EvansvillB P.O. Box 100, Evansville, MN' 626 Eastwood State Bank Lafayette & West 2nd St., P.O. Box 178 Eyota, MN Fidelity State Bank of Fairfax 100 South Park Street, Fairfax, MN 2 11 State Bank of Fairmont P.o. Box 76 Fairmont, MN 601 The State Bank of Faribault 428 North Central Avenue, Faribault, MN 021 First State Bank of Fountain Fountain, MN 9 Frost State Bank Frost, MN

25 Citizens State Bank of Gaylor~ 20 Na i n -St r eet, P.o.- Box _26 6, - _G_ay lord i r<1 N 4 29 Geneva State Bank Geneva, MN;60 18 Citizens State Bank of Gibbon P.O. Box 2, Gibbon, Mn 8 Security Bank & Trust Company. 7-11th Street East, Glencoe, MN 6 4 Citizens State Bank of Glenville 00 West Main Street, Glenville, MN Glenwood State Bank East Minnesota Street, Glenwood, MN 64 6 Pope County State Bank 2 Sout h Franklin St r eet G1 e n~v00d, MN 64 First State Bank of Good Thunder P.O. Box 68, Good Thunder, MN '. Goodhue State Bank P.O. Box 18, Goodhue, MN First American State Bank of Grand Meadow Grand Meadow, MN Yellow Medicine County Bank 180 8th Avenue, Granite Falls, MN Granite Falls Bank 702 Prentice Street, Granite Falls, MN Greenbush State Bank Greenbush, MN

26 ~ St. ~ -= " :1 :.':< :- f.j :- ~ -= ;.',: 9. =- :.. th Str2~: ± 1~ Ave.,?~O. Box 44 Greenwald} MN' 6. 4 First" State Bank of Grove City.7 11 o Atlantic Avenue West,~ Grove C1 ty, MN 624 Red River State Bank P.O. Box 2, Halstad, MN 648 State Bank of Hamburg P.O. Box 17,- Hamburg, MN 9 4 State Bank of Hampton P.O. Box 8, Hampton, MN 01 State Bank of Hanska Hanska, MN 6041 Hardwick State Bank P.O. Box, Hardwick, MN 614 State Bank of Hawley 416 6th Street, Hawley, MN Citizens State Bank of Hayfield 40 0 Main Street East, P.O. Box, Hayfield, MN 940 Americana State Bank of Hayward P.O. Box 97, Hayward, MN 604 Fidelity State Bank of Hector Hector, MN 42 Sibley County Bank 409 Main Street, Henderson, MN 6044 Heron Lake State Bank _ Heron Lake, MN 617 Exchange State Bank of Hills State Hwy. 270 & Cty. Rd. 6, Hills, MN

27 F~rmers State Bank of Ho~fman. P.O. Bo-x 24_, Hoffman, MN 69 Security State Bank of Holdingford P.O. Box 9, Holdingford, MN Houston State Bank 108 Cedar Street, Houston, MN 94 Citizens Bank & Trust Co. 102 Main Street South, Hutchinson, MN 0 Jackson State Bank 09 Second Street, Jackson, MN 614 Janesville State Bank Janesville, MN Jasper State Bank Jasper, MN 6144 State Bank of Jeffers Jeffers, MN '. Home State Bank of Kandiyohi 2 th Street, Kandiyohi, MN Kasson State Bank 20 West Main" Kasson,,MN State Bank of Kenneth Main Avenue, Kenneth, MN Security State Bank of Kenyon 602 2nd Street, Kenyon, MN State Bank of Kerkoven Kerhoven, MN- 622 State Bank of Kimball Kimball, MN

28 . ~.., '.' Klossner t~~~ ~n~ Mai~Stree~, _Klossner, MN 60 Citizens State Bank of Lafayette Lafayette, MN 604 Farmers State Bank of Lake Benton Lake Benton, MN 6149 First State Bank Lake Lillian Lake Lillian, MN 62 State Bank of Lake Park Lake Park, MN Lanesboro State Bank 118 Parkway North, Lanesboro, MN State Bank of LaSalle LaSalle, MN 606 First State Bank of 1e Center 88 North Park Avenue, Le Center, MN 607 Le Sueur State Bank Le Sueur, MN 608 Farmers State Bank of Lester Prairie Lester Prairie, MN 4 Security State Bank of Lewiston 2 East Main Street, Lewiston, MN '. Merchants State Bank of Lewisville Lewisville, MN 6060 State Bank of Lismore Lismore, MN 61 State Bank of Lonsdale 116 Central Street West, Lonsdale, MN

