12 ANNUAL REPORTS OF DEPARTMENT OF AGRICULTURE. 



ters relating to agriculture. At the conclusion of the session the 

 conference brought in a number of important recommendations, 

 some of them suggesting legislation, some suggesting administrative 

 action, and some suggesting certain matters which should have the 

 attention of fanners and farm organizations. The details of the 

 discussions and the recommendations were presented to you in a 

 special report February 6, 1922. Favorable action has been taken 

 on most of the more important recommendations of the conference. 

 The presence of this large number of practical farmers from almost 

 every State afforded an opportunity for conference between them 

 and the workers of the Department of Agriculture, and this inti- 

 mate contact with the delegates proved most helpful in stimulating 

 department activities, especially along economic lines. The coming 

 together of men of widely divergent views from so many different 

 sections was most beneficial in every way. 



CREDIT liEGISIiATION NEEDED. 



Among the recommendations of the national agricultural con- 

 fer cji'.e were two which dealt with the matter of farm credit. One 

 urged the increase of the maximum which may be loaned to an in- 

 dividual by the Federal farm land banks from $10,000 to $25,000. 

 The other expressed the need for a better system of credit for pro- 

 duction purposes. Neither of these recommendations have been 

 acted upon as yet, although the need of favorable action is urgent. 



Jn the more highly productive agricultural regions the amount 

 required to be invested in the average-sized farm which is the most 

 economical unit for the average farm family is so great that a 

 xaortgage loan limited to $10,000 is not large enough to meet the 

 needs of the average farm owner. Many farmers are therefore 

 deprived of the benefit of the Federal farm land bank system and 

 just at a time when they most need it. This limit should by all 

 means be increased to $25,000 as quickly as possible. 



Short-time or working credit used by the farmer comes from two 

 sources, the commercial banks and the merchants, the latter also neces- 

 sarily being carried by the banks. The trouble with this short-time 

 farm credit is that very often the notes given run for a shorter time 

 than the farmer needs the money, and therefore must be renewed, 

 and often the rates are higher than farm profits justify the farmer 



