The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-07-27
Farm Real Estate Market
Looking Up Says President
OF Spokane Federal Bank
Beves Present Time Similar to 1894 When Foundations of
Many Fortunes Were Laid-Farmer Pay for Land P-
chased Now in Future Cheaper DoIars-Agricuure Slow
ly but Surely Coming Back

Spokane, Wash, July 23.-"After
attending series of District Ma
tlonal Farm Loan Association meet
ngs in the four states in which we
lend money for long periods on first
mortgages | am more than ever con-
vlnced that the real estate market in
the Northwest is looking up" said r..
M. Ehrhardt, President of the Fed
eraI Land Bank of this city today.
Farm conditions generally in Wash
lngton, oregon, Idaho and Montana
seem to tally rather closely with the
situation as it is reflected in the
business of this bank, particularly
land sales. During the first six
months of this year the bank sold ap-
proximately $1,063,000 worth of the
farms which was considerably in ex-
cess of the sales during that period
IN 1927. In the last month or two
sales have fallen off slightly but this
a. ~ cue PrAInar1Ay to the farmers get
ing INTO the seasons work and also
to period of unfavorable weather
experienced earlier in the year in
parts of Northern Idaho, Eastern
washington, and Central and South
eastern Montana. New loans thru
out the four states so far this wear
surpass those made in 1927.
There is no doubt in my mind but
what now is a favorable time to buv
Land provided it is priced so that the
income will carry it. There is a good
deal In the present situation which is
a repetition of the years following
the panic of 1894. Old timers. will
remember how land was selling at
high levels prior to the panic and how
the price slumped and there was yir-
tually no sale for land for several
years following because of the lack
OF prosperity of agriculture. Gradu-
ally farmers who survived began to
accumulate little wealth and a few
children and commenced to look about
for additional land. They were not
IN position to pay large amount
OF cash, but they could enlarge their
unit after the right kind of ANALYSIS
of its usefulness.
I'm our neighborhood in the mid
die west literally hundreds of men
bought land in those recovering con-
dltlons at recovering prices. l do not
recall one who failed l remember
the basis of several substantial for
tunes were laid in that period in my
immediate neighborhood.
The year 1894 was largely COM
parable to the years 1888. The
present, L believe, is not unlike the
period In which farsighted farmers
began to purchase farms in anticipa
ton OF a rise in prices. The present
relatively low purchasing power of
the farmers dollar will not ALWAYS
prevail. Farming must be upon a
more even basis with industry and
commerce before long. These things
enter into the marketability of land.
and effect prices. Obligations in
CURED in the purchase of land at the
present rather cheap farmers dollar
can then be paid off with dollars
which he earns more easily.
Although we notice a good MANY
inquiries for land from outside dis
trlcts and some from Eastern states.
continued Mr.. Ehrhardt, '.most of the
banks sales are to people in the
neighborhood who have sized up the
situation and know what the farm Is
worth to them. They know just how
they. have earned their dollars during
the last several years and they know
how they are going to make some
more. The last eight years has GER
talnly been an acid test of what pavs
and what does not pay in farming.
1t would hardly be correct to saw
the Federal Land Bank of Spokane
has sold one half of the farms which
1t has been forced to take over on
account of untoward agricultural con-
d1tions since it was organized eleven
years ago. The records show. how
ever, that the total real estate ac-
qulred and in process. of foreclosure
from date of organization to April /.
1928, amounts to $12,168,OOO involv-.
ing 2896 farms and to the present
time the bank has sold 1919 farms
comprising 271, 1909 acres in which Il
has an investment of approximately
So, OBS, 600. Thus the bank has. on
hand unsold 1917 farms in which #.
has an investment of S7.129. 600
1T is gratifying to the bank and to,
the .famer stockholders to find the.
market for land improving for the
cost of carrying the farms in these
four Northwestern States where the
present tax rate is high is sufficient
to make our investment in the farms
increase rapidly.
Although the bank has a large
number OF farms for sale when view
ed III the abstract, this figure does
not seem so large when compared