29 :OHfy Sta:e a~~' Lcwry, MN 649 State Bank of ~Lucan Lucan, MN ~. Norwest Bank - Luverne 116 East Main Luverne, MN Farmers State Bank of Lyle Lyle, MN 9 Farmers State Bank of Madelia 4 Main Street, Madelia, MN Lac Qui Parle Bank 0 Sixth Avenue Madison, MN Peoples State Bank of Madison Lake Madison Lake, MN 606 Bank of Commerce 107 No. Second St., P.O. Box 820, Mankato, MN State Bank of Marietta P.O. Box 126, Marietta,MN Security State Bank of Maynard Maynard, MN Peoples State Bank of Mazeppa First St. & State Hwy. 10, Mazeppa, MN 96 State Bank of McGregor Mable Street, McGregor, MN 760 Melrose State Bank _ 220 East Kraft Driv~, Melros~,. MN 62 Citizens State Bank of Milaca - OgilVie 190 South Central Avenue, Milaca, MN

30 Norwdt ~~~ ~c~~e~~1e~ 107 North 1st Street, Mon~evidec, MN 626 Citizens State Bank.,of Montgomery "" "1" 10 Elm Avenue, P.O. ~ox 9, Montgomery, MN 6069 : 7 American aank and Trust Company of Moorhead 6 70 Center Avenue, Moorhead, MN660 Kanabec State Bank 124 East Maple Street Mora, MN State Bank of Morgan 101 Vernon Avenue, Morgan, MN 6266 Morris State Bank Morris, MN 6267 ' Citizens Bank Morris, MN 6267 State Bank of Morristown Morristown, MN 02 Farmers State Bank of Mountain Lake 1141 Third Avenue, Mountain Lake, MN First State Bank of Murdock Murdock, MN Farmers State Bank of Nerstrand Nerstrand, MN 0 Farmers State Bank of New London 14 New London, MN 627 Citizens First State Bank of New London No. Main St., P.O. Box 289,- New London, MN 627 Bank of New Ulm 10 North Minnesota Street, New Ulm, MN

31 A"C ""' " ;,.:. ~ - ; - -'.. + ~ - - ~ _.-.;:: 1'" St B 'r,'j_ a ':.T'1;:::::r, ;"o",,,",:;ln'~,..,,--=' Ne'N U'm 4 e an~ J. - ~"" - v ~~ '---..J '.,J.! Nor t h Minnes' 0 t a St r ee t -, N~~.., U1m, MN Farmers and Mercha nts State Bank 22 North Minnesota Street, New Ulm, MN 607 1ạ.; 16 Farmers and Merchants State Bank Walker Avenue & Front Street New York Mills, MN 667 Nicollet State Bank 70 rd Street, P.o. Box 77, Nicollet, MN Norwest Bank Northfield 700 South Water Street,' Northfield, MN 07 Citizens State Bank of Norwood North Young Am. Faxon Street, Norwood, MN 68 Odin State Bank Odin, MN 6160 First State Bank of Okabena Okabena, MN '. American State Bank of Olivia 81 East Depue Avenue, Olivia, MN 6277 Ormsby State, Bank Ormsby, MN Norwest Bank - Ortonville 2 NW Second Street Ortonville, MN 6278 Ostrander State Bank Ostrander, MN Otisco State Bank Otisco, -MN 6077 Owatonna State Bank 1801 Cedar, Owatonna, MN '.

32 . '. ~a~e and Add~~S...;... e- Northwoods Bank of Minnesota - RR _1, Box J 12.;.. E. Hwy..4, Pa. rk Rap ids, MN Th e Firs t St at e Bank 0 f Paynes viiie 201 West James Street, Paynes~ille,_ MN Pelican Valley State Bank 11 South Broadway, Pelican Rapids, MN 672 State Bank of Pennock County Highway 1, Pennock, MN Perham State Bank 1-2nd Street SW, Perham, MN 67 Farmers and Merchants State Bank of Pierz 80 Main Street, P.O. Box 08, Pierz, MN 664 The Security State Bank of Pine Island 128 South Main Street, Pine Island, MN 96 8 Pine River State Bank Pine Avenue & 2nd Street, Pine River, MN ,. Peoples State Bank of Plainview 00 West Broadway, Plainview, MN 964 Farmers and Merchants Bank of Preston Fillmore & St. Anthony, P.O. Box 467 Preston, MN 96 4 Princeton State Bank 202 South th Avenue, Princeton, MN 71 6 Prinsburg State Bank 10 rd Street, Prinsburg, MN Randall State Bank Randall, MN 647 0

