Browning chief. [volume] (Browning, Mont.) 1941-1953, 1944-05-26


Rarrow LYONS the Pacific coast,
the quest Of thou
sands Of war factory workers for
security on the land and the increase
in produce values meant a rise Of
30 per cent to SO per cent in farm
land values during the same period.
The great rise in prices of farm
commodities has induced many pur-
chases for quick profit. A California
land dealer reported the sale of a
1,000-acre rice farm at $50 an acre
that's $50, 0O0-but the farmer who
bought it was able to obtain more
than $4,000 for his crop in one year.
A vineyard near Fresno valued at
5000 during the depression sold re-
Gently for $4,000.
Even the land brokers are worried
about the situation, despite down
payments of one-third the selling
price. No one expects farming to
continue to be as profitable as it is
now for an indefinite number of
years, even if farm produce prices
remain on high level. The day
when it will be hard for many pur-
chasers to continue payments at the
rate contracted for is foreseen by
conservative land dealers.
War Bonds Preferred
Secretary of Agriculture Claude
R. Wickard has urged repeatedly
farmers who are making money to
pay off mortgages and invest it in
war bonds, rather than in more
land, if by doing so they bid up the
price to point where it would be-
come Improbable to farm during Pc
RODS of depression, especially if the
buyer must give a heavy mortgage.
1t is clear that every farmer who
so burdens himself with large in
stallment payments will have to
meet the competition of those who
have paid off mortgages out of the
S34 billion income farmers have re-
ceived in the last two years.
During a trip l made through the
Middle West and South last winter
l discovered that the most progress
sive farmers were very well aware
of this situation, which is happening
in greater or lesser degree in nearly
every part of the country. They were
particularly resentful of the men
who have had comparatively little
experience in farming, but now see
a chance to make a quick cleanup
on high markets.
Not only do these newcomers pay
too much for their land, but without
the perspective of years of expert
ence, pay much higher wages to
their help. This makes it especially
difficult for the experienced farm
ers to keep good farm hands, espe-
cially in the face of demands of
seleCtive service and the compe-
tition of munitions industries.
The Farm Credit administra is
doing what it can to retard the pres
ent tendency. Throughout the coun-
try it has refused to make loans
based on sales at exorbtant prices.
Its loan business has been greatly
curtailed, and tenant farmers con-
templating purchase are being ad-
vised to figure with great care what
they can reasonably expect to earn
on farm over a period of years
and to base their purchases on such
calculations, rather than on present
commodity prices.
1t has even been suggested that
down payment of half of the price
should be a legal requirement for
any farm purchase.
Refuse to Match Spectators
There is little the individual farm
er can do to check this growing
menace, except to hold on to his
farm and refuse to meet the COM
petition for acreage of speculative
farmers. But there is a good deal
each can do, if he will inform HIM
self of the situation in his own
area and then let his congressman
| know about it.
He might also write directly to
Senator Josiah w. Bailey of North
Carolina, who has been named
| chairman of a subcommittee of the
senate finance committee named to
consider two bills introduced by
Senator Guy M. Gillette of Iowa.
The other members of this group
are Senators Robert M. La Toilette
Jr. of Wisconsin and Harry F. Byrd
of Virginia. The Gillette bills would
tax the profits from the resale of
farm land within two years of pur-
chase of 80 per cent, with diminish
ing taxes on resales up to six years.
Public hearings have not been
held on these bills as yet and the
subcommittee has made no report.
A show of public interest in the mat
ter undoubtedly would get some
action.