Imperial Valley press., 1941-10-30

in an area with high water table,
alkali damage or at the extreme
edge of the district bordering on
the desert, is handicapped from the
point Of view of desirability OF
area.
l3. Few loans can be made on
low grade properties. From our
appraisal studies, it would seem that
some low grade properties are over
assessed by both the district and
state and county authorities. In ad-
dition such properties are ordinarily
subject to one or more important
hazards and are often characterized
by unstable ownership.
IA Many farms in the hands of
nonresident owners are being poor
ly handled with the result that
the condition of the properties is
deteriorating. Ordinarily the returns
received from such farms by Their
owners are unsatisfactory. For these
reasons it appears that considerable
care need be exercised in granting
loans to nonresident owners.
IS During the months when If
rigation is not carried on the soil
becomes so dry that it is impossible
to drill holes with a soil auger, cx-
Cept by use of water. Also, particu-
larly if the land has been ploWed
or diSced, it is impossible to deter
mine the presence and extent of
alkali. Accordingly it is not plan
/ ned to make appraiSalS during pc
riods of the year when the soil
cannot be properly sampled and
drainage conditions ascertained.
l6. The recent comprehensive
review of appraisals and loaning IN
the valley discloseS that not all the
standards used have been on the
right basis. Generally it would ap-
pear that valuations and loans
made on the better farms have been
about right, but that a number Of
the poorer properties with drainage
and alkali hazards have been ma
terially over valued.
To summarize: The errors in
past appraisals were due principally
to:
ta) Lack of adequate information
concerning problems of drain
age, alkali, hard soils ana
salt aCcumulationS.
Cb) insufficient consideration to
hazards of poor drainage and
high water table
(c) Failure to properly evaluate
the disadvantages of the hard
lands.
Cd insufficient weight to the
factor of location.
IT. 1t is believed that so acres
of good land represents about the
minimum size of unit for a Federal
Land bank loan. Smaller acreages
may qualify for a commissioner
loan.
l8. 1t is concluded that Federal
Land bank loans can safely be made
on a selective basis. Until complete
information regarding drainage and
salt accumulationS is obtained, it
seems advisable to limit the making
of land bank loans to the better
farms in areas and under conditions
where these uncertain hazards are
not present to any material degree
10. For the present it seems de-
Sirablc that full Seventy-five per
cent loans should be made Sparing-
ly in any case only to good opera
tors on good quality farms Of ample
size to sustain a family and meet
| overhead and operating costs in
addition to paying loan inStallmcnts.
20. There are many cases in the
valley in which by careful selection,
borrowers can be served on a salts
factory basis and adequate security
obtained.
81. To summarize: Federal Land
bank loans will be made on a selec-
tive basis on the best quality farms
and commissioner loans will be used
TO serve applicants who offer ac-
Ccptable security which however
does not qualify for Federal Land
bank loans. Loans will be made
speringly on the lower class proper
ties and no loans will be granted
where the hazards of drainage, al
kali accumulation or unsatisfactory
area trend are present in con-
siderable degree. Likewise, under
sized units of mediocre land, with
out satisfactory improvements, usu-
ally will not qualify for loans.
Applicants for either land bank
or commissioner loans may apply
to Mr., R. D. Hoy. $50 Main street,
El Ccntro, California.