Evening star., 1940-09-29
Says Farm Security
Collections Good
BIZ Frederic J. HdSkin.

upon the part of those who are eco
nomically less fortunate, but because the
chances of being able to meet an obiiga-
ton are less when income is low and un-
stable.
The Federal Government, however
within few years, may be able 10 prove
than the man without assets, but with
a willingness to work, is good hnan-
cial risk. for borrowers from the Farm
Security dministration-many Of whom
were once on relief-show they are not
only repaying their loans, but also are
making long strides toward better living
and security.
Since 1885 the F. S. A. has been max
ing loans averaging from 500 to $500
each to needy farm families to enaole
them to get new start on the LAND.
Ordinarily such loans are just large
enough to finance the purchase OF the
seed, livestock and equipment necessary
10 carry on farming operations. The
loans are repayable over period OF from
l to 10 years at per cent interest.
The Government takes mortgage on
all goods purchased with rehabilitation
loan. and on any other possessions the
borrower may have. AS an additional
protection for its investment, the F. 5. A.
provides technical advice and guidance IN
sound farming methods to every borrow
er TO make sure that the money is used
to the best advantage. Such loan Is
based on farm and home management
plan carefully worked out by the bor-
rowing family and the F. S. A. county
supervisor.
The repayment record tells tale of
honest effort. For example, the F. S. A.
has collected over sl32 100000 out Of the
total of approximately $685. 900 900 1t has
loaned to some 100000 individual bor-
rowers, although much OF the money VIII
not be due for three or four years. 1t is
estimated that approximately 30 per cent
of the funds loaned will be repaid even
tually with interest. Losses so far are
largely due to conditions beyond control
of the borrowers.
Repavments are considered remarkable
when it is taken into account that all OF
the families assisted were bad credit risks
from a standpoint of assets. They were
so far down economically they could not
obtain adequate credit anywhere, and
their only recourse was to turn to their
Government.
Not only have these borrowers demon
strated willingness to repay their loans,
but some $4,000 families of the borrow
ers have increased their aggregate net
worth-over and above all debts-by
more than s83OO0000 since the loans
were obtained. This is an average in
crease of about $3.50 per family. The
increased net worth Of borrowers Is an
even better indication of the success OF
the program than repayment figures. be-
cause it shows the actual progress made
by the family.
These borrowers seem to have demon
strated conclusively the economic as well
as the social wisdom of the Governments
investments in loans to low-income farm
ers Nearly all the loans were made 10
farmers who were either on relief rolls or
in need of relief Now. instead OF being
burdens on their communities. they are
becoming self-supporting citizens.
At the time the loans were made %
per cent of the families still lacked ade-
quate beds, is per cent had inadequate
stoves. "a per cent were not receiving
proper medical attention, AZ per cent did
not have sanitary protected water sup
plies. 80 per cent lived in unscreened
houses and SO per cent of the families
were without sanitary toilets. Living
under such conditions is not an induce
ment to the most effective work, and the
average man would likely accept the
thought of debt as only another hardship.
These small borrowers from the Fed
eral Government have not only made
fair showing on repayment of their loans.
but have tripled their production Of food
for home consumption. For example.
they increased their annual average can
ming Of fruits and vegetables from 81
quarts per family to 242 quarts. or 33l
per cent. their production of milk for
home consumption from SO gallons TO 465
gallons. or 448 per cent, their average
production of eggs for home use from 80
dozen to 100 dozen. Comparable gains
have been made in the production of
meat and other necessaries for home use.
This increased production does not
mean competition with other agricul-
tural areas, because virtually all Of the
additional foodStuffs were consumed on
the farms which produced them. 1t does
mean better diet and better health for
the needy and handicapped families
which are taking part in this program.
Most borrowing families formerly had
inadequate equipment and livestock
which became even more of handicap
with increased acreage. For example,
borrowers at the time they procured
loans had an average of only - work
animals. BY the end of the third year
of assistance this average had increased
to % animals.
In connection with its rehabilitation
loan program, the F. S. A. administers a
debt adjustment service through volun-
tary State and county committees. By
the end of the last fiscal year these COM
mittees had negotiated voluntary debt
adjustments with creditors for 125000
families Their obligations had been