Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1919-10-29
PERIL SEEN IN
NEW LAND BOOM
FARM VALUE INITIATION HELD
DANGEROUS TO STATES FU-
TURE AGRICULTURE.

Madison, Wis.-The welfare of Wis
consin's farms, their owners and the
farming industry is threatened by a
wave of land speculation sweeping
over the corn belt. Measures to safe
guard the states interests are being
advocated by the extension division
OF the state agricultural school and
the United States department of agri-
culture. Harmful results in the sky
rocketing of farm real estate are seen
by John S. Mcdonald, former secre-
tary of state, appointed by the United
States department of agriculture to
make survey of conditions in Iowa.
The land boom has particularly affect
ed Iowa and Illinois, where values
have increased as much as 200 to 300
per cent.
Farmers Asked to Reflect.
Wisconsin farmers are asked to Sc
riously consider the situation from
every angle to preserve the rural life
of the state. Unusual caution in farm
buying is the remedy prescribed by
B. H. Hubbard and Theodore Machlin.
university agricultural economists.
who believe it will do away with pos
sibility of damage from the epidemic
OF land intoxication." How increased
prices of farm lands will affect Young
men, where large profits go. where
are they being invested and the eff
feet OF the boom on future permanent
agriculture with better roads. thrifty
rural centers, and schools and church
es with an increasing proportion Of
land-owning and soil-conserying
farmers, are some of the questions
placed before the rural public in the
anti-boom campaign.
Would Check Boom i'm wisconsin.
The welfare of Wisconsin's agri-
culture requires that the boom be
prevented from spreading over the
state" said Mr.. Machlin. Contrary
to their usual caution farmers are
temporarily overwhelmed by thoughts
OF possible high prices gained by the
sale OF their farms which recently
increased enormously in selling value
Before the war when wheat was ST
bushel and other products at a like
proportion, usual land prices were
t1uctuating at from 500 to 5000 an
acre. On the basis of these values
farmers throughout the country in
sisted that it was impossible to make
adequate returns from farming. Ex-
pertinent stations made cost-of-pro-
duction Investigations and results
checked with observations and exper-
lences of farmers, and discovered that
farms were either generally over-cap-
ltalized or that prices were too low to
cover necessary costs of maintaining
soil fertility along with ordinary cash
and time expenses involved in farm
ing Farmers labor incomes were
found absurdly low.
Danger Of Over capitalization.
"Over-c capitalized farm land values
just as watered stock in any other So
called competitive undertaking means
either excessive prices to consumers
for products turned out, losses to per-
sons engaged in the occupation or de-
pletion of resources and improvements
! to the occupation. The land boom
unfortunately serves as a step by
which pre-war conditions will be re-
stored. The return of a condition of
over-capitalized farm land values is
likely to absorb the otherwise dis
possible income which farmers would
ordinarily have expended locally for
Improvement of farming, rural life
and its Institutions
Mr. Machlin believes that to be jus
titled in paying top prices for land,
farmers should have a reasonable ex-
pectation of getting top prices for
products during the period in which
the land is to be paid for, and that
bankers may exercise useful influence
in keeping prices within bounds by
calling attention to dangers of over
capitalization and by caution in ex-
tending credit