The midland journal. (Rising Sun, Md.) 1885-1947, 1934-03-09
EMERGENCY CROP LOANS
Regulations Making Available Fund
Passed BY Congress


cy crop loans from the $4,000, 900
fund recently made available by
Congress indicate that it is POSSIBLE
for a farmer to obtain such a loan
providing he cannot qualify for
credit elsewhere-if he has a justi-
fed need for credit and If he is CO.
operating with the production con-
troll program of the Agricultural Adj
iustment Administration
to statement made by S. M. Gar
wood, Production Credit Commits
sioner of the Farm Credit Adminis-
tration.
No loan will be made to any indi-
vidual who has shown lack CT good
faith in repaying feed and seed loans
made to him in previous years. 1t
is evidence of failure TO observe
good faith if borrower has out
standing unpaid balances for two or
more years which cannot be attrib-
uted to crop failures for which the
borrower could not reasonably be
held responsible.
The maximum amount which will
be made available to any one farmer
this year is $3.50 and the minimum
is S25 according to the regulations.
The interest rate will be 51a per
cent per annum. Provisions for
taking crop liens have been worked
out under Mr. Garwood's direction
and detailed regulations will be
placed in the hands of local emer-
gency crop loan committees within
the near future. The time and
place where these committees will
receive applications will be made
known locally within short time.
Before any farmer may secure a
loan, however, he must first obtain
statement from the County Pro-
duction Council where one exists,
that he does not intend to increase
his acreage or production in opposi-
ton to the Agricultural Adjustment
Administration program. Where a
county production council has not
been set up, the applicant will have
to give satisfactory evidence that he
is cooperating with the production
control program of the Agricultural
Adjustment Administration, before
his application for loan will be
considered.
Applications for loans from S25 to
$3.50 may be made directly TO the
emergency crop loan offices provided
the applicants do not have sufficient
security to obtain loans elsewhere.
A farmer applying for loan of
$3.50 or more must first make appli-
cation for a loan to the Production
Credit Association serving his coun-
ty. Rejection of his application by
the Production Credit Association
will be considered sufficient evidence
that other credit is not available and
the farmer may then make applica-
ton to the emergency crop loan Of
flee.
The emergency crop loans are en-
tirely separate from, and are not to
be confused with production credit
association loans. The Emergency
crop Loan Fund is an emergency re-
lief measure for this year only, to
make available funds to those who
cannot qualify for credit through
the regular channels of a produc-
ton credit association.
In announcing the regulations Mr..
IGarwood said he could not empha-
size too strongly that the emergency
crop loans are to provide means of
temporary relief for this year only,
and that this years loans probably
will be the last of their kind.
Farmers who have a source of in
come other than farming are not
eligible for emergency crop cans.
The fund will be used to make
loans not exceeding the cash cast of
growing crops during tho year 1884,
for summer following, and for win
ter wheat to be planted in 1884 and
harvested in 1895. An amount from
the fund, not to exceed $4,000 900,
may be used to make loans to pur-
chase feed for livestock in areas
designated by the Governor of the
Farm Credit Administration as
drought and storm-stricken. The
fund may not be used to make loans
to replace work-stock. Loans from
the fund may not be used for the
payment of existing debts. rent,
taxes or past-due accounts. The
Emergency Crop Loan Fund Act is
an emergency relief measure and
not a refnancing measure Loans
arc tn he made only to farmarS who