Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-05-24

boom. On the other hand, this small
percentage Of change in ownership
may be considered fortunate. in that
q comparatively small proportion of
the present farmers of Iowa have
assumed the heavy financial handi-
| cap involved in the purchase at the
excessively high level of value re-
| sulting from the boom. Prabably
not more than per cent of the
farms of Iowa were acquired by
| actual farmers at boom prices. The
remaining So per cent OF the farmers
have marked up the prices OF their
| farms. and In case OF necessity can
mark them down again.
In the opinion of department
specialists there were enough buyers
ut narrow margins OF cash and at
substantial rates of interest to cause
considerable trouble. IL fundamental
| conditions should become unfavor-
| ablo to agriculture in the near future.
| Out Of a total OF 927 sales, S3s in
volved one or more mortgages,
| averaging 81 per cent of the sale
price. Out Of $50 first mortgages,
! al were for rs per cent or moro OF
the sale price, and 6s6 for 50 per cent
or more. The greater part of the
mortgages are for 8 or 5h per cent,
| with a considerable number at 6 per
cent.
Pre-6oom Situation In Iowa.
A supplemental inquiry into farm
incomes In two districts in Iowa de-
veloped the fact that up to 1918 the
rise In land values in that state
tended to lag behind in farm in
comes, which helped to create a
situation favorable for the sudden
and rapid advance In land values
that came during the following year.
In the Tama district. where good
| crop yielis occurred, 209 farms made
| an average farm income of 1860 In
1918. as against s2.So7 for 9s5 farms
In the same district in 1913, while
In the Warren district. In spite of an
! unusually poor corn crop. 1873 farms
yielded an average farm income OF
1929 in 1918, as against $1.454 for
$50 farms In the same district in
1915.
After charging per cent on farm
capital the average return remaining
| to pay for the operators labor and
risk OF investment averaged nearly
Ave times as much in Tama dis
trict In 1918 as in 1913; while In
Warren district, the average farm
labor income Of 1913 was about twice
that OF 1915. Consequently. tho re-
turn for operators labor was relo :
lively greater than before the war
period. even allowing for the change
In the purchasing power of money.
However. II the charge for capital
be marc for the capitalization Of
1919. following the increase in land
value of the boom, the condition is
reversed. Farmers made smaller
incomes measured in dollars. and
| with no allowance for the decline m
the purchasing power of the dollar.
than in 1913 and 1915. respectively.
Fewer Farmers Make Return.
Moreover. the percentage of farm
ers failing to make any return for
operators labor and risk is greatly
increased when the calculation In
made by charging . per cent on capi-
tnlization following the boom.
Whereas. on the basis Of land values
in 1913. in the Tama district, ono
fifth of the owners and one-ninth OF
the tenants failed to make any re-
turn for operators labor and risk; on
the basis OF 1919, 40 per cent of the
owners and nearly two-fifths OF The
tenants fell short Of making such a
| return.
The consequences are further in