WASHINGTON — The Federal Land Bank based in Jackson, Miss., one of the Farm Credit System's troubled lending institutions, announced that it is nearing a state of zero net worth and has frozen borrower stock.
The bank also must suspend normal lending, but Chairman J. A. McDaniel said in a letter to borrowers that it would explore interim credit possibilities "until financial assistance is provided by legislation."
House and Senate negotiators met briefly this week to attempt to resolve sharply differing blueprints for a federal bailout of the $50-billion Farm Credit System approved by the two houses.
Senate Agriculture Committee Chairman Patrick J. Leahy (D-Vt.) said he still hoped to send a bailout bill to President Reagan's desk this year, but there was uncertainty that the task could be accomplished in the dwindling time before Congress breaks for the holidays.