Montana oil and mining journal., 1942-03-28
INITIATION IN LAND
PRICES MAY BE JUST
AROUND THE CORNER

For scme time past we have been advising
cur members 70 BUY FARM LANDS as a
permanent investment We have added that
while a man is seeking the security Of land
investment, he should, If possible buy land
on known oil structures, giving him the
speculative possibility of a fortune from oil
IN years TO come With the science Of geOl-
Ogy to guide us and with United States
Geological maps as authority for such geol-
Ogy, there Is no reason why land investors
cannot have lands on known oil structures
Thus far, there has been no increase In
land prices but we have maintained that in
flatiOn is at hand. And here is a press re-
lease from the Farm Credit Administration
Of Spokane on the subject:
Initiation in farm real estate may be just
around the corner In the Pacific Northwest,
r. E. Brown, general agent Of the Farm
Credit Administration Of Spokane, warned,
on the basis Of a survey Of present farm
sales prices.
Average farm sales figures in Montana,
Idaho. Washington and Oregon in the last
three months Of 1941 were 10 percent higher
than in the same period Of 1910, Brown re-
ported. These increases ranged from rs per-
cent in northeastern Montana to 3 percent
in southeastern Idaho.
'aThe increase In northeastern Montana
reflects natural rebound from distressed
levels Of past years." Brown said. Fer the
district as a whole, including Montana, the
increases which have occurred to date have
not brought prices to an inflatiOnary level
yet, but the tendency toward initiation Is
present IN the trend. Unless prices are held
at or near present levels, initiation will re-
suit"
The survey upon which Browns warning
was based was conducted by Farm Credits
research department. This survey also
showed:
1. Farm sales in the last quarter of 1871
were 20 percent greater than in the same
period of 1910. Greatest activity was noted
in western Washington, where the gain was
IS percent; In central Washington and
northeastern Montana, where the gain was
30 percent, and In western Oregon, where
farm sales jumped 25 percent. None of the
Is areas into which the four states were
broken down for the study showed increased
sales of less than 10 percent.
2. There Is no particular bidding for farm
lands by spectators as yet apparent In the
market; however, ii percent of sales re-
ported were made to investors.
g. More than twO-thirds Of all sales re-
ported we're made to present farm operators
IN the areas where sales took place. Twenty
live percent Of the farms they bought win
be consolidated with present holdings. Dis
amt buyers were most active in coast areas,
n northeastern Washington and north CEN
raj Idaho
4. Corporations, retiring farmers and ac-
i've farmers each accounted for approx
nateIy One-f0urth Of all sales The remain
Ter was sold by estates, individuals other
han farmers, and others. In all parts of
Montana except western Montana, corpora
ion sales accounted for approximately 50
'ercent Of farms sold. Sales by active farm
rs we're believed to reflect in part a sub
tantial movement from farms to defense
Industries I'm cities.
5. While figures sales to tenants were
lot obtained the record of the Federal Land
hank Of Spokane for the entire year Of 194I
vas cited. OF 1,O75 properties disposed of
uring the IL months, ISL were sold to ten
ntS or to former owners or their relatives