Cleveland County herald., 1921-01-20
PRICES OF FARM
 LAND INCREASE
Jump 65 Per Cent in Five Years, According to Estimates of
 Secretary Meredith.
FACTOR IN FARM OWNERSHIP
While Reflection of Upward Move ment of Commodity Prices, 1t in- dicates Increasing Scarcity of
 Farm Land.

Washington.-During the last five years the selling price of farm land and improvements in the United States increased 65 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, 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 20 years ago.
 '"The price of farm lands is one of the important factors in the problem of farm ownership" said the secre- tary Tt is estimated that between March, 1919, and March, 1920, the in crease in the selling price of farm land and Improvements was 211 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 and similar investments. The rental rate of cash leases, also, is frequently less than half the rate of return on mort gages. 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 it increases the difficulties of tenant who is seeking to become an owner.
 "While 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.
 "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 3.4 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 a decline of 5.4 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. It is clear that if prices had been ex- traordinarily ren1unerative 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 it. While the war conditions tenn 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 sistent call for more food, particularly wheat and rye, the principal bread grains. It is of TO small significance that the contraction in acreage has been most extreme in the case of these crops, estimated at 315 per cent for winter wheat 16.5 per cent for spring wheat, and 22.6 per cent for ,,va