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

Speciai 10 I1meS-Repullcan.
Ames, May 24.-The land boom
that swept Iowa during the summer
of 1919 forced prices of farm lands
in this state UP to level at which
1t was impossible for any but the ex-
ceptiOnal farmer to make more than
3 Per cent on his capitalization, and
made 1t out OF the question for a
large proportion of the tenants to
buy land on borrowed capital with a
fair chance of paying out. These are
among the outstanding facts brought
out by an investigation of land val
ues in sixty Iowa counties. just COM
pleted by the United States depart
ment of agriculture in cooperation
with the Iowa State College. In
commenting on these facts depart
ment specialists take pains to point
ont that the current high capitali-
zatiOn OF land in Iowa has been as
sumed on the basis of the actual sale
OF comparatively few farms (about
10 per cent? and that this high valu-
power of the land.
The investigation in question yield
eel figures on 1,414 sales made be-
tween Jan. 1 and Sept. is, 1919. The
conclusions drawn are based on these
figures, taken together with data on
farm incomes on some 400 selected
farms and with supplemental data
derived from farm management sur
veys made previously by the Iowa
State College.
1t was found that the increase in
average value of farm lands in the
counties in which the investigation
was conducted was greater during
the year of the boom ($63) than dur
ing the fifty years from 1850 to 1900.
At this rate the increase in farm
capitalization for the year in the
state as a whole would be over two
billion dollars. If the comparison is
made between values in 1915 and
1920, the increase in value per acre
is 1921, and for the state nearly four
billion dollars.
Asks Attention to Future Effects
In discussing this increase, DIR. l..
c. Gray, who had charge of the in
vestigation for the office OF farm
mana geTnent, says:
80 striking an increase in the
value of farm lands in a single state
can not but have a profound eco
nomic significance. While it is too
early to determine all the economic
consequences, it is time careful at
tention were given to the phcnom-
enon, and that serious consideration
be devoted to the problem of deter
mining what this enormous increase
may signify for the welfare and
prosperity of the farming industry,
and the future land policies of the
United States"
An analysis of total increase in
value was made for 3s2 cases In
twenty-five counties. The total in
crease in value for these cases was
$7,03S,346. OF this increment, So
327,0S4, or AZ per cent, was received
by people living in towns and cities.
while $3,711.262 was received by
people living in the country These
increments are based on the price at
the time the farm was bought, no
matter how long ago. II the cases
of farms purchased and resold dur
ing the boom alone are considered,
nearly 70 per cent Of the increase
was resolved by persons dwelling in
towns and cities.
Farmers Among the Buyers.
It appears that farmers were more
active as buyers than as sellers,
since they constitute IS per cent Of
the buying class, as reported, and
but Sc per cent Of the selling class.
About Is per cent Of the sellers,
however, were retired farmers. Real
estate men constituted e.s per cent
of the buyers and 11.5 per cent Of the
sellers.
Statistics with reference to occu-
pations of buyers and sellers, and
the intentions and motives governing
purchases and sales indicate that the
boom resulted in an increase in the
proportion Of farmers owning the
farms they operate, and a CORE
spending decrease in the proportion
of farms owned by non-agricultural
classes and rented to tenants.
However, the Immediately bene-
fetal result is not of great signifi-
canoe, because only about 10 per cent
Of Iowa farms were sold during the