The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1939-07-20

at the Percy Shelton home at
Lamberton.
FSA Borrowers In
State Gain S463 in
Average Net Worth
Farm Security administration
borrowers in Minnesota not only
have increased their net worth by
S2,969,021, but are also making
substantial repayments on their
loans, according to l.. w. FosS-
hage, Redwood and Brown county
supervisor. These fact are discloS-
ed in a survey of 6,406 typical
loW-income farmers who received
rehabilitation loans from the FNSA.
The FSA announces that all of
the $500 borrowers in the state
had repaid $2,258,485 of the ST.
999,646 they borrowed, although
the loans were made for a period
of five years and most of them
have three of four years in which
to mature.
In announcing the results of the
survey, r. S. Harris, acting state
director of the FSA said that the
$463.47 per family gain in net
worth - over and above all debts
- was the "real measure" of the
programs results.
"The net worth figures, which
reflect the difference between to-
tai assets and total liabilities of
each family, before and after, are
an even better indication of the
progress of these families then the
repayment figures" he said, cal
though the repayment record is
excellent in view of the fact that
most of the families aided would
be considered extremely poor
credit risks, judged by normal
| business standards"
"None of them, he said, "were
able to obtain adequate credit on
reasonable terms ell seWh r e.
Many had been on relief. The
rehabilitation loan program is
making them independent of fur
Their assistance, by providing them
with the equipment and training
necessary for successful farming"
The average borrower was loan
ed approximately 5000. The 6,406
families covered by the survey re-
ported total increase in their net
worth from $4,585; 279 10 1854
300 by the end of the 1888 crop
year.
This average of $463.47 compar-
ed with a national average for
232,947 families of $265. The aver
age for all northern states was
S267.O3.
In the last crop year alone, the
report said, the 6,406 families in
creased their net worth by $685.
700 or an average of $262.83 for
each family.
In noting other facts disclosed
by the survey, Mr.. Harris said,
lone of the primary aims of the
rehabilitation program is to en-
able borrowers to raise their own
food supplies and livestock feed.
1t also encourages them to diversi-
fly their operations so that they
will be less dependent upon cash
crops. Their progress is indicated
by the fact that the 6,406 typical
FSA families who reported in
Minnesota had stored 1,042, 800
quarts of fruits and vegetables last
year to tide them through the win
ter. The average family had in
creased its annual production of
home-canned food by 118 quarts
since it first received an FSA loan.
Moreover, the production of
meat for home use had risen a
total of 2,144,414 pounds annually
or 335 pounds per family; and the
average increase in egg production
for home consumption was 70
dozen eggs per family.
Relatively few families owned
sufficient livestock when they
first sought FSA aid, and this lack
was reflected in their income. By
the end of the 1886 crop year,
however, the borrowers in Mimi
esota reported that they had in
creased their dairy cows from an
average of 6.5 to Is head, while
the number of poultry and hogs
was doubled"
The FSA also reported that al
though many of its borrows were
owner-operators, the tenants on
the program had generally i'm
proved their lease arrangements.
1t said 1859 of them had obtain
ed written instead of oral leases
and 474 had advanced from hired
laborers to tenants during the past
crop year.
Another measure of progress,
the FSA said, was that 1885 child
rem of school age in these borrow
ing families had been enabled to
attend school as direct result OF
the rehabilitation program"
In addition to its rehabilitation
loan program, the administration
makes loans in designated coun-
ties to enable tenants to buy their
own farms under the Bankhead-
Jones Farm Tenant act.
] In Redwood county there are II
low-income families who have re
ceived rehabilitation loans, Mr.
| FoSSha oa said