Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-09-22
FABULOUS LAND VALUES.

We wonder whether the soarn:
prices of farm lands throughout thu
part of Illinois and in some otheI
states bespeaks prosperity as much d
il does the eagerness of land speeu
lators to grab off some easy money.
While nearly everyone would like t
own farm. it is true that actual IL
terest returns on money invested II
farm lands is considerable lower than
in many other lines of business The
farmer who clears 8 or Per cent III
year on his investment after ne
checks off overhead expenses, inter
est on money borrowed his taxes etc
is doing we'll Some farmers make
more. while some make considerably
less.
A 5000 an acre farm now. If well 10
Gated is common. Four hundred do
lar lend is ceasing to become nov.
city Only when we hear OF farm
selling around the $500 mark do We
begin to question the sanity of the
purchaser. Yet farms are selling IN
some sections of Illinois today for thus
high figure.
Well may it be asked how does the
purchaser expect to make the invest
ment pay. We doubt seriously that
it will pay, especially when the world
gets back to its normal way of living
and doing things The wise man who
would buy farm now will be very
sure that the price he pays is fully
justified by the probable net earnings
of the farm when conditions become
more normal
The department of agriculture, after
states. issues a very exhaustive letter
on the rising prices OF lands. The
letter is summarized as follows,
Prices OF farming lands in many
sections OF the United States, espe-
cally in Iowa and the other corn belt
states. have risen with such rapidity
that serious consequences may be eX-
pected, especially with the return OF
normal conditions. This is a warning
to farmers issued by the United States
department of agriculture
Spectators, many Of them bust
ness men Of the cities, in many cases
have reaped big profits by buying and
reselling without making any sub.
stantial contribution In return Farm.
ers have sold land at prices that
seemed high, and then have bought
again at still higher figures, lusing
thousands Of dollars in the exchange.
The bona fide farmer who purchases
land at present high prices may find
the returns on his investment abnor.
mally small if earnings should decline
when normal conditions are restored
and may find himself seriously embar-
raised If he has financed the purchase
largely on credit
That IS a summary of the sitll,.
hon as 1t is viewed by investigators
OF the bureau Of farm management
sent by the department into the re-
slons OF most marked speculative &C
tivity. Here is a summary of Their
advice which is broadly applicable
probably to the majority of farmers
IN the regions affected, though it may
not tit every individual case.
Much of the present spcculatiy,
ACTIVITY has been due to the fact thai
spectators have been able to catcl
some farmers unawares, buying then
farms at much lower figure than wa.
Justified in relation to prices in az.
Joining regions. Therefore YOU shou,,
be careful about selling to a specu
lator who is buying to sell again. |
il Is worth more to him it probabI
may be worth more to you. If yo,
own a farm and desire to confirm,
farming be very sure before sclini
that you can obtain out of the pro
ceeds of your sale as good a farm a
you have sold.
III you desire to purchase farl,
you should be very sure that the prize
20 upay is fully justified by the prof