An investigation of farm land credit

Abstract

The problem of rural credit in the United States is growing rapidly in importance. Within the last few years it has attracted the attention of farmers, financiers, legislators, and city dwellers. Several commissions have gone abroad to secure information on foreign methods of loaning to farmers, the national government has been trying to devise an American system of rural credit, and state governments also, have taken up the problem and are suggesting various solutions. This interest in rural credit is due to the fact that the consumers of the country are demanding larger supplies of cheap and wholesome foodstuffs and the farmers are failing to adequately meet this demand, due undoubtedly to several reasons, but especially to the fact that modern farming requires more capital than is available to the farmers on reasonable terms. The object of this investigation is to secure from the ultimate sources all information obtainable on the methods and means through which the farmers secure credit on farm mortgage security and to study at first hand as far as possible the conditions under which this credit is secured. The region included in the investigation is Boone County, Missouri, which is about centrally located in the state. The work has been carried on personally by the writer so that, with the time available, an intensive study of a greater area was not possible. The information in this discussion is presented in an attempt to show the present conditions in Boone County, which is an average county in Missouri in regard to farm values and indebtedness. Figures have been submitted to show how this county compares in averages with the state and the United States. Since a study of present conditions is necessary before and adequate system of improvement may be determined, it is hoped that the facts in this discussion may give a suggestion as to the degree to which rural credit reform is necessary and as to the direction the reform should take.