The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1921-04-16
PRICES OF farm
LAND INCREASE
Jump SIS Per Cent in Five Years,
According to Estimates of
Secretary Meredith.
FACTOR IN FARM OWNERSHIP
While Reflection Of Upward Move
rent Of Commodity Prices, 1t In
dictates Increasing Scarcity Of
Farm Land.

MISUNDERSTANDING the last HV0
years the selling price Of farm land
and improvements in the United States
increased Is 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 21.1.
Although the data for the 1920 CEN
sus are not yet available, it 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 1850 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 ss-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
cages. Studies made by the depart
fnf to hot IN tot socy{n
the recent advance in the price Of
land has still further aggravated this
condition. Such situation is unfor-
tunate, for it increases the difficulties
of a tenant who is seeking to become
an owner.
"While the increase in land prices
is. to some extent, a 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 34 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-
pansion was particularly marked in the
case of small grains. Since the armis-
tice there has been a reduction in
crop acreage. From 1919 to, 1920
there was decline Of 81 per cent in
the acreage Of 20 principal crops. Ap-
parently the reduction has been
brought about by returning the land
to pastures and by disseminating the
use Of the low-grade areas which were
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 if prices had been ex-
traordinarily remunerative to the
farmer compared with the returns on
capital and labor in industry, we
would not witness this reduction Of
the acreage in cultivation, but, on the
contrary, a continued enlargement of
1t. While the war conditions tenn
porarily increased the net cash income
of the farmer and stimulated tenn
porary expansion Of the crop area,
this was due in large measure to the
response Of the farmers to the in
sistent call for more food, particularly
wheat and rye, the principal bread
grains. It is of no small significance
that the contraction in acreage has
been most extreme in the case of
these crops, estimated at 31.5 per cent
for winter wheat, 1875 per cent for
spring wheat, and 22.6 per cent for