The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1921-01-13
PRICES OF FARM
LAND Increase
lump So Per Cent in Five Years,
According to Estimates Of
Secretary Meredith.
FACTOR IN FARM OWNERSHIP
While Reflection of Upward Move.
nent of Commodity Prices, It In
dieates Increasing Scarcity OF
Farm Land.

Washington. During the last five
years the selling price Of farm land
and improvements In the United States
increased GO per cent, according to es-
Inmates made by the secretary Of agri'
culture In his annual report to the
President. Between March, 1919, and
March, 1920, the increase was 2l,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 90 years ago.
'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 2l.l per
cent, In the last five years the in.
crease has been 65 per cent.
Net Return Less.
'In some sections the net return on
the purchase price Of farm lands Is
considerably less than the ordinary
rate of return on first mortgages aud
similar investments. The rental rate
of cash leases also, Is frequently less
than half the rate of return on mort
cages. Studies made by the depart.
ment indicate that in certain regions.
the recent advance in the price OF
land has still further aggravated this
condition. Such a situation is unfor-
tunate, for 1t increases the difficulties
OF a tenant who is seeking to become
IN owner.
"Whlle the Increase In land prices
is. 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.
eWar conditions stimulated an e1
pansion Of the area devoted to crops
estimated at 1Q1 per cent from 1914
to 1918, or an increase OF 3,4 per cent
in HE per capita acreage This was
efrScted by utilizing pasture land for
cr8a production and BY bringing into
use other unculdyated areas. The ex.
pansion was particularly marked in the
case of small grains. Since the arms.
tce there has been a reduction in
crop acreage. From 1919 70 1920
there was a decline OF "a per cent In
the acreage Of 20 principal crops. APP
parenuy the reduction has been
brought about by returning the land
20 pastures and by disseminating the
use of the low-grade areas which we're
temporarily utilized
What the War Did.
"These changes should be instruc-
tive TO those who would reduce the
prices of farm products by bringing
into use large areas OF new land. 1t
IS clear that II prices had been ex-
traordinarily remuneratiye TO the
farmer compared with the returns or
capital and labor In industry. we
would not witness this reduction Of
the acreage in cultivation, but on the
contrary, continued enlargement OF
It. While the war conditions TEN.
porarily increased the net cash income
of the farmer and stimulated a tenn.
porary expansion OF the crop area,
this was due in large measure to the
response of the farmers to the in
slstent call for more food, particularly
wheat and rye, the principal bread
grains. 1t is Of no small significance
that the contraction In acreage has
been most extreme In the case OF
these crops, estimated ut 3l.5 per cent
for winter wheat 1915 per cent fer
spring wheat and 22.6 per cent Cor
rye"