33 RedLake Cou"nty State Bank" - 2nd & Main Streets," Red Lake Falls, MN 670 Farmers State Bank of Redwood Falls East ~ridge Street, Redwood Falls, MN 628 Brothers State Bank of Renville Renville, MN 6284 O~Connor 9 Renville County State Bank 106 Fifth Street SE, Renville, MN j" Stat e Bahk of Richmond Richmond, MN 668' 6 Citizens State Bank of Roseau 120 Main Avenue South, Roseau, MN 671 Farmers State Bank of Mountain Lake (Round Lake Branch) Round Lake, MN Royalton State Bank Royalton, MN '. First State Bank of Rushmore Rushmore, MN Farmers and Merchants State Bank 200 West Maple, Sacred Heart, MN Santiago State Bank Santiago, MN 77 First American State Bank Sargeant, MN First State Bank of Sauk Centre Sauk Centre, MN '

34 Peoples State Bank of Slayton 247 Broadway Avenue,- Slayton, MN Norwest Bank Slayton 26 King Avenue, Slayton, MN 6172 a 11 Americana State Bank of Sleepy Eye 00 Main Street West, Sleepy Eye, MN First Security State Bank 100 East Main Street, Sleepy Eye, MN Onsgard State Bank 6 Spring Grove, MN 974 Farmers and Merchants State Bank of Springfield North Marshall Avenue, Springfield, MN 6087 State Bank of Springfield 2 South Marshall Avenue, Springfield, MN 6087 St. Clair State Bank Inc. St. Clair, MN Citizens State Bank of St. James 12 Armstrong Boulevard, St. James, MN 608t 17 The Nicollet County Bank of St. Peter 212 South rd Street, St. Peter, MN St. Stephen State Bank Stephen Rural Station, St. Stephen, MN 67 4 Staples State-Bank 111 NE 4th Street, Staples, MN First State Bank of Storden Storden, MN

35 Northern State Bank of Thief River Falls Thief Hi ver.falls., MN 6701 Norwest Bank Tracy 20 - rd Street, Tracy, MN Triumph State Bank Trimont, MN 6176 Farmers State Bank of Trimont Trimont, MN Peoples State Bank of Truman T.r~man, MN6088 Twin Valley State Bank 20 Main Street West, Twin Valley, MN 684 'Farmers State Bank of Upsala Upsala, MN 684 Vermillion State Bank Vermillion, MN '. State Bank of Vernon Center Vernon Center, MN Vesta State Bank Vesta, MN 6292 Wabasso State Bank Wabasso, MN Wadena State Bank Wadena, MN 6482 Waldorf State Bank Waldorf, MN

36 Citizens. Na=e and Address ":9.t2 ~I'ia 1 n'.1 t G- rev "=, :. r. ~ c: ',{. :. ~. ~;. t :v1n 618C Gr:ve Security State Bank of Wanamingo 22-Main Street,. Wanamingo, MN 98 First American Bank of Warren. 202 West J~hnson Avenue, Warren, MN 6762 Nu!tber The First State Bank of Waseca 200 Second Street NE, Waseca, MN 609 Citizens State Bank of Waterville 20 East Main Street, Waterville, MN 6096 Watson State Bank Watson, MN 629 Welcome State Bank Welcome, MN 6181 Peoples State Bank of Wells Wells, MN 6097 Security State Bank of Wells 190 South Broadway, Wells, MN 6097 State Bank of Wendell Wendell, MN Farmers State Bank of West Concord West Concord, MN 98 Westbrook State Bank Westbrook, MN State Bank of Wh.eaton _921 Broadway, Wheato~, MN First American Bank & Trust 02 SW th Street, Willmar, MN

37 ~iaii:e ar.d Address Wi~dQm St~:~ ~~~ 24 9th ~i:"ee,:'1' Wirld'-:)ffi, MiT 6101 Farmers State Bank of Winger Winger, MN State Bank of Wood Lake Wood Lake, MN First State Bank of Wykoff Wykoff, MN 990 State Bank of Young America Young America, MN Farmers Securit~ State Bapk' Zumbrota, MN 992 NUMBER OF STATE BANKS = 27 APPLICATIONS FROM STATE BANKS Applications from Agricultural Credit Companies Applications from Credit Unions Applications from Out of State Banks Applications from PCA's Applications from National Banks Applications from Savings and Loan Associations Applications from State Banks 1, ,21 1, 17,96

