Evening star., 1940-03-10
BY WILLIAM PINKERTON,
Associated Press Stan Writer.

BY WILLIAM PINKERTON,
Associated Press Sta6 Writer.
Bankers and insurance men are
farming 2s, ,ooo, 900 acres Of Ameri-
can land.
Watching the want ads for every
chance to sell at a paying price,
both Government and private lend
ers have been forced by necessity to
learn the farming business.
All together, they have a billion
dollars worth Of farms on their
hands; and a farm, lying fallow Is
a costly asset. Some signs show that
the farm management experts are
making these unwanted lands pay
their way in the portfolios OF invest
ment houses.
Both the Government and private
business were thrown into "institu-
tional farming" by the depression's
deep corrosion on agricultural credit.
Own Less Than 3 Per Cent.
Government figures show that, as
of one year ago, the farm-loan out
fits who became big-time farmers
overnight shared ownership Of some
what less than per cent OF the
Nations farm land as follows:
Federal Land banks, $139, 40 600;
life insurance companies, $702,86l,-
600; Joint stock-land banks dn
nquidation0, $50 1876 900; commercial
banks, $40, e,143,000; State credit agen-
cies North Dakota, South Dakota,
Minnesota), $73, ,301 900.
Economists say the situation
changed little during 1899.
The totals above represent farms
actually owned-lock, stock and bar
rel-by the banks and insurance
companies. Aside from this. there
were more than $1,000, 900 900 OF
farm mortgage loans outstanding IN
the United States.
Despite the bitter days Of 1923
when the forced sale of farms to pay
of mortgage debts climbed to peak
more than twice the level Of 1880
many lenders still believe in farm
loans as q good investment.
Expert Studies Farm.
When the insurance company be-
comes owner of b farm, an expert
goes out and makes a study OF the
fields and buildings. Where neces-
sary, he orders shingles, paint and
fencing.
Then he lays out a five-year
Wanting schedule for each field, ro-
tating crops to insure fertility. II
tenants change during the period,
the new tenant takes up on the
planting program where the last
one left OF.
On its own farms the company
grows clover-type seed for replen-
fishing the soil; it has on hand now
q stock to last two years. In addi-
ton, the company spends more tnan
100000 a year on commercial fer
tilizer.
For rent, the company takes about
80 per cent of the main cash crops
and charges a cash rental for pas
ture land and hay meadow. The
rents mount up to $5,000,000 in a
year like 1899.
While this kind of management
has made the farms pay their own
way, Mr.. Rogers says the company's
policy is to sell the farms as soon
as possible. In 1899 the company
sold IL per cent of its farms-$11,-
600,0 900 worth.
Tenants were able to purchase It's
of the farms, some buyers paying as
little as per cent down. In these
cases the farm experts continue to
call at the farm, to help the new
owner with his planting problems.
Mr.. Rogers said only 1871 per cent
Of their sales put farms in the hands
of persons whose business is not
farming.
Seek Tenants Who Will Buy.
Irresponsible tenants" is the key
to the Federal Land Banks policy
in dealing with the land they have
taken over. They try to find men
who may buy the farm after work.
ing it for a while.
A. G. Black, governor of the Farm
Credit Administration, says that the
tenants bought about 81 per cent
of the land bank farms sold in 1899.
The banks sold 10,576 farms or
parts of farms during the year for
. total price Of $26, 6,702, 900.
The land banks do not control
farm operations Of their tenants to
the extent that Mr.. Rogers insur-
ance company does. They do not
chart the planting, field by field.
But experts visit the tenants to ad-
wise them. And tenants are urged
strongly to join Government soil
conservation and crop-control pro-
grams.
The lenders who have become big
farm owners because of the depres-
sion maintain that their policy has
been to foreclose only when farm
er was beyond hope of paying OF his
debts, or when he showed bad faith
In his dealings with the lender.
Butter making at home is being