Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-12-21
HOIDALE ON JOB
FOR SEED LOANS
Tells Gov. Meyer of F. G.. A. That
Loans Must be Continued to
Farmers i'm 1884.

Prompt action marked the course
port reached him that the Farm
Credit Administration was consider
ing discontinuance of seed loans for
the next crop year. Under date of
December 9, Mr.. Hoidale wrote Cover
nor Meyers pointing out the utter
necessity for such loans-a neces-
sity occasioned by the drought this
year which deprived the farmers of
any chance to have seed for next year
and which also made it impossible for
the farmers to buy seed.
The COngressman's Letter.
My dear Mr.. Meyers:
that the so-called Seed Loan Activ-
tiles of the government, as now con-
Quoted, are to cease and that no seed
loans, on the basis now prevailing,
will be made in 1884.
What this will mean has been
pressed home to me, because of the
fact that my boyhood home was in
Lac qui Parle county, in Western
Minnesota county that was fright
fully stricken by the severe drought
fered in 1888. This county not only
failed to produce grain, but the rain
fall was so meagre that it did not
even produce fodder and many car
loads have been shipped in to keep
stock alive.
No Seed-NO Crop.
Seed must be purchased or there
will be no crop. The people who
need seed have no money to buy with.
They have no credit at the banks and
in fact, no security ito offer outside
of the crop that will be sold.
To abandon these people at this
time, in view of what has been done
and what is now being done, seems to
be a great mistake. What l have
said about Lac qui Parle county is
true of something over forty of the
eighty-seven counties of Minnesota.
New Agency Won't Help.
1t may be argued that the new
Crop Production Farm Corporation
will serve the purpose, but it will
not, because the people who need help
cannot furnish the kind of collateral
that is required under that set-up.
The four agencies of the Farm
Credit Administrations Federal
Land Bank. the Intermediate Credit
Bank, the Cooperative Bank and the
Production Bank-are ideal under
normal conditions. They provide am
pie credit for the farmers needs.
However, under present conditions
and at present farm commodity
prices, crop production loan borrow
ers cannot possibly qualify for a loan
from the Production Bank because
such a loan must be adequately col
lateralized in order to be eligible for
rediscount with the intermediate
Credit Bank.
Warning Given.
These people must be helped and l
want to give warning that before
0tOpo dlC ldhCh " dUohooh VI SoSht
plans, very serious consideration
should be given to the effect such
action will have upon farmers now
at the limit of their economic rope.
Let me also call attention to the
fact that we have no over-production
of flax. We consume about 20 mil
lion bushels and produce only about
million bushels in the United States,
resulting in the importation of some
13 million bushels. Why not furnish
seed for this crop and plant some OF
the acreage that is taken out of wheat
production into this short crop?
l feel confident that if you have
not already done so. you will look
into this question with the care and
insight that has characterized other
constructive steps taken by your adj
ministration.
Yours very sincerely,