South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-09-27
.bORDNER EXPLAINS
F A R M LOAF BILL
County Agent Enthusiastic
Over New Act to Aid
Farmers.

hear a thorough explanation of the
provisions of the federal farm loan
act at meetings of the various COM
munity centers in the county by
John s. Bordner, county agricul-
tural agent, who has returned from
Indianapolis where he attended a
meeting OF the federal farm loan
board Monday. The act was pass
ed at the last session of congress
and it is expected that it will be in
operation by the first Of the year.
Mr.. Bordner is enthusiastic about
the possibilities OF the farm loan
banks and said he thought il TO be
one OF the best things that has been
accomplished in the agricultural
forward movement. He said that
with cheap money available farmers
will do at once what they have been
wanting TO do and what would have
taken years to accomplish.
Invitations have been received by
the county agent 10 give talks on
the proposition at several of the
community centers and it it prob
able that he will explain the pro-
visions of the act at every one of
the II organizations in the county
before the banks are established. A
number OF inquiries from farmers
living in the west section of the
county, where there are no COM
munity centers. in regard 10 the
methods Of securing money have
been received.
Chance For "City Farmers"
Persons who work in the city and
live on small tracts of land just out
side Of town may be able 10 Dor
row money from the farm loan
banks. but the board has not def
initely decided on this matter. City
farmers would not be allowed TO
borrow large amounts owing to the
provision which permits a loan Of
only half Of the agricultural value
OF the land.
Practically all of the small tracts
OF land are of one or two acres and
the agricultural value probably
would not be more than $500 per
acre. This would permit loan of
not more than 500. In addition 10
this 20 per cent of the value of the
house could be borrowed.
Must Join Association.
Mr.. Bordner in explaining the
workings Of the act said that an
individual could not borrow money
from the government as an individ-
ual. but must be a member Of a
farm loan association. No less than
10 farmers can form an association
for the purposes Of borrowing
money and no less than $4,000 can
be borrowed by one association. The
largest amount that can be borrow
ed by one member of an association
is $4,000 and the smallest is 500.
Loans will be made by the IL
farm banks, which will be located
in various parts of the country, on
the basis of the agricultural value
of the land. Farmers may borrow
sums equal 20 one-half of the value
Of the land and 20 per cent of the
permanent improvements on the
farms.
Method of Organization.
Mr.. Bordner pointed out that al
though 10 was the smallest number
of association members that would
be allowed as many more as pos
sible could be secured TO join the
organization. Articles of assCcia-
ton must be drawn W on forms
provided by the land bank or the
association may modify the articles
10 suit the needs of the community.
A copy OF the articles must be sent
10 the federal land bank in the dis
trict within which the association
Is formed.
loan committee Of three MEM
bers must be appointed by the as
ISOLATION 10 pass on loans and 10
appraise the value OF the farms
owned by the members of the asso-
citation. The federal lard bank also
sends an appraiser 10 determine the
value OF the farms. A secretary
treasurer should be elected by the
association TO receive the money
and handle the business of the or
Banization.
Must Give Mortgages.
Mortgages on the various farms
must be made out and sent to the
federal land bank Before the
money can be sent TO the associa-
ton members il is necessary for
each member to buy shares in the
association. Each member must
subscribe for stock 10 the amount
OF five per cent Of the loan he
wishes 10 make. Bonds are Their
issued for the amount the associa-
ton desires 10 borrow. The money
then is sent to the secretSry-t treas
urer of the association, who DIS
tributes il to the members.
Only farmers can be members OF
the farm loan association. but the
bonds may be purchased by any
body Mr.. BOrdner pointed out
that the stock that must be bought
may be paid for out OF the loan.
The money is loaned at either four.
five or six per cent interest rates.
the rate depending on the amount
the bonds are sold for. The loan
may extend over a period as long