The state herald., 1919-12-12
500 Per Year IN Advance
THE LAND BOOM

chn Farm Economics Association
|at its annual meeting was the one
I'of the land boom in the corn belt.
IO. G. Lloyd of the Iowa State Col.
|lagc made a survey which showed
|t4at farmers were very optimistic
OYER war prices. They believed
high prices for farm products would
continue for some time to come. Far
nicrs who had bought land gavo
various reasons, among them the
belief that land always had proved
u good investment nnd That il would
continue to be so. They felt that
III they ever wanted TO get more
land for themselves or their children
now was the time to get il. Bank
cfs included in the survey were of
tile opinion that prices will stay
above pre-war levels and that farm
lnh nd will maintain its present high
price and advance still further.
CSunty agents gave high prices for
farm products and speculation os
tIIe most two important rsasons.
X. T. Ely of the University Of
Wisconsin said that high prices foy
farm products always make high
land values, lie added that the
buying and selling of land does not
ritise land prices. If such a thing
we're true, any one could become u
millionaire. by simply trading in
land. The rental value Of land
is really what determines its selling
price and rents hnve greatly increas
ed during the war, ., The cause of
the present boom, he believes, il
first, supply short of. the demand;
SECOND, high prices for farm pro-
ducts and, third, psychic influence
or, craze. .f, o,dtir uffe'
in spite of these conditions Mr..
Ely and Mr. Lloyd thought that for
the good of agriculture the, soaring
prices should be stopped soon. They
also said that bankers covldIdo. their
part by disceu-sgeing Iomsi- on,
farms. This Is not likely 70 Occur. cur.
however. II b'n'ers bciicvc tina, the
land win stil,=csalai Z tto ssavsweS:
as appeared from Mr. LIoyds survey.
Dr. Ely added that we must not
Idiscourage. the investment in land
byetakifG the stand that il is wrong
to expch some advance. Land
should be regarded us a Dor mnn's
inveywent, and shod1eAhave lglal
safseuards i. The point - service
should be emphasized in the own
ership of land and for this reason
be. thought. that speenlatars-wha are
not rendering n rcnl service should
be discouraged
l.. c. Gtay ~ the psAatHIen, {
Agriculture made survey in y
corn belt He exploded 'il,si iheo
that n large number of farms hn
changed lnnds during ,l,eh prtifi
of the boom. Surveys made in ilfr
ty four representatives counties v
Iowa show that less than Q per ccts
Of the farms ~ this area have chaiE
ed hands. This woiddl support \
Ely's contention that one of NJ
causes of the present 7hikh' prie{
is the growing i,cargity of land. !
also ngrccd with the others that N
real basis of the boom during
past two seasons has. brep the CRED
cr returns for farm products.
From tlp results I'd tie saryc,t
and the opinions Of the economists
We would summarize The sifuaiioh
something like tbn.svn.
First, high prices of food wi
continue for n CONSIDERABLE rc-iop
Of time. .,...
Second. food prices will probibll ]
never return In the low iipre. wnt
level.
Third, land ,jtIs1 Az based u9o{
the receipts from igrN lprodurt
nnd the demand for land. 4
fonrth, there II littie mcfchre
good farm land and n big increase
IN ihosc !demandjns IL aud -ns-ars
duets.
| Fifth. there nrc comparatively
few farms Tor rly, iotl iebansin4
Hands even ut present prices.
| Sixth, III y brfI fori agriculture II
lct the lands get too high. but
Eight. land * likely to coniinnd
10 move at high pficcsS a long ~
high prices for prodpe,r maintain,
and ms long Ms people want land. and!
is not likely to siump wl,e,, food pri.|
ccs go down.-Ncbr. Farmer.
age al osaolp' 81 Il n!