Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-01-17
Practical Farm Relief

From the standpoint of the we'll
being of the farmers of Minnesota
one of the most important points in
the program advocated by Governor
Olson in his opening message to the
Legislature was his plea for the
amendment of the Mortgage MoratOr-
ium act. The governor would change
the act so that whenever the owner
occupant of a farm seeking court re-
lief from mortgage foreclosure, or
eviction, following the expiration of
the period of redemption, offers to
turn over to the owner of the mort
gage upon such farm, one-fOurth of
the crop production for such farm for
the calendar year as a payment to
apply upon existing indebtedness to
such mortgage, it shall become man.
datory upon the court to restrain any
attempted foreclosure or eviction
The governor also recommended in
this connection that the Rural Credit
bureau be authorized to sell farms
owned by the state upon a crop pay
ment plan comparable to the pres
ent and customary leasing process"
To understand fully the Importance
of the first proposal by the governor,
one must take into consideration GER
tain factors which have stood in the
way of agricultural relief One of
these has been the opposition or in
difference of certain groups which
have felt no responsibility or interest
in the well-being of the farmer.
At present the creditors of the
farmer do not have to share with him
the risks of uncertainties involved in
farm production. Drouth may reduce
the farmers crops almost to the van
ishing point and force him to dis
pose of livestock to keep it from
starving. In some years sharp de-
clines in farm prices may cut his
cash income to the point where it is
insufficient to meet his every day
needs, but all the while the farmer
must make payments on his mortgage
in cash on a basis previously estab
lished, which may be out of proper
tion to his present income. The cred
itor thus escapes burdens which are
placed upon the farmer by forces be-
yond his control The creditors in
come under the prevailing system is
not diminished in proportion to the
farm debtors ability to pay.
AS a result of this, many groups
now lack the interest, in remedying
the evils of our agricultural system
that they would have if their own
well-being were directly affected by
such things as lower farm prices and
narrowing markets for farm products.
When the creditors income remains
the same despite the fact that his
debtors income is reduced he may
not feel it incumbent upon him to
promote better conditions for his
debtor
Under Governor Olson's proposal
for payments in kind, however. it
would be to the interest of the cred
itor. and of other groups that might
be affected indirectly by the situa-
tion of agriculture, to take an active
part in movements for improvement
OF farm prices and the extension Of
the farmers market Inasmuch as
this plan would make the creditor
share the burden of lower prices, or
limited markets, it would be to his
interest to work for the betterment
of agriculture.
With the forces that would thus be
added to those seeking improvements
in farm prices and markets it is OBJ
vious that the chances of agricultural
relief would be far greater than they
are now. The farmer would find these
other groups coming to his aid and
making a common fight with him Cor
the things for which he now has to
battle single handed. Such united
effort as this should soon result in
a Frightening of the agricultural pic
ture.
The governors proposal for sale of
farms by the Rural Credit bureau on
a crop payment plan offers several
advantages 1t would make it posi-
BILE for many who now cannot buy
farms to purchase them on terms
which they could meet. Their pay
ments would depend upon the produc-
tion of the farm and they would not
be penalized. rs they often are now.
when poor markets for agricultural
products might reduce their cash in
come so greatly that they could not
afford to keep up payments on a
stipulated cash basis. By making