The Waterbury Democrat., 1943-03-27

If there Is such a boom, is 1t attri-
buted in part to the desire Of in
vestors to put their money In farm
properties as a hedge against infia-
ton or, for the rest. Is 1t q genu-
inc belief that the increasing war
demands for food, fiber and other
agricultural products with a llkeli-
hood of increased prices make farm
] ing at this time good business? In
short, Is there going to be a farm
land boom like there was In the last
war?
1t so happens that Department
of Commerce study on this situation
has just been completed by Frank
r. Wilson, an Iowa farmer himself,
by the way, but now one of the edi-
tors of Domestic Commerce Weekly.
1t is Wilson's conclusion that there
is as yet little evidence Of specula-
tive activity in farm properties, but
there is genuine fear that the
situation Is shaping up to develop
such boom at the end of the war.
FARM VALUES RISING
The latent forces which might de-
velop into a speculative boom are
listed as the existence of large saw
ings in cash and war bonds result
ing from several years of large farm
incomes, the desire of young men
mustered out of the Army to ac-
quire farm lands, the postwar de-
mand fer large quantities of food
crnilS for Ellr0nnnn rnliaf
IF TO these factors Is added I'M
controlled prices of farm products, I"
says Wilson, "a wave of speculation
in farm lands would seem newt
able"
The moral here would seem to be
that farm prices must be kept UNI
der control.
Basis for Wilson's study was a
survey Of what was happening to
farm land values and farm mort
gage indebtedness in 10 midwest
ern states from Ohio to New Mex
leo and from Montana to Arkansas.
In this area are half of the ma
TONS six million farms, constitut-
ing the major war food production
area.
Throughout the middle west, Will
son found general increase in
farm values of from 10 to Is per
cent during the past year. and a
greatly accelerated rate of farm
sales. Price increases ranged from
6 per cent in Wyoming to as high as
so per cent in some parts of North
Dakota.
CHECKS FOR SPECULATION
Department Of Agriculture figures
on the long-term trend in farm
values show a drop of 81 per cent
from 1920 to 1888 for the whole
country. This was obviously the de-
fiationary drop which followed the
speculative land boom after the
last war. From 1888 to 1912, there
has been a Is per cent recovery In
farm values - an average increase
of less than per cent a year. If,
however. the l9-State record of farm
sales studied by the Department of
Commerce for the past year and
showing 10 per cent to Is per cent
increase is general for the entire U.
S.. there is indeed in evidence the
making of another farm land boom.
Three factors right now seem to
be holding runaway speculation in
check. The first is price control on
agricultural products, to the degree
it is In effect. The second is the
shortage of farm labor and equip
ment, making 1t difficult to operate
a farm. The third is the painful
memory of what happened during
the farm boom of the last war,
when thousands OF farmers went
head over heels In debt and lost
everything they had, right down to
the underwear.
So vivid Is the memory Of that
crash that farm owners who are also
farm operators-as opposed to the
city fellers who support farms as a
hobby-are now found to be paying
OFF their mortgage indebtedness at
an accelerated rate.
The zeal shown by farmers In
wanting to get out Of debt Is shown
by the fact that whereas only 10000
loans were paid TO maturity In 1910,
$1,000 were paid of In 1912. Delln.
quencies In payments are being
rapidly reduced and many farmers
now pay In advance.