The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1930-06-05
Federal Land Bank Farm
Sales Increase Is Per Cent
Much of Land Going Into Hands of
Men Who Will Live Upon 1t
Good Development

Alexandria, June 3-"The Federal
Land Bank, of st. Paul, and the
National Farm Loan Associations
of North Dakota, Minnesota, Wis
consin and Michigan, in the first
four months this year sold rs per
cent more farms than during like
period in 1929, or 131 farms. During
the last year 412 farms were sold
by these cooperative institutions,
compared with 300 a year earlier.
With the large majority of the
farms being sold in this area going
into the hands of actual farmers,
the present land market, although
not as active as we would like to
see it, is developing upon a sound
basis. Agriculture has avoided
speculation in recent years and
farm land is now a highly desir-
able investment for the man who
wants to farm"
These statements were made to-
day by F. H. Klawon, President of
the Federal Land Bank, at a meet
ing here of representatives of the
National Farm Loan Associations
of this part of the state and bank
officials.
practically all of the sales of
farms are made locally" continued
Mr.. Klawon. There is not as yet
a general movement of farmers
from one part of the country to
another, as there used to be. Prices
of farm lands during the past three
years have decreased very little and
believe that in some localities
prices today are>below actual val
ues. Such market situation
makes it an ideal time for a man
who wants to farm to purchase
good farm land.
can additional indication of an
improved demand for farm land is
shown in the increase in applica-
tions for loans. Increased transfer
of property causes a shifting of
mortgage debt. During the first
four months the bank received 20
per cent more applications for loans
than year earlier. The bank has
sufficient funds to loan, but it's first
duty is to protect the interests of
the more than $4,000 borrowers who
have long-term amortized loans of
approximately $121, 100000. Both
the associations and the bank are
giving increasing attention not on
ly. to the conservative appraisal of
properties from the standpoint of
their agricultural productive value
over a series of years, but also to
the size and location of the prop
erty, whether it is complete and
sustaining farm unit, the character
of the applicant, his solvency, ane:
whether he has a fair equity in the
security offered.
There is less delinquency among
borrowers from this bank than
there was a year ago and an in
creasing determination to manage
their affairs as business men and
to recognize their obligations and
plan to discharge them promptly.
The changing farming conditions of
the last decade have forced farm
ers to live within their income.
Land values declined precipitately
following 1920 and farm taxes have
increased rapidly in recent years,
but with conditions in the cities
now changing and jobs difficult to
get, the opportunities of the
country take on new and added
significance.
1.-THE twelve Federal Land Banks
have a large field for expansion"
continued Br. Klawon. Last year
they made loans amounting to 1884,
100000, bringing the unmatured
principal of the outstanding loans
to nearly $1,000, 100000. In in
creasing numbers farmers are saw
ing a part of the interest, commits
sions and renewal expense incident
to the old type short-term loan
turning to the loan which is adj
apted to the needs of farming and
its ability to pay. It is estimated
that borrowers from these banks
save on the average of about 2 per
cent annually, or $50 to $50 on
each year on each loan. And the
loans run for 80 to SO years and