The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1921-07-28
FARM LAND DEFLATION

g0Ou many evils 20 cONCen'
with, and on the top of these severa
years of bad crops due to drought
but it is a comfort to be able to poin
out at least one economic evil which
he has escaped and that was the
speculative imitation of farm value.
which is now causing so much los:
and hardship in Iowa and other cen.
trail western states where land values
went up as high as $500 an acre. AL
farm lands in these states have been
selling at a price that is from five
to ten times what similar land in
Montana could be bought for. Con
ceding that their nearness to mar
kets made them worth somewhat
more than the average land in this
state, yet the dizzy price such farm
lands fetched was largely speculative
and inflated. 1t was based on war
prices for farm products that could
not continue indefinitely. Since these
prices have disappeared many rent
ers of farms in the middle states have
been unable to pay the stipulated
rent, and those that purchased the
land on part payments have found
their equity wiped out, and them
selves bankrupt because they cannot
sell their high priced land for a sum
equal to the mortgage indebtedness.
Land purchased at $500 an acre can
not pay interest on that sum as a
general rule, when planted to corn or
wheat, or any of our standard grain
crops, when these crops bring aver
age yields at average prices. 1t would
take $50 an acre to pay fair interest
after taxes and other fixed expenses
are deducted, to say nothing about
the cost of planting, harvesting and
transportation to market. 1t does
not take an expert in cost satisfies to
see that such average returns as are
required to make an investment in
farm lands at $500 an acre profitable
are impossible during a term of years
where ordinary farming is depended
on to secure the returns. We think
most farmers of experience will say
that this statement is also true re-
garding land that costs half that sum
as its original purchase price. First
class land with irrigation rights a
be purchased in Montana at from
$50 to 800 an acre, and it's fertili-
ty and productive power is certain
ly as great as the high priced lands
of the central states. This is GER
tainly a moderate statement. We
think we would be fully justified in
making it stronger and saying that
such lands in our state will produce
better crops of corn and wheat than
the high priced lands of the central
states if given the same care and at
tention in cultivation.
The choicest farm lands of Mon
tana have no doubt greatly increas-
ed in value during the past ten years.
Perhaps the per cent of such increase
will average up pretty well with the
per cent increase of farm land prices
in other states. But the increase
started from a very low fgure-per-
haps SO an acre or Whereabouts. The
is that they do not now rep
resent such inflated values as to make
the earning of fair interest or profit
the investment impossible through
the raising of the ordinary staple
crops and average prices. That fact
is a vital one when we come to on
slider the future agricultural develop
ment of the state. The Wall Street
Journal, which we find often print
ing common sense articles on eco
nomic affairs, has this to say about
the imitation of farm values in the
United States. The facts alleged do
not apply to this state, but they
should be interesting to business men
and farmers in this state. It says:
Figures released by the census
bureau show that the era of infla-
ton did not overlook the farming
community. Perhaps in no other part
Of the country was speculation car
RED to such extremes as by the own
srs of the soil. Much of the agricul
,ural discomfort can be traced to this
"The census figures are for 1920,
and compared with the preceding de-
,ade show a surprising craze for
,peculation in farm lands. The total
of farm lands and buildings in
1910 was s6,330,0OO.O OO. In 1920
he value was S13,772, 100000. AS
he increase in acreage was not large
his doubling in value, or to be ex-
'ct 117.6 per cent increase, was al
most entirely due to imitation.
"An acre of ground, valued at 8