38 Applications per crop districts: Total State National.. PCA C.U. c.c. District District 2 29 District 0 District 4 1, District 1, District District 7 1, District 8 1, * District ** *Savings and Loan Associations **Out of State Banks 6

39 ---e CROP REPORTING DISTRICTS- ' ~

40 NUMBER OF APPLICAl'IONS 'PER COU~JTY Aitkin 10 ' 'Martin.. 16 Anoka 1 McLeod 20 Becker 9 Meeker 9 Beltrami 1 Mille Lacs 78 Benton 16 Morrison 68 Big Stone 91 Mower 1' Blue Earth 18 Murray 174 Brown 214 Nicollet 11 Carleton 0 Nobles 10 Carver 67 Norman 1 Cass 26 Olmsted 88 Chippewa 17 Ottertail 7 Chisago 9 Pennington 1 Clay Pine 0 Clearwater 0 Pipestone 44,Cook 0 Polk 1 Cottonwood 20 Pope 97 Crow Wing Ramsey 1 Dakota Red Lake 12 Dodge 104 Redwood 216 Douglas Renville 177 Faribault 168 Rice 17 Fillmore 180 Rock 94, Freeborn 18 Roseau 9 Goodhue 241 Scott 28 Grant 2 Sherburne 21 Hennepin 2 Sibley 9 Houston 24 Stearns 212 Hubbard 16 Steele 92 Isanti 9 Stevens 77 Itasca 0 St. Louis '0 Jackson 166 Swift 144 Kanabec 28 Todd 144 Kandiyohi 206 Traverse 49 Kittson 17 Wabasha 47 Koochiching 0 Wadena 17 Lac Qui Parle 116 Waseca 11 Lake 1 Washington 1 Lake of the Woods 1 Watonwan 129 Le Sueur 14 Wilkin 6 Lincoln 24 Winona 22 Lyon 79 Wright 2,, Mahnomen Yellow Medicine 202 Marshall 47 8

41 'IV. Cone l'.ls i :)r; s Fr-om the beginning 0[- p-rog:-'2.!:l o_oer-.sior1, t!te 1J6 2_.:-:-!i:".j' Farm Assistance Act Farm Loan IntBrest Buydown -Program has met with an en~hu~iastic reception from farm borrowers and lenders. - Many of the obstacles that limited participat ion in the 198 program were removed through amendmen t s and changes in the 1986 legislation. -. As of October 1, 1986, the program has been used by over 6,400 borrowers and more than 400 lenders. This serves as an indication of the on'going nature of credit stress in agriculture.,'. The approximately $19 million expenditure will leverage $91 million in reduced cost farm loans. The 6,400 borrowers used more than $40 million in agricultural credit. The average size of subsidized loan is $61,88. The average interest paid by the State for each farm borrower is about $,090. It may be concluded that Governor Rudy Perpich and the 1986 Legislature designed a program that is an effective means of providing cash flow relief to- cr~dit stressed farm operatcirs thereby helping them to maintain financial viability. -. 9

42 SF DEPARTMENT TO of Commerce Commissioner Hatch STATE OF MINNESOTA Offic'e Me/llOrandunl DATE: LJan. 1, 1987 FROM Family Farm Assistance Act PHONE: SUBJECT: Application Log Total Principal Borrowed: Actual Subsidized $ 47,486,68 $ 9,470,66 Average Subsidized Loan Amount $ 61, Average Interest Encumbereel $ :~,94 1\ v era Sl e Per c e n t 12.88%

43 SF-D0006-D2 DEPARTMENT of Commerce / / STATE OF MINNESOTA Office Memorandum TO Commissioner Hatch DATE: Jan. 1, 1987 FROM Family Farm Assistance Act PHONE: SUBJECT: Application Log Through December 1, 1986 Program #1 Applications 22 Total Dollar Amount Encumbered for Interest :.-_- $ 11,711 Program #2 Applications 6, Total Dollar Amount Encumbered for Interest $ 18,898,18 Total Applications 6, Total Interest $ 18,910,229 Appropriation Needed $ 1,98,229