Evening star., 1924-08-09
BILLIONS CUT OFF
VALUES OF FARMS
Removal of Initiation, Due to
War, Reveals. Startling
Valuation Declines.
BY J. c. ROYLE.

Special Dispat tch to The Star.
NEW YORK, August 9.-Farmers'
profits will be computed on a more
sane and safe basis this year than
since the war. For land values,
undoubtedly greatly inflated in 1920,
have dropped more than $18,000,-
100000 since that time. In Wall
street parlance, the water has been
squeezed out of the farmers capi-
on a small percentage of profit on
an overhauled property, the agricul-
turist in 1924 will probably find him.
self with a fair profit on a conserva-
lively estimated capitalization.
The slump in farm values, accord
ing to the Sears, Roebuck Agricul-
tural Foundation, which has con-
Quoted an investigation recently, in
volved all the States except three.
Western irrigated lands have almost
held their own in the matter Of
values, due to the completion of
large new projects. while Texas and
Oklahoma lands have shown a slight
increase. New Jersey land values
also have improved, but the cotton
fields of many Of the Southern States
have declined in value, despite the
high price of that staple.
Midwest Decline Largest.
The Midwest decline was the lary-
est. Good Iowa plow lands which av-
eraged 1857 an acre for the entire
State five years ago are now valued
at 1853 an acre. Plow lands in Ohio
have shrunk from $132 an acre to Ss6.
The figures for Illinois were S213 in
1920 and are s14S at present and the
valuation of lands in South Dakota
has dropped nearly so per cent.
The average California farm con-
sists of 249.6 acres and the value is
placed at $9.77 an acre for the 20
365,667 acres classed as farm lands
by Federal and State reports. Last
year the farms returned nearly $50
an acre for every acre titled. In
some sections orchard lands are val
ued at $1,000 to $500 for the richest
tracts and fair returns have been
earned on a basis of $4,000 an acre,
but when lands sell for these high
prices a large home or site" value
usually is included in the price.
Many Farms Being Cut.
Farm lands in California, Texas and
Oklahoma are constantly being cut
into smaller tracts. AS farms become
smaller, values of land increase be-
cause of more intensive cultivation.
This is shown conclusively in Califor-
mia, where in 1850 there were only
852 farms against 10000 today. Sew.
enty years ago the average size of a
farm there was 4,465 acres and the
total farm land value was less than
100000, as compared with nearly
four billion at present
values in the United States Is figured
on the basis of the 1920 census valua-
ton, in which year the total value of
farm lands and buildings was $66,316,-
100000. The 1924 value. as estimated
from reports of the. Department Of
Agriculture and other sources, is
about 72.5 per cent of the 1920 total.
giving a shrinkage of $1S,837,000, 600
The decline brings farm land values
back to about the 1918 level. Bank
ers assert that this is decided ad-
vantage both to farmers and to busi-
ness in general, and point to the nu-
merous bank failures in the Middle
and North West in 1923 and 1924. due
to extension of credits on farm lands
the values Of which were inflated
They declare the rise in 1890 hena-
fitted no farmer unless he sold and
ceased to be farmer.
Argent1ne Corn Menace.
Whether Argentina can ship enough
corn to this country to check the rise
IN corn prices, is q question, accord
ing to farm experts. The South
American country has bumper crop
this year and will export approxi-
mately 185,000,000 bushels. 1t is pos
sible that corn may be sold In Buenos
Aires at a price sufficiently low to
cover the Argentine export tax of 3
cents bushel, transportation charges
OF 10 to 15 cents a bushel and the
duty of Is cents a bushel and still be
landed in New York at a cost below
the American quotations.
Any effect of such shipments. how
ever, would be felt only at seaboard
points, as the amount which could
thus be brought in would not pene-
trate far into the interior and would
be small compared with the annual
American consumption Of 2.soo,ooo. 900