The daily star-mirror. (Moscow, Idaho) 1911-1939, 1920-12-30
PRICES OF FARM
LAND INCREASE
Jump 65 Per Cent in Five Years,
According to Estimates of
Secretary Meredith.
FACTOR IN FARM OWNERSHIP
While Reflection Of Upward Move
ment OF Commodity Prices. It In
dicates Increasing Scarcity OF
Farm Land.

shington..During the last nv
j years the selling price OF farm lane
and improvements in the United States
| increased IS per cent, according to es
Inmates made by the secretary of agrl
( culture in his annual report to the
/ President. Between March, 1919, and
March, 1920, the increase was 21.1.
Although the data for the 1920 CEN
sus are not yet available, 1t seems
probable, the secretary said. that
while the average price Of farm land
and Improvements per acre increased
only 20 per cent during the 40 years
from 1860 to 1900 the price in 1920
is two and one-half times that Of 1910
and five times that Of 20 years ago.
1.-THE price of farm lands is one OF
the important factors in the problem
of farm ownership" said the secre-
tary. 1T is estimated that between
March, 1919, and March, 1920. the in
crease in the selling price of farm
land and improvements was 21.1 per
cent. In the last five years the in
crease has been IS per cent.
Net Return Less.
I'm some sections the net return on
the purchase price of farm lands is
considerably less than the ordinary
rate of return on first mortgages and
similar investments. The rental rate
of cash leases, also, is frequently less
than half the rate of return on mort
rofoc Cf,rIiac made nv tho 0pp1 rt-
ment indicate that, in certain regions,
the recent advance in the price Of
land has still further aggravated this
condition Such situation is unfor-
tunate, for 1t increases the difficulties
Of tenant who is seeking to become
an owner. ii 4iA aA
while the increase in land prices
u.s. TO some extent, reflection of the
general upward movement in the level
of commodity prices. it must be re-
garded, In part, as an indication of
the increasing scarcity of land avail
able for agricultural use.
"War conditions stimulated an ex-
pansion of the area devoted to crops.
estimated at 10.1 per cent from 1914
to 1918. or an increase of "a per cent
in the per capita acreage. This was
effected by utilizing pasture land for
crop production and by bringing into
use other uncultivated areas. The ex-
oansion was particularly marked in the
case of small grains. Since the armis-
lice there has been reduction In |
,rop acreage. From 1919 to- 1920 |
here was decline of Sd per cent In
he acreage of 20 principal crops. APP
the reduction has been
brought about by returning the land
o pastures and by disseminating the
Use Of the low-grade areas which were
emporarily utilized.
What the War Did.
These changes should be instruc-
i've to those who would reduce the
'r1ces of farm products by bringing
nto use large areas of new land. 1t
S clear that If prices had been ex-
remunerative to the
armer compared with the returns on
yould not witness this reduction of
he acreage in cultivation, but, on the
a continued enlargement of
. While the war conditions tenn
orarily increased the net cash income
the farmer and stimulated tenn
orary expansion of the crop area,
lis was due in large measure TO the
ssponse Of the farmers to the in
stent call for more food, particularly |
heat and rye, the principal bread
aims. 1t is Of no small significance
lat the contraction in acreage has
cen most extreme In the case OF
ese crops, estimated at 31.5 per cent
n winter wheat, 1875 per cent for
ring wheat and 2o.6 per cent for |