The Benson signal., 1919-05-17
The Farmers Financial Problem
BY Z. G. NOURSE
Reprinted from the Plow and Tractor

Modern farming has become cap
italistic. This does not mean that
we are entering an era of big busl-
ness corporations or trusts In
agriculture. But ii does mean that
the farmer who succeeds must be-
come as skilful at managing the
capital end of his business as he is
at directing labor or handling his
land
Two years ago the typical farmer
of the Mississippi Valley could get
into business with cheap or free
farm and few simple tools, many
of which were home made. One
generation ago the farmer was still
blessed with low priced land, but
he had found that his economic
progress demanded that he get on
to the new basis Of efficiency made
possible by the introduction Of
many types of horse-drawn ma
chinery. The total value of such
implements and farm machinery III
the United States rose from $35,
500, ,o04 in 1850 to 1882 ,225,315 in
1890. This was a 81 per cent i'll
crease in the value of machinery
per acre of farm land. During the
same period the value of live stock
increased from $544 180, SIG to 81
3O8, ,7o7,573, which amounts to
rise of 100 per cent in the value Of
live stock per acre Of farm land.
In the nearly thirty years which
have passed since 1890 the increase
in the capital account of agricul-
ture has been even more remark
able. Just as the previous gener-
alton was characterized by the
coming of horsepower implements,
this has been featured by the COM
ing of internal combustion engines
both as tractors and as stationary
power, and likewise by a great
elaboration of labor saving appl1-
feed amp litter carriers, wa
ter and light systems, manure
spreaders, milking machines and a
host of Others. The total value of
farm property, which had risen
from four billion dollars IN 1850 to
sixteen billion in 1890 jumped to
nearly forty-one billions in 1910,
and the new census to be taken
next year will unqrestlonably show
d still further enormous increase.
The average value of all property
per farm rose from $3,563 in 1900
to Sc, ,444 in 1910 At the latter
date the average Illinois farm was
valued at SIS, sos, and in Iowa at
$17, $50. Today we don't think
it's much of farm in Iowa that
would capitalize at less than $780,
900 to $4O,0 900.
Now all this demand for capital
for better buildings, more power
full and more complex machines,
for improved live stock and high
priced land has forced the farmer
to become fnancier. If he is go
ing to keep up with the march of
farming efficiency, he has got to
find some way of financing the pur-
chase of a constantly more elabo-
orate aud expensive equipment.
The farmer finds, just as the man
ufacturer has found, that III this
day Of scientific methods no amount
of fertility III his land, no amount
OF elbow grease or appetite tor
hard work, nor even skill of the
mere labor sort, will keep him from
falling behind the procession if he
fails to capitalize himself with
sufficient quantity of the most ap-
proved kind of stock and appli
ances and buildings. A silo alone
may mark the difference between
success and failure. !
The old farmer c1ung to his
heavy, home made harrow or kept
his old stone or rail fence, because
they demanded no cash outlay and
he thought he could not afford to
discard them. The modern farmer